Document:

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                                                                   Exhibit 10.17

                         BERKEL PRODUCTS CO., LIMITED

                                as Corporation

                                      and

                              FLEET NATIONAL BANK

                                   as Holder

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                               DEMAND DEBENTURE
                                 June 13, 2000

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                                STIKEMAN ELLIOTT
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                               DEMAND DEBENTURE

                         BERKEL PRODUCTS CO., LIMITED

           (incorporated under the Canada Business Corporations Act)

Principal Sum:    TWENTY MILLION CANADIAN DOLLARS (Cdn. $20,000,000.00)

Issue Date:       June 13, 2000

Due:              ON DEMAND

Interest Rate:    a nominal rate of twenty-five per cent (25%) per annum

                                   ARTICLE 1
                        ACKNOWLEDGEMENT OF INDEBTEDNESS

Section 1.1    Acknowledgement.

     Berkel Products Co., Limited (the "Corporation"), a corporation
incorporated and existing under the laws of Canada, for value received,
acknowledges itself indebted and promises to pay ON DEMAND, to or to the order
of Fleet National Bank (and any subsequent holder or holders of this debenture
being referred to as the "Holder") the principal sum of Twenty Million Canadian
Dollars (Cdn. $20,000,000) in lawful money of Canada on presentation and
surrender of this debenture at the offices of the Holder at 100 Federal Street,
Boston, MA 02110, or at such other place as the Holder may designate by notice
in writing to the Corporation, and in the meantime to pay interest in like money
on the principal sum monthly from this date at the rate per annum of twenty-five
per cent (25%) on the last day of each month, before and after demand and after
judgment, with interest on overdue interest at the same rate, the first such
payment of interest to become due and be paid on the last day of the month
immediately following this date or such earlier day as such principal sum shall
be repaid in full.

                                   ARTICLE 2
                                   SECURITY

Section 2.1    Terms Incorporated by Reference.

     Terms defined in the Ontario Personal Property Security Act (as amended
from time to time, the "PPSA") and used in this debenture shall have the same
meanings.
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                                     -2-
Section 2.2    Grant of Security.

     Subject to Section 2.4, as security for the due payment of all moneys
payable under this debenture, the Corporation:

     (a)  grants, assigns, conveys, transfers, mortgages, pledges and charges,
          as and by way of a fixed and specific mortgage, charge and pledge, to
          and in favour of the Holder, and otherwise grants to the Holder a
          security interest in, all of the Corporation's right, title and
          interest in and to:

     A.   all real and immoveable property, both freehold and leasehold, and
          other interests in such property (collectively, the "Lands")
          wheresoever situate, now owned or hereafter acquired by the
          Corporation and all rights, leases, licences, easements, rights-of-
          way, profits a prendre, appurtenances, privileges, concessions,
          claims, works, tenements, hereditaments, and interests in real
          property with respect to the Lands (and all renewals, extensions and
          amendments or substitutions thereof) and all other facilities relating
          to or required for use in connection with the Lands, and all
          buildings, erections, structures, improvements, underground
          facilities, power, fuel and water supply, storage, waste disposal,
          roads and other transportation facilities and fixed plant, machinery
          and equipment presently situated on or under the Lands or which may at
          any time hereafter be constructed or brought or placed on or under the
          Lands or used in connection with the Lands;

     B.   all furniture, goods, chattels, accessories, fixtures, equipment,
          machinery, tools, apparatus, vehicles, milling, processing, service,
          storage and other related infrastructures and other tangible personal
          property of every kind and description now owned or hereafter
          acquired, wherever situate;

     C.   all inventory including goods held for sale, lease or resale, goods
          furnished or to be furnished to third parties under contracts of
          lease, consignment or service, goods which are raw materials or work
          in process, goods used in or procured for packing and materials used
          or consumed in the business of the Corporation;

     D.   all intangibles of whatever kind in which the Corporation now or
          hereafter has any interest including, without limitation, all security
          interests, goodwill, demands and choses in action, licenses and other
          contractual benefits or rights and all trade marks, trade mark
          registrations and pending trade mark applications, patents and
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                                     -3-

          pending patent applications and copyrights and industrial designs and
          other intellectual property now or hereafter owned by the Corporation;

     E.   all studies, plans, blueprints, designs, records, files, charts,
          drawings, specifications, manuals, bills of lading and other documents
          of title, whether negotiable or otherwise;

     F.   the proceeds of any insurance or expropriation payable or due in
          respect of any damage to or taking of all or any part of the Charged
          Premises (as hereinafter defined), the proceeds of any business
          interruption insurance and any property in any form derived directly
          or indirectly from any dealings with all or any part of the Charged
          Premises or that indemnifies or compensates for the loss, destruction
          or damage to all or any part of the Charged Premises;

     G.   all debts, accounts, claims, moneys and choses in action now owned or
          hereafter acquired, including, without limitation, all instruments,
          securities, chattel paper, bills, notes and other documents in respect
          of such debts, accounts, claims, moneys or choses in action;

     H.   all authorizations, orders, permits, approvals, grants, licences,
          consents, rights, franchises, privileges, certificates, judgments,
          writs, injunctions, awards, determinations, directions, decrees,
          demands or the like issued or granted by law or by rule or regulation
          of any office, board, agency or department, governmental or otherwise,
          now or hereafter issued or granted to it;

     I.   all documents, certificates, policies, agreements, invoices, letters
          and papers relating to the property described in Section 2.2(a)(A)-(H)
          inclusive or otherwise; and

     J.   substitutions and replacements of and increases, additions and, where
          applicable, accessions to the property described in Section 2.2(a)
          (A)-(I) inclusive and all proceeds thereof; and

     (b)  grants, mortgages and charges, as and by way of a floating charge, to
          and in favour of the Holder and otherwise grants to the Holder a
          security interest in, all of its undertakings, properties and assets,
          both present and future, of every nature and kind and wherever
          situate, except such of its undertakings, properties and assets as are
          validly subject to the fixed and specific mortgages, charges, pledges
          and security interests granted pursuant to paragraph 2.2(a).  The
          floating charge shall in no way hinder or prevent the Corporation,
          until the Security (as hereinafter defined) shall have become
          enforceable, from
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                                     -4-

          disposing of or dealing with the subject matter of the floating charge
          in the ordinary course of business and for purposes of carrying on the
          same; provided that such action is not in breach of any specific
          provision of, or covenant in, this debenture.

(In this debenture, the grants, mortgages, charges and security interests
constituted by this debenture are called the "Security" and the subject matter
of the Security is called the "Charged Premises"). The Security shall be
effective whether or not any monies or liabilities so secured shall be advanced
or incurred before or after or at the same time as this debenture is issued and
shall remain effective until such time as this debenture is discharged as
provided in Section 4.1 irrespective of whether, at any prior time, there may
have been no indebtedness, liabilities or obligations (direct, indirect,
absolute, contingent or otherwise) of the Corporation to the Holder outstanding.

Section 2.3    Corporation's Dealings with Charged Premises.

     The Corporation shall not, without the prior written agreement of the
Holder: (i) sell, transfer, assign, exchange, lease, release or abandon or
otherwise dispose of all or any part of the Charged Premises except for Charged
Premises consisting of inventory sold or leased at full value in the ordinary
course of its business and for the purpose of carrying on the same; or, (ii)
permit, create, assume, suffer or cause the registration of any debt, lien,
charge, mortgage, debenture, hypothec, pledge, security agreement, security
interest, or any other encumbrance or privilege whatsoever upon, against or with
respect to any or any part of the Charged Premises subsequent to the granting of
this debenture. Except with the prior written agreement of the Holder, any
proceeds of such sale or lease shall be held by the Corporation in trust for the
Holder and, at the request of the Holder, shall be paid immediately to the
Holder.

Section 2.4    Scope of Security.

(1)  To the extent that an assignment of amounts payable and other proceeds
     arising under or in connection with any agreement, licence, permit or quota
     of the Corporation (each, a "Restricted Asset") is prohibited by the terms
     thereof, the Security will constitute a trust created in favour of the
     Holder and certain financial institutions specified by the Holder pursuant
     to which the Holder shall hold as trustee all proceeds arising under or in
     connection with the Restricted Asset in trust for such specified financial
     institutions on the following basis:

          (i)  until the Security has become enforceable, the Corporation
               shall be entitled to receive all such proceeds; and
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          (ii)   whenever the Security has become enforceable, all rights of the
                 Corporation to receive such proceeds shall cease, the
                 Corporation shall at the request of the Holder take all such
                 actions to collect and enforce payment and other rights arising
                 under the Restricted Asset in accordance with the instructions
                 of the Holder and all such proceeds arising under or in
                 connection with the Restricted Asset shall be immediately paid
                 over to the Holder for the benefit of such specified financial
                 institutions.

     The Corporation shall not exercise any rights of set off with respect to
     amounts payable under or in connection with any Restricted Asset and shall
     use all commercially reasonable efforts to ensure that no other party to
     the Restricted Asset shall exercise any rights of set off against any
     amounts payable thereunder. The Corporation shall use all commercially
     reasonable efforts to obtain the consent of each other party to the
     Restricted Asset to the assignment of the Restricted Asset to the Holder in
     accordance with this debenture and shall use all commercially reasonable
     efforts to ensure that all agreements entered into on and after the date
     hereof expressly permit assignments of the benefits of such agreement as
     collateral security to the Holder in accordance with the terms of this
     debenture.

(2)  Until the Security has become enforceable, the grant of the Security in the
     intellectual property hereunder shall not affect in any way the
     Corporation's rights to commercially exploit such intellectual property,
     defend it, enforce the Corporation's rights in it or with respect to it
     against third parties in any court or claim and be entitled to receive any
     damages with respect to any infringement of it.

(3)  The Security shall not extend to consumer goods.

(4)  The Security shall not extend or apply to the last day of the term of any
     lease or sublease or any agreement for a lease or sublease, now held or
     hereafter acquired by the Holder in respect of real property, but the
     Holder shall stand possessed of any such last day upon trust to assign and
     dispose of it as the Holder may reasonably direct.

(5)  To the extent that the creation of the Security will constitute a breach
     under any real property lease or sub-lease (each a "Restricted Lease"), the
     Security will not attach to the Restricted Lease but the Obligor shall hold
     its interest in the Restricted Lease in trust for the Holder and shall,
     upon the request therefor from the Holder, (i) obtain the consent of the
     other party thereto; and (ii) assign such Restricted Lease to the Holder,
     or as it may direct, immediately upon obtaining the consent of the other
     party.  The Corporation
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                                      -6-

     shall use all commercially reasonable efforts to ensure that all real
     property leases, sub-leases and other agreements entered into on and after
     the date hereof expressly permit the creation of Security in the interests
     of the Corporation therein and assignments of the benefits of such
     agreements as collateral security to the Holder in each case in accordance
     with the terms of this debenture.

Section 2.5    Protective Disbursements.

     If the Corporation fails to perform any of its covenants in this debenture
or otherwise, then the Holder may, in its absolute discretion, perform any
covenant capable of being performed by it and, if the covenant requires the
payment or expenditure of money, the Holder may make the payment but shall be
under no obligation to do so. All sums so paid or expended by the Holder shall
be immediately payable by the Corporation, shall bear interest at the rate set
forth in this debenture and shall be secured by this debenture, having the
benefit of the Security in priority to the indebtedness evidenced by this
debenture. No such performance or payment shall relieve the Corporation from any
default under this debenture or the consequences of such default.

Section 2.6    Attachment.

(1)  With respect to the personal property hereby secured, the Corporation and
     the Holder hereby acknowledge that (i) value has been given; (ii) the
     Corporation has rights in the Charged Premises (other than after-acquired
     Charged Premises); (iii) except as contemplated by Section 2.4, they have
     not agreed to postpone the time of attachment of the Security; and (iv) the
     Corporation has received a copy of this debenture.

(2)  The Corporation agrees to promptly inform the Holder in writing of the
     acquisition by the Corporation of any Charged Premises which is not
     adequately described herein, and the Corporation agrees to execute and
     deliver at its own expense from time to time amendments to this debenture
     or the schedules hereto or additional security or schedules as may be
     required by the Holder in order that the Security shall attach to any
     Charged Premises.  The Corporation shall promptly inform the Holder in
     writing of any other location at which the Charged Premises may in future
     be located.

                                   ARTICLE 3
                                  ENFORCEMENT

Section 3.1    Enforcement.

     If the Corporation fails to repay the principal amount, interest and other
amounts owing under this debenture on demand or otherwise when the same shall
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                                     -7-

become due and payable or if the Corporation fails to perform any other
agreement or covenant it has given to the Holder, the Security shall become
enforceable against the Corporation.

Section 3.2    Remedies.

     Whenever the Security has become enforceable, the Holder may realize upon
the Charged Premises and enforce its rights by:

     (a)  entry into possession of the Charged Premises;

     (b)  proceedings in any court of competent jurisdiction for the appointment
          of a receiver (which term as used in this debenture includes a
          receiver and manager) of all or any part of the Charged Premises;

     (c)  proceedings in any court of competent jurisdiction for sale or
          foreclosure of all or any part of the Charged Premises;

     (d)  filing of proofs of claim and other documents to establish its claims
          to the Charged Premises in any proceeding relating to the Corporation;

     (e)  the appointment by instrument in writing of a receiver of all or any
          part of the Charged Premises and removal or replacement from time to
          time of any such receiver;

     (f)  the sale or lease of all or any part of the Charged Premises; and

     (g)  any other remedy or proceeding authorized or permitted in this
          debenture or otherwise by law or equity.

     Such remedies may be exercised from time to time separately or in
combination and are in addition to, and not in substitution for, any other
rights of the Holder however created. The Holder shall not be bound to exercise
any right or remedy and the exercise of any right or remedy shall be without
prejudice to any other rights of the Holder including the right to claim for
deficiency. The taking of any action or proceeding or refraining from so doing,
or any other dealings with any other security for the monies secured by this
debenture shall not release or affect the security.

Section 3.3    Additional Rights.

     In addition to the rights of the Holder set forth in Section 3.2, the
Holder may, whenever the Security has become enforceable:

     (a)  require the Corporation, at the Corporation's expense, to assemble the
          Charged Premises at a place or places designated by notice in writing
          and the Corporation agrees to so assemble the Charged Premises;
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                                      -8-

     (b)  require the Corporation, by notice in writing, to disclose to the
          Holder the location or locations of the Charged Premises and the
          Corporation agrees to make such disclosure when so required by the
          Holder;

     (c)  repair, process, modify, complete or otherwise deal with the Charged
          Premises, and prepare for the disposition of the Charged Premises,
          whether on the premises of the Corporation or otherwise;

     (d)  carry on all or any part of the business of the Corporation and, to
          the exclusion of all others including the Corporation, enter upon,
          occupy and use all or any of the premises, buildings and other
          property of or used by the Corporation for such time as the Holder
          sees fit, free of charge, and the Holder shall not be liable to the
          Corporation for any act, omission or negligence in so doing or for any
          rent, charges, depreciation or damages incurred in that connection;

     (e)  borrow for the purpose of carrying on the business of the Corporation
          or for the maintenance, preservation or protection of the Charged
          Premises and mortgage, charge or grant a security interest in the
          Charged Premises, whether or not in priority to the Security, to
          secure repayment; and

     (f)  demand, commence, continue or defend any judicial or administrative
          proceedings for the purpose of protecting, seizing, collecting,
          realizing or obtaining possession or payment of the Charged Premises,
          and give good and valid receipts and discharges and compromise or give
          time for the payment or performance of all or any part of the accounts
          or any other obligation of any third party to the Corporation.

Section 3.4    Receiver's Powers.

(1)  Any receiver appointed by the Holder shall be vested with the rights and
     remedies which could have been exercised by the Holder in respect of the
     Corporation or the Charged Premises and such other powers and discretions
     as are granted in the instrument of appointment and any supplemental
     instruments.  The identity of the receiver, any replacement and any
     remuneration shall be within the sole and unfettered discretion of the
     Holder.

(2)  Any receiver appointed by the Holder shall act as agent for the Holder for
     the purposes of taking possession of the Charged Premises, but otherwise
     and for all other purposes (except as provided below), as agent for the
     Corporation.  The receiver may sell, lease, or otherwise dispose of Charged
     Premises as agent for the Corporation or as agent for the Holder as the
     Holder may determine in its discretion.  The Corporation agrees to ratify
     and confirm all
<PAGE>
                                      -9-

     actions of the receiver acting as agent for the Corporation, and to release
     and indemnify the receiver in respect of all such actions.

(3)  The Holder, in appointing or refraining from appointing any receiver, shall
     not incur liability to the receiver, the Corporation or otherwise and shall
     not be responsible for any misconduct or negligence of such receiver.

(4)  All moneys from time to time received by the receiver may be applied as
     follows (i) first, in discharge of all operating expenses and other
     outgoings affecting the Charged Premises, (ii) second, in keeping in good
     standing all charges and liens on the Charged Premises having priority over
     the Security, (iii) third, in payment of the remuneration and disbursements
     of the receiver, (iv) fourth, in payment to the Holder of the moneys
     payable hereunder, and (v) the balance, if any, shall be paid to the
     Corporation or as a court of competent jurisdiction may otherwise direct.

Section 3.5    Dealing with the Charged Premises.

(1)  The Holder shall not be obliged to exhaust its recourse against the
     Corporation or any other person or against any other security it may hold
     in respect of the principal amount, interest and other amounts owing under
     this debenture before realizing upon or otherwise dealing with the Charged
     Premises in such manner as it may consider desirable.

(2)  The Holder may grant extensions or other indulgences, take and give up
     securities, accept compositions, grant releases and discharges and
     otherwise deal with the Corporation and with other persons, sureties or
     securities as it may see fit without prejudice to the obligations and
     liability of the Corporation or the rights of the Holder in respect of the
     Charged Premises.

(3)  The Holder shall not be (i) liable or accountable for any failure to
     collect, realize or obtain payment in respect of the Charged Premises, (ii)
     bound to institute proceedings for the purpose of collecting, enforcing,
     realizing or obtaining payment of the Charged Premises or for the purpose
     of preserving any rights of any persons in respect of the Charged Premises,
     (iii) responsible for any loss occasioned by any sale or other dealing with
     the Charged Premises or by the retention of or failure to sell or otherwise
     deal with the Charged Premises, or (iv) bound to protect the Charged
     Premises from depreciating in value or becoming worthless.

(4)  The Holder shall have no obligation to keep identifiable Charged Premises
     in its possession consisting of tangible personal property.

(5)  The Corporation hereby expressly authorizes and directs the Holder,
     whenever the Security has become enforceable, to collect, demand, sue for,
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                                     -10-

     enforce, adjust, settle, recover and receive all of the debts and moneys
     comprising the Charged Premises, in the name of the Corporation or in the
     Holder's own name, and to give valid and binding receipts and discharges
     therefor and in respect thereof, the whole to the same extent and with the
     same effect as if the Holder were the absolute owner thereof and without
     regard to the state of accounts between the Corporation and the Holder. The
     Holder shall only be accountable for proceeds when the same are actually
     received in cash, notwithstanding that the Holder may have transferred
     title to or possession of the debts or moneys comprising the Charged
     Premises or any part thereof and may have taken back a debt instrument,
     security or other obligation therefor. The Holder may, both before and
     after the Security shall have become enforceable, (i) notify any person
     obligated on an account or on chattel paper or any obligor on an instrument
     to make payment thereunder to the Holder whether or not the Corporation was
     theretofore making collections thereon; and (ii) assume control of any
     proceeds arising from the Charged Premises.

Section 3.6    Standards of Sale.

     Without prejudice to the ability of the Holder to dispose of the Charged
Premises in any manner which is commercially reasonable, the Corporation
acknowledges that:

     (a)  Charged Premises may be disposed of in whole or in part;

     (b)  Charged Premises may be disposed of by public auction, public tender
          or private contract, with or without advertising and without any other
          formality;

     (c)  any assignee of the Charged Premises may be a customer of the Holder;

     (d)  a disposition of Charged Premises may be on such terms and conditions
          as to credit or otherwise as the Holder, in its sole discretion, may
          deem advantageous;

     (e)  the Holder may establish an upset or reserve bid or price in respect
          of Charged Premises;

     (f)  the Holder, jointly or severally, may become a purchaser at any sale
          of the Charged Premises whether made under the power of sale herein
          contained or pursuant to foreclosure or other judicial proceedings;
          and
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     (g)  the Holder may rescind or vary any contract of sale that may have been
          entered into and re-sell with or under any of the powers conferred
          herein or adjourn any such sale from time to time.

Section 3.7    Dealings by Third Parties.

(1)  No person dealing with the Holder or its agent or a receiver shall be
     required to determine (i) whether the Security has become enforceable, (ii)
     whether the powers which the Holder or its agent or a receiver is
     purporting to exercise have become exercisable, (iii) whether any money
     remains due upon the Security, (iv) the necessity or expediency of the
     stipulations and conditions subject to which any sale or lease is made, (v)
     the propriety or regularity of any sale or any other dealing by the Holder
     or its agent or a receiver with the Charged Premises, or (vi) how any money
     paid to the Holder has been applied.

(2)  Any purchaser of all or any part of the Charged Premises shall hold the
     Charged Premises absolutely, free from any claim or right of whatever kind,
     including any equity of redemption, of the Corporation, which it
     specifically waives (to the fullest extent permitted by law) as against any
     such purchaser and all rights of redemption, stay or appraisal which the
     Corporation has or may have under any rule of law now existing or hereafter
     adopted.

Section 3.8    No Right of Set-Off.

     The principal, interest and other monies and liabilities secured by this
debenture shall be paid when due by the Corporation without regard to any
equities existing between the Corporation and any other party including, without
limitation, the Holder and without regard to any right of set-off or cross-claim
or of any other claim or demand of the Corporation against the Holder or
otherwise.

Section 3.9    No Merger or Novation.

     Neither the taking of any judgment nor the exercise of any power of seizure
or sale shall operate to extinguish the liability of the Corporation to pay the
monies secured, nor shall the same operate as a merger of any covenant or affect
the right of the Holder to interest at the specified rate, nor shall the
acceptance of any payment or other security constitute or create any novation,
and it is further agreed that the taking of a judgment under any covenant shall
not operate as a merger of such covenant in the judgment or affect the Holder's
right to interest.

Section 3.10   Presentation of Debenture.

     So long as Fleet National Bank is the Holder of this debenture, the
Corporation, to the fullest extent permitted by law, hereby waives presentation
of this debenture for, and surrender of this debenture against, payment. In any
other case, the Holder of this debenture shall be required to present and
surrender this
<PAGE>
                                     -12-

debenture against payment at such place designated by the Holder in writing to
the Corporation.

Section 3.11   Appointment of Attorney.

     The Corporation hereby irrevocably appoints the Holder (and any officer
thereof) as attorney of the Corporation (with full power of substitution) to
exercise in the name of and on behalf of the Corporation any of the
Corporation's right (including the right of disposal), title and interest in and
to the Charged Premises including, without limitation, the execution,
endorsement and delivery of any agreements, documents, instruments, absolute
assignments, securities, documents of title and chattel paper and any notices,
receipts, assignments or verifications of the accounts and the Holder and its
nominees or transferees are hereby empowered to exercise all rights and powers
and to perform all acts of ownership with respect to the Charged Premises to the
same extent as the Corporation might do. All acts of any such attorney are
hereby ratified and approved, and such attorney shall not be liable for any act,
failure to act or any other matter or thing in connection therewith, except for
its own gross negligence or wilful misconduct. This appointment and power of
substitution, being coupled with an interest, are irrevocable and shall not
terminate upon the bankruptcy, dissolution, winding up or insolvency of the
Corporation.

                                   ARTICLE 4
                                    GENERAL

Section 4.1    Discharge.

     The Holder is the person entitled to receive the money payable under this
debenture and to give a discharge of this debenture. The Security shall be
discharged upon, but only upon, full payment of all moneys secured and
performance of all obligations of the Corporation to the Holder. Upon discharge
of the Security and at the request and expense of the Corporation, the Holder
shall execute and deliver to the Corporation such releases, discharges,
financing statements and other documents or instruments as the Corporation may
reasonably require.

Section 4.2    Reimbursement of Holder's Expenses.

     The Corporation shall pay to the Holder immediately on demand all costs,
charges and expenses incurred by the Holder in connection with the preparation,
issuance and enforcement of this debenture, the preservation and protection of
the Charged Premises, the preservation and enforcement of the Security or the
realization of this debenture or the Charged Premises, including, without
limitation, all legal fees, court costs, receiver's or agent's remuneration and
other expenses incurred in connection with the recovery or enforcement of
payment of any moneys
<PAGE>
                                     -13-

owing hereunder whether by realization or otherwise and expenses of taking
possession of, repairing, protecting, insuring, preparing for disposition,
realizing, collecting, selling, transferring, delivering or obtaining payment of
Charged Premises. All such sums, together with interest at the rate set forth in
this debenture until paid, shall be added to the indebtedness secured by this
debenture and shall also be secured, together with all other indebtedness, by
this debenture.

Section 4.3    Waiver of Covenants.

     The Holder may waive any breach by the Corporation of any of the provisions
of this debenture or any failure by the Corporation in the observance or
performance of any covenant or condition required to be observed or performed by
the Corporation, grant extensions of time or other indulgences to, accept
compositions from, or grant releases and discharges to, the Corporation in
respect of the Charged Premises or otherwise deal with the Corporation and with
the Charged Premises and other security held by the Holder, all as the Holder
may see fit; provided that no such waiver or act by the Holder shall be binding
on the Holder or shall extend to or be taken in any manner to affect any
subsequent breach or failure or the rights resulting from such breach or
failure.

Section 4.4    Further Assurances.

     The Corporation shall from time to time, whether before or after the
Security shall have become enforceable, do all such acts and things and execute
and deliver all such deeds, transfers, assignments and instruments as the Holder
may reasonably require for (i) protecting the Charged Premises, (ii) perfecting
the Security, and (iii) exercising all powers, authorities and discretions
conferred upon the Holder. The Corporation shall, from time to time after the
Security has become enforceable, do all such acts and things and execute and
deliver all such deeds, transfers, assignments and instruments as the Holder may
require for facilitating the sale of the Charged Premises in connection with its
realization.

Section 4.5    Successors and Assigns.

     This debenture shall be binding upon the Corporation, its successors and
assigns, and shall enure to the benefit of the Holder and its successors and
assigns. The Corporation may not assign, transfer or delegate any of its rights
or obligations under this debenture without the prior written consent of the
Holder.

Section 4.6    Notices, etc.

     All notices, requests and demands to or upon the respective parties hereto
shall be in writing (including by telecopy), and unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered,
or three business days after being deposited in the mail, postage prepaid, or,
in the case of telecopy notice, when received, addressed as follows:
<PAGE>
                                     -14-

(a)  to the Corporation at:

     Berkel Products Co., Limited
     1 Berkel Drive
     La Porte, Indiana
     U.S.A.  46350

     Attention:           D. G. Steffen
                          Chief Executive Officer

     Telephone:           (219) 326-7000
     Facsimile:           (219) 324-7247

(b)  to Fleet National Bank as long as it is the Holder of this debenture, at:

     Fleet National Bank
     100 Federal Street
     Boston, MA 02110
     USA

     Attention:           Connie Moore

     Telephone:           (617) 434-9383
     Facsimile:           (617) 434-4929

provided that any notice, request or demand to or upon the Collateral Agent or
any secured creditor shall not be effective until received.

Section 4.7    Gender and Number.

     Any reference in this debenture to gender shall include all genders and
words importing the singular number only shall include the plural and vice
versa.

Section 4.8    Headings, etc.

     The division of this debenture into articles, sections and subsections and
the insertion of headings are for convenient reference only and are not to
affect its interpretation.

Section 4.9    Severability.

     If any provision of this debenture shall be deemed by any court of
competent jurisdiction to be invalid or void, the remaining provisions shall
remain in full force and effect.
<PAGE>
                                     -15-

Section 4.10   Governing Law.

     This debenture shall be governed by and interpreted and enforced in
accordance with the laws of the Province of Ontario and the federal laws of
Canada applicable therein.

     IN WITNESS WHEREOF the Corporation has caused this debenture to be executed
by its duly authorized officer as of the date first above written.

                                      BERKEL PRODUCTS CO., LIMITED

                                      Per: /s/ Berkel Products Co., Limited
                                           --------------------------------
                                           Authorized Signing Officer<PAGE>

                                                                   Exhibit 10.18

                         BERKEL PRODUCTS CO., LIMITED

                                 as Guarantor

                              to and in favour of

                      THE LENDERS PARTY FROM TIME TO TIME
                 TO THE AMENDED AND RESTATED CREDIT AGREEMENT

                                      and

                     THE COUNTERPARTIES FROM TIME TO TIME
                       TO THE SPECIFIED HEDGE AGREEMENTS

                             as Secured Creditors

                                      and

                              FLEET NATIONAL BANK

                              as Collateral Agent

  ___________________________________________________________________________

                                   GUARANTEE

                                 June 13, 2000

  ___________________________________________________________________________

                                Stikeman Elliott
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                         <C>
                                   ARTICLE 1
                                   DEFINITIONS

Section 1.1  Defined Terms................................................   2
Section 1.2  Terms Incorporated by Reference..............................   4
Section 1.3  Certain Phrases, etc.........................................   4
Section 1.4  Gender and Number............................................   4
Section 1.5  Headings, etc................................................   4

                                   ARTICLE 2
                                   GUARANTEE

Section 2.1  Guarantee....................................................   4
Section 2.2  Absolute Liability...........................................   5

                                   ARTICLE 3
                                  ENFORCEMENT

Section 3.1  Remedies.....................................................   6
Section 3.2  Impairment of Security.......................................   6
Section 3.3  Amount of Guaranteed Obligations.............................   7
Section 3.4  Payment on Demand............................................   7
Section 3.5  Assignment and Postponement..................................   7
Section 3.6  Suspension of Guarantor Rights...............................   8
Section 3.7  No Prejudice to Secured Creditors or Collateral Agent........   8
Section 3.8  Postponement of Subrogation..................................   8
Section 3.9  No Set-off...................................................   9
Section 3.10 Successors of Canadian Borrower and SWT......................   9
Section 3.11 Continuing Guarantee.........................................   9
Section 3.12 Supplemental Security........................................  10
Section 3.13 Security for Guarantee.......................................  10
Section 3.14 Right of Set-off.............................................  10
Section 3.15 Interest Act (Canada)........................................  10
Section 3.16 Taxes and Other Taxes........................................  11
Section 3.17 Judgment Currency............................................  12

                                   ARTICLE 4
                   REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 4.1  Representations and Warranties...............................  13
Section 4.2  Survival of Representations and Warranties...................  15
Section 4.3  Amended and Restated Credit Agreement........................  15
</TABLE>
<PAGE>

<TABLE>
<S>                                                                        <C>

                                   ARTICLE 5
                                    GENERAL

Section 5.1  Notices......................................................  15
Section 5.2  Quebec Security..............................................  16
Section 5.3  Currency.....................................................  16
Section 5.4  Further Assurances...........................................  16
Section 5.5  Successors and Assigns.......................................  17
Section 5.6  Severability.................................................  17
Section 5.7  Waivers, etc.................................................  17
Section 5.8  Application of Proceeds......................................  17
Section 5.9  Collateral Agent.............................................  17
Section 5.10 Cognizance of Amended and Restated Credit Agreement..........  17
Section 5.11 Governing Law................................................  17
</TABLE>
<PAGE>

                                   GUARANTEE

     Guarantee dated as of the 13/th/ day of June, 2000, made by BERKEL PRODUCTS
CO., LIMITED, a corporation incorporated and existing under the laws of Canada,
to and in favour of the Secured Creditors and the Collateral Agent.

     WHEREAS:

     A.   the Canadian Borrower and SWT, as borrowers, Weigh-Tronix, LLC,
certain banks and financial institutions party thereto, Lehman Brothers Inc., as
sole advisor, Lehman Brothers Inc. and FleetBoston Robertson Stephens Inc., as
co-arrangers and co-book managers, Lehman Commercial Paper Inc., as syndication
agent, Fleet National Bank, as security agent, and the Agent have entered into
the Amended and Restated Credit Agreement providing for the making of credit
facilities available to the Borrowers;

     B.   the Guarantor is a wholly-owned subsidiary (within the meaning of the
Canada Business Corporations Act) of each of Berkel Inc., Berkel U.S.A. Inc.,
Weigh-Tronix Inc. and Weigh-Tronix LLC;

     C.   each of Berkel Inc., Berkel U.S.A. Inc., Weigh-Tronix Inc. and Weigh-
Tronix LLC have guaranteed the obligations of the Borrowers under the Credit
Documents pursuant to the terms of the Parent Guarantees;

     D.   it is a condition precedent to the continued extensions of credit to
the Borrowers on the terms and conditions of the Amended and Restated Credit
Agreement that the Guarantor guarantee the payment and performance of certain of
the obligations of each Parent Guarantor under the Credit Documents to which
such Parent Guarantor is a party;

     E.   the Guarantor has determined that it is in the best interests of the
Guarantor to enter into this Guarantee; and

     F.   the Guarantor has, contemporaneously herewith, executed and delivered
to the Collateral Agent for the benefit of and as agent of the Secured
Creditors, the Guarantor Security Documents as continuing collateral security
for the obligations of the Guarantor under this Guarantee.

     NOW THEREFORE in consideration of the foregoing, the sum of $10.00 now paid
by the Collateral Agent and the Secured Creditors to the Guarantor and other
good and valuable consideration, the receipt and sufficiency of which are
acknowledged, the Guarantor agrees as follows:
<PAGE>

                                      -2-

                                  ARTICLE 1
                                  DEFINITIONS

Section 1.1  Defined Terms.

     As used in this Guarantee and the recitals hereto, the following terms have
the following meanings:

     "Agent" means Fleet National Bank acting as administrative agent for the
Lenders under the Amended and Restated Credit Agreement and any successor
appointed pursuant to the Amended and Restated Credit Agreement.

     "Amended and Restated Credit Agreement" means the amended and restated
credit agreement dated as of the 13/th/ day of June, 2000, among the Canadian
Borrower, and SWT Finance B.V., as borrowers, Weigh-Tronix, LLC, the Lenders, as
lenders, Lehman Brothers, Inc., as sole advisor, Lehman Brothers Inc. and
FleetBoston Robertson Stephens Inc., as co-arrangers and co-book managers,
Lehman Commercial Paper Inc., as syndication agent, Fleet National Bank, as
security agent, and the Agent, as the same may be further amended, modified,
extended, renewed, replaced, restated, supplemented or refinanced from time to
time and including any agreement extending the maturity of, refinancing or
restructuring (including the inclusion of additional borrowers hereunder or any
increase in the amount borrowed) all or any portion of, the indebtedness under
such agreement or any successor agreements, whether or not with the same agent
or lenders.

     "Borrowers" means, collectively, the Canadian Borrower and SWT.

     "Canadian Borrower" means Weigh-Tronix Canada, ULC, an unlimited company
incorporated and existing under the laws of the Province of Nova Scotia, and its
successors and permitted assigns.

     "Collateral Agent" means the Agent acting as collateral agent for the
Secured Creditors.

     "Credit Documents" means, collectively, the Amended and Restated Credit
Agreement, the Parent Guarantees, the other Loan Documents, the Letters of
Credit, any Specified Hedge Agreement and any other document, made, delivered or
given in connection therewith.

     "Event of Default" shall mean any Event of Default under, and as defined
in, the Amended and Restated Credit Agreement or any payment default, after any
applicable grace period, under any other Credit Document.
<PAGE>

                                      -3-

     "Governmental Entity" means any (i) multinational, federal, provincial,
state, municipal, local or other government, governmental or public department,
central bank, court, commission, board, bureau, agency or instrumentality,
domestic or foreign, (ii) any subdivision or authority of any of the foregoing,
or (iii) any quasi-governmental or private body exercising any regulatory,
expropriation or taxing authority under or for the account of any of the above.

     "Guaranteed Obligations" has the meaning ascribed thereto in Section 2.1
hereof.

     "Guarantee" means this guarantee, as amended, restated, extended, renewed,
replaced or supplemented from time to time.

     "Guarantor" means Berkel Products Co., Limited, a corporation incorporated
and existing under the laws of Canada, and its successors and permitted assigns.

     "Guarantor Security Documents" means the agreements described in Schedule
"A" hereto and any other security granted to the Collateral Agent or any Secured
Creditor as security for the obligations of the Guarantor under this Guarantee
and the Obligations (as defined therein) of the Guarantor under the Amended and
Restated Credit Agreement.

     "Lenders" means, collectively, Lehman Brothers Inc., as sole advisor,
Lehman Brothers Inc. and FleetBoston Robertson Stephens Inc., as co-arrangers
and co-book managers, Lehman Commercial Paper Inc., as syndication agent, the
Agent and the several banks and other financial institutions or entities from
time to time parties to the Amended and Restated Credit Agreement, and their
respective successors and permitted assigns.

     "Letters of Credit" has the meaning ascribed thereto in the Amended and
Restated Credit Agreement.

     "Loan Documents" has the meaning ascribed thereto in the Amended and
Restated Credit Agreement.

     "Obligations" has the meaning ascribed thereto in the Amended and Restated
Credit Agreement.

     "Parent Guarantees" means, collectively, the guarantee and collateral
agreement of even date herewith made by Berkel Inc., Berkel U.S.A. Inc., Weigh-
Tronix Inc. and Weigh-Tronix LLC in favour of the Collateral Agent for and on
behalf of itself and the Secured Creditors, as such Parent Guarantees may be
amended, restated, extended, renewed, replaced or supplemented from time to
time.
<PAGE>

                                      -4-

     "Parent Guarantors" means, collectively, Berkel Inc., Berkel U.S.A. Inc.,
Weigh-Tronix Inc. and Weigh-Tronix LLC, and their respective successors and
assigns.

     "Secured Creditors" means, collectively, the Agent, the Collateral Agent
and the Lenders and each of the Agent, a Lender or any affiliate of such Lender,
as a counterparty under any Specified Hedge Agreement.

     "Specified Hedge Agreement" has the meaning ascribed thereto in the Amended
and Restated Credit Agreement.

     "SWT" means SWT Finance B.V., a limited liability company organized under
the laws of The Netherlands, and its successors and permitted assigns.

Section 1.2  Terms Incorporated by Reference.

     Capitalized terms used herein but not defined in this Guarantee shall have
the meanings given to them in the Amended and Restated Credit Agreement.

Section 1.3  Certain Phrases, etc.

     In this Guarantee (i) (y) the words "including" and "includes" mean
"including (or includes) without limitation" and (z) the phrase "the aggregate
of", "the total of", "the sum of", or a phrase of similar meaning means "the
aggregate (or total or sum), without duplication, of", and (ii) in the
computation of periods of time from a specified date to a later specified date,
unless otherwise expressly stated, the word "from" means "from and including"
and the words "to" and "until" each mean "to but excluding".

Section 1.4  Gender and Number.

  Any reference in this Guarantee to gender shall include all genders and words
importing the singular number only shall include the plural and vice versa.

Section 1.5  Headings, etc.

  The division of this Guarantee into Articles and Sections and the insertion of
headings are for convenient reference only and are not to affect the
interpretation of this Guarantee.

                                  ARTICLE 2
                                   GUARANTEE

Section 2.1  Guarantee.

     The Guarantor irrevocably and unconditionally guarantees the due and
punctual payment to the Secured Creditors and the Collateral Agent, whether at
stated maturity, by acceleration or otherwise, of all present and future debts,
liabilities and obligations, direct or indirect, absolute or contingent, of each
Parent
<PAGE>

                                      -5-

Guarantor arising out of, in connection with or pursuant to, the Parent
Guarantees and the other Credit Documents to which such Parent Guarantor is a
party and the due performance and compliance by each Parent Guarantor, with all
of the respective terms and conditions of the Parent Guarantees and the other
Credit Documents to which each Parent Guarantor is a party (such debts,
liabilities and obligations being herein collectively referred to as, the
"Guaranteed Obligations") and promises to pay, on demand, any and all expenses
(including reasonable counsel fees and disbursements) incurred by or on behalf
of the Secured Creditors and the Collateral Agent in enforcing any of their
respective rights under this Guarantee.

Section 2.2  Absolute Liability.

  The Guarantor guarantees that the Guaranteed Obligations will be paid to the
Collateral Agent and the Secured Creditors strictly in accordance with their
terms and conditions, that the Guarantor shall be liable as principal debtor and
not solely as surety with respect to the payment of the Guaranteed Obligations
and that the liability of the Guarantor under this Guarantee shall be absolute
and unconditional irrespective of:

     (a)  the lack of validity or enforceability of any terms of any of the
          Parent Guarantees or any other Credit Documents;

     (b)  any contest by any Parent Guarantor or any other Person as to the
          amount of the Guaranteed Obligations, the validity or enforceability
          of any terms of the Parent Guarantees or any other Credit Documents or
          the perfection or priority of any security granted to the Collateral
          Agent or the Secured Creditors;

     (c)  any defence, counterclaim or right of set-off available to any Parent
          Guarantor;

     (d)  any change in the time or times for, or place of or manner of payment
          of the Guaranteed Obligations or any consent, waiver, renewal,
          extension or other indulgences which the Secured Creditors or the
          Collateral Agent may grant to any Parent Guarantor or any other Person
          or any amendment or supplement to, or alteration or renewal of, or
          restatement, replacement, refinancing or modification of (including
          any increase in the amounts available thereunder or the inclusion of
          additional borrowers thereunder), or other action or inaction under,
          any of the Parent Guarantees or any other Credit Documents or the
          Guaranteed Obligations and this Guarantee shall apply to the
          Guaranteed Obligations as so changed, indulged, amended, supplemented,
          altered, renewed, restated, replaced, refinanced, modified or
          increased;
<PAGE>

                                      -6-

     (e)  any dealings with the security which the Secured Creditors or the
          Collateral Agent hold or may hold pursuant to the terms and conditions
          of the Parent Guarantees or any other Credit Documents, including the
          taking, giving up or exchange of securities, their variation or
          realization, the accepting of compositions and the granting of
          releases and discharges;

     (f)  any bankruptcy, insolvency, reorganization, composition, adjustment,
          dissolution, liquidation or other like proceeding relating to any
          Parent Guarantor or Borrower, the Guarantor or any other Person or any
          action taken with respect to this Guarantee by any trustee or
          receiver, or by any court, in any such proceeding, whether or not the
          Guarantor shall have notice or knowledge of any of the foregoing;

     (g)  the assignment of all or any part of the benefits of this Guarantee;

     (h)  any invalidity, non-perfection or unenforceability of any security
          held by the Secured Creditors or the Collateral Agent or any
          irregularity, default or defect in the manner or procedure by which
          the Collateral Agent and the Secured Creditors deal with or realize on
          such security; and

     (i)  any other circumstances which might otherwise constitute a defence
          available to, or a discharge of, the Guarantor, any Parent Guarantor,
          any Borrower or any other Person in respect of the Guaranteed
          Obligations or this Guarantee.

                                   ARTICLE 3
                                  ENFORCEMENT

Section 3.1  Remedies.

     The Secured Creditors and the Collateral Agent shall not be bound to
exhaust their recourse against any Parent Guarantor, any Borrower or any other
Person or realize on any security they may hold in respect of the Guaranteed
Obligations before being entitled to payment under this Guarantee and the
Guarantor renounces all benefits of discussion and division.

Section 3.2  Impairment of Security.

     Any loss of, or loss of value of, any security granted to any of the
Secured Creditors or the Collateral Agent by any Parent Guarantor or Borrower or
any other Person shall not discharge pro tanto or limit or lessen the liability
of the Guarantor under this Guarantee.
<PAGE>

                                      -7-

Section 3.3  Amount of Guaranteed Obligations.

     Any account settled or stated by or between the Collateral Agent and any
Borrower, or if any such account has not been settled or stated immediately
before demand for payment under this Guarantee, any account stated by the
Collateral Agent shall, in the absence of manifest mathematical error, be
accepted by the Guarantor as prima facie evidence of the amount of the
Guaranteed Obligations which is due by the relevant Parent Guarantor or
Borrower, as the case may be, to the Secured Creditors and the Collateral Agent
or remains unpaid by the relevant Parent Guarantor or Borrower, as the case may
be, to the Secured Creditors and the Collateral Agent.

Section 3.4  Payment on Demand.

     The obligation of the Guarantor to pay the amount of the Guaranteed
Obligations and all other amounts payable by it to the Secured Creditors or the
Collateral Agent under this Guarantee shall arise, and the Guarantor shall make
such payments, immediately after demand for same is made in writing to it
following the occurrence and during the continuance of an Event of Default.  The
liability of the Guarantor shall bear interest from the date of such demand at
the rate or rates of interest then applicable to the Guaranteed Obligations
under and calculated in the manner provided in the Credit Documents.

Section 3.5  Assignment and Postponement.

(1)  All obligations, liabilities and indebtedness of any Parent Guarantor to
the Guarantor, if any, of any nature whatsoever and all security therefor (the
"Intercorporate Indebtedness") are assigned and transferred to the Collateral
Agent as continuing and collateral security for the Guarantor's obligations
under this Guarantee. Until the occurrence of an Event of Default, the Guarantor
may receive payments in respect of the Intercorporate Indebtedness in accordance
with their terms. The Guarantor shall not assign all or any part of the
Intercorporate Indebtedness to any Person other than the Collateral Agent or the
Secured Creditors.

(2) Upon the occurrence and during the continuance of an Event of Default, all
Intercorporate Indebtedness shall be held in trust for the Secured Creditors and
the Collateral Agent and shall be collected, enforced or proved subject to, and
for the purpose of, this Guarantee and any payments received by the Guarantor in
respect of the Intercorporate Indebtedness shall be segregated from other funds
and property held by the Guarantor and immediately paid to the Collateral Agent
on account of the Guaranteed Obligations.

(3) Upon the occurrence and during the continuance of an Event of Default, the
Secured Creditors and the Collateral Agent shall be entitled to receive payment
of the Guaranteed Obligations in full before the Guarantor receives any payment
on account of the Intercorporate Indebtedness. In such case, the Intercorporate
Indebtedness shall not be released or withdrawn or set off against any amount,
obligation, liability or other indebtedness owing to any Parent Guarantor, by
the
<PAGE>

                                      -8-

Guarantor unless the Collateral Agent's written consent to the release or
withdrawal or set off is first obtained. The Guarantor shall not permit the
prescription of the Intercorporate Indebtedness by any statute of limitations or
ask for or obtain any security or negotiable paper for, or other evidence of,
the Intercorporate Indebtedness except for the purpose of delivering the same to
the Collateral Agent.

Section 3.6  Suspension of Guarantor Rights.

     The Guarantor agrees that so long as there are any Guaranteed Obligations,
the Guarantor shall not exercise any rights which it may at any time have by
reason of the performance of any of its obligations under this guarantee (i) to
be indemnified by any Parent Guarantor or Borrower, (ii) to claim contribution
from any other guarantor of the debts, liabilities or obligations of any Parent
Guarantor or Borrower, or (iii) subject to Section 3.8, to take the benefit (in
whole or in part and whether by way of subrogation or otherwise) of any rights
of the Secured Creditors or the Collateral Agent under any of the Credit
Documents.

Section 3.7  No Prejudice to Secured Creditors or Collateral Agent.

     The Secured Creditors and the Collateral Agent shall not be prejudiced in
any way in the right to enforce any provision of this Guarantee by any act or
failure to act on the part of any Parent Guarantor or Borrower, the Secured
Creditors or the Collateral Agent. The Collateral Agent and the Secured
Creditors may, at any time and from time to time, in such manner as any of them
may determine is expedient, without any consent of, or notice to, the Guarantor
and without impairing or releasing the obligations of the Guarantor (i) change
the manner, place, time or terms of payment of, or renew, increase, refinance,
accelerate or alter, the Guaranteed Obligations, (ii) renew, increase,
accelerate, replace, refinance or otherwise vary any credit or credit facilities
to, or the terms or conditions of any transaction with, any Parent Guarantor or
Borrower, or any other Person and this Guarantee shall apply to such credit,
credit facilities or other transaction as so renewed, increased, accelerated,
replaced, refinanced or otherwise varied, (iii) release, compound or vary the
liability of any Parent Guarantor or Borrower, or any other Person liable in any
manner under or in respect of the Guaranteed Obligations, (iv) exercise or
enforce or refrain from exercising or enforcing any right or security against
any Parent Guarantor or Borrower, the Guarantor or any other Person, and (v)
apply any sums from time to time received to the Guaranteed Obligations. In
their dealings with any Parent Guarantor or Borrower, the Collateral Agent and
the Secured Creditors need not enquire into the authority or power of any Person
purporting to act for or on behalf of such Parent Guarantor or Borrower, as the
case may be.

Section 3.8  Postponement of Subrogation.

     Any rights of subrogation acquired by the Guarantor by reason of payment
under this Guarantee shall not be exercised until the Guaranteed Obligations and
all other amounts due to the Secured Creditors and the Collateral Agent have
been paid or repaid in full and such rights of subrogation shall be no greater
than the rights
<PAGE>

                                      -9-

held by the Secured Creditors and the Collateral Agent. In the event (i) of the
liquidation, winding-up or bankruptcy of any Parent Guarantor or Borrower
(whether voluntary or compulsory), (ii) that any Parent Guarantor or Borrower
makes a bulk sale of any of its assets within the provisions of any bulk sales
legislation, or (iii) that any Parent Guarantor or Borrower makes any
composition with creditors or enters into any scheme of arrangement, then the
Secured Creditors and the Collateral Agent shall have the right to rank in
priority to the Guarantor for their full claims in respect of the Guaranteed
Obligations and receive all dividends or other payments until their claims have
been paid in full. The Guarantor shall continue to be liable, less any payments
made by it, for any balance which may be owing to the Secured Creditors or the
Collateral Agent by any Parent Guarantor or Borrower. No valuation or retention
of their security by the Secured Creditors or the Collateral Agent shall, as
between the Collateral Agent and the Secured Creditors and the Guarantor, be
considered as a purchase of such security or as payment or satisfaction or
reduction of all or any part of the Guaranteed Obligations. If any amount is
paid to the Guarantor at any time when all the Guaranteed Obligations and other
amounts due to the Secured Creditors and the Collateral Agent have not been paid
in full, the amount shall be held in trust for the benefit of the Secured
Creditors and the Collateral Agent and shall immediately be paid to the
Collateral Agent to be credited and applied upon the Guaranteed Obligations,
whether matured or unmatured. The Guarantor shall have no recourse against the
Secured Creditors or the Collateral Agent for any invalidity, non-perfection or
unenforceability of any security held by the Secured Creditors or the Collateral
Agent or any irregularity or defect in the manner or procedure by which the
Secured Creditors or the Collateral Agent realize on such security.

Section 3.9  No Set-off.

     To the fullest extent permitted by law, the Guarantor shall make all
payments under this Guarantee without regard to any defence, counter-claim or
right of set-off available to it.

Section 3.10  Successors of Canadian Borrower and SWT

     Any change or changes in the name of, or reorganization (whether by way of
reconstruction, consolidation, amalgamation, merger, transfer, sale, lease or
otherwise) of, any Parent Guarantor or Borrower, as the case may be, or their
respective business shall not affect or in any way limit or lessen the liability
of the Guarantor under this Guarantee or under any of the Guarantor Security
Documents. This Guarantee and the Guarantor Security Documents shall extend to
any person, firm or corporation acquiring or from time to time carrying on the
business of any Parent Guarantor or Borrower, as the case may be.

Section 3.11  Continuing Guarantee.

     This Guarantee is a continuing guarantee.  It extends to all present and
future Guaranteed Obligations, applies to and secures the ultimate balance of
the Guaranteed Obligations due or remaining due to the Collateral Agent and the
<PAGE>

                                      -10-

Secured Creditors and shall be binding as a continuing obligation of the
Guarantor until the Collateral Agent and the Secured Creditors release the
Guarantor.  This Guarantee shall continue to be effective or be reinstated, as
the case may be, if at any time any payment of any of the Guaranteed Obligations
is rescinded or must otherwise be returned by the Secured Creditors or the
Collateral Agent upon the insolvency, bankruptcy or reorganization of any Parent
Guarantor or Borrower, as the case may be, or otherwise, all as though the
payment had not been made.

Section 3.12  Supplemental Security.

     This Guarantee is in addition and without prejudice to and supplemental to
all other guaranties and securities held or which may hereafter be held by the
Secured Creditors or the Collateral Agent.

Section 3.13  Security for Guarantee.

     The Guarantor acknowledges that this Guarantee is intended to secure
payment of the Guaranteed Obligations and that the payment of the Guaranteed
Obligations and the other obligations of the Guarantor under this Guarantee are
secured pursuant to the terms and provisions of the Guarantor Security
Documents.

Section 3.14  Right of Set-off.

     Upon the occurrence and during the continuance of any Event of Default, the
Collateral Agent and each of the Secured Creditors are authorized by the
Guarantor and may, to the fullest extent permitted by law, set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by the Collateral Agent
or the Secured Creditors to or for the credit or the account of the Guarantor
against any and all of the obligations of the Guarantor now or hereafter
existing irrespective of whether or not (i) the Secured Creditors or the
Collateral Agent have made any demand under this Guarantee, or (ii) any of the
obligations comprising the Guaranteed Obligations are contingent or unmatured.
The Collateral Agent and the Secured Creditors agree promptly to notify the
Guarantor after any such set-off and application made by the relevant Collateral
Agent or Secured Creditor provided that the failure to give notice shall not
affect the validity of the set-off and application. The rights of the Collateral
Agent and the Secured Creditors under this Section 3.14 are in addition and
without prejudice to and supplemental to other rights and remedies which the
Collateral Agent and the Secured Creditors may have.

Section 3.15  Interest Act (Canada).

     For the purposes of the Interest Act (Canada), whenever any interest, fee
or commission payable under this Guarantee is calculated using a rate based on a
year of 360 days or 365 days, as the case may be, the rate determined pursuant
to such calculation, when expressed as an annual rate, is equivalent to (x) the
applicable rate based on a year of 360 days or 365 days, as the case may be, (y)
multiplied by the actual number of days in the calendar year in which the period
for which such interest or fee is payable (or compounded) ends, and (z) divided
by 360 or 365, as
<PAGE>

                                      -11-

the case may be, the principle or deemed reinvestment of interest does not apply
to any interest calculation under this Guarantee, and the rates of interest
stipulated in this Guarantee are intended to be nominal rates and not effective
rates or yields.

Section 3.16 Taxes and Other Taxes.

(1) All payments to the Secured Creditors and the Collateral Agent by the
Guarantor under this Guarantee or under any of the Guarantor Security Documents
shall be made free and clear of and without deduction or withholding for any and
all taxes, levies, imposts, deductions, charges or withholdings and all related
liabilities (all such taxes, levies, imposts, deductions, charges, withholdings
and liabilities being referred to as "Taxes") imposed by any jurisdiction (or
any political subdivision or taxing authority of it), unless such Taxes are
required by applicable law to be deducted or withheld. If the Guarantor shall be
required by applicable law to deduct or withhold any such Taxes from or in
respect of any amount payable under this Guarantee or under any of the Guarantor
Security Documents, (i) the amount payable shall be increased (and for greater
certainty, in the case of interest, the amount of interest shall be increased)
as may be necessary so that after making all required deductions or withholdings
(including deductions or withholdings applicable to any additional amounts paid
under this Section 3.16), the Secured Creditors and the Collateral Agent receive
an amount equal to the amount they would have received if no such deduction or
withholding had been made, (ii) the Guarantor shall make such deductions or
withholdings, and (iii) the Guarantor shall immediately pay the full amount
deducted or withheld to the relevant Governmental Entity in accordance with
applicable law.

(2) The Guarantor agrees to immediately pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges, financial
institutions duties, debits taxes or similar levies (all such taxes, charges,
duties and levies being referred to as "Other Taxes") which may arise from any
payment made by the Guarantor under this Guarantee or under any of the Guarantor
Security Documents or from the execution, delivery or registration of, or
otherwise with respect to, this Guarantee or any of the Guarantor Security
Documents.

(3) The Guarantor shall indemnify the Secured Creditors and the Collateral Agent
for the full amount of Taxes or Other Taxes (including any Taxes or Other Taxes
imposed by any jurisdiction on amounts payable by the Guarantor under this
Section 3.16) paid by the Secured Creditors or the Collateral Agent and any
liability (including penalties, interest and expenses) arising from or with
respect to such Taxes or Other Taxes, whether or not they were correctly or
legally asserted, excluding, in the case of any Secured Creditor and the
Collateral Agent, and subject to the next following sentence, Taxes imposed on
its net income or capital taxes or receipts and franchise taxes. If any Taxes on
the worldwide net income, profits or gains of any Secured Creditor or the
Collateral Agent are asserted, imposed, levied or assessed against such Secured
Creditor or the Collateral Agent in respect of any amount payable pursuant to
this Section 3.16 the Guarantor will indemnify such
<PAGE>

                                      -12-

Secured Creditor or the Collateral Agent, as the case may be, against such
payment or liability together with any interest, penalties and expenses payable
or incurred in connection therewith. Payment under this indemnification shall be
made within 30 days from the date the Collateral Agent or the relevant Secured
Creditor, as the case may be, make written demand for it. A certificate as to
the amount of such Taxes or Other Taxes submitted to the Guarantor by the
Collateral Agent or the relevant Secured Creditor shall be prima facie evidence,
absent manifest error, of the amount due from the Guarantor to the Collateral
Agent or the Secured Creditors, as the case may be.

(4)  The Guarantor shall furnish to the Collateral Agent and the Secured
Creditors the original or a certified copy of a receipt evidencing payment of
Taxes or Other Taxes made by the Guarantor within 30 days after the date of any
payment of Taxes or Other Taxes.

(5)  The provisions of this Section 3.16 shall survive the termination of this
Guarantee.

Section 3.17  Judgment Currency.

(1)  If for the purposes of obtaining judgment in any court it is necessary to
convert all or any part of the Guaranteed Obligations or any other amount due to
a Secured Creditor or the Collateral Agent in respect of the Guarantor's
obligations under this Guarantee in any currency (the "Original Currency") into
another currency (the "Other Currency"), the Guarantor, to the fullest extent
that it may effectively do so, agrees that the rate of exchange used shall be
that at which, in accordance with normal banking procedures, the Secured
Creditor or the Collateral Agent, as the case may be, could purchase the
Original Currency with the Other Currency on the Business Day preceding that on
which final judgment is paid or satisfied.

(2)  The obligations of the Guarantor in respect of any sum due in the Original
Currency from it to any Secured Creditor or the Collateral Agent shall,
notwithstanding any judgment in any Other Currency, be discharged only to the
extent that on the Business Day following receipt by such Secured Creditor or
the Collateral Agent, as the case may be, of any sum adjudged to be so due in
such Other Currency such Secured Creditor or the Collateral Agent, as the case
may be, may, in accordance with its normal banking procedures, purchase the
Original Currency with such Other Currency. If the amount of the Original
Currency so purchased is less than the sum originally due to the Secured
Creditor or the Collateral Agent, as the case may be, in the Original Currency,
the Guarantor agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify the Secured Creditor or the Collateral Agent, as the case
may be, against such loss, and if the amount of the Original Currency so
purchased exceeds the sum originally due to the Secured Creditor or the
Collateral Agent, as the case may be, in the Original Currency, the Secured
Creditor or the Collateral Agent, as the case may be, agrees to remit such
excess to the Guarantor.
<PAGE>

                                      -13-

                                  ARTICLE 4
                   REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 4.1  Representations and Warranties.

     The Guarantor hereby represents and warrants to and in favour of the
Collateral Agent and the Secured Creditors, acknowledging and confirming that
each Secured Creditor and the Collateral Agent is relying thereon without
independent inquiry in connection with the acceptance of this Guarantee, that:

     (a)  Amended and Restated Credit Agreement.  The representations and
          warranties set forth in Section 4 of the Amended and Restated Credit
          Agreement as they relate to the Guarantor or to the Loan Documents to
          which the Guarantor is a party, are true and correct, and each Secured
          Creditor and the Collateral Agent shall be entitled to rely on them as
          if they were fully set forth herein, provided that each reference in
          each such representation and warranty to the knowledge of the
          Guarantor as a Borrower therein shall, for the purposes of this
          Section 4.1(a), be deemed to be a reference to the Guarantor's
          knowledge.

     (b)  Incorporation and Qualification.  The Guarantor is a corporation duly
          incorporated, organized and validly existing under the laws of Canada.

     (c)

          (i)     Idem. The authorized capital of the Guarantor consists of an
                  unlimited number of one class of shares, of which 6,000 shares
                  have been issued and are outstanding as fully paid and non-
                  assessable. Berkel Inc. is the registered and beneficial owner
                  of all of the issued and outstanding shares in the capital of
                  the Guarantor. There is no shareholders' agreement or other
                  agreement relating to the shares in the capital of the
                  Guarantor.

          (ii)    Idem. The authorized capital of Berkel Inc. consists of
                  300,000 common shares, of which 246,909 common shares have
                  been issued and are outstanding as fully paid and non-
                  assessable. Berkel Inc. U.S.A. is the registered and
                  beneficial owner of all of the issued and outstanding shares
                  in the capital of Berkel Inc. There is no shareholders'
                  agreement or other agreement relating to the shares in the
                  capital of Berkel Inc.

          (iii)   Idem. The authorized capital of Berkel Inc. U.S.A. consists of
                  1,000 common shares, of which 1,000 common shares have been
                  issued and are outstanding as fully paid and non-assessable.
                  Weigh-Tronix Inc. is the registered and beneficial owner of
                  all of the issued and outstanding shares in the capital of
                  Berkel Inc.
<PAGE>

                                      -14-

               U.S.A. There is no shareholders' agreement or other agreement
               relating to the shares in the capital of Berkel Inc. U.S A.

          (iv) Idem.  The authorized capital of Weigh-Tronix Inc. consists of
               3,000 common shares, of which 100 common shares have been issued
               and are outstanding as fully paid and non-assessable.  Weigh-
               Tronix LLC is the registered and beneficial owner of all of the
               issued and outstanding shares in the capital of Weigh-Tronix Inc.
               There is no shareholders' agreement or other agreement relating
               to the shares in the capital of Weigh-Tronix Inc.

          (v)  Idem.  The beneficial owners of all membership interests in
               Weigh-Tronix, LLC are the following entities:

                         Berkshire Fund IV Investment Corp.
                         Berkshire Fund V.
                         Berkshire Investors, LLC
                         BancBoston Investments Inc.
                         Sunapee Securities, Inc.
                         Squam Lake Investors, III, L.P.
                         Craig L. Burr 1986 Children's Trust
                         Rowland Moriarty
                         John J. McCann, III
                         R&H Trust Co. [Jersey] Limited
                         Roger W. Evans
                         David R. Castle and Susan M. Castle
                         W-T Investment, LLC
                         The Northwestern Mutual Life Ins.

     (d)  No Subsidiaries; No Real Property.  The Guarantor has no Subsidiaries.
          The Guarantor does not own any real property and is not bound by any
          agreement to own any real property.

     (e)  Personal Property Security.  The Guarantor Security Documents create,
          in favour of the Collateral Agent for the benefit of the Secured
          Creditors, a valid and enforceable perfected security interest in and
          Lien on all of the property and assets of the Guarantor, superior to
          and prior to the rights and Liens of all third Persons and subject to
          no other Liens.  Except as have been obtained or made, no consents,
          filings or recordings are required to maintain the perfection and
          priority of the security interests purported to be created by the
          Guarantor Security Documents.
<PAGE>

                                      -15-

Section 4.2  Survival of Representations and Warranties.

     The representations and warranties herein set forth or contained in any
certificates or documents delivered to the Collateral Agent or the Secured
Creditors pursuant hereto shall not merge in or be prejudiced by and shall
survive any borrowing under the Amended and Restated Credit Agreement and shall
continue in full force and effect until the Guaranteed Obligations and all other
amounts owing hereunder shall be paid or repaid in full.

Section 4.3  Amended and Restated Credit Agreement.

     Until the Guaranteed Obligations and all other amounts owing hereunder
shall be paid or repaid in full and the Secured Creditors have no obligations
under the Amended and Restated Credit Agreement, the Guarantor covenants and
agrees that it shall take, or shall refrain from taking, as the case may be, all
actions that are necessary to be taken or not taken so that no violation of any
provision, covenant or agreement contained in Section 6, 7 or 8 of the Amended
and Restated Credit Agreement, and so that no Default or Event of Default, is
caused by the actions of the Guarantor.

                                   ARTICLE 5
                                    GENERAL

Section 5.1  Notices.

     All notices, requests and demands to or upon the respective parties hereto
shall be in writing (including by telecopy), and unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered,
or three Business Days after being deposited in the mail, postage prepaid, or,
in the case of telecopy notice, when received, addressed as follows:

(a)  to the Guarantor at:

     Berkel Products Co., Limited
     1 Berkel Drive
     La Porte, Indiana
     U.S.A. 46350

     Attention:     D.G. Steffen
                    Chief Executive Officer

     Telephone:     (219) 326-7000
     Facsimile:     (219) 324-7247

<PAGE>

                                      -16-

(b)  to the Collateral Agent or the Secured Creditors, to the Collateral Agent
     at:

     Fleet National Bank
     100 Federal Street
     Boston, MA 02110
     USA

     Attention:     Connie Moore

     Telephone:     (617) 434-9383
     Facsimile:     (617) 434-4929

provided that any notice, request or demand to or upon the Collateral Agent or
any Secured Creditor shall not be effective until received.

Section 5.2  Quebec Security.

     For greater certainty, and without limiting the powers of the Collateral
Agent hereunder or under any of the other Loan Documents, the Guarantor hereby
acknowledges that the Collateral Agent shall, for the purposes of holding any
security granted by the Guarantor on property pursuant to the laws of the
Province of Quebec to secure obligations of the Canadian Borrower or the
Guarantor under any debenture, be the holder of an irrevocable power of attorney
(fonde de pouvoir) (within the meaning of the Civil Code of Quebec) for all
present and future Lenders, Agents and hedging counterparties pursuant to any
Specified Hedge Agreement and in particular for all present and future holders
of any debenture.

Section 5.3  Currency.

     All references in this Guarantee to dollars, unless otherwise specifically
indicated, are expressed in U.S. dollars.

Section 5.4  Further Assurances.

     The Guarantor agrees that it will from time to time, at the request of the
Collateral Agent, do all such things and execute all such documents as the
Collateral Agent may consider necessary or desirable to give full effect to this
Guarantee and to perfect and preserve the rights and powers of the Collateral
Agent and the Secured Creditors hereunder.  The Guarantor acknowledges and
confirms that the Guarantor itself has established its own adequate means of
obtaining from the Parent Guarantors and the Borrowers on a continuing basis all
information desired by the Guarantor concerning the financial condition of the
Parent Guarantors and the Borrowers and that the Guarantor will look to the
Parent Guarantors and the Borrowers and not to the Collateral Agent or the
Secured Creditor, in order for the Guarantor to keep adequately informed of
changes in the Parent Guarantors, and the Borrowers' financial condition.
<PAGE>

                                      -17-

Section 5.5  Successors and Assigns.

     This Guarantee shall be binding upon the Guarantor, its successors and
assigns, and shall enure to the benefit of the Secured Creditors, the Collateral
Agent and their respective successors and assigns.  The Guarantor may not
assign, transfer or delegate any of its rights or obligations under this
Guarantee without the prior written consent of the Collateral Agent.

Section 5.6  Severability.

     If any provision of this Guarantee is deemed by any court of competent
jurisdiction to be invalid or void, the remaining provisions shall remain in
full force and effect.

Section 5.7  Waivers, etc.

     None of the terms and conditions of this Guarantee may be changed, waived,
modified or varied in any manner whatsoever except in accordance with Section
10.1 of the Amended and Restated Credit Agreement.

Section 5.8  Application of Proceeds.

     All monies collected by the Collateral Agent or any Secured Creditor
hereunder shall be applied in the manner provided in Section 5.10 of the amended
and restated security agreement dated as of the date hereof made by the
Guarantor in favour of the Collateral Agent for the benefit of the Secured
Creditors.

Section 5.9  Collateral Agent.

     By accepting the benefits of this Guarantee, each secured Creditor
acknowledges and agrees that the rights and obligations of the Collateral Agent
shall be as set forth in Section 9 of the Amended and Restated Credit Agreement.

Section 5.10  Cognizance of Amended and Restated Credit Agreement.

     The Guarantor hereby acknowledges having taken cognizance of the Amended
and Restated Credit Agreement, the Parent Guarantees and the other Credit
Documents.

Section 5.11  Governing Law.

     This Guarantee shall be governed by and interpreted and enforced in
accordance with the laws of the Province of Ontario and the federal laws of
Canada applicable therein.
<PAGE>

                                      -18-

     IN WITNESS WHEREOF the Guarantor has caused this Guarantee to be executed
by its duly authorized officer as of the day and year first above written.

                                BERKEL PRODUCTS CO., LIMITED

                                Per: /s/ Berkel Products Co., Limited
                                    ---------------------------------
                                    Authorized Signing Officer
<PAGE>

                                  SCHEDULE "A"
                          GUARANTOR SECURITY DOCUMENTS

1.   Security Agreement dated as of June 13, 2000 made by Berkel Products Co.,
     Limited, to and in favour of Fleet National Bank for the benefit and as
     agent of the Secured Creditors.

2.   Demand Debenture dated as of June 13, 2000 made by Berkel Products Co.,
     Limited, to and in favour of Fleet National Bank.

3.   Debenture Pledge Agreement dated as of June 13, 2000 made by Berkel
     Products Co., Limited, to and in favour of Fleet National Bank for the
     benefit and as agent of the Secured Creditors.

4.   Deed of Hypothec dated as of June 13, 2000 made by Berkel Products Co.,
     Limited, to and in favour of Fleet National Bank.

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