THIS SECURITY AGREEMENT ("Agreement") is executed this 25th day of January, 1999, by SCHICK
TECHNOLOGIES, INC., a New York corporation (the "Obligor"), in favor of DVI AFFILIATED CAPITAL,
a division of DVI Financial Services Inc. (the "Lender"). Obligor intending to be legally bound, hereby agrees as
1. DEFINITIONS. For purposes of this Agreement,
1.1 "account", "account debtor", "chattel paper", "documents", "equipment", "general intangibles", "goods",
"instrument", "inventory" and "proceeds" shall have the meanings given such terms in the Code.
1.2 "Approved Application" shall mean the aggregate pending lease applications of Obligor credit approved by
Lender that comply with all of the following conditions: (a) all required documents for such lease have been
prepared in form and content acceptable to Lender, signed by all parties and returned to Lender, and (b)
Lender's purchase order has been issued. Lender, in its sole and absolute discretion, at any time and from time to
time, by written notice to Obliger, may suspend the restrictions imposed by this Section.
1.3 "Chief Executive Office" shall mean the place from which the main part of the business operations of Obligor
are managed. Obliger's current Chief Executive Office is 31-00 47th Avenue, Long Island City, NY 11101.
1.4 "Code" shall mean the Uniform Commercial Code as adopted by the Commonwealth of Pennsylvania, as the
same may be amended from time to time.
1.5 "Collateral" shall mean the following: (a) all existing and after acquired accounts, chattel paper, documents,
general intangibles, and contract rights of Obligor and all proceeds thereof, including without limitation, and all
general ledger sheets, tiles, records, customer lists, books of account, invoices, bills, certificates or documents of
ownership, bills of sale, business papers, correspondence, credit files, tapes, cards, computer runs and all other
data and data storage systems whether in the possession of the Obligor or any service