Document:

Execution Copy

                         GUARANTOR SECURITY AGREEMENT

     THIS GUARANTOR SECURITY AGREEMENT is made as of the 12th day of April,
2002 by Kinetek, Inc., a Delaware corporation ("Guarantor") in favor of U.S.
Bank National Association, as Trustee (the "Trustee") for the benefit of
itself and Holders of Notes, with an address at U.S. Bank Trust Center, 180
East 5th Street, Saint Paul, Minnesota 55101.

     1.  DEFINITIONS

     As used in this Agreement:

     "Agreement" shall mean this Guarantor Security Agreement, as it may be
amended, modified or supplemented from time to time.

     "Collateral" shall mean all of the Property and interests in Property
described in Section 2 of this Agreement, and all other property that now or
hereafter secures the payment and performance of any of the Obligations.

     "Default" shall have the meaning provided to such term in Section 4.1.

     "Guaranty" shall mean that certain guaranty set forth in the Indentures
of even date herewith made by Guarantor in favor of Trustee, for the benefit
of Trustee and the Holders of Notes, as it may be amended, modified or
supplemented from time to time.

     "Guaranty Documents" shall mean, collectively, this Agreement, the
Guaranty and all other agreements, instruments and documents now or hereafter
executed and/or delivered by Guarantor to Trustee in order to evidence or
secure the Obligations, as each may be amended, modified or supplemented from
time to time.

     "Holders" shall have the meaning set forth in the Indentures.

     "Indentures" shall mean the two Indentures dated as of even date herewith
among the Issuer and Trustee, as amended, modified or supplemented from time
to time.

     "Issuer" shall mean Kinetek Industries, Inc., a Delaware corporation.

     "Notes" shall have the meaning set forth in the Indentures.

     "Obligations" shall mean all obligations with respect to the Guaranty and
all other loans and all other advances, debts, liabilities, obligations,
covenants and duties arising due or payable from Guarantor to Trustee or any
Holder of any kind or nature, present or future, arising under the Guaranty,
this Agreement or any of the other Guaranty Documents, whether direct or
indirect (including those acquired by assignment), absolute or contingent,
primary or secondary, due or to become due, now existing or hereafter arising
and however acquired. The term includes, without limitation, all interest,
charges, expenses, fees, attorneys' fees and any other sums chargeable to
Guarantor under the Guaranty, this Agreement or any of the other Guaranty
Documents.

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     "Security Agreement" shall mean that certain Security Agreement dated as
of even date herewith, by and between Issuer and Trustee as it may be amended,
modified or supplemented from time to time.

     The foregoing definitions shall be equally applicable to the singular and
plural forms of the defined terms. Capitalized terms used in this Agreement
without definition and defined in the Security Agreement shall have the
meanings ascribed to such terms in the Security Agreement, including without
limitation terms defined in the Appendix A to the Security Agreement, it being
understood and acknowledged that any such capitalized terms defined in the
Security Agreement describing property or interests in property of the Issuer
(including, without limitation, capitalized terms used in Section 1 of this
Agreement) shall be construed herein to refer to property or interests in
property of Guarantor. Terms used in this Agreement and not defined herein or
in the Security Agreement shall have the meanings given such terms in the UCC.

     2.    SECURITY INTEREST

     2.1.  Security Interest in Collateral. To secure the prompt payment and
performance to Trustee and each Holder of the Obligations, Guarantor hereby
grants to Trustee for the benefit of itself and each Holder a continuing Lien
upon all of Guarantor's assets, including all of the following Property and
interests in Property of Guarantor (collectively, the "Collateral"), whether
now owned or existing or hereafter created, acquired or arising and
wheresoever located:

          (a) Accounts;

          (b) Certificated Securities;

          (c) Chattel Paper (including Electronic Chattel Paper and Tangible
     Chattel Paper);

          (d) Computer Hardware and Software and all rights with respect
     thereto, including, any and all licenses, options, warranties, service
     contracts, program services, test rights, maintenance rights, support
     rights, improvement rights, renewal rights and indemnifications, and any
     substitutions, replacements, additions or model conversions of any of the
     foregoing;

          (e) Contract Rights;

          (f) Deposit Accounts;

          (g) Documents;

          (h) Equipment;

          (i) Financial Assets;

          (j) Fixtures;

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          (k) General Intangibles, including Payment Intangibles and Software;

          (l) Goods (including all of its Equipment, Fixtures and Inventory),
     and all accessions, additions, attachments, improvements, substitutions
     and replacements thereto and therefor;

          (m) Instruments;

          (n) Intellectual Property;

          (o) Inventory;

          (p) Investment Property;

          (q) money (of every jurisdiction whatsoever);

          (r) Letter-of-Credit Rights;

          (s) Payment Intangibles;

          (t) Security Entitlements;

          (u) Software;

          (v) Supporting Obligations;

          (w) Uncertificated Securities;

          (x) Commercial Tort Claims; and

          (y) to the extent not included in the foregoing, all other personal
     property of any kind or description;

together with all books, records, writings, data bases, information and
other property relating to, used or useful in connection with, or
evidencing, embodying, incorporating or referring to any of the foregoing,
and all Proceeds, products, offspring, rents, issues, profits and returns
of and from any of the foregoing; provided, that (a) the grant under this
Section 2.1 shall not include more than 65% of the Securities of any
Foreign Subsidiary and (b) the foregoing shall not include (and the grant,
assignment and transfer of a security interest as provided herein shall not
extend to) (i) "intent to use" trademarks at all times prior to the first
use thereof, whether by the actual use thereof in commerce, the recording
of a statement of use with the United States Patent and Trademark Office or
otherwise or (ii) any General Intangibles or Intellectual Property which in
accordance with applicable licenses or other agreements applicable thereto
terminate or become terminable if a security interest is granted therein (a
"Terminable Intangible"); provided, further, that the foregoing shall
include any and all Accounts, Chattel Paper, Payment Intangibles and
Instruments arising under any and all such Terminable Intangibles.

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     2.2.  Other Collateral

           2.2.1. Commercial Tort Claims. Guarantor shall promptly notify
     Trustee in writing upon incurring or otherwise obtaining a Commercial
     Tort Claim after the date hereof involving an amount in excess of
     $200,000 against any third party and, upon request of Trustee, promptly
     enter into an amendment to this Agreement and do such other acts or
     things deemed appropriate by Trustee to give Trustee a security interest
     in any such Commercial Tort Claim. Guarantor represents and warrants that
     as of the date of this Agreement, to its knowledge, neither the Issuer
     nor such Guarantor possesses any Commercial Tort Claims.

          2.2.2.  Other Collateral. Guarantor shall promptly notify Trustee in
     writing upon acquiring or otherwise obtaining any Collateral after the
     date hereof consisting of Deposit Accounts, Investment Property,
     Letter-of-Credit Rights or Chattel Paper and, within 10 days after
     request by Trustee, execute such other documents, and do such other acts
     or things deemed appropriate by Trustee to provide to Trustee or its
     agent "control" (within the meaning of the applicable Uniform Commercial
     Code) or possession with respect to such Collateral; including without
     limitation, executing and delivering and causing the relevant depositary
     bank to execute and deliver an Account Control Agreement; promptly notify
     Trustee in writing upon acquiring or otherwise obtaining any Collateral
     after the date hereof consisting of Instruments and, within 10 days after
     request by Trustee, execute such other documents, and do such other acts
     or things deemed appropriate by Trustee to provide Trustee or its agent
     control or possession with respect to such Instruments and with respect
     to Collateral in the possession of a third party, other than Certificated
     Securities and Goods covered by a Document, use its best efforts to
     obtain an acknowledgement from the third party that it is holding the
     Collateral for the benefit of Trustee in addition to the Senior Agent.
     The provisions of this subsection 1.2.2 shall not apply to more than 65%
     of the Securities of any Foreign Subsidiary.

     2.3.  Lien Perfection; Further Assurances. Guarantor shall, and at any time
from time to time upon the written request of the Trustee the Guarantor shall,
in each case at the Guarantor's expense, promptly, execute such UCC-1
financing statements as are required by the UCC and such other instruments,
assignments or documents as are necessary to perfect Trustee's Lien upon any
of the Collateral and shall take such other action as may be required to
perfect or to continue the perfection of Trustee's Lien upon the Collateral.
Guarantor shall pay, or reimburse Trustee for, all costs and fees of preparing
and having filed UCC-1 financing statements, amendments thereto and other
documents, and of taking such other actions to perfect and to continue
Trustee's Lien on any and all Collateral, including without limitation the
initial perfection thereof. Unless prohibited by applicable law, Guarantor
hereby authorizes Trustee to execute and file any such financing statement,
including, without limitation, financing statements that indicate the
Collateral (i) as all assets of Guarantor or words of similar effect, or (ii)
as being of an equal or lesser scope, or with greater or lesser detail, than
as set forth in Section 2.1, on Guarantor's behalf. Guarantor also hereby
ratifies its authorization for Trustee to have filed in any jurisdiction any
like financing statements or amendments thereto if filed prior to the date
hereof. The parties agree that a carbon, photographic or other reproduction of
this Agreement shall be sufficient as a financing statement and may be filed
in any appropriate office in lieu thereof. At Trustee's request, Guarantor
shall also promptly execute or cause to be executed and shall deliver to

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Trustee or its agent any and all documents, instruments and agreements deemed
necessary by Trustee, to give effect to or carry out the terms or intent of
this Agreement and the other Guaranty Documents. The provisions of this
Section 2.3 (i) shall not require that any leasehold mortgages be provided
other than upon Trustee's reasonable request therefor and (ii) shall not apply
to the motor vehicles owned by Guarantor to the extent that the fair market
value of the motor vehicles owned by the Issuer and the Guarantors does not
exceed 300,000 in the aggregate.

     2.4.  Lien on Realty. The due and punctual payment and performance of the
Obligations shall also be secured by the Lien created by Mortgages upon all
real Property identified therein. Each Mortgage shall be executed by the
Guarantor in favor of Trustee. Each Mortgage shall be duly recorded, at
Guarantor's expense, in each office where such recording is required to
constitute a fully perfected second Lien (subject only to the Lien in favor of
the Senior Agent) on the real Property covered thereby. The Guarantor shall
deliver to Trustee, at Guarantor's expense, mortgagee title insurance
policies issued by a title insurance company reasonably satisfactory to
Trustee, which policies shall be in form and substance satisfactory to Trustee
and shall insure a valid second Lien in favor of Trustee (subject only to the
Lien in favor of the Senior Agent), for the benefit of itself and Holders of
the Notes, on the Property covered by each Mortgage, subject only to those
exceptions acceptable to Trustee and its counsel. The Guarantor shall deliver
to Trustee such other documents, including, without limitation, as-built
survey prints of the real Property, as Trustee and its counsel may request
relating to the real Property subject to the Mortgages. Trustee agrees that
final survey prints of the real Property existing as of December 14, 2001, and
final title insurance policies reflecting the delivery of such surveys, all in
form or substance reasonably satisfactorily to Trustee, may be delivered to
Trustee within 30 days after the date hereof. Notwithstanding the foregoing
provisions of this Section 2.4, the Guarantor may grant a Lien in real
Property acquired by the Guarantor after the date hereof to a mortgagee other
than Trustee, so long as (a) the fair market value of such real Property does
not exceed (1) $500,000 individually or (2) $1,000,000 in the aggregate,
together with all other real Property owned the Guarantor that is not subject
to the Lien of a Mortgage and (b) such Lien granted to a mortgagee other than
Trustee secures Indebtedness that is incurred pursuant to and in accordance
with subsection 8.2.3(xiv) of the Senior Loan Agreement.

     2.5.  Subordination. Notwithstanding any other provision contained
here, the Lien granted by the Guarantor to the Trustee and any rights of
the Trustee with respect to the Collateral described herein, pursuant to
this Agreement or any Guaranty Document, to secure the Obligations shall be
(i) subordinate and junior in priority to the Liens granted the Senior
Agent and Senior Lenders pursuant to the Senior Loan Agreement or any other
Senior Security Documents, and (ii) subject to the terms and conditions of
the Intercreditor Agreement. Any provisions contained herein that purport
to give the Trustee the right to exercise its judgment, the right to be
satisfied or other similar rights or decision making abilities shall only
be operative after such time as all indebtedness under the Senior Loan
Agreement has been fully and indefeasibly paid in cash and satisfied and
all lending commitments under the Senior Loan Agreement have been
terminated. In addition, the Guarantor and the Trustee acknowledge and
agree that, to the extent that any provision hereunder imposes an
obligation upon the Guarantor that the Guarantor is unable to satisfy due
to the satisfaction of its obligations under the Senior Loan Agreement and
the

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Senior Security Documents, such provision shall not become operative until all
indebtedness under the Senior Loan Agreement has been fully and indefeasibly
paid in cash and satisfied and all lending commitments under the Senior Loan
Agreement have been terminated.

     3.    REPRESENTATIONS, WARRANTIES AND COVENANTS

     3.1.  Incorporation of Representations and Covenants. The representations
and warranties set forth in Section 3 of the Security Agreement as they
related to the Guarantor, the Guarantor's Collateral, operations, business or
affairs or the Other Agreements to which the Guarantor is a party, each of
which is incorporated herein by reference, are true and correct, and the
Trustee and Holders of the Notes shall be entitled to rely on each of them as
if they were fully set forth herein. Guarantor hereby covenants and agrees
that, so long as any of the Obligations remain outstanding, Guarantor will
fully comply with all of the provisions of Sections 2 with respect to the
Guarantor's Collateral, and all of the covenants of Section 3 of the Security
Agreement, with respect to the Guarantor's Collateral, operations, business
and affairs, as if Guarantor were the Issuer under the Security Agreement.

     3.2.  Location of Collateral. Guarantor further covenants and agrees that,
so long as any of the Obligations remain outstanding all Collateral, other
than Inventory in transit and motor vehicles, will at all times be kept by
Guarantor at one or more of the business locations set forth in Exhibit 2.11
of the Security Agreement, as updated by Guarantor providing prior written
notice to Trustee of any new location.

     3.3.  Intangible Collateral. Guarantor represents and warrants, and
covenants and agrees, that its General Intangibles and Intellectual Property
constituting Terminable Intangibles are not, and will not at any time be,
material to the business or operations of the Issuer and the Guarantors taken
as a whole.

     4.    DEFAULTS; RIGHTS AND REMEDIES ON DEFAULT

     4.1.  Default. Each of the following occurrences shall constitute a default
under this Agreement (each, a "Default"):

          (a) Breach of Other Agreement. The occurrence of any Event of
     Default under the any Other Agreement; or

          (b) Breach under Guaranty Documents. Guarantor's failure to pay when
     due any obligations of Guarantor under the Guaranty, or the occurrence of
     any breach of the terms and conditions contained in any Guaranty
     Document.

          4.2.  Remedies

          (a) Remedies. Upon or at any time during the continuance of a
     Default, Trustee shall have and may exercise from time to time the
     following rights and remedies (subject in each case to the terms of the
     Intercreditor Agreement and Section 2.5 hereof):

               (i) All of the rights and remedies of a secured party under the
          UCC or under other applicable law, and all other legal and equitable
          rights to which Trustee or Holders may be entitled, all of which
          rights and remedies shall be cumulative and shall be in addition to
          any other rights or remedies contained in this Agreement or any of
          the Other Agreements, and none of which shall be exclusive.

               (ii) The right to take immediate possession of the Collateral,
          and to (i) require Guarantor to assemble the Collateral, at
          Guarantor's expense, and make it available to Trustee at a place
          designated by Trustee which is reasonably convenient to both
          parties, and (ii) enter any premises where any of the Collateral
          shall be located and to keep and store the Collateral on said

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          premises until sold (and if said premises be the Property of
          Guarantor, Guarantor agrees not to charge Trustee for storage
          thereof).

               (iii) The right to sell or otherwise dispose of all or any
          Collateral in its then condition, or after any further manufacturing
          or processing thereof, at public or private sale or sales, with such
          notice as may be required by law, in lots or in bulk, for cash or on
          credit, all as Trustee, in its sole discretion, may deem advisable.
          Trustee may, at Trustee's option, disclaim any and all warranties
          regarding the Collateral in connection with any such sale. Guarantor
          agrees that 10 days' written notice to Guarantor of any public or
          private sale or other disposition of Collateral shall be reasonable
          notice thereof, and such sale shall be at such locations as Trustee
          may designate in said notice. Trustee shall have the right to
          conduct such sales on Guarantor's premises, without charge therefor,
          and such sales may be adjourned from time to time in accordance with
          applicable law. Trustee shall have the right to sell, lease or
          otherwise dispose of the Collateral, or any part thereof, for cash,
          credit or any combination thereof, and Trustee, on behalf of
          Holders, may purchase all or any part of the Collateral at public
          or, if permitted by law, private sale and, in lieu of actual payment
          of such purchase price, may set off the amount of such price against
          the Obligations. The proceeds realized from the sale of any
          Collateral may be applied, after allowing 2 Business Days for
          collection (provided, that amounts received in immediately available
          funds shall be credited upon receipt thereof), first to the costs,
          expenses and attorneys' fees incurred by Trustee in collecting the
          Obligations, in enforcing the rights of Trustee and Holders under
          the Other Agreements and in collecting, retaking, completing,
          protecting, removing, storing, advertising for sale, selling and
          delivering any Collateral, second to the interest due upon any of
          the Obligations; and third, to the principal of the Obligations. If
          any deficiency shall arise, Guarantor shall remain liable to Trustee
          and Holders therefor.

               (iv) Trustee is hereby granted a license or other right to use,
          without charge, Guarantor's labels, patents, copyrights, licenses,
          rights of use of any name, trade secrets, tradenames, trademarks and
          advertising matter, or any Property of a similar nature, as it
          pertains to the Collateral, in completing, advertising for sale and
          selling any Collateral and Guarantor's rights under all licenses and
          all franchise agreements shall inure to Trustee's benefit.

               (v) At Trustee's request, Guarantor shall deliver to Trustee
          all original and other documents evidencing, and relating to, the
          agreements and transactions which gave rise to the Accounts,

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          including, without limitation, all original orders, invoices and
          shipping receipts. Trustee in its own name or in the name of others
          may communicate with Account Debtors under the Accounts to verify
          with them to Trustee's satisfaction the existence, amount and terms
          of any Accounts. Upon the request of Trustee at any time, Guarantor
          shall notify Account Debtors on the Accounts that the Accounts have
          been assigned to Trustee and that payments in respect thereof shall
          be made directly to Trustee. Anything herein to the contrary
          notwithstanding, Guarantor shall remain liable under each of the
          Accounts to observe and perform all the conditions and obligations
          to be observed and performed by it thereunder, all in accordance
          with the terms of any agreement giving rise thereto. Neither the
          Trustee nor any Holder shall have any obligation or liability under
          any Account (or any agreement giving rise thereto) by reason of or
          arising out of this Agreement or the receipt by Trustee of any
          payment relating thereto, nor shall Trustee or any Holder be
          obligated in any manner to perform any of the obligations of
          Guarantor under or pursuant to any Account (or any agreement giving
          rise thereto), to make any payment, to make any inquiry as to the
          nature or the sufficiency of any payment received by it or as to the
          sufficiency of any performance by any party thereunder, to present
          or file any claim, to take any action to enforce any performance or
          to collect the payment of any amounts which may have been assigned
          to it or to which it may be entitled at any time or times. Any
          payments of Accounts, when collected by Guarantor ("Proceeds of
          Accounts"), consisting of cash, cash equivalents, checks and other
          near-cash items, shall be held by Guarantor in trust for Trustee,
          segregated from other funds of Guarantor, and shall, forthwith upon
          receipt by such Guarantor (and, in any event within two Business
          Days) be turned over to Trustee in the exact form received by
          Guarantor, (duly endorsed by such Guarantor to Trustee, if
          required), and deposited in any account that is subject to an
          Account Control Agreement maintained under sole dominion and control
          of Trustee. Each such deposit of Proceeds of Accounts shall be
          accompanied by a report identifying in reasonable detail the nature
          and source of payments included in the deposit. All Proceeds of
          Accounts while held by the Trustee (or by such Guarantor in trust
          for Trustee) shall continue to be held as collateral security for
          all the Obligations and shall not constitute payment thereof until
          so applied as provided in Section 4.2(a)(iii).

          (b) Remedies Cumulative; No Waiver. All covenants, conditions,
     provisions, warranties, guaranties, indemnities and other undertakings of
     Guarantor contained in this Agreement and the Other Agreements, or in any
     document referred to herein or contained in any agreement supplementary
     hereto or in any schedule given to Trustee or any Holder or contained in
     any other agreement between Trustee, any Holder and Guarantor,
     heretofore, concurrently or hereafter entered into, shall be deemed
     cumulative to and not in derogation or substitution of any of the terms,
     covenants, conditions or agreements of Guarantor herein contained. The
     failure or delay of Trustee or any Holder to require strict performance
     by Guarantor of any provision of this Agreement or any Other Agreement or
     to exercise or enforce any rights, Liens, powers or remedies hereunder or
     under any of the aforesaid agreements or other documents or security or
     Collateral shall not operate as a waiver of such performance, Liens,
     rights, powers and remedies, but all such requirements, Liens, rights,
     powers and remedies shall continue in full force and effect until all
     Obligations owing or to become owing from Guarantor to Trustee and each
     Holder shall have been fully satisfied. None of the undertakings,
     agreements, warranties, covenants and representation of Guarantor
     contained in this Agreement or any of the Other Agreements and no Default
     by Guarantor under this Agreement or any Other Agreement shall be deemed

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     to have been suspended or waived by Trustee or any Holder, unless such
     suspension or waiver is by an instrument in writing specifying such
     suspension or waiver and is signed by duly authorized representatives of
     Trustee (or such Holder, as applicable) and directed to Guarantor.

     4.3.  Set Off and Sharing of Payments. Subject to the terms of the
Intercreditor Agreement and Section 2.5 hereof, in addition to any rights now
or hereafter granted under applicable law and not by way of limitation of any
such rights, during the continuance of any Event of Default, Trustee is hereby
authorized by the Guarantor at any time or from time to time, with reasonably
prompt subsequent notice to the Guarantor (any prior or contemporaneous notice
to the Guarantor being hereby expressly waived) to set off and to appropriate
and to apply any and all (i) balances held by Trustee at any of its offices
for the account of the Guarantor (regardless of whether such balances are then
due to the Guarantor), and (ii) other property at any time held or owing by
Trustee to or for the credit or for the account of the Guarantor, against and
on account of any of the Obligations.

     5.   MISCELLANEOUS.

     5.1. Power of Attorney. Subject to the terms of the Intercreditor Agreement
and Section 2.5 hereof, Guarantor hereby irrevocably designates, makes,
constitutes and appoints Trustee (and all Persons designated by Trustee) as
Guarantor's true and lawful attorney (and agent-in-fact), solely with respect
to the matters set forth in this Section 5.1, and Trustee, or Trustee's agent,
may, without notice to Guarantor and in Guarantor's or Trustee's name, but at
the cost and expense of Guarantor:

          5.1.1  Upon the occurrence and during the continuance of an Event of
     Default, and subject to the terms of the Intercreditor Agreement and
     Section 2.5 hereof, at such time or times as Trustee in its sole
     discretion, may determine, endorse Guarantor's name on any checks, notes,
     acceptances, drafts, money orders or other evidence of payment or
     proceeds of collateral that come into possession or control of Trustee.

          5.1.2.  At such time or times upon or after the occurrence and during
     the continuance of a Default, subject to the terms of the Intercreditor
     Agreement and Section 2.5 hereof, as Trustee or its agent in its sole
     discretion may determine: (i) demand payment of the Accounts from the
     Account Debtors, enforce payment of the Accounts by legal proceedings or
     otherwise, and generally exercise all of Guarantor's rights and remedies
     with respect to the collection of the Accounts; (ii) settle, adjust,
     compromise, discharge or release any of the Accounts or other Collateral
     or any legal proceedings brought to collect any of the Accounts or other
     Collateral; (iii) sell or assign any of the Accounts and other Collateral
     upon such terms, for such amounts and at such time or times as Trustee
     deems advisable, and at Trustee's option, with all warranties regarding
     the Collateral disclaimed; (iv) take control, in any manner, of any item
     of payment or proceeds relating to any Collateral; (v) prepare, file and
     sign Guarantor's name to a proof of claim in bankruptcy or similar

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     document against any Account Debtor or to any notice of lien, assignment
     or satisfaction of lien or similar document in connection with any of the
     Collateral; (vi) receive, open and dispose of all mail addressed to
     Guarantor whether or not relating to its Accounts that comes into
     Trustee's possession and notify the postal authorities to change the
     address for mail delivery to Guarantor to such address as Trustee may
     designate; (vii) endorse the name of Guarantor upon any of the items of
     payment or proceeds relating to any Collateral and deposit the same to
     the account of Trustee on account of the Obligations; (viii) endorse the
     name of Guarantor upon any chattel paper, document, instrument, invoice,
     freight bill, bill of lading or similar document or agreement relating to
     the Accounts, Inventory and any other Collateral; (ix) use Guarantor's
     stationery and sign the name of Guarantor to verifications of the
     Accounts and notices thereof to Account Debtors; (x) use the information
     recorded on or contained in any data processing equipment and Computer
     Hardware and Software relating to the Accounts, Inventory, Equipment and
     any other Collateral; (xi) make and adjust claims under policies of
     insurance; and (xii) do all other acts and things necessary, in Trustee's
     determination, to fulfill Guarantor's obligations under this Agreement.

     The power of attorney granted hereby shall constitute a power coupled
with an interest and shall be irrevocable.

     5.2.  Indemnity. Guarantor hereby agrees to indemnify Trustee (and each of
its Affiliates) and hold Trustee (and each of its Affiliates) harmless from
and against any liability, loss, damage, suit, action or proceeding ever
suffered or incurred by any such Person (including reasonable attorneys fees
and legal expenses) as the result of Guarantor's failure to observe, perform
or discharge Guarantor's duties hereunder. In addition, Guarantor shall defend
Trustee (and each of its Affiliates) against and save it harmless from all
claims of any Person with respect to the Collateral (except those resulting
from the Gross negligence or intentional misconduct of any such Person).
Without limiting the generality of the foregoing, these indemnities shall
extend to any claims asserted against Trustee (and each of its Affiliates) by
any Person under any Environmental Laws by reason of Guarantor's or any other
Person's failure to comply with laws applicable to solid or hazardous waste
materials or other toxic substances. Notwithstanding any contrary provision in
this Agreement, the obligation of Guarantor under this Section 5.2 shall
survive the payment in full of the Obligations and the termination of this
Agreement.

     5.3.  Complete Agreement. The Other Agreements constitute the complete
agreement among the parties with respect to the subject matter hereof and may
not be modified, altered or amended, except as provided in Section 5.4.
Guarantor may not sell, assign or transfer any interest in this Agreement or
any of the other Guaranty Documents, or any of the Obligations or any portion
thereof, including, without limitation, Guarantor's rights, title, interests,
remedies, powers and duties hereunder or thereunder.

     5.4.  Modification of Agreement. No amendment, modification or
supplement or waiver of any provision of this Agreement nor consent to any
departure by the Trustee therefrom, shall in any event be effective unless
the same shall be in writing and signed by Trustee and Guarantor, and
approved or consented to by the Majority Holders and then such amendment,
modification or supplement or

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such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given; provided, that no amendment,
modification, supplement, waiver or consent shall be effective, unless in
writing and signed by each Holder, do any of the following: (1) amend any
provision of this Agreement that requires the consent of all Holders or
consent to or waive any breach thereof, (2) amend the definition of the term
"Majority Holders", (3) amend this Section 5.4 or (4) release any substantial
portion of the Collateral. If a fee is to be paid by Guarantor in connection
with any waiver or amendment hereunder, the agreement evidencing such
amendment or waiver may provide that only Holders executing such agreement by
a specified date may share in such fee (and in such case, such fee shall be
divided among the applicable Holders on a pro rata basis without including the
interests of any Holders who have not timely executed such agreement).

     5.5.  Reimbursement of Expenses. If, at any time or times regardless of
whether or not an Event of Default then exists, (i) Trustee incurs legal or
accounting expenses or any other costs or out-of-pocket expenses in connection
with (1) the negotiation and preparation of this Agreement or any of the other
Guaranty Documents or any amendment of or modification of this Agreement or
any of the other Guaranty Documents, or (2) the administration of this
Agreement or any of the other Guaranty Documents and the transactions
contemplated hereby and thereby; or (ii) Trustee (but, as to expenses, costs
and out-of-pocket expenses of such Holder of the types described in clause
(ii)(3) of this Section 5.5, only if an Event of Default then exists), incurs
legal or accounting expenses or any other costs or out-of-pocket expenses in
connection with (1) any litigation, contest, suit, proceeding or action
(whether instituted by Trustee, Guarantor or any other Person) relating to the
Collateral, this Agreement or any of the other Guaranty Documents or
Guarantor's affairs; (2) any attempt to enforce any rights of Trustee against
Guarantor or any other Person which may be obligated to Trustee by virtue of
this Agreement or any of the other Guaranty Documents, including, without
limitation, the Account Debtors; or (3) any attempt to inspect, verify,
protect, preserve, restore, collect, sell, liquidate or otherwise dispose of
or realize upon the Collateral; then all such legal and accounting expenses,
other costs and out of pocket expenses of Trustee, as applicable, shall be
charged to Guarantor; provided, that (a) if an Event of Default does not then
exist, Guarantor shall only be responsible for such expenses, costs and
out-of-pocket expenses to the extent that the same are reasonable and (b)
Guarantor shall not be responsible for such expenses, costs and out-of-pocket
expenses to the extent incurred because of the gross negligence or willful
misconduct of Trustee. All amounts chargeable to Guarantor under this Section
5.5 shall be Obligations secured by all of the Collateral, shall be payable to
Trustee or such Holder, as the case maybe, 15 days after demand therefor, and
shall bear interest from the date due until paid in full at the rate
applicable to Notes from time to time.

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

     5.7.  Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the successors and assigns of Guarantor, Trustee
and each Holder.

     5.8.  Notice. Except as otherwise provided herein, all notices,
requests and demands to or upon a party hereto shall be delivered and shall
be deemed delivered in accordance with the notice provisions set forth in
the Security

                                      11
<PAGE>

Agreement, with any such notices required or permitted to be sent to Guarantor
to be delivered to Guarantor in care of Kinetek at Kinetek's address set forth
in the Security Agreement.

     5.9.  Interpretation. No provision of this Agreement or any of the other
Guaranty Documents shall be construed against or interpreted to the
disadvantage of any party hereto by any court or other governmental or
judicial authority by reason of such party having or being deemed to have been
structured, drafted or dictated such provision.

     5.10.  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT IF
ANY OF THE COLLATERAL SHALL BE LOCATED IN ANY JURISDICTION OTHER THAN NEW
YORK, THE LAWS OF SUCH JURISDICTION SHALL GOVERN THE METHOD, MANNER AND
PROCEDURE FOR FORECLOSURE OF TRUSTEE'S LIEN UPON THE COLLATERAL TO THE EXTENT
THAT THE LAWS OF SUCH JURISDICTION ARE DIFFERENT FROM OR INCONSISTENT WITH THE
LAWS OF NEW YORK.

     5.11.  Waivers. GUARANTOR IRREVOCABLY WAIVES (A) THE RIGHT TO TRIAL BY JURY
(WHICH TRUSTEE HEREBY ALSO WAIVES) IN ANY ACTION, SUIT, PROCEEDING OR
COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR ANY
OF THE OTHER GUARANTY DOCUMENTS, THE OBLIGATIONS OR THE COLLATERAL; (B)
PRESENTMENT, DEMAND AND PROTEST AND NOTICE OF PRESENTMENT, PROTEST, DEFAULT,
NON PAYMENT, MATURITY, RELEASE, COMPROMISE, SETTLEMENT, EXTENSION OR RENEWAL
OF ANY OR ALL COMMERCIAL PAPER, ACCOUNTS, CONTRACT RIGHTS, DOCUMENTS,
INSTRUMENTS, CHATTEL PAPER AND GUARANTIES AT ANY TIME HELD BY TRUSTEE OR ANY
LENDER, ON WHICH GUARANTOR MAY IN ANY WAY BE LIABLE AND HEREBY RATIFIES AND
CONFIRMS WHATEVER TRUSTEE OR ANY LENDER MAY DO IN THIS REGARD; (C) NOTICE
PRIOR TO TRUSTEE'S TAKING POSSESSION OR CONTROL OF THE COLLATERAL OR ANY BOND
OR SECURITY WHICH MIGHT BE REQUIRED BY ANY COURT PRIOR TO ALLOWING TRUSTEE TO
EXERCISE ANY REMEDIES HEREUNDER; (D) THE BENEFIT OF ALL VALUATION,
APPRAISEMENT AND EXEMPTION LAWS, (E) NOTICE OF ACCEPTANCE HEREOF; (F) (i) THE
RIGHT TO TRIAL BY JURY (WHICH TRUSTEE HEREBY ALSO WAIVES) IN ANY ACTION, SUIT,
PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO ANY OF THE
SECURITY DOCUMENTS, THE OBLIGATIONS OR THE COLLATERAL; (ii) PRESENTMENT,
DEMAND AND PROTEST AND NOTICE OF PRESENTMENT, PROTEST, DEFAULT, NON PAYMENT,
MATURITY, RELEASE, COMPROMISE, SETTLEMENT, EXTENSION OR RENEWAL OF ANY OR ALL
COMMERCIAL PAPER, ACCOUNTS, CONTRACT RIGHTS, DOCUMENTS, INSTRUMENTS, CHATTEL
PAPER AND GUARANTIES AT ANY TIME HELD BY TRUSTEE OR ANY HOLDER ON WHICH THE
ISSUER MAY IN ANY WAY BE LIABLE AND HEREBY RATIFIES AND CONFIRMS WHATEVER
TRUSTEE OR ANY HOLDER MAY DO IN THIS REGARD; (iii) NOTICE PRIOR TO TRUSTEE'S
TAKING POSSESSION OR CONTROL OF THE COLLATERAL OR ANY BOND OR SECURITY WHICH
MIGHT BE REQUIRED BY ANY COURT PRIOR TO ALLOWING TRUSTEE TO EXERCISE ANY OF
TRUSTEE'S REMEDIES; (iv) THE BENEFIT OF ALL VALUATION, APPRAISEMENT AND
EXEMPTION LAWS; (v) NOTICE OF ACCEPTANCE HEREOF AND (vi) EXCEPT AS PROHIBITED
BY LAW, ANY RIGHT TO CLAIM OR RECOVER ANY SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES; AND (G) PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS
ISSUED IN ANY ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS,

                                      12
<PAGE>

COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO GUARANTOR IN CARE OF KINETEK AT THE ADDRESS SET FORTH IN THE
NOTICE PROVISIONS OF THE SECURITY AGREEMENT AND THAT SERVICE SO MADE SHALL BE
DEEMED COMPLETED UPON THE EARLIER OF GUARANTOR'S ACTUAL RECEIPT THEREOF OR
THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PAID. NOTHING
IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF TRUSTEE OR
ANY HOLDER TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR TO
PRECLUDE THE ENFORCEMENT BY TRUSTEE OR ANY HOLDER OF ANY JUDGMENT OR ORDER
OBTAINED IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER THIS AGREEMENT TO
ENFORCE SAME IN ANY OTHER APPROPRIATE FORUM OR JURISDICTION. THE ISSUER
ACKNOWLEDGES THAT THE FOREGOING WAIVERS ARE A MATERIAL INDUCEMENT TO TRUSTEE
ENTERING INTO THIS AGREEMENT AND THAT TRUSTEE IS RELYING UPON THE FOREGOING
WAIVERS IN ITS FUTURE DEALINGS WITH THE ISSUER. THE ISSUER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THE FOREGOING WAIVERS WITH ITS LEGAL COUNSEL
AND HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT
MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. GUARANTOR
ACKNOWLEDGES THAT THE FOREGOING WAIVERS ARE A MATERIAL INDUCEMENT TO TRUSTEE'S
ENTERING INTO THIS AGREEMENT AND THAT TRUSTEE IS RELYING UPON THE FOREGOING
WAIVERS IN ITS FUTURE DEALINGS WITH GUARANTOR. GUARANTOR WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THE FOREGOING WAIVERS WITH ITS LEGAL COUNSEL
AND HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT
MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     5.12.  Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to
be an original and all of which counterparts taken together shall constitute
but one and the same instrument.

     5.13.  Term of Agreement. This Agreement shall be in full force and effect
for a term commencing on the date hereof and continuing until all Obligations
have been paid in full and the Indentures shall be fully discharged. Upon
payment in full of the Obligations and the discharge of the Indentures, the
Liens provided for hereunder shall terminate and all rights to the Collateral
shall revert to the Guarantor. The Trustee agrees that, upon such termination
of the Liens hereunder, the Trustee shall, at the Guarantor's expense,
execute and deliver to the Guarantor such documents as the Guarantor shall
reasonably request to evidence the termination of such Liens.

                                      13
<PAGE>

     5.14.  Consent. Whenever Trustee's, Majority Holders' or all Holders'
consent is required to be obtained under this Agreement, any of the Other
Agreements or any of the Security Documents as a condition to any action,
inaction, condition or event, except as otherwise specifically provided
herein, Trustee, Majority Holders or all Holders, as applicable, shall be
authorized to give or withhold such consent in their sole and absolute
discretion and to condition its consent upon the giving of additional
Collateral security for the Obligations, the payment of money or any other
matter.

     5.15.  Reinstatement. This Agreement shall continue to be effective or be
reinstated, as the case may be, if at any time any amount received by Trustee
in respect of the Obligations is rescinded or must otherwise be restored or
returned by Trustee upon the insolvency, bankruptcy, dissolution, liquidation
or reorganization of Guarantor or upon the appointment of any intervenor or
conservator of, or trustee or similar official for, Guarantor or any
substantial part of its assets; or otherwise, all as though such payments had
not been made.

     5.16.  No Deductions. Any and all payments or reimbursements made hereunder
shall be made free and clear of and without deduction for any and all taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto; excluding, however, the following: taxes imposed on the
income of Trustee or any Holder or franchise taxes by the jurisdiction under
the laws of which Trustee or any Holder is organized or doing business or any
political subdivision thereof and taxes imposed on its income by the
jurisdiction of Trustee's or such Holder's applicable lending officer or any
political subdivision thereof or franchise taxes (all such taxes, levies,
imposts, deductions, charges or withholdings and all liabilities with respect
thereto excluding such taxes imposed on net income, herein "Tax Liabilities").

     5.17.  Successor Trustee. Upon the effective appointment of a successor
Trustee under the Indentures, such successor Trustee shall succeed to the
rights, powers and duties of Trustee under this Agreement.

                                      14
<PAGE>

     IN WITNESS WHEREOF, this Agreement has been duly executed in Chicago,
Illinois, on the day and year specified at the beginning hereof.

                             KINETEK, INC.

                             By: /s/ Gordon L. Nelson, Jr.
                                --------------------------------------
                             Name:  Gordon L. Nelson, Jr.
                             Title: Vice President

                             U.S. BANK NATIONAL ASSOCIATION, as Trustee

                             By   /s/ Richard H. Prokosch
                                 ----------------------------------------
                             Name:   Richard H. Prokosch
                             Title:  Vice President

                                      15Execution Copy

                              PLEDGE AGREEMENT

         THIS PLEDGE AGREEMENT (as amended, modified or supplemented
from time to time, this "Agreement") is made and entered into as of April
12, 2002 by KINETEK INDUSTRIES, INC., a Delaware corporation, having an
office at ArborLake Centre, Suite 550, Suite 550, 1751 Lake Cook Road,
Deerfield, Illinois 60015 ("Pledgor"), in favor of U.S. BANK NATIONAL
ASSOCIATION, as Trustee under that certain Indenture identified below, a
national banking association with an office at 180 East Fifth Street, Saint
Paul, Minnesota ("Trustee").

                            W I T N E S S E T H:

         WHEREAS, as of the date hereof Kinetek Industries, Inc.
("Kinetek"), has issued (i) those certain 5% Senior Secured Notes due 2007,
in the original principal amount of $15,000,000 and (ii) those certain 10%
Senior Secured Notes due 2007, in the original principal amount of
$11,000,000 (collectively, the "Notes" and each, a "Note") pursuant to the
terms of those two certain Indentures each dated as of even date herewith,
by and among the Trustee, and Kinetek as Issuer (the "Issuer") and the
Guarantors identified below (the "Indentures");

         WHEREAS, Advanced D.C. Motors, Inc., a New York corporation,
Electrical Design and Control Company, a Delaware corporation, The Imperial
Electric Corporation, a Delaware corporation, Merkle-Korff Industries,
Inc., an Illinois corporation, Motion Control Engineering, Inc., a
California corporation and Gear Research, Inc., a Delaware corporation,
Kinetek, Inc., a Delaware corporation, Motion Holdings, Inc., a Delaware
corporation, Advanced D.C. Holdings, a Delaware corporation, and FIR Group
Holdings, Inc., a Delaware corporation (collectively, the "Guarantors")
have each guaranteed payment and performance of the Indentures and the
Notes pursuant to certain guarantees contained in the Indentures
(collectively, the "Guarantees"); and

         WHEREAS, pursuant to a Security Agreement (as amended, modified or
supplemented from time to time, the "Security Agreement") dated as of the
date hereof, Kinetek has secured its obligations under the Indentures and
the Notes, and the other obligations identified in the Security Agreement,
and by separate Guarantor Security Agreements, dated as of the date hereof,
each of the Guarantors has secured its Guarantee obligations, by liens and
security interests granted therein, that in each case are subordinate to
the Senior Lender Liens;

         NOW, THEREFORE, in consideration of the premises, Pledgor hereby
agrees with Agent as follows:

         1. Incorporation of Indentures and the Security Agreement. The
Indentures and the Security Agreement and the Guarantor Security Agreement
executed by Pledgor and the terms and provisions thereof are hereby
incorporated herein in their entirety by this reference. All terms
capitalized but not otherwise defined herein shall have the same meanings
herein as in the Indentures or the Security Agreement.

<PAGE>

         2. Pledge. Pledgor hereby pledges to Trustee, for its own benefit and
the benefit of the Holders, and grants to Trustee, for its own benefit and
benefit of Holders, a security interest in:

              (a) the shares of stock of each entity identified on Schedule
         I hereto (the "Entities") held by Pledgor (the "Pledged Shares")
         and the certificates representing the Pledged Shares, and all
         stock dividends, cash dividends, cash, instruments, chattel paper
         and other rights, property or proceeds and products from time to
         time received, receivable or otherwise distributed in respect of
         or in exchange for any or all of the Pledged Shares;

              (b) all additional shares of stock of each such Entity at any
         time acquired by Pledgor in any manner, and the certificates
         representing such additional shares (and any such additional
         shares shall constitute part of the Pledged Shares under this
         Agreement), and all stock dividends, cash dividends, cash,
         instruments, chattel paper and other rights, property or proceeds
         and products from time to time received, receivable or otherwise
         distributed in respect of or in exchange for any or all of such
         shares; and

              (c) all proceeds of any of the foregoing (the assets
         described in this Section 1 are collectively referred to as, the
         "Pledged Collateral").

         Notwithstanding any other provision contained herein, the security
interest granted by the Pledgor to the Trustee, and any other rights of the
Trustee with respect to the Pledged Collateral described herein, pursuant
to this Agreement, to secure the Secured Obligations (as defined herein)
shall be (i) subordinate and junior in priority to the Liens granted to the
Senior Agent and the Senior Lenders pursuant to the Senior Loan Agreement
or any other Senior Security Documents (the "Senior Holder Liens"), and
(ii) subject to the terms and conditions of the Intercreditor Agreement.
Any provisions contained herein that purport to give the Trustee the right
to exercise its judgment, the right to be satisfied or other similar rights
or decision making abilities shall only be operative after such time as all
indebtedness under the Senior Loan Agreement has been fully and
indefeasibly paid in cash and satisfied and all lending commitments under
the Senior Loan Agreement have been terminated. In addition, the Pledgor
and the Trustee acknowledge and agree that, to the extent that any
provision hereunder imposes an obligation upon the Pledgor that the Pledgor
is unable to satisfy due to the satisfaction of its obligations under the
Senior Loan Agreement and the Senior Security Documents, such provision
shall not become operative until all indebtedness under the Senior Loan
Agreement has been fully and indefeasibly paid in cash and satisfied and
all lending commitments under the Senior Loan Agreement have been
terminated.

         3. Security for Obligations. This Agreement and all of the Pledged
Collateral secure the payment and performance of the Obligations (as such
term is defined in the Guarantor Security Agreement executed by the
Pledgor), together with all costs and expenses, including, without
limitation, all court costs and attorneys' and paralegals' fees and
expenses paid or incurred by Trustee or any Holder in endeavoring to
collect all or any part of the Obligations from, or in prosecuting any
action against Pledgor or any guarantor of all or any part of the
Obligations (all such indebtedness, obligations and liabilities described
in this Section 3 being collectively called the "Secured Obligations").

                                     2
<PAGE>

         4. Delivery of Pledged Collateral. Subject to the terms of the
Intercreditor Agreement and the last paragraph of Section 2 hereof, (a) all
certificates or instruments representing or evidencing the Pledged
Collateral shall be delivered to and held by or on behalf of Trustee
pursuant hereto and shall be in suitable form for transfer by delivery, or
shall be accompanied by duly executed undated instruments of transfer or
assignment in blank, all in form and substance satisfactory to Trustee, (b)
Trustee shall have the right, at any time in its discretion and without
notice to Pledgor following the occurrence of an Event of Default, to
transfer to or to register in the name of Trustee or any of its nominees
any or all of the Pledged Collateral, and (c) Trustee shall have the right
to exchange certificates or instruments representing or evidencing Pledged
Collateral for certificates or instruments of smaller or larger
denominations.

         5. Representations and Warranties. In order to induce Trustee to enter
into the Indentures and the Other Agreements, Pledgor represents and
warrants to the Trustee that the following statements are true, correct and
complete:

              (a) Schedule I hereto completely and accurately sets forth
         all of the issued and outstanding stock of each Entity as of the
         date hereof. All shares of such stock are owned legally and
         beneficially by Pledgor and have been duly authorized and validly
         issued and are fully paid and nonassessable. There are no
         outstanding warrants, options, subscriptions or other contractual
         arrangements for the purchase of any other shares of stock or any
         securities convertible into shares of stock of any such Entity,
         and there are no preemptive rights with respect to the shares of
         stock of any such Entity.

              (b) Either the delivery of the Pledged Shares to the Agent in
         its control for the benefit of the Agent, the Senior Lenders and
         the Trustee as provided in the Intercreditor Agreement, or the
         filing of a UCC-1 statement in the jurisdiction of organization of
         the Pledgor will be effective to create a valid and perfected
         second priority security interest in the Pledged Collateral, free
         of any adverse claim other than Senior Liens, securing the payment
         of the Secured Obligations.

              (c) No consent of any other party other than those under the
         Senior Loan Agreement (including, without limitation, any creditor
         of Pledgor) and no consent, authorization, approval or other
         action by, and no notice to or filing with, any governmental
         authority or regulatory body is required either (i) for the pledge
         by Pledgor of the Pledged Collateral pursuant to this Agreement or
         for the execution, delivery or performance of this Agreement by
         Pledgor or (ii) for the exercise by Trustee of the voting or other
         rights provided for in this Agreement or the remedies in respect
         of the Pledged Collateral pursuant to this Agreement (except as
         has already been obtained or taken and except as may be required
         in connection with such disposition by laws affecting the offering
         and sale of securities generally).

              (d) None of the Pledged Shares constitutes margin stock, as
         defined in Regulation U of the Board of Governors of the Federal
         Reserve System.

                                     3
<PAGE>

              (e) This Agreement is the legal, valid and binding obligation
         of Pledgor, enforceable against Pledgor in accordance with its
         terms, except as limited by applicable bankruptcy, reorganization,
         insolvency or similar laws affecting the enforcement of creditors'
         rights generally.

              (f) All information heretofore, herein or hereafter supplied
         to Trustee by or on behalf of Pledgor with respect to the Pledged
         Collateral is and will be accurate and complete in all material
         respects.

         6. Further Assurances.

              (a) Pledgor will, from time to time, at Pledgor's expense,
         and upon Trustee's request, promptly execute and deliver all
         further instruments and documents and take all further action that
         may be necessary or desirable, or that Trustee may reasonably
         request, in order to perfect and protect any security interest
         granted or purported to be granted hereby, to enable Trustee to
         exercise and enforce the rights and remedies of Trustee hereunder
         with respect to any Pledged Collateral or to carry out the
         provisions and purposes hereof. Without limiting the generality of
         the foregoing, Pledgor will: (i) upon Trustee's request, execute
         and file such financing or continuation statements, or amendments
         thereto, and such other instruments or notices, as may be
         necessary or desirable, or as Trustee may reasonably request, in
         order to perfect and preserve the security interests granted or
         purported to be granted hereby under the laws of any applicable
         jurisdiction; (ii) upon Trustee's request, appear in and defend
         any action or proceeding that may affect Pledgor's title to or
         Trustee's security interest in the Pledged Collateral; and (iii)
         immediately after the purchase or other acquisition thereof,
         deliver to Trustee or its agent (which shall be Agent pursuant to
         the Intercreditor Agreement during the term of that Agreement),
         all Pledged Shares hereunder.

              (b) Unless otherwise required pursuant to the Intercreditor
         Agreement, Pledgor will, immediately upon the purchase or
         acquisition of any additional shares of stock of any Entity,
         deliver to Trustee or its agent (which shall be Agent pursuant to
         the Intercreditor Agreement during the term of that Agreement),
         such Pledged Shares as required by Section 4 above, together with
         a proxy substantially in the form attached hereto as Exhibit A. In
         addition, upon the purchase or acquisition of any additional
         shares of stock of an Entity, the Pledgor shall deliver to the
         Trustee a pledge amendment, duly executed by Pledgor, in
         substantially the form of Exhibit B hereto (a "Pledge Amendment"),
         in respect of the additional shares which are to be pledged
         pursuant to this Agreement. Pledgor hereby authorizes Trustee to
         attach each Pledge Amendment to this Agreement and agrees that all
         shares listed on any Pledge Amendment delivered to Trustee or its
         agent shall for all purposes hereunder be considered Pledged
         Collateral.

         7. Voting Rights; Dividends; Etc.

              (a) So long as no Event of Default shall have occurred and
         Trustee shall not have delivered to Pledgor notice of its election
         to exercise the rights set forth in subsection (b) below:

                        (i) Pledgor shall be entitled to exercise any and
                   all voting and other consensual rights pertaining to the
                   Pledged Collateral or any part thereof for any purpose
                   not inconsistent with the terms of this Agreement or the
                   Other Agreements.

                                     4
<PAGE>

                        (ii) Subject to the terms of the Intercreditor
                   Agreement and the last paragraph of Section 2 hereof,
                   Pledgor shall be entitled to receive cash dividend
                   payments, and other cash distributions, as due with
                   respect to the Pledged Collateral, but any and all
                   instruments, chattel paper and other rights, property or
                   proceeds and products (other than cash or checks)
                   received, receivable or otherwise distributed in respect
                   of, or in exchange for, any Pledged Collateral, shall
                   be, and shall be forthwith, delivered to Trustee or its
                   agent to hold as Pledged Collateral, and shall, if
                   received by Pledgor, be received in trust for the
                   benefit of Trustee , be segregated from the other
                   property or funds of Pledgor, and be forthwith delivered
                   to Trustee or its agent as Pledged Collateral in the
                   same form as so received (with any necessary
                   endorsement).

                        (iii) Trustee shall promptly upon request execute
                   and deliver (or cause to be executed and delivered) to
                   Pledgor all such proxies and other instruments as
                   Pledgor may reasonably request for the purpose of
                   enabling Pledgor to exercise the voting and other rights
                   which Pledgor is entitled to exercise pursuant to
                   paragraph (i) above, and to receive the dividends which
                   Pledgor is authorized to receive and retain pursuant to
                   paragraph (ii) above.

              (b) Subject to the terms of the Intercreditor Agreement and
         the last paragraph of Section 2 hereof, upon the occurrence and
         during the continuance of an Event of Default:

                        (i) All rights of Pledgor to receive and retain any
                   cash dividends and distributions pursuant to subsection
                   7(a)(ii), and to exercise the voting and other
                   consensual rights which Pledgor would otherwise be
                   entitled to exercise pursuant to subsection 7(a)(i),
                   shall cease to be effective upon notice by Trustee or
                   its agent to Pledgor of Trustee's intent to exercise its
                   rights hereunder, and upon delivery of such notice shall
                   become vested in Trustee who shall thereupon have the
                   sole right to exercise such voting and other consensual
                   rights and the sole right to receive and hold as Pledged
                   Collateral such dividends (and, to the extent
                   permissible, apply them to payment of the Secured
                   Obligations). In order to effect such transfer of
                   rights, Trustee shall have the right, upon such notice,
                   to date and present to ADC an irrevocable proxy executed
                   by Pledgor substantially in the form attached hereto as
                   Exhibit A (a "Proxy"), and

                        (ii) All dividends which are received by Pledgor
                   contrary to the provisions of this subsection 7(b) shall
                   be received in trust for the benefit of Trustee (for its
                   own benefit and the benefit of Holders), shall be
                   segregated from other funds of Pledgor and shall be
                   forthwith paid over to Trustee or its agent as Pledged
                   Collateral in the same form as so received (with any
                   necessary endorsement).

                                     5
<PAGE>

         8. Transfers and Other Liens; Additional Shares.

              (a) Pledgor agrees that Pledgor will not, other than pursuant
         to the Senior Loan Agreement (i) encumber, sell, assign (by
         operation of law or otherwise) or otherwise dispose of, or grant
         any option with respect to, any of the Pledged Collateral or (ii)
         enter into any other contractual obligations which could
         reasonably be expected to restrict or inhibit the right or ability
         of Trustee to sell or otherwise dispose of the Pledged Collateral
         or any part thereof after the occurrence of an Event of Default.

              (b) Pledgor agrees that it will (i) not cause any Entity to
         issue any stock or other securities (including any warrants,
         options, subscriptions or other contractual arrangements for the
         purchase of stock or securities convertible into stock) in
         addition to or in substitution for the Pledged Shares, and (ii)
         except as otherwise required in the Intercreditor Agreement,
         deliver to the Trustee or its agent, immediately upon its
         acquisition (directly or indirectly) thereof, any and all writings
         evidencing any additional Pledged Collateral. Pledgor hereby
         authorizes Trustee to modify this Agreement by unilaterally
         amending Schedule I to include such shares of stock or other
         securities.

         9. Trustee Appointed Attorney-in-Fact. Subject to the provisions
of the Intercreditor Agreement and the last paragraph of Section 2 hereof,
Pledgor hereby irrevocably appoints Trustee as Pledgor's attorney-in-fact
effective upon the occurrence and during the continuance of an Event of
Default, with full authority in the place and stead of Pledgor and in the
name of Pledgor, Trustee or otherwise, from time to time in the discretion
of Trustee to take any action (including completion and presentation of any
proxy) and to execute any instrument that Trustee may deem necessary or
advisable to accomplish the purposes of this Agreement, including, without
limitation, to (i) receive, endorse and collect all instruments made
payable to Pledgor representing any dividend or other distribution in
respect of the Pledged Collateral or any part thereof; (ii) exercise the
voting and other consensual rights pertaining to the Pledged Collateral;
and (iii) sell, transfer, pledge, make any agreement with respect to or
otherwise deal with any of the Pledged Collateral as fully and completely
as though Trustee was the absolute owner thereof for all purposes, and to
do, at the option of Trustee and at Pledgor's expense, at any time or from
time to time, all acts and things that Trustee deems necessary to protect,
preserve or realize upon the Pledged Collateral. Pledgor hereby ratifies
and approves all acts of Trustee made or taken pursuant to this Section 9.
Except as specifically set forth in Section 11 hereof or in the event of
the gross negligence or willful misconduct of Trustee, neither Trustee nor
any person designated by Trustee shall be liable for any acts or omissions
or for any error of judgment or mistake of fact or law. This power of
attorney, being coupled with an interest, shall be irrevocable until all
Secured Obligations shall have been paid in full and the Indentures and the
Guarantor Security Agreement executed by Pledgor shall have been
terminated.

         10. Trustee May Perform. Subject to the terms of the Intercreditor
Agreement and the last paragraph of Section 2 hereof, if Pledgor fails to
perform any agreement contained herein, Trustee may itself perform, or
cause performance of, such agreement, and the expenses of Trustee incurred
in connection therewith shall be payable by Pledgor under Section 15
hereof, and be a part of the Secured Obligations.

                                     6
<PAGE>

         11. Limitation on Duty of Trustee with Respect to the Pledged
Collateral. The powers conferred on Trustee hereunder are solely to protect
its interest in the Pledged Collateral and shall not impose any duty on it
to exercise any such powers. Except for the safe custody of any Pledged
Collateral in its possession and the accounting for monies actually
received by it hereunder, Trustee shall have no duty with respect to any
Pledged Collateral. Trustee shall be deemed to have exercised reasonable
care in the custody and preservation of the Pledged Collateral in its
possession if the Pledged Collateral is accorded treatment that is
substantially equivalent to that which Trustee accords its own property, it
being expressly agreed that Trustee shall have no responsibility for (i)
ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relative to any Pledged
Collateral, whether or not Trustee has or is deemed to have knowledge of
such matters, or (ii) taking any necessary steps to preserve rights against
any parties with respect to any Pledged Collateral, but Trustee may do so
and all expenses incurred in connection therewith shall be payable by and
for the sole account of Pledgor.

         12. Remedies upon Event of Default. Subject to the provisions of the
Intercreditor Agreement and the last paragraph of Section 2 hereof, if any
Event of Default shall have occurred and be continuing:

              (a) Trustee may exercise in respect of the Pledged
         Collateral, in addition to other rights and remedies provided for
         herein or otherwise available to it, all of the rights and
         remedies of a secured party under the Uniform Commercial Code (the
         "UCC") in the State of New York, whether or not the UCC applies to
         the affected Pledged Collateral, and Trustee may also, without
         notice except as specified below, sell the Pledged Collateral or
         any part thereof in one or more parcels at public or private sale,
         at any exchange, broker's board or at any office of Trustee or
         elsewhere, for cash, on credit, or for future delivery, at such
         price or prices and upon such other terms as Trustee deems
         commercially reasonable. Pledgor acknowledges and agrees that such
         a private sale may result in prices and other terms which may be
         less favorable to the seller than if such sale were a public sale.
         Pledgor agrees that, to the extent notice of sale shall be
         required by law, at least ten (10) days' notice to Pledgor 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. At any sale of the Pledged Collateral, if permitted
         by law, Trustee, on behalf of Holders, may bid (which bid may be,
         in whole or in part, in the form of cancellation of indebtedness)
         for the purchase of the Pledged Collateral or any portion thereof.
         Trustee shall not be obligated to make any sale of Pledged
         Collateral regardless of notice of sale having been given. Trustee
         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. Trustee shall be under no obligation to
         delay a sale of any of the Pledged Collateral for the period of
         time necessary to permit the issuing corporation of such
         securities to register such securities for public sale under the
         Securities Act of 1933, as from time to time amended (the
         "Securities Act"), or under applicable state securities laws, even
         if the issuing corporation would agree to do so. To the extent
         permitted by law, Pledgor hereby specifically waives all rights of
         redemption, stay or appraisal which Pledgor has or may have under
         any law now existing or hereafter enacted.

                                     7
<PAGE>

              (b) Any cash held by Trustee as Pledged Collateral and all
         cash proceeds received by Trustee in respect of any sale of,
         collection from, or other realization upon all or any part of the
         Pledged Collateral may, in the discretion of Trustee, be held by
         Trustee as collateral for, and/or then or at any time thereafter
         applied (after payment of any amounts payable to Trustee pursuant
         to Section 15) in whole or in part by Trustee against all or any
         part of the Secured Obligations in accordance with the provisions
         of Section 14. Any surplus of such cash or cash proceeds held by
         Trustee and remaining after payment in full of all the Secured
         Obligations shall be paid over to Pledgor or to whomsoever may be
         lawfully entitled to receive such surplus or as a court of
         competent jurisdiction may direct; provided, that in the event
         that all of the conditions to the termination of this Agreement
         pursuant to Section 16 shall not have been fulfilled, such balance
         shall be held and applied from time to time as provided in this
         subsection 11(b) until all such conditions shall have been
         fulfilled.

              (c) Pledgor recognizes that Trustee may be unable to effect a
         public sale of all or part of the Pledged Collateral and may be
         compelled to resort to one or more private sales to a restricted
         group of purchasers who will be obligated to agree, among other
         things, to acquire such Pledged Collateral for their own account,
         for investment and not with a view to the distribution or resale
         thereof. Pledgor acknowledges that any such private sales may be
         at prices and on terms less favorable to the seller than if sold
         at public sales and agrees that such private sales shall be deemed
         to have been made in a commercially reasonable manner, and that
         Trustee has no obligation to delay sale of any such Pledged
         Collateral for the period of time necessary to permit the issuer
         of such Pledged Collateral to register such Pledged Collateral for
         public sale under the Securities Act.

         13. Remedies Cumulative. No failure on the part of Trustee to
exercise, and no delay in exercising and no course of dealing with respect
to, any power, privilege or right under the Indentures, the Security
Agreement, the Other Agreements or this Agreement shall operate as a waiver
thereof; nor shall any single or partial exercise by Trustee of any power,
privilege or right under any of the Indentures, the Security Agreement, and
the Other Agreements or this Agreement preclude any other or further
exercise thereof or the exercise of any other such power, privilege or
right. The powers, privileges and rights in this Agreement, the Indentures,
the Security Agreement and the Other Agreements are cumulative and are not
exclusive of any other remedies provided by law.

         14. Application of Proceeds. Upon the occurrence of an Event of
Default, the proceeds of any sale of, or other realization upon, all or any
part of the Pledged Collateral shall be applied: first to all fees, costs
and expenses incurred by Trustee with respect to the Indentures, the
Security Agreement, the Other Agreements or the Pledged Collateral,
including, without limitation, those described in Section 16 herein;
second, to accrued and unpaid interest on the Secured Obligations
(including any interest which but for the provisions of Title 11 of the
United States Code entitled "Bankruptcy", would have accrued on such
amounts); third, to the principal amounts of the Secured Obligations
outstanding; fourth, to any other Secured Obligations; and fifth, any
remaining proceeds to Pledgor.

                                     8
<PAGE>

         15. Expenses. Pledgor shall promptly pay to Agent all costs and
expenses of Trustee (both before and after the execution hereof) in
connection with protecting or perfecting the security interest of Trustee
security interest in the Pledged Collateral or in connection with any
matters contemplated by or arising out of this Agreement, the Indentures,
the Security Agreement or any of the Other Agreements.

         16. Termination of Security Interests; Release of Collateral. Upon
payment and performance in full of all Secured Obligations and the
termination of the Indentures and the Guarantor Security Agreement executed
by Pledgor in accordance with their terms, the security interests granted
herein shall terminate and all rights to the Pledged Collateral shall
revert to Pledgor. Upon such termination of the security interests or
release of any Pledged Collateral, Trustee will, at the expense of Pledgor,
and subject to Section 21 herein, promptly execute and deliver to Pledgor
such documents as Pledgor shall reasonably request to evidence the
termination of the security interests or the release of such Pledged
Collateral which has not yet theretofore been sold or otherwise applied or
released. Such release shall be without recourse or warranty to Trustee,
except as to the absence of any prior assignments by Trustee of its
interest in the Pledged Collateral.

         17. Amendments, Waivers and Consents. No amendment, modification or
supplement or waiver of any provision of this Agreement nor consent to any
departure by the Trustee therefrom, shall in any event be effective unless
the same shall be in writing and signed by Trustee and the Guarantor, and
approved or consented to by the Majority Holders and then such amendment,
modification or supplement or waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given;
provided, that no amendment, modification, supplement, waiver or consent
shall be effective, unless in writing and signed by each Holder, do any of
the following: (1) amend any provision of this Agreement that requires the
consent of all Holders or consent to or waive any breach thereof, (2) amend
the definition of the term "Majority Holders", (3) amend this Section 17 or
(4) release any substantial portion of the Collateral. If a fee is to be
paid by Guarantor in connection with any waiver or amendment hereunder, the
agreement evidencing such amendment or waiver may provide that only Holders
executing such agreement by a specified date may share in such fee (and in
such case, such fee shall be divided among the applicable Holders on a pro
rata basis without including the interests of any Holders who have not
timely executed such agreement).

         18. Notices. Any notice, approval, request, demand, consent or other
communication hereunder, including any notice of default or notice of sale,
shall be given to Pledgor or Trustee at the applicable address set forth
above (or to such other address previously designated by written notice to
the serving party) in accordance with the notice provision of the Security
Agreement.

         19. Continuing Security Interest; Successors and Assigns. This
Agreement shall create a continuing security interest in the Pledged
Collateral and shall (i) remain in full force and effect until payment and
performance in full of all Secured Obligations and termination of the
Indentures and the Guarantor Security Agreement executed by Pledgor, (ii)
be binding upon Pledgor, its successors and assigns, and (iii) inure,
together with the rights and remedies of Trustee hereunder, to the benefit
of Trustee and its successors and assigns. Pledgor may not assign or
transfer any of its interests or obligations hereunder without the prior
consent of Trustee and the Majority Holders.

                                     9
<PAGE>

         20. Waiver.

              (a) In addition to any other waivers herein, Pledgor waives
         to the greatest extent it may lawfully do so, and agrees that it
         shall not at any time insist upon, plead or in any manner whatever
         claim or take the benefit or advantage of, any appraisal,
         valuation, stay, extension, marshalling of assets, redemption or
         similar law, or exemption, whether now or at any time hereafter in
         force, which may delay, prevent or otherwise affect the
         performance by Pledgor of its obligations under, or the
         enforcement by Trustee of, this Agreement. Pledgor hereby waives
         diligence, presentment and demand (whether for nonpayment or
         protest or of acceptance, maturity, extension of time, change in
         nature or form of the Secured Obligations, acceptance of further
         security, release of further security, composition or agreement
         arrived at as to the amount of, or the terms of the Secured
         Obligations, notice of adverse change in any Issuer's or any other
         Person's financial condition or any other fact which might
         materially increase the risk to Pledgor) with respect to any of
         the Secured Obligations or all other demands whatsoever and waives
         the benefit of all provisions of law which are or might be in
         conflict with the terms of this Agreement.

              (b) If Trustee may, under applicable law, proceed to realize
         its benefits under any of the Other Agreements giving Trustee a
         Lien upon any Collateral (as such term is defined in the Guarantor
         Security Agreement executed by Pledgor), whether owned by any
         Entity or by any other Person, either by judicial foreclosure or
         by non judicial sale or enforcement, Trustee may, at its sole
         option, determine which of its remedies or rights it may pursue
         without affecting any of the rights and remedies of Trustee under
         this Agreement.

         21. Reinstatement. This Agreement shall continue to be effective or
be reinstated, as the case may be, if at any time any amount received by
Trustee in respect of the Secured Obligations is rescinded or must
otherwise be restored or returned by Trustee upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of Pledgor or upon
the appointment of any intervenor or conservator of, or trustee or similar
official for, Pledgor or any substantial part of its assets; or otherwise,
all as though such payments had not been made.

         22. Severability. The provisions of this Agreement are severable,
and if any clause or provision shall be held invalid or unenforceable in
whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part
thereof, in such jurisdiction and shall not in any manner affect such
clause or provision in any other jurisdiction, or any other clause or
provision of this Agreement in any jurisdiction.

         23. Interpretation. Time is of the essence of each provision of this
Agreement of which time is an element. All terms not defined herein or in
the Security Agreement shall have the meanings set forth in the UCC, except
where the context otherwise requires. To the extent any term or provision
of this Agreement conflicts with the provisions of the Security Agreement
and is not dealt with more specifically herein, such Security Agreement
shall control with respect to such term or provision.

                                    10
<PAGE>

         24. Survival of Provisions. All agreements, representations and
warranties made herein shall survive the execution and delivery of this
Agreement and the Indentures and the Security Agreement and the execution
and delivery of the Notes. Notwithstanding anything in this Agreement or
implied by law to the contrary, the agreements, representations and
warranties of Pledgor set forth herein shall terminate only upon payment of
the Secured Obligations and the termination of this Agreement in accordance
with its terms.

         25. Statute of Limitations. Pledgor hereby waives the right to
plead any statute of limitations as a defense to any indebtedness or
obligation hereunder or secured hereby to the full extent permitted by law.

         26. Headings Descriptive. The headings in this Agreement are for
convenience of reference only and shall not constitute a part of this
Agreement for any other purpose or be given any substantive effect.

         27. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which
shall together constitute one and the same agreement.

         28. GOVERNING LAW. THIS AGREEMENT IS GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

         29. WAIVER OF JURY TRIAL; JURISDICTION. PLEDGOR AND TRUSTEE EACH
HEREBY WAIVE, TO THE EXTENT PERMITTED BY LAW, TRIAL BY JURY. NOTHING
CONTAINED HEREIN SHALL AFFECT THE RIGHT OF TRUSTEE TO SERVE LEGAL PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF AGENT TO BRING
ANY ACTION OR PROCEEDING AGAINST PLEDGOR OR ITS PROPERTY IN THE COURTS OF
ANY JURISDICTION.

                                    11
<PAGE>

         IN WITNESS WHEREOF, Pledgor has caused this Pledge Agreement to be
duly executed and delivered as of the day and year first above written.

                             KINETEK INDUSTRIES, INC.

                             By    /s/ Gordon L. Nelson, Jr.
                                  --------------------------------------
                             Its   Vice President
                                  --------------------------------------

         By acceptance hereof as of this 12th day of April, 2002, Trustee
agrees to be bound by the provisions hereof.

                             U.S. BANK NATIONAL ASSOCIATION, as Trustee

                             By   /s/ Richard H. Prokosch
                                 ----------------------------------------
                             Its  Vice President
                                 ----------------------------------------

                                    12
<PAGE>
<TABLE>
<CAPTION>

                                 SCHEDULE I
                            TO PLEDGE AGREEMENT

Kinetek Industries, Inc.

<S>                         <C>                   <C>                   <C>           <C>            <C>
Issuer of Pledge Stock       Type and Class of     Stock Certificate     Par Value     Number of      Percentage
                             Stock                 Numbers                             Shares
=======================================================================================================================
Merkle-Korff Industries,     Common Stock          4                     $0.01 par     100            100%
Inc.                                                                     value
=======================================================================================================================

Issuer of Pledge Stock       Type and Class of     Stock Certificate     Par Value     Number of      Percentage
                             Stock                 Numbers                             Shares
=======================================================================================================================
The Imperial Electric        Common Stock          1                     $1.00 par     100            100%
Company                                                                  value
=======================================================================================================================

Issuer of Pledge Stock       Type and Class of     Stock Certificate     Par Value     Number of      Percentage
                             Stock                 Numbers                             Shares
=======================================================================================================================
FIR Group Holdings, Inc.     Common Stock          1, 2                  $1.00 par     100            100%
                                                                         value
=======================================================================================================================

Issuer of Pledge Stock       Type and Class of     Stock Certificate     Par Value     Number of      Percentage
                             Stock                 Numbers                             Shares
=======================================================================================================================
Electrical Design and        Common Stock          1                     $1.00 par     100            100%
Control Company                                                          value
=======================================================================================================================

Issuer of Pledge Stock       Type and Class of     Stock Certificate     Par Value     Number of      Percentage
                             Stock                 Numbers                             Shares
=======================================================================================================================
Motion Holdings, Inc.        Common Stock          2                     $1.00 par     100            100%
                                                                         value
=======================================================================================================================

Issuer of Pledge Stock       Type and Class of     Stock Certificate     Par Value     Number of      Percentage
                             Stock                 Numbers                             Shares
=======================================================================================================================
Advanced D.C. Holdings, Inc. Common Stock          2                     $1.00 par     100            100%
                                                                         value
=======================================================================================================================
</TABLE>

<PAGE>

                                 EXHIBIT A

                             Irrevocable Proxy

         The undersigned hereby appoints U.S. BANK NATIONAL ASSOCIATION, as
Trustee ("Trustee") as proxy with full power of substitution, and hereby
authorizes Trustee to represent and vote all of the shares of the capital
stock of Merkle-Korff Industries, Inc., held of record by the undersigned
on the date of exercise hereof or at any meeting or at any other time
chosen by Trustee in its sole discretion, but only at the times provided in
that certain Pledge Agreement dated as of April 12, 2002, executed by the
undersigned in favor of Trustee.

Dated:  April ___, 2002.

                                  KINETEK INDUSTRIES, INC.

                                  By
                                     --------------------------------------
                                  Its
                                      -------------------------------------

<PAGE>

                             Irrevocable Proxy

         The undersigned hereby appoints U.S. BANK NATIONAL ASSOCIATION, as
Trustee ("Trustee") as proxy with full power of substitution, and hereby
authorizes Trustee to represent and vote all of the shares of the capital
stock of The Imperial Electric Company, held of record by the undersigned
on the date of exercise hereof or at any meeting or at any other time
chosen by Trustee in its sole discretion, but only at the times provided in
that certain Pledge Agreement dated as of April 12, 2002 executed by the
undersigned in favor of Trustee.

Dated:  April ___, 2002

                                  KINETEK INDUSTRIES, INC.

                                  By
                                     --------------------------------------
                                  Its
                                      -------------------------------------

<PAGE>

                             Irrevocable Proxy

         The undersigned hereby appoints U.S. BANK TRUST NATIONAL
ASSOCIATION, as Trustee ("Trustee") as proxy with full power of
substitution, and hereby authorizes Trustee to represent and vote all of
the shares of the capital stock of Electrical Design and Control Company,
held of record by the undersigned on the date of exercise hereof or at any
meeting or at any other time chosen by Trustee in its sole discretion, but
only at the times provided in that certain Pledge Agreement dated as of
April ___, 2002, executed by the undersigned in favor of Trustee.

Dated:  April ___, 2002

                                  KINETEK INDUSTRIES, INC.

                                  By
                                     --------------------------------------
                                  Its
                                      -------------------------------------

<PAGE>

                             Irrevocable Proxy

         The undersigned hereby appoints U.S. BANK NATIONAL ASSOCIATION, as
Trustee ("Trustee") as proxy with full power of substitution, and hereby
authorizes Trustee to represent and vote all of the shares of the capital
stock of Motion Holdings, Inc., held of record by the undersigned on the
date of exercise hereof or at any meeting or at any other time chosen by
Trustee in its sole discretion, but only at the times provided in that
certain Pledge Agreement dated as of April __, 2002, executed by the
undersigned in favor of Trustee.

Dated:  April __, 2002

                                  KINETEK INDUSTRIES, INC.

                                  By
                                     --------------------------------------
                                  Its
                                      -------------------------------------

<PAGE>

                             Irrevocable Proxy

         The undersigned hereby appoints U.S. BANK NATIONAL ASSOCIATION, as
Trustee ("Trustee") as proxy with full power of substitution, and hereby
authorizes Trustee to represent and vote all of the shares of the capital
stock of Advanced D.C. Holdings, Inc., held of record by the undersigned on
the date of exercise hereof or at any meeting or at any other time chosen
by Trustee in its sole discretion, but only at the times provided in that
certain Pledge Agreement dated as of April ___, 2002, executed by the
undersigned in favor of Trustee.

Dated:  April __, 2002

                                  KINETEK INDUSTRIES, INC.

                                  By
                                     --------------------------------------
                                  Its
                                      -------------------------------------

<PAGE>

                             Irrevocable Proxy

         The undersigned hereby appoints U.S. BANK NATIONAL ASSOCIATION, as
Trustee ("Trustee") as proxy with full power of substitution, and hereby
authorizes Trustee to represent and vote all of the shares of the capital
stock of FIR Group Holdings, Inc., held of record by the undersigned on the
date of exercise hereof or at any meeting or at any other time chosen by
Trustee in its sole discretion, but only at the times provided in that
certain Pledge Agreement dated as of April ___, 2002 executed by the
undersigned in favor of Trustee.

Dated:  April __, 2002

                                  KINETEK INDUSTRIES, INC.

                                  By
                                     --------------------------------------
                                  Its
                                      -------------------------------------

<PAGE>

                                 EXHIBIT B

                              Pledge Amendment

         This Pledge Amendment, dated _______________ is delivered pursuant
to Section 5(c) of the Pledge Agreement referred to below. The undersigned
hereby agrees that this Pledge Amendment may be attached to the Pledge
Agreement, dated as of April ___, 2002, between the undersigned and U.S.
Bank National Association, as Trustee (the "Pledge Agreement"; capitalized
terms defined therein being used herein as therein defined) and that the
shares listed on this Pledge Amendment shall be deemed to be part of the
Pledged Collateral and shall secure all Secured Obligations.

Dated:  April ___, 2002

                                  KINETEK INDUSTRIES, INC.

                                  By
                                     --------------------------------------
                                  Its
                                      -------------------------------------

<TABLE>
<CAPTION>

<S>              <C>                 <C>                          <C>             <C>
=====================================================================================================
Stock Issuer      Class of Stock      Stock Certificate No(s).     Par Value       Number of Shares
=====================================================================================================

=====================================================================================================

=====================================================================================================

=====================================================================================================

=====================================================================================================
</TABLE>

<PAGE>

                    ASSIGNMENT SEPARATE FROM CERTIFICATE

         FOR VALUE RECEIVED, _________________________, a _________________
corporation, hereby sells, assigns and transfers unto U.S. Bank National
Association, as Trustee __________ (_____) Shares of the common stock of
_________________________, a __________ corporation (the "Corporation"),
standing in its name on the books of the Corporation represented by
Certificate(s) No. __________ herewith and does hereby irrevocably
constitute and appoint ___________________________ attorney to transfer the
said stock on the books of the Corporation with full power of substitution
in the premises.

Dated:

                                  KINETEK INDUSTRIES, INC.

                                  By
                                     --------------------------------------
                                  Its
                                      -------------------------------------

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