Document:

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                                    GUARANTY

         THIS GUARANTY (this "Guaranty") is made as of the 11th day of December,
2000, by and among SYBRON DENTAL MANAGEMENT, INC., a Delaware corporation
("SDM"), KERR CORPORATION, a Delaware corporation ("Kerr"), ORMCO CORPORATION, a
Delaware corporation ("Ormco"), METREX RESEARCH CORPORATION, a Wisconsin
corporation ("Metrex") and PINNACLE PRODUCTS, INC., a Wisconsin corporation
("Pinnacle") (each an "Initial Guarantor" and together with any additional
Material Domestic Subsidiaries of SDS which become parties to this Guaranty by
executing an Addendum hereto in the form attached as Annex I, the "Guarantors")
in favor of the Administrative Agent, for the ratable benefit of the Holders of
Secured Obligations, under (and as defined in) the Credit Agreement referred to
below;

                                   WITNESSETH:

         WHEREAS, Sybron Dental Specialties, Inc., a Delaware corporation
("SDS"), the Subsidiary Swing Line Borrowers from time to time parties thereto,
Kerr, Ormco, SDM, the institutions from time to time parties thereto as Lenders,
ABN AMRO BANK N.V. in its capacity as contractual representative (the
"Administrative Agent") for itself and the other Lenders, The Chase Manhattan
Bank, as Syndication Agent and First Union National Bank, as Documentation
Agent, have entered into a certain Credit Agreement dated as of November 28,
2000 (as the same may be amended, modified, supplemented and/or restated, and as
in effect from time to time, the "Credit Agreement"), providing, subject to the
terms and conditions thereof, for extensions of credit and other financial
accommodations to be made by the Lenders to the Borrowers;

         WHEREAS, it is a condition precedent to the initial extensions of
credit by the Lenders under the Credit Agreement that each of the Guarantors
(constituting all of the Material Domestic Subsidiaries of SDS required to
execute this Guaranty pursuant to Section 7.2(K) of the Credit Agreement)
execute and deliver this Guaranty, whereby each of the Guarantors shall
guarantee the payment when due of all "Secured Obligations" (as defined in the
Credit Agreement), principal, interest, letter of credit reimbursement
obligations and other amounts that shall be at any time payable by the Borrowers
under the Credit Agreement, any Hedging Agreement and the other Loan Documents;
and

         WHEREAS, in consideration of the direct and indirect financial and
other support that the Borrowers have provided, and such direct and indirect
financial and other support as the Borrowers may in the future provide, to the
Guarantors, and in order to induce the Lenders and the Administrative Agent to
enter into the Credit Agreement, each of the Guarantors is willing to guarantee
the obligations of the Borrowers under the Credit Agreement, any Hedging
Agreement and the other Loan Documents;

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

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         SECTION 1. Definitions. Terms defined in the Credit Agreement and not
otherwise defined herein have, as used herein, the respective meanings provided
for therein.

         SECTION 2. Representations, Warranties and Covenants. Each of the
Guarantors represents and warrants (which representations and warranties shall
be deemed to have been renewed at the time of the making, conversion or
continuation of any Loan or issuance of any Letter of Credit) that:

         (a) It is a corporation, limited liability company, partnership or
other commercial entity duly incorporated or formed, validly existing and in
good standing under the laws of its jurisdiction of incorporation or formation
and has all requisite authority to conduct its business as a foreign Person in
each jurisdiction in which its business is conducted, except where the failure
to have such requisite authority would not have a Material Adverse Effect.

         (b) It has the power and authority and legal right to execute and
deliver this Guaranty and to perform its obligations hereunder. The execution
and delivery by it of this Guaranty and the performance by it of its obligations
hereunder have been duly authorized by proper proceedings, and this Guaranty
constitutes a legal, valid and binding obligation of such Guarantor, enforceable
against such Guarantor in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors' rights generally.

         (c) Neither the execution and delivery by it of this Guaranty, nor the
consummation by it of the transactions herein contemplated, nor compliance by it
with the terms and provisions hereof, will (i) violate any law, rule,
regulation, order, writ, judgment, injunction, decree or award binding on it or
its certificate or articles of incorporation or by-laws, limited liability
company or partnership agreement (as applicable) or the provisions of any
indenture, instrument or material agreement to which it is a party or is
subject, or by which it, or its property, is bound, (ii) or conflict with or
constitute a default thereunder, or (iii) result in the creation or imposition
of any Lien in, of or on its property pursuant to the terms of any such
indenture, instrument or material agreement. No order, consent, approval,
license, authorization, or validation of, or filing, recording or registration
with, or exemption by, any Governmental Authority, is required to authorize, or
is required in connection with the execution, delivery and performance by it of,
or the legality, validity, binding effect or enforceability against it of, this
Guaranty.

         In addition to the foregoing, each of the Guarantors covenants that, so
long as any Lender has any Revolving Loan Commitment outstanding under the
Credit Agreement or any amount payable under the Credit Agreement or any other
Secured Obligations shall remain unpaid, it will, and, if necessary, will enable
the Borrowers to, fully comply with those covenants and agreements of the
Borrowers applicable to such Guarantor set forth in the Credit Agreement.

         SECTION 3. The Guaranty. Each of the Guarantors hereby unconditionally
guarantees, jointly with the other Guarantors and severally, the full and
punctual payment when due (whether at stated maturity, upon acceleration or
otherwise) of the Secured Obligations, including, without

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limitation, (i) the principal of and interest on each Advance made to the
Borrowers pursuant to the Credit Agreement, (ii) any Reimbursement Obligations
of the Borrowers, (iii) all Hedging Obligations of the Borrower owing to any
Lender or any affiliate of any Lender under any hedging Agreement, and (iv) all
other amounts payable by the Borrowers or any of their Subsidiaries under the
Credit Agreement, any Hedging Agreement and the other Loan Documents (all of the
foregoing being referred to collectively as the "Guaranteed Obligations"). Upon
failure by any Borrower or any of their respective Affiliates, as applicable, to
pay punctually any such amount, each of the Guarantors agrees that it shall
forthwith on demand pay such amount at the place and in the manner specified in
the Credit Agreement, any Hedging Agreement or the relevant Loan Document, as
the case may be. Each of the Guarantors hereby agrees that this Guaranty is an
absolute, irrevocable and unconditional guaranty of payment and is not a
guaranty of collection.

         SECTION 4. Guaranty Unconditional. The obligations of each of the
Guarantors hereunder shall be unconditional and absolute and, without limiting
the generality of the foregoing, shall not be released, discharged or otherwise
affected by:

         (a) any extension, renewal, settlement, indulgence, compromise, waiver
or release of or with respect to the Guaranteed Obligations or any part thereof
or any agreement relating thereto, or with respect to any obligation of any
other guarantor of any of the Guaranteed Obligations, whether (in any such case)
by operation of law or otherwise, or any failure or omission to enforce any
right, power or remedy with respect to the Guaranteed Obligations or any part
thereof or any agreement relating thereto, or with respect to any obligation of
any other guarantor of any of the Guaranteed Obligations;

         (b) any modification or amendment of or supplement to the Credit
Agreement, any Hedging Agreement or any other Loan Document, including, without
limitation, any such amendment which may increase the amount of the Secured
Obligations guaranteed hereby;

         (c) any release, surrender, compromise, settlement, waiver,
subordination or modification, with or without consideration, of any collateral
securing the Guaranteed Obligations or any part thereof, any other guaranties
with respect to the Guaranteed Obligations or any part thereof, or any other
obligation of any person or entity with respect to the Guaranteed Obligations or
any part thereof, or any nonperfection or invalidity of any direct or indirect
security for the Guaranteed Obligations;

         (d) any change in the corporate, partnership or other existence,
structure or ownership of any Borrower or any other guarantor of any of the
Guaranteed Obligations, or any insolvency, bankruptcy, reorganization or other
similar proceeding affecting any Borrower or any other guarantor of the
Guaranteed Obligations, or any of their respective assets or any resulting
release or discharge of any obligation of any Borrower or any other guarantor of
any of the Guaranteed Obligations;

         (e) the existence of any claim, setoff or other rights which the
Guarantors may have at any

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time against any Borrower, any other guarantor of any of the Guaranteed
Obligations, the Administrative Agent, any Holder of Secured Obligations or any
other Person, whether in connection herewith or in connection with any unrelated
transactions, provided that nothing herein shall prevent the assertion of any
such claim by separate suit or compulsory counterclaim;

         (f) the enforceability or validity of the Guaranteed Obligations or any
part thereof or the genuineness, enforceability or validity of any agreement
relating thereto or with respect to any collateral securing the Guaranteed
Obligations or any part thereof, or any other invalidity or unenforceability
relating to or against any Borrower or any other guarantor of any of the
Guaranteed Obligations, for any reason related to the Credit Agreement, any
Hedging Agreement, any other Loan Document, or any provision of applicable law
or regulation purporting to prohibit the payment by any Borrower or any other
guarantor of the Guaranteed Obligations, of any of the Guaranteed Obligations;

         (g) the failure of the Administrative Agent to take any steps to
perfect and maintain any security interest in, or to preserve any rights to, any
security or collateral for the Guaranteed Obligations, if any;

         (h) the election by, or on behalf of, any one or more of the Holders of
Secured Obligations, in any proceeding instituted under Chapter 11 of Title 11
of the United States Code (11 U.S.C. 101 et seq.) (the "Bankruptcy Code"), of
the application of Section 1111(b)(2) of the Bankruptcy Code;

         (i) any borrowing or grant of a security interest by any Borrower, as
debtor-in-possession, under Section 364 of the Bankruptcy Code;

         (j) the disallowance, under Section 502 of the Bankruptcy Code, of all
or any portion of the claims of any of the Holders of Secured Obligations or the
Administrative Agent for repayment of all or any part of the Guaranteed
Obligations;

         (k) the failure of any other Guarantor to sign or become party to this
Guaranty or any amendment, change, or reaffirmation hereof; or

         (l) any other act or omission to act or delay of any kind by any
Borrower, any other guarantor of the Guaranteed Obligations, the Administrative
Agent, any Holder of Secured Obligations or any other Person or any other
circumstance whatsoever which might, but for the provisions of this Section 4,
constitute a legal or equitable discharge of any Guarantor's obligations
hereunder.

         SECTION 5. Discharge Only Upon Payment In Full: Reinstatement In
Certain Circumstances. Each of the Guarantors' obligations hereunder shall
remain in full force and effect until all Guaranteed Obligations shall have been
paid in full in cash and the Revolving Loan Commitments and all Letters of
Credit issued under the Credit Agreement shall have terminated or expired. If at
any time any payment of the principal of or interest on any Advance, any
Reimbursement Obligation

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or any other amount payable by any Borrower or any other party under the Credit
Agreement, any Hedging Agreement or any other Loan Document is rescinded or must
be otherwise restored or returned upon the insolvency, bankruptcy or
reorganization of any Borrower or otherwise, each of the Guarantors' obligations
hereunder with respect to such payment shall be reinstated as though such
payment had been due but not made at such time. Each Guarantor hereby expressly
waives the benefits of Section 2815 of the California Civil Code (or any similar
law in any other jurisdiction) purporting to allow a guarantor to revoke a
continuing guaranty with respect to any transactions occurring after the date of
the guaranty. If, notwithstanding the foregoing, any Guarantor shall have any
right under applicable law to terminate or revoke its guaranty of the
Obligations, such Guarantor agrees that such termination or revocation shall not
be effective until a written notice of such revocation or termination,
specifically referring hereto, signed by such Guarantor, is actually received by
the Administrative Agent. Such notice shall not affect the right and power of
any Lender or the Administrative Agent to enforce rights arising prior to
receipt thereof by the Administrative Agent.

         SECTION 6. Waivers.

         (a) Each of the Guarantors irrevocably waives acceptance hereof,
presentment, demand or action on delinquency, protest and, to the fullest extent
permitted by law, any notice not provided for herein, as well as any requirement
that at any time any action be taken by any Person against any Borrower, any
other guarantor of the Guaranteed Obligations, or any other Person.

         (b) Without limiting the generality of the foregoing or any other
provision hereof, each Guarantor hereby waives, to the fullest extent permitted
by applicable law in accordance with Section 2856 of the California Civil Code,
all rights and benefits under California Civil Code Sections 2787 to 2855,
inclusive(or any similar laws in other jurisdictions) and all rights and
benefits of California Civil Code Sections 2899 and 3433 (or any similar laws in
any other jurisdiction). In addition, without limiting the generality of the
foregoing or any other provision hereof, each Guarantor hereby waives, in
accordance with Section 2856 of the California Civil Code, all rights and
defenses (including, without limitation, all rights and defenses arising out of
an election of remedies by the Administrative Agent or any Holder of Secured
Obligations) that such Guarantor may have because the Secured Obligations are
secured by real property. This means, among other things:

                  (i) the Administrative Agent or any Holder of Secured
         Obligations may collect from any Guarantor without first foreclosing on
         any real or personal property collateral pledged to or for the benefit
         of the Administrative Agent or any Holder of Secured Obligations; and

                  (ii) if the Administrative Agent or any Holder of Secured
         Obligations forecloses on any real property collateral pledged by any
         Borrower or Guarantor: (A) the amount of the debt may be reduced only
         by the price for which that collateral is sold at the foreclosure sale,
         even if the collateral is worth more than the sale price; and (B) the
         Administrative Agent or any Holder of Secured Obligations may collect
         from any Guarantor even if the

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         Administrative Agent or any Holder of Secured Obligations, by
         foreclosing on the real property collateral, has destroyed any right
         such Guarantor may have to collect from a Borrower.

         (c) This is an unconditional and irrevocable waiver of any rights and
defenses each Guarantor may have because the Secured Obligations are secured by
real property. These rights and defenses include, but are not limited to, any
rights or defenses based upon Section 580a, 580b, 580d or 726 of the California
Code of Civil Procedure (or any similar laws in any other jurisdiction). In
accordance with Section 14 below, this Guaranty shall be governed by, and shall
be construed and enforced in accordance with, the internal laws (as opposed to
the conflicts of laws provisions) and decisions of the State of Illinois. This
Section 4 and other referenced provisions of California law are included solely
out of an abundance of caution, and shall not be construed to mean that any of
the referenced provisions of California law are in any way applicable to this
Guaranty or to any of the Secured Obligations.

         SECTION 7. Subordination of Subrogation; Subordination of Intercompany
Indebtedness.

         (a) Subordination of Subrogation. Until the Secured Obligations have
been indefeasibly paid in full in cash, the Guarantors (i) shall have no right
of subrogation with respect to such Secured Obligations and (ii) waive any right
to enforce any remedy which the Holders of Secured Obligations, Issuing Banks or
the Administrative Agent now have or may hereafter have against any Borrower,
any endorser or any guarantor of all or any part of the Secured Obligations or
any other Person, and the Guarantors waive any benefit of, and any right to
participate in, any security or collateral given to the Holders of Secured
Obligations, the Issuing Banks and the Administrative Agent to secure the
payment or performance of all or any part of the Secured Obligations or any
other liability of the Borrowers to the Holders of Secured Obligations or
Issuing Banks. Should any Guarantor have the right, notwithstanding the
foregoing, to exercise its subrogation rights, each Guarantor hereby expressly
and irrevocably (i) subordinates any and all rights at law or in equity to
subrogation, reimbursement, exoneration, contribution, indemnification or set
off that the Guarantor may have to the indefeasible payment in full in cash of
the Secured Obligations and (ii) waives any and all defenses available to a
surety, guarantor or accommodation co-obligor until the Secured Obligations are
indefeasibly paid in full in cash. Each Guarantor acknowledges and agrees that
this subordination is intended to benefit the Administrative Agent and the
Holders of Secured Obligations and shall not limit or otherwise affect such
Guarantor's liability hereunder or the enforceability of this Guaranty, and that
the Administrative Agent, the Holders of Secured Obligations and their
respective successors and assigns are intended third party beneficiaries of the
waivers and agreements set forth in this Section 7(a).

         (b) Subordination of Intercompany Indebtedness. Each Guarantor agrees
that any and all claims of such Guarantor against either the Borrower or any
other Guarantor hereunder (each an "Obligor") with respect to any "Intercompany
Indebtedness" (as hereinafter defined), any endorser, obligor or any other
guarantor of all or any part of the Secured Obligations, or against any of its
properties shall be subordinate and subject in right of payment to the prior
payment, in

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full and in cash, of all Secured Obligations. Notwithstanding any right of any
Guarantor to ask, demand, sue for, take or receive any payment from any Obligor,
all rights, liens and security interests of such Guarantor, whether now or
hereafter arising and howsoever existing, in any assets of any other Obligor
(whether constituting part of Collateral given to any Holder of Secured
Obligations or the Administrative Agent to secure payment of all or any part of
the Secured Obligations or otherwise) shall be and are subordinated to the
rights of the Holders of Secured Obligations and the Administrative Agent in
those assets. No Guarantor shall have any right to possession of any such asset
or to foreclose upon any such asset, whether by judicial action or otherwise,
unless and until all of the Secured Obligations (other than contingent indemnity
obligations) shall have been fully paid and satisfied (in cash) and all
financing arrangements pursuant to any Loan Document among the Borrower and the
Holders of Secured Obligations have been terminated. If all or any part of the
assets of any Obligor, or the proceeds thereof, are subject to any distribution,
division or application to the creditors of such Obligor, whether partial or
complete, voluntary or involuntary, and whether by reason of liquidation,
bankruptcy, arrangement, receivership, assignment for the benefit of creditors
or any other action or proceeding, or if the business of any such Obligor is
dissolved or if substantially all of the assets of any such Obligor are sold,
then, and in any such event (such events being herein referred to as an
"Insolvency Event"), any payment or distribution of any kind or character,
either in cash, securities or other property, which shall be payable or
deliverable upon or with respect to any indebtedness of any Obligor to any
Guarantor ("Intercompany Indebtedness") shall be paid or delivered directly to
the Administrative Agent for application on any of the Secured Obligations, due
or to become due, until such Secured Obligations (other than contingent
indemnity obligations) shall have first been fully paid and satisfied (in cash).
Should any payment, distribution, security or instrument or proceeds thereof be
received by the applicable Guarantor upon or with respect to the Intercompany
Indebtedness after any Insolvency Event and prior to the satisfaction of all of
the Secured Obligations (other than contingent indemnity obligations) and the
termination of all financing arrangements pursuant to any Loan Document among
the Borrower and the Holders of Secured Obligations, such Guarantor shall
receive and hold the same in trust, as trustee, for the benefit of the Holders
of Secured Obligations and shall forthwith deliver the same to the
Administrative Agent, for the benefit of the Holders of Secured Obligations, in
precisely the form received (except for the endorsement or assignment of the
Guarantor where necessary), for application to any of the Secured Obligations,
due or not due, and, until so delivered, the same shall be held in trust by the
Guarantor as the property of the Holders of Secured Obligations. If any such
Guarantor fails to make any such endorsement or assignment to the Administrative
Agent, the Administrative Agent or any of its officers or employees is
irrevocably authorized to make the same. Each Guarantor agrees that until the
Secured Obligations (other than the contingent indemnity obligations) have been
paid in full (in cash) and satisfied and all financing arrangements pursuant to
any Loan Document among the Borrower and the Holders of Secured Obligations have
been terminated, no Guarantor will assign or transfer to any Person (other than
the Administrative Agent) any claim any such Guarantor has or may have against
any Obligor.

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         SECTION 8. Contribution with Respect to Guaranteed Obligations.

         (a) To the extent that any Guarantor shall make a payment under this
Guaranty (a "Guarantor Payment") which, taking into account all other Guarantor
Payments then previously or concurrently made by any other Guarantor, exceeds
the amount which otherwise would have been paid by or attributable to such
Guarantor if each Guarantor had paid the aggregate Guaranteed Obligations
satisfied by such Guarantor Payment in the same proportion as such Guarantor's
"Allocable Amount" (as defined below) (as determined immediately prior to such
Guarantor Payment) bore to the aggregate Allocable Amounts of each of the
Guarantors as determined immediately prior to the making of such Guarantor
Payment, then, following indefeasible payment in full in cash of the Guaranteed
Obligations and termination of the Credit Agreement, such Guarantor shall be
entitled to receive contribution and indemnification payments from, and be
reimbursed by, each other Guarantor for the amount of such excess, pro rata
based upon their respective Allocable Amounts in effect immediately prior to
such Guarantor Payment.

         (b) As of any date of determination, the "Allocable Amount" of any
Guarantor shall be equal to the maximum amount of the claim which could then be
recovered from such Guarantor under this Guaranty without rendering such claim
voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or
under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent
Conveyance Act or similar statute or common law.

         (c) This Section 8 is intended only to define the relative rights of
the Guarantors, and nothing set forth in this Section 8 is intended to or shall
impair the obligations of the Guarantors, jointly and severally, to pay any
amounts as and when the same shall become due and payable in accordance with the
terms of this Guaranty.

         (d) The parties hereto acknowledge that the rights of contribution and
indemnification hereunder shall constitute assets of the Guarantor to which such
contribution and indemnification is owing.

         (e) The rights of the indemnifying Guarantors against other Guarantors
under this Section 8 shall be exercisable upon the full and indefeasible payment
of the Guaranteed Obligations in cash and the termination of the Credit
Agreement.

         SECTION 9. Stay of Acceleration. If acceleration of the time for
payment of any amount payable by the Borrowers under the Credit Agreement, any
Hedging Agreement or any other Loan Document is stayed upon the insolvency,
bankruptcy or reorganization of any Borrower, all such amounts otherwise subject
to acceleration under the terms of the Credit Agreement, any Hedging Agreement
or any other Loan Document shall nonetheless be payable by each of the
Guarantors hereunder forthwith on demand by the Administrative Agent.

         SECTION 10. Notices. All notices, requests and other communications to
any party hereunder shall be given in the manner prescribed in Article XV of the
Credit Agreement with respect to the Administrative Agent at its notice address
therein and with respect to any Guarantor at the

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address set forth below or such other address or telecopy number as such party
may hereafter specify for such purpose by notice to the Administrative Agent in
accordance with the provisions of such Article XV:

                           Notice Address for Guarantors:
                           c/o Sybron Dental Specialties, Inc.
                           1717 West Collins Avenue
                           Orange, California 92867
                           Attn: Chief Financial Officer
                           Fax:(714) 516-7696

                           with a copy to:

                           Quarles & Brady, LLP
                           411 East Wisconsin Avenue
                           Milwaukee, Wisconsin 53202
                           Attn: David L. Bourne
                           Fax:(414) 271-3552

         SECTION 11. No Waivers. No failure or delay by the Administrative Agent
or any Holder of Secured Obligations in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies provided in this
Guaranty, the Credit Agreement, any Hedging Agreement and the other Loan
Documents shall be cumulative and not exclusive of any rights or remedies
provided by law.

         SECTION 12. Successors and Assigns. This Guaranty is for the benefit of
the Administrative Agent and the Holders of Secured Obligations and their
respective successors and permitted assigns, provided, that no Guarantor shall
have any right to assign its rights or obligations hereunder without the consent
of all of the Lenders, and any such assignment in violation of this Section 12
shall be null and void; and in the event of an assignment of any amounts payable
under the Credit Agreement, any Hedging Agreement or the other Loan Documents in
accordance with the respective terms thereof, the rights hereunder, to the
extent applicable to the indebtedness so assigned, may be transferred with such
indebtedness. This Guaranty shall be binding upon each of the Guarantors and
their respective successors and assigns.

         SECTION 13. Changes in Writing. Other than in connection with the
addition of additional Subsidiaries, which become parties hereto by executing an
Addendum hereto in the form attached as Annex I, neither this Guaranty nor any
provision hereof may be changed, waived, discharged or terminated orally, but
only in writing signed by each of the Guarantors and the Administrative Agent
with the consent of the Required Lenders under the Credit Agreement (or all of
the Lenders if required pursuant to the terms of Section 9.3 of the Credit
Agreement).

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         SECTION 14. GOVERNING LAW. THIS GUARANTY SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION
735 ILCS SECTION 105/5-1 ET SEQ., BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT
OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS. ANY DISPUTE BETWEEN THE GUARANTORS AND THE
ADMINISTRATIVE AGENT OR ANY LENDER, OR ANY OTHER HOLDER OF SECURED OBLIGATIONS
ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED BETWEEN THEM IN CONNECTION WITH, THIS GUARANTY, AND WHETHER ARISING
IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH
THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION, 735 ILCS SECTION 105/5-1 ET
SEQ., BUT OTHERWISE WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE
STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL
BANKS.

         SECTION 15. CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.

         (a) EXCLUSIVE JURISDICTION. EXCEPT AS PROVIDED IN SUBSECTION (b), EACH
OF THE PARTIES HERETO AGREES THAT ALL DISPUTES AMONG THEM ARISING OUT OF,
CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG
THEM IN CONNECTION WITH, THIS GUARANTY OR ANY OF THE OTHER LOAN DOCUMENTS
WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED
EXCLUSIVELY BY STATE OR FEDERAL COURTS LOCATED IN CHICAGO, ILLINOIS, BUT THE
PARTIES HERETO ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
HEARD BY A COURT LOCATED OUTSIDE OF CHICAGO, ILLINOIS. EACH OF THE PARTIES
HERETO WAIVES IN ALL DISPUTES BROUGHT PURSUANT TO THIS SUBSECTION (a) ANY
OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE.

         (b) OTHER JURISDICTIONS. EACH GUARANTOR AGREES THAT THE ADMINISTRATIVE
AGENT, ANY LENDER OR ANY OTHER HOLDER OF SECURED OBLIGATIONS SHALL HAVE THE
RIGHT TO PROCEED AGAINST EACH GUARANTOR OR ITS RESPECTIVE PROPERTY IN A COURT IN
ANY LOCATION TO ENABLE SUCH PERSON TO (1) OBTAIN PERSONAL JURISDICTION OVER ANY
GUARANTOR OR (2) REALIZE ON THE COLLATERAL GRANTED IN CONNECTION HEREWITH, OR
(3) IN ORDER TO ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF SUCH
PERSON. EACH GUARANTOR AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE
COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY SUCH PERSON IN A LOCATION OUTSIDE OF
ILLINOIS TO REALIZE ON ANY SECURITY FOR THE OBLIGATIONS OR TO ENFORCE A JUDGMENT
OR OTHER COURT ORDER IN FAVOR OF SUCH PERSON; PROVIDED THAT THE GUARANTORS'
RIGHT TO ASSERT PERMISSIVE COUNTERCLAIMS IN STATE OR FEDERAL COURTS

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LOCATED IN CHICAGO, ILLINOIS SHALL BE PRESERVED. EACH GUARANTOR WAIVES ANY
OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT IN WHICH SUCH PERSON HAS
COMMENCED A PROCEEDING DESCRIBED IN THIS SUBSECTION (b).

         (c) VENUE. THE LENDERS AND EACH GUARANTOR IRREVOCABLY WAIVES ANY
OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY OBJECTION OF THE LAYING OF VENUE
OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS) WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS
GUARANTY OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH IN ANY JURISDICTION SET FORTH ABOVE.

         (d) EACH GUARANTOR WAIVES PERSONAL SERVICE OF ANY PROCESS UPON IT AND
IRREVOCABLY APPOINTS CT CORPORATION, WITH OFFICES AT 208 SOUTH LASALLE STREET,
CHICAGO, ILLINOIS 60604, AS THE GUARANTOR'S AGENT FOR THE PURPOSE OF ACCEPTING
SERVICE OF PROCESS ISSUED BY ANY COURT. NOTHING HEREIN SHALL IN ANY WAY BE
DEEMED TO LIMIT THE ABILITY OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO SERVE
ANY SUCH WRITS, PROCESS OR SUMMONSES IN ANY OTHER MANNER PERMITTED BY APPLICABLE
LAW.

         (e) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH. EACH OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS GUARANTY WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         (f) WAIVER OF BOND. EACH GUARANTOR WAIVES THE POSTING OF ANY BOND
OTHERWISE REQUIRED OF ANY PARTY HERETO IN CONNECTION WITH ANY JUDICIAL PROCESS
OR PROCEEDING TO REALIZE ON THE COLLATERAL, ENFORCE ANY JUDGMENT OR OTHER COURT
ORDER ENTERED IN FAVOR OF SUCH PARTY, OR TO ENFORCE BY SPECIFIC PERFORMANCE,
TEMPORARY RESTRAINING ORDER, PRELIMINARY OR PERMANENT INJUNCTION, THIS GUARANTY
OR ANY OTHER LOAN DOCUMENT.

         (g) ADVICE OF COUNSEL. EACH OF THE PARTIES REPRESENTS TO EACH OTHER
PARTY HERETO THAT IT HAS DISCUSSED THIS GUARANTY AND, SPECIFICALLY, THE
PROVISIONS OF THIS SECTION 15, WITH ITS COUNSEL.

11
<PAGE>   12

         SECTION 16. No Strict Construction. The parties hereto have
participated jointly in the negotiation and drafting of this Guaranty. In the
event an ambiguity or question of intent or interpretation arises, this Guaranty
shall be construed as if drafted jointly by the parties hereto and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Guaranty.

         SECTION 17. Taxes, Expenses of Enforcement, etc.

         (a) Taxes.

                  (i) Any and all payments by any of the Guarantors hereunder
         (whether in respect of principal, interest, fees or otherwise) shall be
         made free and clear of and without deduction for any and all present or
         future taxes, levies, imposts, deductions, charges or withholdings or
         any interest, penalties and liabilities with respect thereto including
         those arising after the date hereof as a result of the adoption of or
         any change in any law, treaty, rule, regulation, guideline or
         determination of a Governmental Authority or any change in the
         interpretation or application thereof by a Governmental Authority but
         excluding, in the case of each Lender and the Administrative Agent,
         such taxes (including income taxes, franchise taxes and branch profit
         taxes) as are imposed on or measured by such Lender's or the
         Administrative Agent's, as the case may be, net income by the United
         States of America or any Governmental Authority of the jurisdiction
         under the laws of which such Lender or the Administrative Agent, as the
         case may be, is organized (all such non-excluded taxes, levies,
         imposts, deductions, charges, withholdings, and liabilities which the
         Administrative Agent or a Lender determines to be applicable to this
         Guaranty, the other Loan Documents, the Revolving Loan Commitments, the
         Loans or the Letters of Credit being hereinafter referred to as
         "Taxes"). If any Guarantor shall be required by law to deduct or
         withhold any Taxes from or in respect of any sum payable hereunder to
         any Holder of Secured Obligations, (i) the sum payable shall be
         increased as may be necessary so that after making all required
         deductions or withholdings (including deductions applicable to
         additional sums payable under this Section 17(a)) such Lender or
         Administrative Agent (as the case may be) receives an amount equal to
         the sum it would have received had no such deductions or withholdings
         been made, (ii) the applicable Guarantor shall make such deductions or
         withholdings, and (iii) the applicable Guarantor shall pay the full
         amount deducted or withheld to the relevant taxation authority or other
         authority in accordance with applicable law. If a withholding tax of
         the United States of America or any other Governmental Authority shall
         be or become applicable (y) after the date of this Guaranty, to such
         payments by the applicable Guarantor made to the Lending Installation
         or any other office that a Lender may claim as its Lending
         Installation, or (z) after such Lender's selection and designation of
         any other Lending Installation, to such payments made to such other
         Lending Installation, such Lender shall use reasonable efforts to make,
         fund and maintain the affected Loans through another Lending
         Installation of such Lender in another jurisdiction so as to reduce the
         applicable

12
<PAGE>   13

         Guarantor's liability hereunder, if the making, funding or maintenance
         of such Loans through such other Lending Installation of such Lender
         does not, in the judgment of such Lender, otherwise adversely affect
         such Loans, or obligations under the Revolving Loan Commitments of such
         Lender.

                  (ii) In addition, each of the Guarantors agrees to pay any
         present or future stamp or documentary taxes or any other excise or
         property taxes, charges, or similar levies which arise from any payment
         made hereunder, or from the execution, delivery or registration of, or
         otherwise with respect to, this Guaranty, the other Loan Documents, the
         Revolving Loan Commitments, the Loans or the Letters of Credit
         (hereinafter referred to as "Other Taxes").

                  (iii) Subject to the exceptions in the Credit Agreement, each
         of the Guarantors indemnifies each Lender and the Administrative Agent
         for the full amount of Taxes and Other Taxes (including, without
         limitation, any Taxes or Other Taxes imposed by any Governmental
         Authority on amounts payable under this Section 17(a)) paid by such
         Lender or the Administrative Agent (as the case may be) and any
         liability (including penalties, interest, and expenses) arising
         therefrom or with respect thereto, whether or not such Taxes or Other
         Taxes were correctly or legally asserted. This indemnification shall be
         made within thirty (30) days after the date such Lender or the
         Administrative Agent (as the case may be) makes written demand
         therefor. If the Taxes or Other Taxes with respect to which any
         Guarantor has made either a direct payment to the taxation or other
         authority or an indemnification payment hereunder are subsequently
         refunded to any Lender, such Lender will return to the applicable
         Guarantor an amount equal to the lesser of the indemnification payment
         or the refunded amount. A certificate as to any additional amount
         payable to any Lender or the Administrative Agent under this Section
         17(a) submitted to the applicable Guarantor and the Administrative
         Agent (if a Lender is so submitting) by such Lender or the
         Administrative Agent shall show in reasonable detail the amount payable
         and the calculations used to determine such amount and shall, absent
         manifest error, be deemed presumptively correct. With respect to such
         deduction or withholding for or on account of any Taxes and to confirm
         that all such Taxes have been paid to the appropriate Governmental
         Authorities, the applicable Guarantor or Guarantors shall promptly (and
         in any event not later than thirty (30) days after receipt) furnish to
         each Lender and the Administrative Agent such certificates, receipts
         and other documents as may be required (in the reasonable judgment of
         such Lender or the Administrative Agent) to establish any tax credit to
         which such Lender or the Administrative Agent may be entitled.

                  (iv) Within thirty (30) days after the date of any payment of
         Taxes or Other Taxes by any Guarantor, the applicable Guarantor shall
         furnish to the Administrative Agent the original or a certified copy of
         a receipt evidencing payment thereof.

                  (v) Without prejudice to the survival of any other agreement
         of the Guarantors hereunder, the agreements and obligations of the
         Guarantors contained in this

13
<PAGE>   14

         Section 17(a) shall survive the payment in full of all Guaranteed
         Obligations and the termination of this Guaranty.

                  (vi) Each Lender (including any Replacement Lender or
         Purchaser) that is not created or organized under the laws of the
         United States of America or a political subdivision thereof (each a
         "Non-U.S. Lender") shall deliver to the Borrowers and the
         Administrative Agent on or before the Closing Date, or, if later, the
         date on which such Lender becomes a Lender pursuant to Section 13.3 of
         the Credit Agreement (and from time to time thereafter upon the request
         of the Borrowers or the Administrative Agent, but only for so long as
         such Non-U.S. Lender is legally entitled to do so), either (1) two (2)
         duly completed copies of either (A) IRS Form W-8BEN, or (B) IRS Form
         W-8ECI, or in either case an applicable successor form; or (2) in the
         case of a Non-U.S. Lender that is not legally entitled to deliver
         either form listed in clause (vi)(1), (x) a certificate of a duly
         authorized officer of such Non-U.S. Lender to the effect that such
         Non-U.S. Lender is not (A) a "bank" within the meaning of Section
         881(c)(3)(A) of the Code, (B) a "10 percent shareholder" of any
         Guarantor within the meaning of Section 881(c)(3)(B) of the Code, or
         (C) a controlled foreign corporation receiving interest from a related
         person within the meaning of Section 881(c)(3)(C) of the Code (such
         certificate, an "Exemption Certificate") and (y) two (2) duly completed
         copies of IRS Form W-8BEN or applicable successor form. Each such
         Lender further agrees to deliver to the Borrowers and the
         Administrative Agent from time to time a true and accurate certificate
         executed in duplicate by a duly authorized officer of such Lender in a
         form satisfactory to the Borrowers and the Administrative Agent, before
         or promptly upon the occurrence of any event requiring a change in the
         most recent certificate previously delivered by it to the Borrowers and
         the Administrative Agent pursuant to this Section 17(a). Further, each
         Lender which delivers a form or certificate pursuant to this clause
         (vi) covenants and agrees to deliver to the Borrowers and the
         Administrative Agent within fifteen (15) days prior to the expiration
         of such form, for so long as this Guaranty is still in effect, another
         such certificate and/or two (2) accurate and complete original
         newly-signed copies of the applicable form (or any successor form or
         forms required under the Code or the applicable regulations promulgated
         thereunder).

                  (vii) Each Lender shall promptly furnish to the Borrowers and
         the Administrative Agent such additional documents as may be reasonably
         required by any Guarantor or the Administrative Agent to establish any
         exemption from or reduction of any Taxes or Other Taxes required to be
         deducted or withheld and which may be obtained without undue expense to
         such Lender. Notwithstanding any other provision of this Section 17(a),
         no Guarantor shall be obligated to gross up any payments to any Lender
         pursuant to Section 17(a)(i), or to indemnify any Lender pursuant to
         Section 17(a)(iii), in respect of United States federal withholding
         taxes to the extent imposed as a result of (x) the failure of such
         Lender to deliver to the Borrowers the form or forms and/or an
         Exemption Certificate, as applicable to such Lender, pursuant to
         Section 17(a)(vi), (y) such form or forms and/or Exemption Certificate
         not establishing a complete exemption from U.S. federal withholding tax
         or the information or certifications made therein by the Lender being

14
<PAGE>   15

         untrue or inaccurate on the date delivered in any material respect, or
         (z) the Lender designating a successor Lending Installation at which it
         maintains its Loans which has the effect of causing such Lender to
         become obligated for tax payments in excess of those in effect
         immediately prior to such designation; provided, however, that the
         applicable Guarantor shall be obligated to gross up any payments to any
         such Lender pursuant to Section 17(a)(i), and to indemnify any such
         Lender pursuant to Section 17(a)(iii), in respect of United States
         federal withholding taxes if (x) any such failure to deliver a form or
         forms or an Exemption Certificate or the failure of such form or forms
         or exemption certificate to establish a complete exemption from U.S.
         federal withholding tax or inaccuracy or untruth contained therein
         resulted from a change in any applicable statute, treaty, regulation or
         other applicable law or any interpretation of any of the foregoing
         occurring after the date hereof, which change rendered such Lender no
         longer legally entitled to deliver such form or forms or Exemption
         Certificate or otherwise ineligible for a complete exemption from U.S.
         federal withholding tax, or rendered the information or the
         certifications made in such form or forms or Exemption Certificate
         untrue or inaccurate in any material respect, (y) the redesignation of
         the Lender's Lending Installation was made at the request of the
         Borrowers or (z) the obligation to gross up payments to any such Lender
         pursuant to Section 17(a)(i), or to indemnify any such Lender pursuant
         to Section 17(a)(iii), is with respect to a Purchaser that becomes a
         Purchaser as a result of an assignment made at the request of the
         Borrowers.

                  (viii) Upon the request, and at the expense of the Borrowers,
         each Lender to which any Guarantor is required to pay any additional
         amount pursuant to this Section 17(a), shall reasonably afford the
         applicable Guarantor the opportunity to contest, and shall reasonably
         cooperate with the applicable Guarantor in contesting, the imposition
         of any Tax giving rise to such payment; provided, that (i) such Lender
         shall not be required to afford the applicable Guarantor the
         opportunity to so contest unless the applicable Guarantor shall have
         confirmed in writing to such Lender its obligation to pay such amounts
         pursuant to this Guaranty; and (ii) the Borrowers shall reimburse such
         Lender for its reasonable attorneys' and accountants' fees and
         disbursements incurred in so cooperating with the applicable Guarantor
         in contesting the imposition of such Tax; provided, however, that
         notwithstanding the foregoing, no Lender shall be required to afford
         any Guarantor the opportunity to contest, or cooperate with the
         applicable Guarantor in contesting, the imposition of any Taxes, if
         such Lender in good faith determines that to do so would have an
         adverse effect on it.

         (b) Expenses of Enforcement, Etc. Subject to the terms of the Credit
Agreement, after the occurrence of a Default under the Credit Agreement, the
Lenders shall have the right at any time to direct the Administrative Agent to
commence enforcement proceedings with respect to the Guaranteed Obligations. The
Guarantors agree to reimburse the Administrative Agent and the Holders of
Secured Obligations for any reasonable costs and out-of-pocket expenses
(including reasonable attorneys' fees and time charges of attorneys for the
Administrative Agent and the Holders of Secured Obligations, which attorneys may
be employees of the Administrative Agent or the Holders of Secured Obligations)
paid or incurred by the Administrative Agent or any

15
<PAGE>   16

Holders of Obligation in connection with the collection and enforcement of
amounts due under the Loan Documents, including without limitation this
Guaranty. The Administrative Agent agrees to distribute payments received from
any of the Guarantors hereunder to the Holders of Secured Obligations on a pro
rata basis for application in accordance with the terms of the Credit Agreement.

         SECTION 18. Setoff. At any time after all or any part of the Guaranteed
Obligations have become due and payable (by acceleration or otherwise), each
Holder of Secured Obligations and the Administrative Agent may, without notice
to any Guarantor and regardless of the acceptance of any security or collateral
for the payment hereof, appropriate and apply toward the payment of all or any
part of the Guaranteed Obligations (a) any indebtedness due or to become due
from such Holder of Secured Obligations or the Administrative Agent to any
Guarantor, and (b) any moneys, credits or other property belonging to any
Guarantor, at any time held by or coming into the possession of such Holder of
Secured Obligations or the Administrative Agent or any of their respective
affiliates.

         SECTION 19. Financial Information. Each Guarantor hereby assumes
responsibility for keeping itself informed of the financial condition of the
Borrowers and any and all endorsers and/or other Guarantors of all or any part
of the Guaranteed Obligations, and of all other circumstances bearing upon the
risk of nonpayment of the Guaranteed Obligations, or any part thereof, that
diligent inquiry would reveal, and each Guarantor hereby agrees that none of the
Holders of Secured Obligations or the Administrative Agent shall have any duty
to advise such Guarantor of information known to any of them regarding such
condition or any such circumstances. In the event any Holder of Secured
Obligations or the Administrative Agent, in its sole discretion, undertakes at
any time or from time to time to provide any such information to a Guarantor,
such Holder of Secured Obligations or the Administrative Agent shall be under no
obligation (a) to undertake any investigation not a part of its regular business
routine, (b) to disclose any information which such Holder of Secured
Obligations or the Administrative Agent, pursuant to accepted or reasonable
commercial finance or banking practices, wishes to maintain confidential or (c)
to make any other or future disclosures of such information or any other
information to such Guarantor.

         SECTION 20. Severability. Wherever possible, each provision of this
Guaranty shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.

         SECTION 21. Merger. This Guaranty represents the final agreement of
each of the Guarantors with respect to the matters contained herein and may not
be contradicted by evidence of prior or contemporaneous agreements, or
subsequent oral agreements, between the Guarantor and any Holder of Secured
Obligations or the Administrative Agent.

         SECTION 22. Headings. Section headings in this Guaranty are for
convenience of reference only and shall not govern the interpretation of any
provision of this Guaranty.

16
<PAGE>   17

                  IN WITNESS WHEREOF, the Initial Guarantors have caused this
Guaranty to be duly executed by its authorized officer as of the day and year
first above written.

                                        SYBRON DENTAL MANAGEMENT, INC.

                                        By:
                                           ------------------------------------
                                        Name:    Stephen J. Tomassi
                                        Title:   Authorized Representative

                                        KERR CORPORATION

                                        By:
                                           ------------------------------------
                                        Name:    Stephen J. Tomassi
                                        Title:   Authorized Representative

                                        ORMCO CORPORATION

                                        By:
                                           ------------------------------------
                                        Name:    Stephen J. Tomassi
                                        Title:   Authorized Representative

                                        METREX RESEARCH CORPORATION

                                        By:
                                           ------------------------------------
                                        Name:    Stephen J. Tomassi
                                        Title:   Authorized Representative

                                        PINNACLE PRODUCTS, INC.

                                        By:
                                           ------------------------------------
                                        Name:    Stephen J. Tomassi
                                        Title:   Authorized Representative

                           SIGNATURE PAGE TO GUARANTY

17
<PAGE>   18

                               ANNEX I TO GUARANTY

         Reference is hereby made to the Guaranty (the "Guaranty") made as of
the 11th day of December, 2000, by and among SYBRON DENTAL MANAGEMENT, INC.,
KERR CORPORATION, ORMCO CORPORATION, METREX RESEARCH CORPORATION and PINNACLE
PRODUCTS, INC. (each an "Initial Guarantor" and along with any additional
Material Domestic Subsidiaries of SDS, which become parties thereto and together
with the undersigned, the "Guarantors") in favor of the Administrative Agent,
for the ratable benefit of the Holders of Secured Obligations, under the Credit
Agreement. Capitalized terms used herein and not defined herein shall have the
meanings given to them in the Guaranty. By its execution below, the undersigned
[NAME OF NEW GUARANTOR], a [corporation] [partnership] [limited liability
company], agrees to become, and does hereby become, a Guarantor under the
Guaranty and agrees to be bound by such Guaranty as if originally a party
thereto. By its execution below, the undersigned represents and warrants as to
itself that all of the representations and warranties contained in Section 2 of
the Guaranty are true and correct in all respects as of the date hereof.

         IN WITNESS WHEREOF, [NAME OF NEW GUARANTOR], a [corporation]
[partnership] [limited liability company] has executed and delivered this Annex
I counterpart to the Guaranty as of this __________ day of _________, ____.

                                        [NAME OF NEW GUARANTOR]

                                        By:
                                           ------------------------------------
                                        Name:
                                        Title:

                               ANNEX I TO GUARANTY

18<PAGE>   1
                                                                     EXHIBIT 4.5

--------------------------------------------------------------------------------

                               SECURITY AGREEMENT

                          dated as of December 11, 2000

                                     between

                        SYBRON DENTAL SPECIALTIES, INC.,

                         Sybron Dental Management, Inc.,

                                Kerr Corporation,

                               Ormco Corporation,

                          METREX RESEARCH CORPORATION,

                             PINNACLE PRODUCTS, INC.

                                       and

                               ABN AMRO BANK N.V.
                             as Administrative Agent

--------------------------------------------------------------------------------

                      Signature Page to Security Agreement

<PAGE>   2

                               SECURITY AGREEMENT

                  THIS SECURITY AGREEMENT, dated as of December 11, 2000 is made
by Sybron Dental Specialties, Inc., a Delaware corporation ("SDS"), Sybron
Dental Management, Inc., a Delaware corporation ("SDM"), Kerr Corporation, a
Delaware corporation ("Kerr"), Ormco Corporation, a Delaware corporation
("Ormco"), Metrex Research Corporation, a Wisconsin corporation and Pinnacle
Products, Inc., a Wisconsin corporation (with each of their respective
successors and assigns, including debtors-in-possession on behalf of each of the
foregoing, collectively, the "Grantors", in favor of ABN AMRO BANK N.V. (the
"Administrative Agent") for its benefit and for the benefit of the "Holders of
Secured Obligations" (as defined below).

                              PRELIMINARY STATEMENT

                  WHEREAS, the Grantors have entered into a certain Credit
Agreement dated as of November 28, 2000, among the Grantors, the Swing Line
Borrowers from time to time party thereto, the institutions from time to time
parties thereto as lenders (the "Lenders"), the Administrative Agent, The Chase
Manhattan Bank, as Syndication Agent and First Union National Bank, as
Documentation Agent (as the same may be amended, restated, supplemented or
otherwise modified from time to time, the "Credit Agreement"), providing for the
making of advances, loans and other financial accommodations (including, without
limitation, letters of credit) (all such loans, advances and other financial
accommodations being hereinafter referred to collectively as the "Loans") to or
for the benefit of the Grantors;

                  WHEREAS, it is a condition precedent to the making of any Loan
under the Credit Agreement that the Grantors shall have granted the security
interests contemplated by this Agreement;

                  NOW, THEREFORE, in consideration of the premises set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         SECTION 1. Defined Terms. Unless otherwise defined herein, terms
defined in the Credit Agreement are used herein as therein defined, and the
following terms shall have the following meanings (such meanings being equally
applicable to both the singular and the plural forms of the terms defined):

                  "Agreement" shall mean this Security Agreement, as the same
may from time to time be amended, restated, modified or supplemented, and shall
refer to this Agreement as the same may be in effect at the time such reference
becomes operative.

2
<PAGE>   3

                  "Agreement Default" shall mean (i) any "Default" or "Unmatured
Default" under and as defined in the Credit Agreement; and (ii) any default
under any of the other Credit Documents.

                  "Collateral" shall mean all property and rights in property
now owned or hereafter at any time acquired by any Grantor in or upon which a
Lien is granted in favor of the Administrative Agent by such Grantor under this
Agreement or any of the documents or agreements executed in connection herewith,
including, without limitation, the property described in Section 2.

                  "Collection Account" shall mean any deposit account listed on
Schedule 4 hereof (i) that is maintained with ABN AMRO Bank N.V., in its
capacity as Administrative Agent or otherwise, or (ii) with respect to which any
Grantor has entered into a Collection Account Agreement substantially in the
form of Exhibit C hereto, with such changes thereto as may be acceptable to the
Administrative Agent, with the financial institution at which such deposit
account is maintained.

                  "Credit Documents" means (a) the Credit Agreement and the
"Loan Documents" (as defined in the Credit Agreement); (b) any Hedging
Agreements entered into with any Holder of Secured Obligations; and (c) the
other operative documents, instruments and agreements entered into in connection
with the other Secured Obligations.

                  "UCC" shall mean the Uniform Commercial Code as the same may,
from time to time, be in effect in the State of Illinois; provided, however, in
the event that, by reason of mandatory provisions of law, any or all of the
attachment, perfection or priority of the Administrative Agent's and the Holders
of Secured Obligations' security interest in any Collateral is governed by the
Uniform Commercial Code as in effect in a jurisdiction other than the State of
Illinois, the term "UCC" shall mean the Uniform Commercial Code as in effect in
such other jurisdiction for purposes of the provisions hereof relating to such
attachment, perfection or priority and for purposes of definitions related to
such provisions.

         SECTION 2. Grant of Security. To secure the prompt and complete
payment, observance and performance of the Secured Obligations, each Grantor
hereby assigns and pledges to the Administrative Agent, for the benefit of the
Administrative Agent and the Holders of Secured Obligations, and hereby grants
to the Administrative Agent, for the benefit of the Administrative Agent and the
Holders of Secured Obligations, a security interest in all of such Grantor's
right, title and interest in and to the following, whether now owned or existing
or hereafter arising or acquired and wheresoever located:

                  ACCOUNTS: All "accounts" as such term is defined in Section
9-106 of the UCC, whether now owned or hereafter acquired or arising; each
Grantor intends that the term "accounts", as used herein, be construed in its
broadest sense, and such term shall include,

3
<PAGE>   4

without limitation, all present and future accounts, accounts receivable and
other rights of such Grantor to payment for goods sold or leased or for services
rendered (except those evidenced by instruments or chattel paper), whether now
existing or hereafter arising and wherever arising, and whether or not they have
been earned by performance (collectively, "Accounts");

                  INVENTORY: All "inventory" as defined in Section 9-109(4) of
the UCC, whether now owned or hereafter acquired or arising; each Grantor
intends that the term "inventory", as used herein, be construed in its broadest
sense, and such term shall include, without limitation, all goods now owned or
hereafter acquired by such Grantor (wherever located, whether in the possession
of such Grantor or of a bailee or other person for sale, storage, transit,
processing, use or otherwise and whether consisting of whole goods, spare parts,
components, supplies, materials, or consigned, returned or repossessed goods)
which are held for sale or lease, which are to be furnished (or have been
furnished) under any contract of service or which are raw materials, work in
process or materials used or consumed in such Grantor's business (collectively,
"Inventory");

                  EQUIPMENT: All "equipment" as such term is defined in Section
9-109(2) of the UCC, whether now owned or hereafter acquired or arising; each
Grantor intends that the term "equipment", as used herein, be construed in its
broadest sense, and such term shall include, without limitation, all machinery,
all manufacturing, distribution, selling, data processing and office equipment,
all furniture, furnishings, appliances, fixtures and trade fixtures, tools,
tooling, molds, dies, vehicles, rolling stock, vessels, trucks, buses, motor
vehicles and all other goods of every type and description (other than
Inventory), in each instance whether now owned or hereafter acquired by such
Grantor and wherever located (collectively, "Equipment");

                  GENERAL INTANGIBLES: All "general intangibles" as defined in
Section 9-106 of the UCC, whether now owned or hereafter acquired or arising;
each Grantor intends that the term "general intangibles", as used herein, be
construed in its broadest sense, and such term shall include, without
limitation, all rights, interests, choses in action, causes of actions, claims
and all other intangible property of such Grantor of every kind and nature
(other than Accounts), in each instance whether now owned or hereafter acquired
by such Grantor and however and whenever arising, including, without limitation,
all corporate and other business records; all loans, royalties, and other
obligations receivable; customer lists, credit files, correspondence, and
advertising materials; firm sale orders, other contracts and contract rights;
all interests in partnerships and joint ventures; all tax refunds and tax refund
claims; all right, title and interest under leases, subleases, licenses and
concessions and other agreements relating to real or personal property; all
payments due or made to such Grantor in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of any property by any person
or governmental authority; all payments due or made to such Grantor in
connection with any choses in action, causes of action or other claims, all
deposit accounts (general or special) with any bank or other financial
institution, including, without limitation, any deposits or other sums at any
time credited by or due to such Grantor from any of the Holders of Secured
Obligations or any of their respective Affiliates with the same rights therein
as if the deposits or other sums were credited by or due from such Holder of
Secured Obligations; all credits with and other claims against carriers

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<PAGE>   5

and shippers; all rights to indemnification; all patents, and patent
applications (including all reissues, divisions, continuations and extensions);
all service marks and service mark applications; all trade secrets and
inventions; all copyrights and copyright applications (including all computer
software and related documentation); all rights and interests in and to
trademarks, trademark registrations and applications therefor, trade names,
corporate names, brand names, slogans, all goodwill associated with the
foregoing; all license agreements and franchise agreements, all reversionary
interests in pension and profit sharing plans and reversionary, beneficial and
residual interest in trusts; all proceeds of insurance of which such Grantor is
beneficiary; and all letters of credit, guaranties, liens, security interests
and other security held by or granted to such Grantor; and all other intangible
property, whether or not similar to the foregoing;

                  LAB PROCESSING AND ENGINEERING INFORMATION: All rights and
interests in and to processes, lab journals, and notebooks, data, trade secrets,
know-how, product formulae and information, manufacturing, engineering and other
drawings and manuals, technology, blueprints, research and development reports,
agency agreements, technical information, technical assistance, engineering
data, design and engineering specifications, and similar materials recording or
evidencing expertise used in or employed by each Grantor (including any license
for the foregoing);

                  CONTRACT RIGHTS: All rights and interests in and to any
pending or executory contracts, requests for quotations, invitations for bid,
agreements, leases and arrangements of which each Grantor is a party to or in
which such Grantor has an interest;

                  CHATTEL PAPER, INSTRUMENTS AND DOCUMENTS: All chattel paper,
leases, all instruments, including, without limitation, the notes and debt
instruments described in Schedule 1 (the "Pledged Debt") and all payments
thereunder and instruments and other property from time to time delivered in
respect thereof or in exchange therefor, and all bills of sale, bills of lading,
warehouse receipts and other documents of title, in each instance whether now
owned or hereafter acquired by either Grantor;

                  INTEREST AND CURRENCY CONTRACTS: Any and all interest rate,
commodity or currency exchange agreements or derivative agreements, including,
without limitation, cap, collar, floor, forward or similar agreements or other
rate, currency or price protection arrangements or Hedging Agreements; and

                  OTHER PROPERTY: All property or interests in property now
owned or hereafter acquired by each Grantor which now may be owned or hereafter
may come into the possession, custody or control of the Administrative Agent or
any of the Holders of Secured Obligations or any agent or Affiliate of any of
them in any way and for any purpose (whether for safekeeping, deposit, custody,
pledge, transmission, collection or otherwise); and all rights and interests of
such Grantor, now existing or hereafter arising and however and wherever
arising, in respect of any and all (i) notes, drafts, letters of credit, stocks,
bonds, and debt and equity securities, whether or not certificated, investment
property (as defined in Section 9-115(1)(f) of

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<PAGE>   6

the UCC) and warrants, options, puts and calls and other rights to acquire or
otherwise relating to the same; (ii) money; (iii) proceeds of loans, including,
without limitation, Loans made under the Credit Agreement; and (iv) insurance
proceeds and books and records relating to any of the property covered by this
Agreement; together, in each instance, with all accessions and additions
thereto, substitutions therefor, and replacements, proceeds and products
thereof.

         SECTION 3. Authorization. Each Grantor hereby authorizes the
Administrative Agent to retain and each Holder of Secured Obligations, and each
Affiliate of the Administrative Agent and of each Holder of Secured Obligations,
to pay or deliver to the Administrative Agent, for the benefit of the Holders of
Secured Obligations, without any necessity on any Holder of Secured Obligation's
part to resort to other security or sources of reimbursement for the Secured
Obligations, at any time following the occurrence and during the continuance of
any Agreement Default, and without further notice to such Grantor (such notice
being expressly waived), any of the deposits referred to in Section 2 (whether
general or special, time or demand, provisional or final) or other sums or
property held by such Person, for application against any portion of the Secured
Obligations, irrespective of whether any demand has been made or whether such
portion of the Secured Obligations is due and payable. The Administrative Agent
may give notice of the above grant of security interest and assignment of the
aforesaid deposits and other sums, and authorization, to, and make any suitable
arrangements with, any such Holder of Secured Obligations for effectuation
thereof, and each Grantor hereby irrevocably appoints the Administrative Agent
as its attorney, to collect any and all such deposits or other sums to the
extent any such payment is not made to the Administrative Agent by such Holder
of Secured Obligations or Affiliate thereof; provided, that the Administrative
Agent agrees not to exercise such powers as attorney-in-fact unless an Agreement
Default has occurred and is continuing.

         SECTION 4. Grantor Remains Liable. Anything herein to the contrary
notwithstanding, (a) each Grantor shall remain solely liable under the contracts
and agreements 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 Administrative
Agent of any of its rights hereunder shall not release any Grantor from any of
its duties or obligations under the contracts and agreements included in the
Collateral, and (c) neither the Administrative Agent nor the Holders of Secured
Obligations shall have any responsibility, obligation or liability under the
contracts and agreements included in the Collateral by reason of this Agreement,
nor shall the Administrative Agent or the Holders of Secured Obligations be
required or obligated, in any manner, to (i) perform or fulfill any of the
obligations or duties of any Grantor thereunder, (ii) make any payment, or make
any inquiry as to the nature or sufficiency of any payment received by any
Grantor or the sufficiency of any performance by any party under any such
contract or agreement or (iii) present or file any claim, or take any action to
collect or enforce any claim for payment assigned hereunder.

         SECTION 5. Representations and Warranties. Each Grantor represents and
warrants, as of the date of this Agreement, and as of each date thereafter
(except for changes permitted or contemplated by this Agreement) until
termination of this Agreement pursuant to Section 25:

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<PAGE>   7

         (A) The correct corporate name of each Grantor is set forth in the
first paragraph of this Agreement, or the applicable Addendum hereto, and each
Grantor's Federal Taxpayer Identification Number is set forth on Schedule 5
hereto or on such Grantor's Addendum hereto, as applicable. The locations listed
for each Grantor on Schedule 2 constitute all locations at which Inventory
and/or Equipment of such Grantor is located and each applicable Grantor has
exclusive possession and control of such Equipment and Inventory, except for
such Inventory and Equipment which is (i) temporarily in transit between such
locations, or (ii) temporarily stored with third parties or held by third
parties for processing, storage, engineering, evaluation, repairs or sale, the
proper corporate names of which third parties, the location of such Inventory
and/or Equipment and the nature of the relationship between the applicable
Grantor and such third parties are set forth in Schedule 2-A. Schedules 2 and 2A
shall be amended to include locations of any Equipment and/or Inventory or any
Grantor party hereto as a result of executing an Addendum hereto, and may be
amended to reflect (1) additional locations acquired or utilized in connection
with Permitted Acquisitions or (2) new arrangements with third parties for
manufacturing, processing, engineering, evaluation, repairs, storage, bailment
or consignment provided in each case the applicable Grantor is in full
compliance with Sections 6 and 10 below in connection with such locations. The
chief place of business and chief executive office of each Grantor are located
at the address of such Grantor set forth below such Grantor's signature on this
Agreement or such Grantor's Addendum hereto, as applicable. All records
concerning any Accounts and all originals of all chattel paper which evidence
any Account are located at the addresses listed on Schedule 2 and none of the
Accounts is evidenced by a promissory note or other instrument except for such
notes and other instruments listed on Schedule 1 and delivered to the
Administrative Agent as part of the Pledged Debt.

         (B) Each Grantor is the legal and beneficial owner of its respective
portion of the Collateral free and clear of all Liens except for Liens permitted
by Section 7.3(C) of the Credit Agreement. Each Grantor currently conducts
business under its legal name and, in certain areas and for certain operations,
the additional trade names listed on Schedule 3. No Grantor uses any trade names
or fictitious names, except as set forth on Schedule 3.

         (C) This Agreement creates in favor of the Administrative Agent a
legal, valid and enforceable security interest in the Collateral. When financing
statements have been filed in the appropriate offices against the Grantors in
the locations listed for such Grantors on Schedule 2-B, the Administrative Agent
will have a fully perfected first priority lien on, and security interest in,
the Collateral in which a security interest may be perfected by such filing,
subject only to Liens permitted by Section 7.3(C) of the Credit Agreement.

         (D) The execution, delivery and performance of this Agreement does not
and will not (i) conflict with the certificate or articles of incorporation or
by-laws of any Grantor, (ii) constitute a tortious interference with any
Contractual Obligation of any Person or conflict with, result in a breach of or
constitute (with or without notice or lapse of time or both) a default under any
Requirement of Law (including, without limitation, any Environmental Property
Transfer Act) or Contractual Obligation of such Grantor, or require termination
of any

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<PAGE>   8

Contractual Obligation, (iv) result in or require the creation or imposition of
any Lien whatsoever upon any of the Collateral, other than the Liens created
hereby, or (v) require any approval of any Grantor's Board of Directors, or
shareholders, as applicable, except such as have been obtained. No
authorization, approval or other action by, and no notice to or filing with, any
Governmental Authority that has not already been taken or made and which is in
full force and effect is required (i) for the grant by any Grantor of the
security interest in the Collateral granted hereby; (ii) for the execution,
delivery or performance of this Agreement by any Grantor; or (iii) for the
exercise by the Administrative Agent of any of its rights or remedies hereunder.

         (E) The Pledged Debt issued by any Affiliate of any Grantor, and to the
best of such Grantor's knowledge, all other Pledged Debt, has been duly
authorized, issued and delivered, and is the legal, valid, binding and
enforceable obligation of the respective issuer thereof.

         (F) Schedule 4 contains a complete list of all of the deposit accounts
of each Grantor, and such Grantor will amend and update Schedule 4 by delivering
supplemental reports to the Administrative Agent promptly following the
establishment of any additional deposit accounts, and at any time requested by
the Administrative Agent or any Holder of Secured Obligations. Each deposit
account so scheduled is a Collection Account.

         SECTION 6. Perfection and Maintenance of Security Interests and Liens.
Each Grantor agrees that until all of the Secured Obligations have been fully
satisfied and the Credit Documents have been terminated, the Administrative
Agent's security interests in and Liens on and against the Collateral and all
proceeds and products thereof shall continue in full force and effect. Each
Grantor shall perform any and all steps reasonably requested by the
Administrative Agent or any Holder of Secured Obligations to perfect, maintain
and protect the Administrative Agent's security interests in and Liens on and
against such Grantor's respective portion of Collateral granted or purported to
be granted hereby or to enable the Administrative Agent to exercise its rights
and remedies hereunder with respect to any Collateral, including, without
limitation:

         (A) executing and filing financing or continuation statements, or
amendments thereof, in form and substance reasonably satisfactory to the
Administrative Agent;

         (B) delivering to the Administrative Agent all certificates, notes and
other instruments (including, without limitation, all letters of credit on which
such Grantor is named as a beneficiary) representing or evidencing Collateral,
which certificates, notes and other instruments have been duly endorsed or are
accompanied by duly executed instruments of transfer or assignment, including,
but not limited to, note powers, all in form and substance satisfactory to the
Administrative Agent;

         (C) if required by the Administrative Agent, delivering to the
Administrative Agent warehouse receipts covering that portion of the Collateral,
if any, located in warehouses and for which warehouse receipts are issued;

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<PAGE>   9

         (D) after the occurrence and during the continuance of an Agreement
Default, transferring Inventory and Equipment to warehouses designated by the
Administrative Agent or taking such other steps as are deemed necessary by the
Administrative Agent to maintain the Administrative Agent's control of the
Inventory and Equipment;

         (E) marking conspicuously each instrument or chattel paper with a
legend, in form and substance satisfactory to the Administrative Agent,
indicating that such instrument or chattel paper, or Collateral is subject to
the security interest granted hereby;

         (F) obtaining waivers of Liens and access agreements in substantially
the form of Exhibit A hereto (or such other form as may be agreed to by the
Administrative Agent) from landlords and mortgagees with respect to such
Grantor's leased premises as of the Closing Date and obtaining waivers of Liens
and access agreements in substantially the form of Exhibit B (or such other form
as may be agreed to by the Administrative Agent) from the appropriate Person
with respect to any of the Inventory or Equipment temporarily stored with third
parties or held by third parties for processing, storage, engineering, repair or
sale as of the Closing Date; provided, however, notwithstanding anything herein
to the contrary: (i) with respect to the premises leased by Ormco Corporation at
703 Emerson Ave., Calexico, CA 92231, Ormco Corporation shall use commercially
reasonable efforts to obtain such an agreement not later than thirty (30) days
after the date hereof and if it shall not have obtained such an agreement shall
not extend or renew the lease for such facility without obtaining such an
agreement; and (ii) with respect to the leased premises at (1) 1825 W. Collins
Avenue, Orange, CA (lessee: Sybron Dental Specialties, Inc.); (2) 10270 Progress
Way, Parker, CO (lessee: Metrex Research Corporation); (3) 10310 Dransfeldt
Road, Parker, CO (lessee: Metrex Research Corporation); and (4) 360 Cold Spring
Avenue, West Springfield, MA (lessee: Metrex Research Corporation), the
applicable Grantor shall not be obligated to obtain such an agreement for so
long as the value of all Collateral located at such premises does not exceed
$100,000 per location and if the Collateral located at such premises exceeds
such amount the applicable Grantor shall promptly notify the Administrative
Agent and shall obtain such an agreement if so requested by the Administrative
Agent;

         (G) obtaining waivers of Liens and access agreements in substantially
the form of Exhibit A hereto (or such other form as may be agreed to by the
Administrative Agent) from landlords and mortgagees with respect to such
Grantor's leased premises after the Closing Date and obtaining waivers of Liens
and access agreements in substantially the form of Exhibit B (or such other form
as may be agreed to by the Administrative Agent) from the appropriate Person
with respect to any of the Inventory or Equipment temporarily stored with third
parties or held by third parties for processing, storage, engineering, repair or
sale after the Closing Date (in connection with which the Grantor shall be
permitted to and hereby required to update Schedule 2-A); provided, no such
third party agreements shall be required to be obtained for any such leased or
third-party location where the Collateral at any such location does not exceed
$100,000 per location or $250,000 for all such locations and if the Collateral
at such locations exceeds such amounts individually or in the aggregate, SDS
shall promptly notify the Administrative Agent and shall obtain such an
agreement if so requested by the Administrative Agent;

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<PAGE>   10

         (H) executing and delivering all further instruments and documents, and
taking all further action, as the Administrative Agent or any Holder of Secured
Obligations may reasonably request to perfect, maintain and protect the
Administrative Agent's security interest in the Collateral.

Notwithstanding the foregoing, (i) no Grantor shall permit Equipment or any
other Collateral to be located in Maryland unless such Collateral is exempt from
recordation tax pursuant to Section 12-108(k) of the Maryland Uniform Commercial
Code, unless such Grantor shall provide the Administrative Agent with
satisfactory written evidence that all such applicable recordation taxes shall
have been paid, and (ii) within ninety (90) days after the Closing Date, the
applicable Grantor will remove all Inventory and Equipment from any leased
premises or third parties' facilities with respect to which such Grantor shall
not have obtained from the applicable landlord or third party, a waiver of Liens
and access agreement in substantially the form of Exhibit A or Exhibit B, as
applicable, hereto (or such other form as may be agreed to by the Administrative
Agent) and, in the case of leased premises, a collateral assignment of lease or
leasehold mortgage in form and substance satisfactory to the Administrative
Agent.

         SECTION 7. Financing Statements. To the extent permitted by applicable
law, each Grantor hereby authorizes the Administrative Agent to file one or more
financing or continuation statements and amendments thereto, disclosing the
security interest granted to the Administrative Agent under this Agreement
without such Grantor's signature appearing thereon, and the Administrative Agent
agrees to notify such Grantor when such a filing has been made. Each Grantor
agrees that a carbon, photographic, photostatic, or other reproduction of this
Agreement or of a financing statement is sufficient as a financing statement. If
any Inventory or Equipment is in the possession or control of any warehouseman
or any Grantor's agents or processors, such Grantor shall, upon the
Administrative Agent's request, notify such warehouseman, agent or processor of
the Administrative Agent's security interest in such Inventory and Equipment
and, upon the Administrative Agent's request, instruct them to hold all such
Inventory or Equipment for the Administrative Agent's account and subject to the
Administrative Agent's instructions.

         SECTION 8. Filing Costs. Grantors shall pay the costs of, or incidental
to, all UCC, tax lien and judgment searches and all recordings or filings of all
financing statements, including, without limitation, any filing expenses
incurred by the Administrative Agent pursuant to Section 7.

         SECTION 9. Schedule of Collateral. Each Grantor shall furnish to the
Administrative Agent from time to time, statements and schedules identifying and
describing the Collateral (including any amendments to the Schedules hereto) and
such other reports in connection with the Collateral as the Administrative Agent
may reasonably request, all in reasonable detail.

         SECTION 10. Equipment and Inventory. Each Grantor covenants and agrees
with the Administrative Agent that from the date of this Agreement and until
termination of this Agreement pursuant to Section 25, such Grantor shall:

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<PAGE>   11

         (A) Keep its Equipment and Inventory (other than Equipment or Inventory
sold or disposed of as permitted by the Credit Agreement) at the places
specified in Section 5(A), except for Equipment and Inventory (i) temporarily in
transit to, from or between such locations or (ii) temporarily stored with third
parties or held by third parties for processing, storage, consignment,
engineering, repair or sale and set forth in Schedule 2-A (other than such
locations where such Collateral was required to be removed pursuant to the
provisions of Section 6), and deliver written notice to the Administrative Agent
at least thirty (30) days prior to establishing any other location at which or
third party with which it reasonably expects to maintain Inventory and/or
Equipment in which location or with which third party all action required by
this Agreement shall have been taken with respect to all such Equipment and
Inventory;

         (B) Maintain or cause to be maintained in good repair, working order
and condition, excepting ordinary wear and tear and damage due to casualty, all
of the Equipment, and make or cause to be made all appropriate repairs, renewals
and replacements thereof, as quickly as practicable after the occurrence of any
loss or damage thereto which are necessary or desirable to such end; and

         (C) Comply with the terms of the Credit Agreement with respect to such
Equipment and Inventory, including, without limitation, the insurance provisions
set forth in Section 7.2(E) of the Credit Agreement.

         SECTION 11. Accounts. Each Grantor covenants and agrees with the
Administrative Agent that from and after the date of this Agreement and until
termination of this Agreement pursuant to Section 25, such Grantor shall:

         (A) Keep its chief place of business and chief executive office and the
office where it keeps its records concerning the Accounts at its address set
forth below such Grantor's signature on this Agreement or its Addendum hereto,
as applicable, and keep the offices where it keeps all originals of all chattel
paper which evidence Accounts at the locations therefor specified in Section
5(A) or, upon thirty (30) days' prior written notice to the Administrative
Agent, at such other locations within the United States in a jurisdiction where
all actions required by Section 6 shall have been, or can be, taken with respect
to the Accounts. Such Grantor will hold and preserve such records (in accordance
with such Grantor's usual document retention practices) and chattel paper and
will permit representatives of the Administrative Agent at any time during
normal business hours to inspect and make abstracts from such records and
chattel paper; and

         (B) In any suit, proceeding or action brought by the Administrative
Agent under any Account comprising part of the Collateral, such Grantor will
save, indemnify and keep each of the Holders of Secured Obligations harmless
from and against all expenses, loss or damage suffered by reason of any defense,
setoff, counterclaim, recoupment or reduction of liability whatsoever of the
obligor thereunder, arising out of a breach by such Grantor of any obligation or
arising out

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<PAGE>   12

of any other agreement, indebtedness or liability at any time owing to or in
favor of such Holder of Secured Obligations from such Grantor, and all such
obligations of such Grantor shall be and shall remain enforceable against and
only against such Grantor and shall not be enforceable against any of the
Holders of Secured Obligations.

         (C) When any Grantor or any of its Affiliates (or any Affiliates,
shareholders, directors, officers, employees, agents or those Persons acting for
or in concert with such Grantor or an Affiliate of such Grantor) shall receive
or come into the possession or control of any monies, checks, notes, drafts or
any other payment relating to, or proceeds of, such Grantor's Accounts or other
property constituting Collateral hereunder (individually, a "Payment Item", and,
collectively, "Payment Items"), then, except as otherwise permitted in a writing
signed by the Administrative Agent, such Grantor shall, or shall cause such
Affiliate or such other Person to, deposit the same in kind in precisely the
form in which such Payment Item was received (with all Payment Items endorsed if
necessary for collection) into a Collection Account. Such Grantor further agrees
that it will not, during the term of this Agreement, without the written consent
of the Administrative Agent, transfer any funds from a Collection Account to any
deposit account that is not a Collection Account described on Schedule 4. Within
thirty (30) days following the Closing Date, each Grantor shall have entered
into Restricted Account Agreements in the form of Exhibit C hereto, with respect
to all Collection Accounts in existence on the Closing Date, with all banks at
which such Grantor maintains accounts.

         SECTION 12. Leased Real Property. Each Grantor covenants and agrees
with the Administrative Agent that from and after the date of this Agreement and
until termination of this Agreement pursuant to Section 25, that:

         (A) Promptly following, but not later than ninety (90) days after, the
close of each fiscal year (or at any other time requested by the Administrative
Agent or any of the Holders of Secured Obligations), such Grantor will furnish
to the Administrative Agent a report certified to be true and correct by such
Grantor containing a list of each of such Grantor's leased premises; the name or
names of all owners; rentals being paid; and whether such Grantor has obtained
waivers of Liens and access agreements and collateral assignments of lease or
leasehold mortgages from landlords and mortgagees with respect to such premises
in accordance with Section 6; and

         (B) Such Grantor agrees that, after the occurrence and during the
continuance of an Agreement Default, the Administrative Agent may, but need not,
make any payment or perform any act hereinbefore required of such Grantor with
respect to such Grantor's leased premises in any form and manner deemed
expedient. All money paid for any of the purposes herein authorized and all
other moneys advanced by the Administrative Agent to protect the lien hereof
shall be additional Secured Obligations secured hereby and shall become
immediately due and payable without notice and shall bear interest thereon at
the default interest rate (determined by reference to the Floating Rate) as
provided in Section 2.11 of the Credit Agreement until paid to the
Administrative Agent in full.

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<PAGE>   13

         (C) Such Grantor agrees that it will not amend any lease in a manner
that adversely affects the interests of the Holders of Secured Obligations
without the Administrative Agent's prior written consent.

         SECTION 13. General Covenants. Each Grantor covenants and agrees with
the Administrative Agent that from and after the date of this Agreement and
until termination of this Agreement pursuant to Section 25, such Grantor shall:

         (A) Keep and maintain at such Grantor's own cost and expense
satisfactory and complete records of such Grantor's Collateral in a manner
consistent with such Grantor's current business practice and, where applicable,
generally accepted accounting principles, including, without limitation, a
record of all payments received and all credits granted with respect to such
Collateral. Such Grantor shall, for the Administrative Agent's further security,
deliver and turn over to the Administrative Agent or the Administrative Agent's
designated representatives at any time following the occurrence and during the
continuation of an Agreement Default, any such books and records (including,
without limitation, any and all computer tapes, programs and source and object
codes relating to such Collateral in which such Grantor has an interest or any
part or parts thereof);

         (B) Not create, permit or suffer to exist, and will defend the
Collateral against, and take such other action as is necessary to remove, any
Lien on such Collateral other than Liens permitted under Section 7.3(C) of the
Credit Agreement, and will defend the right, title and interest of the
Administrative Agent in and to such Grantor's rights to such Collateral,
including, without limitation, the proceeds and products thereof, against the
claims and demands of all Persons whatsoever; and

         (C) Not permit or suffer to exist, and take such action as is necessary
to prevent, the aggregate value of all Collateral located at third-party
locations for which a Landlord Agreement in the form of Exhibit A hereto or a
Third-Party Agreement in the form of Exhibit B hereto has not been executed and
delivered to the Administrative Agent to exceed the individual or aggregate
amounts as set forth in Sections 6(F) and 6(G) above at any time.

         SECTION 14. Administrative Agent Appointed Attorney-in-Fact. Each
Grantor hereby irrevocably appoints the Administrative Agent as such Grantor's
attorney-in-fact, coupled with an interest, with full authority in the place and
stead of such Grantor and in the name of such Grantor or otherwise, from time to
time in the Administrative Agent's discretion, to take any action and to execute
any instrument which the Administrative Agent may deem necessary or advisable to
accomplish the purposes of this Agreement, including, without limitation:

         (A) following the occurrence and during the continuance of an Agreement
Default, to:

                  (i) obtain and adjust insurance required to be paid to the
         Administrative Agent or any Holders of Secured Obligations pursuant to
         the Credit Agreement;

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<PAGE>   14

                  (ii) ask, demand, collect, sue for, recover, compromise,
         receive and give acquittance and receipts for moneys due and to become
         due under or in respect of any of the Collateral;

                  (iii) receive, endorse, and collect any drafts or other
         instruments, documents and chattel paper, in connection with clause (i)
         or (ii) above; and

                  (iv) file any claims or take any action or institute any
         proceedings which the Administrative Agent may deem necessary or
         desirable for the collection of any of the Collateral, or otherwise to
         enforce the rights of the Administrative Agent with respect to any of
         the Collateral; and

         (B) at any time, to:

                  (i) obtain access to records maintained for such Grantor by
         computer services companies and other service companies or bureaus;

                  (ii) send requests under such Grantor's, the Administrative
         Agent's or a fictitious name to Grantor's customers or account debtors
         for verification of Accounts; and

                  (iii) do all other things reasonably necessary to carry out
         this Agreement.

         SECTION 15. Administrative Agent May Perform. If any Grantor fails to
perform any agreement contained herein, the Administrative Agent may perform, or
cause performance of, such agreement, and the expenses of the Administrative
Agent incurred in connection therewith shall constitute Secured Obligations and
shall be payable by such Grantor under Section 22.

         SECTION 16. Administrative Agent's Duties. The powers conferred on the
Administrative Agent hereunder are solely to protect its interest in the
Collateral and shall not impose any duty upon it to exercise any such powers.
Except for the safe custody of any Collateral in its possession and the
accounting for monies actually received by it hereunder, the Administrative
Agent shall not have any duty as to any Collateral. The Administrative Agent
shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral in its possession if the Collateral is accorded
treatment substantially equal to that which the Administrative Agent accords its
own property, it being understood that the Administrative Agent shall be under
no obligation to take any necessary steps to preserve rights against prior
parties or any other rights pertaining to any Collateral, but may do so at its
option, and all reasonable expenses incurred in connection therewith shall be
for the sole account of such Grantor and shall be added to the Secured
Obligations.

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<PAGE>   15

         SECTION 17. Remedies.

         (A) If any Agreement Default shall have occurred and be continuing:

                  (i) the Administrative Agent shall have, in addition to other
         rights and remedies provided for herein or otherwise available to it,
         all the rights and remedies of a secured party upon default under the
         UCC (whether or not the UCC applies to the affected Collateral) and
         further, the Administrative Agent may, without notice, demand or legal
         process of any kind (except as may be required by law), all of which
         each Grantor waives, at any time or times, (x) enter any Grantor's
         owned or leased premises and take physical possession of the Collateral
         and maintain such possession on such Grantor's owned or leased
         premises, at no cost to the Administrative Agent or any of the Holders
         of Secured Obligations, or remove the Collateral, or any part thereof,
         to such other place(s) as the Administrative Agent may desire, (y)
         require any Grantor to, and such Grantor hereby agrees that it will at
         its expense and upon request of the Administrative Agent forthwith,
         assemble all or any part of its respective portion of the Collateral as
         directed by the Administrative Agent and make it available to the
         Administrative Agent at a place to be designated by the Administrative
         Agent which is reasonably convenient to the Administrative Agent and
         (z) without notice except as specified below, sell, lease, assign,
         grant an option or options to purchase or otherwise dispose of the
         Collateral or any part thereof at public or private sale, at any
         exchange, broker's board or at any of the offices of the Administrative
         Agent or elsewhere, for cash, on credit or for future delivery, and
         upon such other terms as the Administrative Agent may deem commercially
         reasonable. Each Grantor agrees that, to the extent notice of sale
         shall be required by law, at least ten (10) Business Days' notice to
         such Grantor of the time and place of any public sale or the time after
         which any private sale is to be made shall constitute reasonable
         notification. The Administrative Agent shall not be obligated to make
         any sale of Collateral regardless of notice of sale having been given.
         The Administrative Agent may adjourn any public or private sale from
         time to time by announcement 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;

                  (ii) The Administrative Agent shall apply all cash proceeds
         received by the Administrative Agent in respect of any sale of,
         collection from, or other realization upon all or any part of the
         Collateral (after payment of any amounts payable to the Administrative
         Agent pursuant to Section 22), to the Holders of Secured Obligations,
         against all or any part of the Secured Obligations in such order as may
         be required by the Credit Agreement or, to the extent not specified
         therein, as determined by the Required Lenders. Any surplus of such
         cash or cash proceeds held by the Administrative Agent and remaining
         after payment in full of all the Secured Obligations shall be paid over
         to the Grantors or to whomsoever may be lawfully entitled to receive
         such surplus;

         (B) Each Grantor waives all claims, damages and demands against the
Administrative Agent or any of the Holders of Secured Obligations, as the case
may be, arising out of the repossession, retention or sale of any of the
Collateral or any part or parts thereof, except any such claims,

15
<PAGE>   16

damages and awards arising solely out of the Gross Negligence or willful
misconduct of the Administrative Agent or any of the Holders of Secured
Obligations, as the case may be, as determined in a final non-appealed judgment
of a court of competent jurisdiction; and

         (C) The rights and remedies provided under this Agreement are
cumulative and may be exercised singly or concurrently and are not exclusive of
any rights and remedies provided by law or equity.

         SECTION 18. Exercise of Remedies. In connection with the exercise of
its remedies pursuant to Section 17, the Administrative Agent may, (a) exchange,
enforce, waive or release any portion of the Collateral and any other security
for the Secured Obligations; (b) apply such Collateral or security and direct
the order or manner of sale thereof as the Administrative Agent may, from time
to time, determine; and (c) settle, compromise, collect or otherwise liquidate
any such Collateral or security in any manner following the occurrence of an
Agreement Default, without affecting or impairing the Administrative Agent's
right to take any other further action with respect to any Collateral or
security or any part thereof.

         SECTION 19. License. The Administrative Agent is hereby granted a
license or other right to use, following the occurrence and during the
continuance of an Agreement Default, without charge, (a) any Grantor's labels,
patents, copyrights, trade secrets, trade names, trademarks, service marks,
customer lists 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 (b) such Grantor's rights under all
licenses and all franchise agreements shall inure to the Administrative Agent's
benefit, except where the granting of such license or other right to use would
violate a valid and enforceable prohibition on the granting of such a license or
other right to use contained in any such Grantor's licenses or franchise
agreements until all necessary third-party consents have been obtained.

         SECTION 20. Injunctive Relief. Each Grantor recognizes that in the
event such Grantor fails to perform, observe or discharge any of its obligations
or liabilities under this Agreement, any remedy of law may prove to be
inadequate relief to the Holders of Secured Obligations; therefore, such Grantor
agrees that the Holders of Secured Obligations, if the Administrative Agent so
determines and requests, shall be entitled to temporary and permanent injunctive
relief in any such case without the necessity of proving actual damages.

         SECTION 21. Interpretation and Inconsistencies; Merger.

         (A) The rights and duties created by this Agreement shall, in all
cases, be interpreted consistently with, and shall be in addition to (and not in
lieu of), the rights and duties created by the Credit Agreement and the other
Credit Documents. In the event that any provision of this Agreement shall be
inconsistent with any provision of any of the Credit Agreement or other Credit
Document, such provision of the other Credit Document shall govern.

16
<PAGE>   17

         (B) Except as provided in subsection (A) above, this Agreement
represents the final agreement of the Grantors and the Administrative Agent with
respect to the matters contained herein and may not be contradicted by evidence
of prior or contemporaneous agreements, or subsequent oral agreements, between
the Grantors and the Administrative Agent or any other Holder of Secured
Obligations.

         SECTION 22. Expenses. Each Grantor will upon demand pay to the
Administrative Agent and/or the Holders of Secured Obligations the amount of any
and all reasonable expenses, including the reasonable fees and disbursements of
their counsel and of any experts and agents, as provided in Section 11.7 of the
Credit Agreement.

         SECTION 23. Amendments, Etc. No amendment or waiver of any provision of
this Agreement nor consent to any departure by any Grantor herefrom shall in any
event be effective unless the same shall be in writing and signed by the
Administrative Agent and the applicable Grantor, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given. The addition of any Subsidiary as a Grantor hereunder by
execution of an Addendum in the form of Annex I (with such modifications as
shall be acceptable to the Administrative Agent) shall not require receipt of
any consent from or other execution of any documentation by any other Grantor
party hereto.

         SECTION 24. Notices. All notices and other communications provided to
any party hereto under this Agreement shall be delivered to such party in the
manner set forth in Section 15.1 of the Credit Agreement at its address set
forth below its signature hereto or on its respective Addendum hereto, as
applicable, or at such other address as may be designated by such party in a
notice to the other parties.

         SECTION 25. Continuing Security Interest; Termination.

         (A) Except as provided in Section 25(B), this Agreement shall create a
continuing security interest in the Collateral and shall (i) remain in full
force and effect until the later of the payment or satisfaction in full in cash
of the Secured Obligations and the termination of the Credit Documents, (ii) be
binding upon each Grantor, its successors and assigns and (iii) inure, together
with the rights and remedies of the Administrative Agent hereunder, to the
benefit of Administrative Agent and any of the Holders of Secured Obligations.
Nothing set forth herein or in any other Credit Document is intended or shall be
construed to give any other Person any right, remedy or claim under, to or in
respect of this Agreement or any other Credit Document or any Collateral. Each
Grantor's successors and assigns shall include, without limitation, a receiver,
trustee or debtor-in-possession thereof or therefor.

         (B) Upon the payment in full in cash of the Secured Obligations and the
termination of the Credit Documents, this Agreement and the security interest
granted hereby shall terminate and all rights to the Collateral shall revert to
the applicable Grantor. Upon any such termination of

17
<PAGE>   18

security interest, such Grantor shall be entitled to the return, upon its
request and at its expense, of such of the Collateral held by the Administrative
Agent as shall not have been sold or otherwise applied pursuant to the terms
hereof and the Administrative Agent will, at such Grantor's expense, execute and
deliver to such Grantor such other documents as such Grantor shall reasonably
request to evidence such termination. In connection with any sales of assets
permitted under the Credit Agreement, and provided adequate provision is made
for the application of the proceeds thereof in a manner consistent with the
requirements of the Credit Agreement, the Administrative Agent will release and
terminate the liens and security interests granted under this Agreement with
respect to such assets.

         SECTION 26. Severability; No Strict Construction.

         (A) It is the parties' intention that this Agreement be interpreted in
such a way that it is valid and effective under applicable law. However, if one
or more of the provisions of this Agreement shall for any reason be found to be
invalid or unenforceable, the remaining provisions of this Agreement shall be
unimpaired.

         (B) The parties hereto have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties hereto and no presumption or burden or proof shall arise favoring
or disfavoring any party by virtue of the authorship of any provisions of this
Agreement.

         (C) The duties and obligations of any Grantor hereunder shall not be
released, discharged or otherwise affected by the addition or removal of any
other Grantor hereunder or the release of any security interest in or lien
against any individual Grantor's portion of the Collateral.

         SECTION 27. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION
735 ILCS SECTION 105/5-1 ET SEQ., BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT
OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS
APPLICABLE TO NATIONAL BANKS. ANY DISPUTE BETWEEN THE PLEDGOR AND THE
ADMINISTRATIVE AGENT OR ANY LENDER, OR ANY OTHER HOLDER OF SECURED OBLIGATIONS
ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED BETWEEN THEM IN CONNECTION WITH, THIS AGREEMENT, AND WHETHER ARISING
IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH
THE INTERNAL LAWS (INCLUDING, WITHOUT LIMITATION, 735 ILCS SECTION 105/5-1 ET
SEQ., BUT OTHERWISE WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE
STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL
BANKS.

18
<PAGE>   19

         SECTION 28. CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.

         (A) EXCLUSIVE JURISDICTION. EXCEPT AS PROVIDED IN SUBSECTION (B), EACH
OF THE PARTIES HERETO AGREES THAT ALL DISPUTES AMONG THEM ARISING OUT OF,
CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG
THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS
WHETHER ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED
EXCLUSIVELY BY STATE OR FEDERAL COURTS LOCATED IN CHICAGO, ILLINOIS, BUT THE
PARTIES HERETO ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
HEARD BY A COURT LOCATED OUTSIDE OF CHICAGO, ILLINOIS. EACH OF THE PARTIES
HERETO WAIVES IN ALL DISPUTES BROUGHT PURSUANT TO THIS SUBSECTION (A) ANY
OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE.

         (B) OTHER JURISDICTIONS. EACH GRANTOR AGREES THAT THE ADMINISTRATIVE
AGENT, ANY LENDER OR ANY OTHER HOLDER OF SECURED OBLIGATIONS SHALL HAVE THE
RIGHT TO PROCEED AGAINST SUCH GRANTOR OR ITS RESPECTIVE PROPERTY IN A COURT IN
ANY LOCATION TO ENABLE SUCH PERSON TO (1) OBTAIN PERSONAL JURISDICTION OVER SUCH
GRANTOR OR (2) REALIZE ON THE COLLATERAL GRANTED IN CONNECTION HEREWITH, OR (3)
IN ORDER TO ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF SUCH
PERSON. EACH GRANTOR AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE COUNTERCLAIMS
IN ANY PROCEEDING BROUGHT BY SUCH PERSON IN A LOCATION OUTSIDE OF ILLINOIS TO
REALIZE ON ANY SECURITY FOR THE OBLIGATIONS OR TO ENFORCE A JUDGMENT OR OTHER
COURT ORDER IN FAVOR OF SUCH PERSON; PROVIDED THAT EACH GRANTOR'S RIGHT TO
ASSERT PERMISSIVE COUNTERCLAIMS IN STATE OR FEDERAL COURTS LOCATED IN CHICAGO,
ILLINOIS SHALL BE PRESERVED. EACH GRANTOR WAIVES ANY OBJECTION THAT IT MAY HAVE
TO THE LOCATION OF THE COURT IN WHICH SUCH PERSON HAS COMMENCED A PROCEEDING
DESCRIBED IN THIS SUBSECTION (B).

         (C) VENUE. EACH OF THE LENDERS AND EACH GRANTOR IRREVOCABLY WAIVES ANY
OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY OBJECTION OF THE LAYING OF VENUE
OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS) WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH IN ANY JURISDICTION SET FORTH ABOVE.

19
<PAGE>   20

         (D) EACH GRANTOR WAIVES PERSONAL SERVICE OF ANY PROCESS UPON IT AND
IRREVOCABLY APPOINTS CT CORPORATION, WITH OFFICES AT 208 SOUTH LASALLE STREET,
CHICAGO, ILLINOIS 60604, AS SUCH GRANTOR'S AGENT FOR THE PURPOSE OF ACCEPTING
SERVICE OF PROCESS ISSUED BY ANY COURT. NOTHING HEREIN SHALL IN ANY WAY BE
DEEMED TO LIMIT THE ABILITY OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO SERVE
ANY SUCH WRITS, PROCESS OR SUMMONSES IN ANY OTHER MANNER PERMITTED BY APPLICABLE
LAW.

         (E) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH. EACH OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         (F) WAIVER OF BOND. EACH GRANTOR WAIVES THE POSTING OF ANY BOND
OTHERWISE REQUIRED OF ANY PARTY HERETO IN CONNECTION WITH ANY JUDICIAL PROCESS
OR PROCEEDING TO REALIZE ON THE COLLATERAL, ENFORCE ANY JUDGMENT OR OTHER COURT
ORDER ENTERED IN FAVOR OF SUCH PARTY, OR TO ENFORCE BY SPECIFIC PERFORMANCE,
TEMPORARY RESTRAINING ORDER, PRELIMINARY OR PERMANENT INJUNCTION, THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT.

         (a) ADVICE OF COUNSEL. EACH OF THE PARTIES REPRESENTS TO EACH OTHER
PARTY HERETO THAT IT HAS DISCUSSED THIS AGREEMENT AND, SPECIFICALLY, THE
PROVISIONS OF THIS SECTION 28, WITH ITS COUNSEL.

         SECTION 29. Entire Agreement. This Agreement embodies the final and
entire agreement and understanding among the grantors, the Administrative Agent
and the Lenders and supersede all prior agreements and understandings among the
grantors, the Administrative Agent and the Lenders relating to the subject
matter hereof. This Agreement may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties. There are no
unwritten oral agreements between the parties hereto.

                      REMAINDER OF PAGE INTENTIONALLY BLANK

20
<PAGE>   21

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

                                       SYBRON DENTAL SPECIALTIES, INC.

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                                       SYBRON DENTAL MANAGEMENT, INC.

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                                       KERR CORPORATION

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                                       ORMCO CORPORATION

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                                       METREX RESEARCH CORPORATION

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                      Signature Page to Security Agreement
<PAGE>   22

                                       PINNACLE PRODUCTS, INC.

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                                       ABN AMRO BANK N.V.,
                                       as Administrative Agent

                                       By:
                                          --------------------------------------
                                       Name:
                                       Title:

                      Signature Page to Security Agreement
<PAGE>   23

                                    EXHIBIT A
                                       to
                               SECURITY AGREEMENT

                         Form of Landlord Agreement(1)

To:      ABN AMRO BANK N.V.,
         as Administrative Agent
         135 South LaSalle Street
         Chicago, Illinois 60603
         Attention: Tom Kramer

                  [Name of Entity], a [Type of Entity] ("Grantor"), is the
lessee under a lease between Grantor and _________________ (the "Lessor")
covering the premises located at ________________ (the "Premises") as more fully
described in the lease attached hereto as Exhibit A and as modified by any
amendments, if any, attached thereto (collectively, the "Lease"). The Lessor is
the sole owner of the Premises. Grantor has certain of its assets located on the
Premises.

                  Grantor has entered into certain financing arrangements with a
group of Lenders ("Lenders") including, ABN AMRO BANK N.V., as contractual
representative for the Lenders (the "Administrative Agent"). Under the terms of
the financing arrangements, the Lenders require, among other things, that
Grantor grant liens in favor of the Administrative Agent on behalf of the
Lenders on all of Grantor's personal property located on the Premises
("Collateral"), that Grantor now or in the future grant a mortgage covering the
Grantor's leasehold estate created by and under the Lease in favor of the
Administrative Agent and/or now or in the future collaterally assign to the
Administrative Agent the Grantor's leasehold estate created by and under the
Lease.

                  In order to induce the Administrative Agent and the Lenders
(together with their respective agents, successors and assigns) to continue such
financing arrangements, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the undersigned hereby
certifies and agrees as follows:

                  The Lease is in full force and effect, and in the form
         attached hereto as Exhibit A, represents the full and complete
         agreement between the Grantor and the undersigned concerning the
         Premises and the Lease shall not be amended or modified in any material
         respect without the Administrative Agent's prior written consent, which
         consent shall not be unreasonably withheld.

                  Grantor is not in default under the Lease, nor, to the
         undersigned's knowledge, are there any events or conditions which, by
         the passage of time or giving of notice or both, would constitute a
         default thereunder by Grantor.

----------

(1)      To be modified to be in recordable form in the applicable jurisdiction.

                      Signature Page to Security Agreement
<PAGE>   24

                  The undersigned will not assert against any of Grantor's
         assets any statutory or possessory liens, including, without
         limitation, rights of levy or distraint for rent, all of which it
         hereby waives and hereby subordinates to the lien of any present or
         future leasehold mortgage.

                  The undersigned is not aware of any dispute, action, suit,
         condemnation proceeding, claim, or right of setoff pending or
         threatened with respect to the Lease or the Premises.

                  None of the Collateral located on the Premises shall be deemed
         to be fixtures.

                  The undersigned will notify the Administrative Agent if
         Grantor defaults on its lease obligations to the undersigned and allow
         the Administrative Agent thirty (30) days from the Administrative
         Agent's receipt of notice in which to cure or cause Grantor to cure any
         such defaults. If such default cannot reasonably be cured within the
         thirty (30) day period, and provided the Administrative Agent is
         diligently pursuing a cure, then the Administrative Agent shall have a
         reasonable period to cure such default.

                  The undersigned shall accept performance by the Administrative
         Agent of the Grantor's obligations under the Lease as though the same
         had been performed by the holder of the Grantor's interest therein at
         the time of such performance. Upon the cure of any such default, any
         notice of Landlord advising of any default or any action of the
         undersigned to terminate the Lease or to interfere with the occupancy,
         use or enjoyment of the Premises by reason thereof, which action has
         not been completed, shall be deemed rescinded and the Lease shall
         continue in full force and effect. The undersigned shall not be
         required to continue any possession or continue any action to obtain
         possession upon the cure of any such default.

                  If, for any reason whatsoever, the undersigned either deems
         itself entitled to redeem or to take possession of the Premises during
         the term of Grantor's lease or intends to sell or otherwise transfer
         all or any part of its interest in the Premises, the undersigned will
         notify the Administrative Agent five (5) days before taking such
         action.

                  If Grantor defaults on its obligations to the Administrative
         Agent or any Lender and, as a result, the Administrative Agent
         undertakes to enforce its security interest in the Collateral, the
         undersigned will permit the Administrative Agent to remain on the
         Premises for one-hundred and twenty (120) days after the later to occur
         of (a) the date on which the Administrative Agent gives the undersigned
         notice of the default and (b) the date on which the Administrative
         Agent is given access to the Premises, provided the Administrative
         Agent pays the rental payments due under the Lease for the period of
         time the Administrative Agent occupies the Premises, or, at the
         Administrative Agent's option, to remove the Collateral from the
         Premises within a reasonable time, not to exceed one-hundred and twenty
         (120) days after the later to occur of (a) the date on which the
         Administrative Agent gives the undersigned notice of the default and
         (b) the date on which the

                                      A-25
<PAGE>   25

         Administrative Agent is given access to the Premises, provided the
         Administrative Agent pays the rental payments due under the Lease for
         the period of time the Administrative Agent occupies the Premises, and
         will not hinder the Administrative Agent's actions in enforcing its
         liens on the Collateral.

                  If Grantor defaults on its obligations to the Lenders and the
         Administrative Agent undertakes to enforce its security interest in the
         Collateral, to foreclose on Grantor's leasehold estate pursuant to any
         leasehold mortgage and/or enforce its rights under any collateral
         assignment of lease, the Administrative Agent may, at its option and by
         written notice to the undersigned, (1) lease the Premises from the
         undersigned on the same terms as set forth in the Lease and exercise
         the other rights as lessee thereunder as described therein and/or (2)
         assign the Lease and/or the attornment rights hereunder to, or enter
         into a sublease with, a purchaser of the Collateral which purchaser is
         reasonably acceptable to the undersigned, and the undersigned shall
         cooperate with any such enforcement action or foreclosure and consent
         to the assumption of the Lease, the sublet of the Premises or
         foreclosure sale of the leasehold estate.

                  In the event that Grantor shall become a debtor under the
         Federal Bankruptcy Code and, in connection therewith, Grantor shall
         reject the Lease or Option as an executory contract, then within thirty
         (30) days following such rejection, upon the written request by the
         Administrative Agent, the undersigned shall enter into a new lease of
         the Premises with the Administrative Agent or its designee (who shall
         be reasonably acceptable to the undersigned), for the benefit of the
         Lenders which new lease (1) shall be effective as of the date of the
         termination of the Lease, (2) shall be for a term expiring as of the
         last day of the term of the Lease, and (3) shall be on substantially
         the same terms and conditions as the Lease (including any provisions
         for renewal or extension of the term of the Lease); provided that the
         Administrative Agent or such designee, as the case may be, shall be
         required, as a condition to the effectiveness of such new lease, to pay
         the Lessor any amount equal to any rent remaining unpaid by Grantor
         under the Lease.

                  The undersigned consents to the granting now or in the future
of a leasehold mortgage and/or collateral assignment of lease to the
Administrative Agent and to the liens, security interests and encumbrances
created by and resulting from such leasehold mortgage and/or any such collateral
assignment of lease or other documents collateral thereto.

                  Any notice(s) required or desired to be given hereunder shall
be directed to the party to be notified at the address stated herein.

                                      A-26
<PAGE>   26

                  The agreements contained herein shall continue in force until
the earlier of (i) the expiration date of the Lease (provided no provision is
made for the extension or renewal of the Lease) or (ii) the date on which all of
Grantor's obligations and liabilities to the Administrative Agent and the
Lenders are paid and satisfied in full and all financing arrangements between
the Administrative Agent, the Lenders and Grantor have been terminated.

                  The Lessor will notify all successor owners, transferees,
purchasers and mortgagees of the existence of this waiver. This waiver may not
be modified or terminated orally and shall be binding upon the successors,
assigns and personal representatives of the Lessor, upon any successor owner or
transferee of the Premises, and upon any purchasers, including any mortgagee,
from the Lessor.

                  THE LESSOR AGREES THAT NOTHING CONTAINED IN THIS WAIVER SHALL
BE CONSTRUED AS AN ASSUMPTION BY THE ADMINISTRATIVE AGENT OR ANY LENDERS OF ANY
OBLIGATIONS OF GRANTOR CONTAINED IN THE LEASE.

                  THIS WAIVER SHALL NOT IMPAIR OR OTHERWISE AFFECT GRANTOR'S
OBLIGATIONS TO PAY RENT AND ANY OTHER SUMS PAYABLE BY GRANTOR OR TO OTHERWISE
PERFORM ITS OBLIGATIONS TO THE LESSOR PURSUANT TO THE TERMS OF THE LEASE.

                  Executed and delivered this ____ day of ______________, ____,
at _______________________, ______________________.

                                       [Name of Lessor]

                                       By:
                                          --------------------------------------
                                       Title:
                                       Address:

AGREED &ACKNOWLEDGED:

[GRANTOR]

By:
   -------------------------------
Title:
Address:

                                      A-27
<PAGE>   27

                           ACKNOWLEDGMENT (CORPORATE)

STATE OF ______________________     )
                                    ) SS
COUNTY OF _____________________     )

                  Before me, a Notary Public in and for said County, personally
appeared _____________, a ____________ corporation, by the __________________ of
such corporation, who acknowledged that (s)he did sign the foregoing instrument
on behalf of said corporation and that said instrument is the voluntary act and
deed of said corporation and his/her voluntary act and deed as such officer of
said corporation.

                  IN TESTIMONY WHEREOF, I have hereunto subscribed my name and
affixed my official seal this ____ day of ____________________________, _____ at
_____________________, ____________________________________.

                                       ------------------------------
                                       Notary Public
                                       My Commission Expires:
(Notarial Seal)

<PAGE>   28

                           ACKNOWLEDGMENT (CORPORATE)

STATE OF ______________________     )
                                    ) SS
COUNTY OF _____________________     )

                      Before me, a Notary Public in and for said County,
personally appeared _________________________, a ____________________, by the
_________________ of such _________________, who acknowledged that (s)he did
sign the foregoing instrument on behalf of said _________________ and that said
instrument is the voluntary act and deed of said ______________ and his/her
voluntary act and deed as such officer of said ______________.

                  IN TESTIMONY WHEREOF, I have hereunto subscribed my name and
affixed my official seal this ____ day of ____________________________, ____ at
_____________________, ____________________________________.

                                       ------------------------------
                                       Notary Public
                                       My Commission Expires:
(Notarial Seal)

<PAGE>   29

                                    EXHIBIT A
                                       to
                               Landlord Agreement

                                    Lease(2)

                                (attached hereto)

----------
(2)      To include legal description of the premises

<PAGE>   30

                                   [EXHIBIT B
                                       to
                               Landlord Agreement

                               Leasehold Mortgage

                               (attached hereto)]

<PAGE>   31

                                    EXHIBIT B
                                       to
                               SECURITY AGREEMENT

                        Form of Third Party Agreement(3)

To:      ABN AMRO BANK N.V.,
         as Administrative Agent
         135 South LaSalle Street, Suite 725
         Chicago, Illinois 60603
         Attention: Tom Kramer

                  ________________________ ("Grantor"), now does or hereafter
may have certain of its merchandise, inventory, or other of its personal
property for processing, storage, consignment, engineering, evaluation or
repairs, located at _______________ (the "Premises") owned or leased by the
undersigned.

                  Grantor has entered into certain financing arrangements with a
group of Lenders ("Lenders") including, ABN AMRO BANK N.V., as contractual
representative for the Lenders (the "Administrative Agent"). Under the terms of
the financing arrangements, the Lenders require, among other things, that
Grantor grant liens in favor of the Administrative Agent on behalf of the
Lenders on all of Grantor's personal property located on the Premises
("Collateral").

                  In order to induce the Administrative Agent and the Lenders
(together with their respective agents, successors and assigns) to continue such
financing arrangements, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the undersigned hereby
certifies and agrees that:

                  (i) it will not assert against any of Grantor's assets any
         statutory or possessory liens, including, without limitation, rights of
         levy or distraint for rent, all of which it hereby waives;

                  (ii) the Collateral shall be identifiable as being owned by
         the Grantor and kept reasonably separate and distinct from other
         property in the possession of the undersigned;

                  (iii) none of the Collateral located on the Premises shall be
         deemed to be fixtures; and

                  (iv) if Grantor defaults on its obligations to the Lenders or
         the Administrative Agent and, as a result, the Administrative Agent
         undertakes to enforce its security interest in the Collateral, the
         undersigned (a) will cooperate with the Administrative Agent in its
         efforts to assemble all of the Collateral located on the Premises, (b)
         will permit the

----------
(3)      To be accompanied by three-party UCC in the case of bailees and
         consignees.

                      Signature Page to Security Agreement
<PAGE>   32

         Administrative Agent to either remain on the Premises for one-hundred
         and twenty (120) days after the later to occur of (i) the date on which
         the Administrative Agent gives the undersigned notice of the default
         and (ii) the date on which the Administrative Agent is given access to
         the Premises or to remove the Collateral from the Premises within a
         reasonable time, not to exceed one-hundred and twenty (120) days after
         the later to occur of (i) the date on which the Administrative Agent
         gives the undersigned notice of the default and (ii) the date on which
         the Administrative Agent is given access to the Premises, provided in
         either instance that the Administrative Agent leaves the Premises in
         the same condition as existed immediately prior to such 120-day period,
         and the Administrative Agent shall indemnify the undersigned for any
         damages arising solely out of its occupancy of the Premises, and (c)
         will not hinder the Administrative Agent's actions in enforcing its
         liens on the Collateral.

         Any notice(s) required or desired to be given hereunder shall be
directed to the party to be notified at the address stated herein.

                  The agreements contained herein shall continue in force until
the date on which all of Grantor's obligations and liabilities to the
Administrative Agent and the Lenders are paid and satisfied in full and all
financing arrangements between the Administrative Agent, the Administrative
Agent, the Lenders and Grantor have been terminated.

         The undersigned will notify all successor owners, transferees,
purchasers and mortgagees of the existence of this agreement. The agreements
contained herein may not be modified or terminated orally and shall be binding
upon the successors, assigns and personal representatives of the undersigned,
upon any successor owner or transferee of any of the Premises, and upon any
purchasers, including any mortgagee, from the undersigned.

         Executed and delivered this ____ day of __________, ____, at
_______________________.

                                       [Name and Address of Bailee]

                                       (By)
                                           ------------------------

<PAGE>   33

                                    EXHIBIT C
                                       to
                               SECURITY AGREEMENT

                      Form of Collection Account Agreement

TO: ABN Amro Bank N.V., as Administrative Agent (the "Administrative Agent")
under that certain Security Agreement, dated as of December 11, 2000

Ladies and Gentlemen:

You have advised us that:

                  (a) Sybron Dental Management, Inc., Kerr Corporation, Ormco
         Corporation, Metrex Research Corporation and Pinnacle Products, Inc.
         (each a "Grantor" and, collectively, the "Grantors") have entered into
         that certain Credit Agreement dated as of November 28, 2000, among the
         Grantors, the institutions from time to time parties thereto as lenders
         (the "Lenders"), ABN Amro Bank N.V., as contractual representative for
         the benefit of itself and the other Lenders (the "Administrative
         Agent"), The Chase Manhattan Bank, as Syndication Agent and First Union
         National Bank, as Documentation Agent (as the same may be amended,
         restated, supplemented or otherwise modified from time to time, the
         "Credit Agreement"), providing for the making of advances, loans and
         other financial accommodations (including, without limitation letters
         of credit and acceptances) (all such loans, advances and other
         financial accommodations being hereinafter referred to collectively as
         the "Loans") to or for the benefit of the Grantors.

                  (b) In connection with the above-referenced transactions the
         Grantors have entered into a security agreement (the "Security
         Agreement") with the Administrative Agent, pursuant to which the
         Grantors have granted to the Administrative Agent, for its benefit and
         the benefit of the Holders of Secured Obligations (as defined in the
         Security Agreement), a lien on and security interest in substantially
         all of the assets of the Grantors, including all of the accounts
         receivable and inventory of the Grantors.

         This will confirm that the Grantor named below and the undersigned
collection bank (the "Collection Bank") have agreed as follows with respect to
(i) the account[s] identified on Schedule 1 attached hereto (the "Account[s]")
[and (ii) the lock box[es] identified on Schedule 2 attached hereto, to which
the Grantor's customers and other persons and entities obligated to Grantor
deliver checks and other items of payment (said [lock box is] [lock boxes are]
hereinafter referred to [collectively] as the "Lock Box[es]")]:

         1. The Grantor and the Collection Bank acknowledge and confirm that
although the Account[s] [and Lock Box[es]] shall remain in the name of Grantor,
all funds now or at any time hereafter deposited to the ACCOUNT[s] [and Lock
Box[es]] and all of Grantor's rights regarding such Account[s] [and Lock
Box[es]] constitute part of the collateral in which Grantor has granted a
security interest to the Administrative Agent, to secure the "Secured
Obligations"

                      Signature Page to Security Agreement
<PAGE>   34

under the Security Agreement, and the other instruments, documents
and agreements executed in connection therewith, and that during a "Notification
Period" (as defined below), the Collection Bank shall not be permitted to follow
directions from Grantor as to disbursements and deposits with respect thereto.
[The Collection Bank's authorized representatives will have access to the Lock
Box[es], under the authority given by Grantor to the appropriate Post Office,
and will make regular pick-ups from the Lock Box[es] timed to gain the maximum
benefit of early presentation and availability of funds. Upon the Collection
Bank's receipt thereof, checks and other items of payment so received will be
processed and, where possible, started on their way through the regular channels
for payment upon receipt by the Collection Bank. Subject to final collection,
credit for such items will be given in total on the Collection Bank's books
relating to the [appropriate] Account. The Collection Bank will supply Grantor's
endorsement on checks received by it by endorsing them "Credited to the account
of the within payee" and will present them for payment through the customary
collection procedures and subject to the terms of the Collection Bank's by-laws
covering the handling of items deposited with it.](4)

         2. The Collection Bank will not exercise, and hereby releases, any
banker's lien upon and any right of set off against checks or other items of
payment [remitted to the Lock Box[es]] and/or deposited in the Account[s],
except (i) with respect to the Collection Bank's normal fees and charges for
operating the Account[s] and (ii) for amounts previously credited to Grantor's
Account[s] which the Collection Bank subsequently determines are uncollectible
items. Checks returned unpaid because of uncollected or insufficient funds shall
be redeposited without advice.

         3. From and after the date on which the Administrative Agent notifies
the Collection Bank, in writing, that it is exercising its rights under this
Collection Account Agreement (the "Notice") until the date on which the
Administrative Agent notifies the Collection Bank that it is withdrawing such
Notice (such period being referred to herein as a "Notification Period"), the
Collection Bank, Grantor and the Administrative Agent agree that, unless the
Administrative Agent otherwise instructs the Collection Bank in writing:

                  A. The Collection Bank will not honor drafts, demands,
         withdrawal requests or remittance instructions by Grantor.

                  B. The Collection Bank will hold solely for account of the
         Administrative Agent all funds which may be on deposit in the
         Account[s] and the Administrative Agent shall have the exclusive right
         to direct the Collection Bank as to the disposition of all checks,
         other items of payment and amounts deposited in the Account[s] [and
         remitted to the Lock Box[es]].

----------
(4)      The last three sentences of this Section and the last sentence of the
following Section may be substituted with a cross reference to the applicable
cash-management or lock-box services agreement, if one exists.
<PAGE>   35

                  C. The Collection Bank will remit all such funds directly to
         the Administrative Agent, as soon as the funds are collected, by
         electronic transfer of immediately available funds in accordance with
         the Administrative Agent's written wire-transfer instructions given
         from time to time to the Collection Bank.

                  D. The Collection Bank shall be entitled to rely upon any
         notice or other writing received from the Administrative Agent and
         Grantor waives any claim of, and releases the Collection Bank from any
         liability for, complying with the terms of this Collection Account
         Agreement.

         4. [Grantor will receive a receipted copy of the activity relating to
the Lock Box[es] for its records.] The Collection Bank will not close the
Account[s] without giving the Administrative Agent at least thirty (30) days'
prior written notice at the address set forth below or such other address as the
Administrative Agent may from time to time indicate by written notice to the
Collection Bank, the Collection Bank will send to the Administrative Agent at
such address a copy of each periodic statement for the Account, as and when the
statement is sent to Grantor.

         5. Any notice (including, without limitation, any Notice) required or
desired to be served, given or delivered hereunder shall be in writing and shall
be deemed to have been validly served, given or delivered (i) three (3) business
days after deposit in the United States mails, with proper postage prepaid, (ii)
when sent after receipt of confirmation of answer back if sent by telecopy,
(iii) one (1) business day after deposit with a reputable overnight courier with
all charges prepaid, or (iv) when delivered, if hand delivered by messenger.

         6. The Collection Bank shall not be liable for, and Grantor agrees to
indemnify the Collection Bank against, any liability or claims including court
costs, reasonable attorney's fees and other expenses, which the Collection Bank
may incur in connection with or pursuant to this Collection Account Agreement,
unless arising from the Collection Bank's own gross negligence or willful
misconduct.

         7. This Collection Account Agreement shall be binding upon the
Collection Bank and the Grantor and their respective successors and assigns and
shall inure to the benefit of the Administrative Agent, each of the Holders of
Secured Obligations (as defined in the Security Agreement) and their respective
successors and assigns. This Collection Account Agreement may not be modified
without the Administrative Agent's prior written consent, but may be terminated
by the Administrative Agent at any time or by the Collection Bank upon thirty
(30) days' prior written notice to the Administrative Agent and Grantor.
<PAGE>   36

         This Collection Account Agreement shall be deemed effective as of
[_____________, ____] upon execution hereof by the Collection Bank.

                                       [Insert full name of Collection Bank]:

                                       By:
                                       Name:
                                       Title:

Address:

Attn:
Telecopy No.:
             ----------------
Confirmation No.:
                 ------------
<PAGE>   37

Acknowledged and agreed to as of this

[___ ] day of [________, ____]:

[GRANTOR]

By:
   Name:
   Title:
         ----------------------

Address:

Attn:
Telecopy No.:
Confirmation No.:

Acknowledged and agreed to as of this
[___] day of [______, ____]:

ABN AMRO BANK N.V., as Administrative Agent

By:
   Name:
   Title:

Address: 135 South LaSalle Street, Suite 725
         Chicago, Illinois 60603
Attention: Tom Kramer
Telecopy No.: 312-904-1028
Confirmation No.: 312-904-6875
<PAGE>   38

                                  SCHEDULE 1(5)
                                       to
                               SECURITY AGREEMENT

                                  Pledged Debt:

----------
(5)      All Schedules to be prepared by relevant Grantor. Each Grantor's
information should appear on a separate page.

                      Signature Page to Security Agreement

<PAGE>   39

                                   SCHEDULE 2
                                       to
                               SECURITY AGREEMENT

                            Locations of Collateral:

                      Signature Page to Security Agreement

<PAGE>   40

                                  SCHEDULE 2-A
                                       to
                               SECURITY AGREEMENT

                             Third Party Locations:

<TABLE>
<CAPTION>
         Corporate Name of                                             Description
         Third Party                             Address               of Relationship
         -----------                             -------               ---------------
<S>                                              <C>                   <C>

</TABLE>

                      Signature Page to Security Agreement

<PAGE>   41

                                  SCHEDULE 2-B
                                       to
                               SECURITY AGREEMENT

                      Financing Statement Filing Locations:

                      Signature Page to Security Agreement

<PAGE>   42

                                   SCHEDULE 3
                                       to
                               SECURITY AGREEMENT

                                  Trade Names:

                      Signature Page to Security Agreement

<PAGE>   43

                                   SCHEDULE 4
                                       to
                               SECURITY AGREEMENT

                                Deposit Accounts:

                      Signature Page to Security Agreement

<PAGE>   44

                                   SCHEDULE 5
                                       to
                               SECURITY AGREEMENT

                           Tax Identification Numbers

                      Signature Page to Security Agreement

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