Document:

<PAGE>

                                                                   Exhibit 10.11

                            WEIGH-TRONIX CANADA, ULC

                                   as Obligor

                                      and

                              FLEET NATIONAL BANK

                              as Collateral Agent

________________________________________________________________________________

                    AMENDED AND RESTATED SECURITY AGREEMENT

                                 June 13, 2000

________________________________________________________________________________

                                Stikeman Elliott
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                             ARTICLE 1
                                          INTERPRETATION
<S>                                                                                           <C>
Section 1.1    Defined Terms.................................................................   2
Section 1.2    Terms Incorporated by Reference...............................................   5
Section 1.3    Certain Phrases, etc..........................................................   5
Section 1.4    Gender and Number.............................................................   5
Section 1.5    Headings, etc.................................................................   6
Section 1.6    Schedules.....................................................................   6

                                             ARTICLE 2
                                             SECURITY

Section 2.1    Grant of Security.............................................................   6
Section 2.2    Secured Obligations Secured...................................................   7
Section 2.3    Attachment....................................................................   7
Section 2.4    Scope of Security Interest....................................................   8
Section 2.5    Grant of Licence to Use Intellectual Property.................................   9
Section 2.6    Care and Custody of Collateral................................................  10
Section 2.7    Rights of the Obligor.........................................................  10

                                             ARTICLE 3
                                            ENFORCEMENT

Section 3.1    Enforcement...................................................................  11
Section 3.2    Remedies......................................................................  11
Section 3.3    Additional Rights.............................................................  12
Section 3.4    Receiver's Powers.............................................................  13
Section 3.5    Appointment of Attorney.......................................................  13
Section 3.6    Dealing with the Collateral...................................................  14
Section 3.7    Standards of Sale.............................................................  14
Section 3.8    Dealings by Third Parties.....................................................  15
Section 3.9    Registration Rights...........................................................  15

                                             ARTICLE 4
                             REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 4.1    General Representations, Warranties and Covenants.............................  16
Section 4.2    Representations, Warranties and Covenants Concerning Intellectual Property....  22
</TABLE>
<PAGE>

                                      -2-

<TABLE>
<CAPTION>
                                   ARTICLE 5
                                    GENERAL
<S>                                                                          <C>
Section 5.1     Notices.....................................................  24
Section 5.2     Releases....................................................  25
Section 5.3     No Merger, Survival of Representations and Warranties.......  25
Section 5.4     Further Assurances..........................................  25
Section 5.5     Supplemental Security.......................................  26
Section 5.6     Successors and Assigns......................................  26
Section 5.7     Overdue Amounts.............................................  26
Section 5.8     Severability................................................  26
Section 5.9     Waivers, etc................................................  26
Section 5.10    Application of Proceeds.....................................  26
Section 5.11    Collateral Agent............................................  27
Section 5.12    No Novation.................................................  28
Section 5.13    Governing Law...............................................  28
</TABLE>
<PAGE>

                    AMENDED AND RESTATED SECURITY AGREEMENT

     Amended and Restated Security Agreement dated as of the 13th day of June,
2000, made by WEIGH-TRONIX CANADA, ULC, an unlimited company incorporated and
existing under the laws of the Province of Nova Scotia, to and in favour of
FLEET NATIONAL BANK for the benefit of and as agent of the Secured Creditors.

     WHEREAS:

A.   the Obligor, the guarantors referred to therein, the Original Borrowers,
Fleet National Bank (as successor to BankBoston N.A.), as Foreign Agent and as
Foreign Bank, the other lending institutions listed on Schedule I thereto and
the Original Agent entered into the Existing Credit Agreement providing for the
making of credit facilities available to the Original Borrowers;

B.   the Obligor entered into the Original Guarantee pursuant to which the
Obligor guaranteed the Obligations (as defined in the Existing Credit Agreement)
of the Original Borrowers under the Existing Credit Agreement;

C.   the Obligor entered into the Original Security Agreement as security for
the payment and performance of the Obligor"s obligations under the Existing
Credit Agreement, the Original Guarantee and the other Loan Documents (as such
term is defined in the Existing Credit Agreement);

D.   pursuant to an assignment and acceptance agreement dated as of the 13th day
of June, 2000 between, inter alia, the Obligor, the Original Borrowers, the
Original Creditors, the Lenders, the Agent and the Collateral Agent, the parties
to the Existing Credit Agreement assigned, inter alia, all of their respective
rights and obligations under the Existing Credit Agreement and the other Loan
Documents to the parties to the Amended and Restated Credit Agreement;

E.   in connection with the foregoing, the Obligor 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 amended and restated the Existing Credit Agreement on the terms and
conditions contained in the Amended and Restated Credit Agreement; and

F.   it is a condition precedent to the continued extensions of credit to the
Obligor and SWT on the terms and conditions of the Amended and Restated Credit
Agreement that the Obligor amend and restate the Original Security Agreement in
its entirety on the terms and conditions herein contained.

     NOW THEREFORE, in consideration of the foregoing premises, the sum of
Cdn.$10.00 in lawful money of Canada now paid by the Collateral Agent to the
Obligor
<PAGE>

                                      -2-

and other good and valuable consideration (the receipt and adequacy of which are
hereby acknowledged), the Obligor agrees as follows:

                                  ARTICLE 1
                                INTERPRETATION

Section 1.1  Defined Terms.

     As used in this amended and restated security agreement 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 Obligor and
SWT, as borrowers, Weigh-Tronix, LLC, certain banks and financial institutions
party thereto, 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 thereunder 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.

     "Amended and Restated Guarantee" means the Original Guarantee, as amended
and restated by the amended and restated guarantee made as of the date hereof by
the Obligor in favour of the Secured Creditors and the Collateral Agent, as the
same may be further amended, modified, extended, renewed, replaced, restated or
supplemented from time to time.

     "Borrowers" means, collectively, the Obligor and SWT.

     "Collateral" has the meaning ascribed thereto in Section 2.1.

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

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

                                      -3-

     "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.

     "Existing Credit Agreement" means the credit agreement dated as of the 1st
day of May, 1998 among the Original Borrowers, Fleet National Bank (as successor
to BankBoston N.A.), as Foreign Agent and as Foreign Bank, the other lending
institutions listed on Schedule I thereto, and the Original Agent as amended,
restated, modified and in effect immediately prior to the date of execution of
the Amended and Restated Credit Agreement.

     "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.

     "Instruments" means, (i) a bill, note or cheque within the meaning of the
Bills of Exchange Act (Canada) or any other writing that evidences a right to
the payment of money and is of a type that in the ordinary course of business is
transferred by delivery with any necessary endorsement or assignment, or (ii) a
letter of credit and an advice of credit if the letter or advice states that it
must be surrendered upon claiming payment thereunder, or (iii) chattel paper or
any other writing that evidences both a monetary obligation and a security
interest in or a lease of specific goods, or (iv) documents of title or any
other writing that purports to be issued by or addressed to a bailee and
purports to cover such goods in the bailee"s possession as are identified or
fungible portions of an identified mass, and that in the ordinary course of
business is treated as establishing that the person in possession of it is
entitled to receive, hold and dispose of the document and the goods it covers,
or (v) any document or writing commonly known as an instrument.

     "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.

     "Lien" has the meaning ascribed thereto in the Amended and Restated Credit
Agreement.
<PAGE>

                                      -4-

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

     "Material Adverse Effect" has the meaning ascribed thereto in the Amended
and Restated Credit Agreement.

     "Negotiable Collateral" has the meaning ascribed thereto in Section 2.3(3).

     "Obligor" 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.

     "Original Agent" means Fleet National Bank, as successor to BankBoston,
N.A., acting as administrative agent for the Original Lenders under the Existing
Credit Agreement.

     "Original Borrowers" means, collectively, Palometa Investments B.V., SWT
Limited, Salter Housewares Holdings Limited, and Salter Housewares Limited, as
borrowers under the Existing Credit Agreement and their respective successors
and permitted assigns.

     "Original Collateral Agent" means the Original Agent acting as collateral
agent for various secured creditors pursuant to the Original Security Agreement.

     "Original Creditors" means, collectively, the Original Lenders, the
Original Agent and the Original Collateral Agent.

     "Original Guarantee" means a guaranty by the Obligor dated as of the 1/st/
day of May, 1998, guaranteeing the payment and performance of the Original
Borrowers" obligations under the Existing Credit Agreement as amended, modified,
supplemented and in effect immediately prior to the execution and delivery of
the Amended and Restated Guarantee.

     "Original Lenders" means, collectively, the lenders party to the Existing
Credit Agreement and their respective successors and assigns.

     "Original Security Agreement" means a security agreement between the
Obligor and the Original Agent dated as of the 1/st/ day of May, 1998, as
security for payment and performance of the Obligor"s obligations under the
Existing Credit Agreement and the other Obligations (as defined therein), as
amended, modified, supplemented and in effect immediately prior to the execution
and delivery of this amended and restated security agreement.

     "Person" means a natural person, partnership, corporation, joint stock
company, trust, unincorporated association, joint venture or other entity or
Governmental Entity, and pronouns have a similarly extended meaning.
<PAGE>

                                      -5-

     "Restricted Asset" has the meaning ascribed thereto in Section 2.4(1).

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

     "Secured Obligations" has the meaning ascribed thereto in Section 2.2.

     "Securities" means a document that is, (i) issued in bearer, order or
registered form, (ii) of a type commonly dealt in upon securities exchanges or
markets or commonly recognized in any area in which it is issued or dealt in as
a medium for investment, (iii) one of a class or series or by its terms is
divisible into a class or series of documents, and (iv) evidence of a share,
participation or other interest in property or in any enterprise or is evidence
of an obligation of the issuer and includes an uncertificated security.

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

     "Security Interest" has the meaning ascribed thereto in Section 2.2.

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

     "Subsidiaries" 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.

     Terms defined in the Personal Property Security Act (Ontario) (as amended
from time to time, the "PPSA") and used but not otherwise defined in this
amended and restated security agreement shall have the same meanings.

Section 1.3  Certain Phrases, etc.

     In this amended and restated security agreement the words "including" and
"includes" mean "including (or includes) without limitation".

Section 1.4  Gender and Number.

     Any reference in this amended and restated security agreement to gender
shall include all genders and words importing the singular number only shall
include the plural and vice versa.
<PAGE>

                                      -6-

Section 1.5  Headings, etc.

     The division of this amended and restated security agreement into Articles
and Sections and the insertion of headings are for convenient reference only and
are not to affect its interpretation.

Section 1.6  Schedules.

     The Schedules A to D attached to this amended and restated security
agreement shall, for all purposes of this amended and restated security
agreement, form an integral part of it.

                                   ARTICLE 2
                                   SECURITY

Section 2.1  Grant of Security.

     Subject to Section 2.4, the Obligor grants, assigns, mortgages, charges,
hypothecates and pledges to and deposits with (to the extent the Obligor has
possession thereof) the Collateral Agent, for the benefit of the Secured
Creditors, a security interest in all of the Obligor"s right, title and interest
in and to the personal property and undertaking of the Obligor now owed or
hereafter acquired (collectively, the "Collateral") including any and all of the
Obligor's:

     (a)  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 Obligor;

     (b)  equipment, machinery, furniture, fixtures, plant, vehicles and other
          goods of every kind and description and all licences and other rights
          and all records, files, charts, plans, drawings, specifications,
          manuals and documents relating thereto;

     (c)  accounts due or accruing and all agreements, books, accounts,
          invoices, letters, documents and papers recording, evidencing or
          relating thereto;

     (d)  money, documents of title, chattel paper, Instruments and Securities,
          including the Instruments and Securities listed in Schedule "A";

     (e)  intangibles including all security interests, goodwill, choses in
          action, contracts, contract rights, software and other contractual
          benefits;

     (f)  all trademarks, trademark registrations and pending trademark
          applications, patents and pending patent applications and copyrights,
          designs, confidential information and other intellectual property
          (collectively, the "Intellectual Property");
<PAGE>

                                      -7-

     (g)  all substitutions and replacements of and increases, additions and,
          where applicable, accessions to the property described in Sections
          2.1(a)-(f) inclusive; and

     (h)  proceeds in any form derived directly or indirectly from any dealing
          with all or any part of the property described in Sections 2.1(a)-(g)
          inclusive or the proceeds of such proceeds.

Section 2.2    Secured Obligations Secured.

(1)  The security interest granted hereby (the "Security Interest") secures the
     payment and performance of all debts, liabilities and obligations, present
     or future, direct or indirect, absolute or contingent, matured or
     unmatured, at any time or from time to time due or accruing due and owing
     by or otherwise payable by the Obligor to the Collateral Agent and the
     Secured Creditors, in any currency, and whether incurred by the Obligor
     alone or with another or others, arising out of, in connection with or
     pursuant to the Amended and Restated Credit Agreement, the Amended and
     Restated Guarantee and the other Credit Documents (collectively, and
     together with the expenses, costs and charges set out in Section 2.2(2),
     the "Secured Obligations").

(2)  All expenses, costs and charges incurred by or on behalf of the Collateral
     Agent and the Secured Creditors in connection with this amended and
     restated security agreement, the Security Interest or the Collateral,
     including all legal fees, court costs, receiver's or agent's remuneration
     and other expenses of taking possession of, repairing, protecting,
     insuring, preparing for disposition, realizing, collecting, selling,
     transferring, delivering or obtaining payment for the Collateral, and of
     taking, defending or participating in any action or proceeding in
     connection with any of the foregoing matters or otherwise in connection
     with the Secured Creditors' interest in any Collateral, whether or not
     directly relating to the enforcement of this amended and restated security
     agreement or any other Credit Document, shall be added to and form a part
     of the Secured Obligations.

Section 2.3    Attachment.

(1)  The Obligor acknowledges that (i) value has been given, (ii) it has rights
     in the Collateral (other than after-acquired Collateral), (iii) it has not
     agreed to postpone the time of attachment of the Security Interest, and
     (iv) it has received a duplicate original copy of this amended and restated
     security agreement.

(2)  If any Security or Instrument is now or at any time hereafter becomes
     evidenced, in whole or in part, by uncertificated securities registered or
     recorded in records maintained by or on behalf of the issuer thereof in the
     name of a clearing agency or a custodian or of a nominee of either, the
     Obligor shall, at the request of the Collateral Agent, cause the Security
     or Instrument to be entered in the records of the clearing agency or
     custodian.
<PAGE>

                                      -8-

(3)  The Obligor hereby deposits with the Collateral Agent any and all
     certificates evidencing the Securities listed in Schedule "A", each
     registered in the name of the Collateral Agent or its nominee.  If the
     Obligor acquires any chattel paper, instrument, security or negotiable
     document of title, Instrument, Security or other certificate, document,
     instrument or other writing constituting Collateral (collectively,
     "Negotiable Collateral"), the Obligor will, within 15 days after receipt
     notify the Collateral Agent thereof, and upon request by the Collateral
     Agent will promptly deliver to the Collateral Agent the Negotiable
     Collateral as security for the Secured Obligations and shall, at the
     request of the Collateral Agent (i) cause the transfer of the Negotiable
     Collateral to the Collateral Agent to be registered wherever, in the
     reasonable opinion of the Collateral Agent, such registration may be
     required or advisable, (ii) duly endorse the same for transfer in blank or
     as the Collateral Agent may reasonably direct, and (iii) immediately
     deliver to the Collateral Agent any and all consents or other documents
     which may be necessary to effect the transfer of the Negotiable Collateral
     to the Collateral Agent or any third party.

(4)  The Obligor will promptly inform the Collateral Agent in writing of the
     acquisition by the Obligor of any personal property which is not adequately
     described in Section 2.1, and the Obligor will execute and deliver, at its
     own expense, from time to time, amendments to this amended and restated
     security agreement and its schedules or additional security agreements or
     schedules as may be reasonably required by the Collateral Agent.

Section 2.4    Scope of Security Interest.

(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 Obligor (each, a "Restricted Asset") is prohibited by the terms
     thereof, the Security Interest created hereunder will constitute a trust
     created in favour of the Collateral Agent and the Secured Creditors
     pursuant to which the Obligor shall hold as trustee all proceeds arising
     under or in connection with the Restricted Asset in trust for the
     Collateral Agent on the following basis:

          (i)  until the Security Interest has become enforceable, the Obligor
               shall be entitled to receive all such proceeds; and

          (ii) whenever the Security Interest has become enforceable, all rights
               of the Obligor to receive such proceeds shall cease, the Obligor
               shall at the request of the Collateral Agent take all such
               actions to collect and enforce payment and other rights arising
               under the Restricted Asset in accordance with the instructions of
               the Collateral Agent and all such proceeds arising under or in
               connection with the Restricted Asset shall be immediately paid
               over to the Collateral Agent for the benefit of the Secured
               Creditors.
<PAGE>

                                      -9-

The Obligor 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 Obligor 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 Collateral Agent in accordance with this amended and
restated security agreement 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 agreements as collateral security to
the Collateral Agent in accordance with the terms of this amended and restated
security agreement.

(2)  Until the Security Interest shall have become enforceable, the grant of the
     Security Interest in the Intellectual Property shall not affect in any way
     the Obligor's rights to commercially exploit the Intellectual Property,
     defend it, enforce the Obligor'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 Interest shall not extend to consumer goods.

(4)  The Security Interest 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 Obligor in respect of real property, but the
     Obligor shall stand possessed of any such last day upon trust to assign and
     dispose of it as the Collateral Agent may reasonably direct.

(5)  To the extent that the creation of the Security Interest will constitute a
     breach under any real property lease or sub-lease (each a "Restricted
     Lease"), the Security Interest will not attach to the Restricted Lease but
     the Obligor shall hold its interest in the Restricted Lease in trust for
     the Collateral Agent and shall, upon the request therefor from the
     Collateral Agent, (i) obtain the consent of the other party thereto; and
     (ii) assign such Restricted Lease to the Collateral Agent, or as it may
     direct, immediately upon obtaining the consent of the other party.  The
     Corporation 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
     Interest in the interests of the Corporation therein and assignments of the
     benefits of such agreements as collateral security to the Collateral Agent
     in each case in accordance with the terms of this amended and restated
     security agreement.

Section 2.5  Grant of Licence to Use Intellectual Property.

     For purposes of enabling the Collateral Agent to exercise its rights and
remedies pursuant to Article 3, at such time as the Collateral Agent shall be
lawfully entitled to exercise its rights and remedies and for no other purpose,
the Obligor grants to the Collateral Agent an irrevocable, nonexclusive licence
(exercisable without payment of
<PAGE>

                                      -10-

royalty or other compensation to the Obligor) to use, assign or sublicense any
of the Intellectual Property wherever the same may be located, including in such
licence access to (i) all media in which any of the licensed items may be
recorded or stored, and (ii) all software and computer programs used for
compilation or print-out.

Section 2.6    Care and Custody of Collateral.

(1)  The Collateral Agent and the Secured Creditors shall have no obligation to
     keep Collateral in their possession identifiable.

(2)  The Collateral Agent may, after the Security Interest shall have become
     enforceable, (i) notify any Person obligated on an account or on chattel
     paper or any obligor on an instrument to make payments to the Collateral
     Agent, whether or not the Obligor was previously making collections on such
     accounts, chattel paper, instruments, (ii) assume control of any proceeds
     arising from the Collateral.

(3)  The Collateral Agent need not see to the collection of dividends on, or
     exercise any option or right in connection with, the Securities and
     Instruments and need not protect or preserve them from depreciating in
     value or becoming worthless and is released from all responsibility for any
     loss of value.  The Collateral Agent shall be bound to exercise in the
     physical keeping of the Collateral only the same degree of care as it would
     exercise with respect to its own Securities kept at the same place.

Section 2.7    Rights of the Obligor.

(1)  Until the Security Interest has become enforceable, the Obligor shall be
     entitled to vote the Securities and to receive all cash dividends.  In
     order to allow the Obligor to vote the Securities, the Collateral Agent
     shall from time to time, at the request and the expense of the Obligor, (i)
     execute valid proxies appointing proxyholders to attend and act at meetings
     of shareholders, and (ii) execute resolutions in writing, all pursuant to
     the relevant provisions of the issuer's governing legislation.  Whenever
     the Security Interest has become enforceable, all rights of the Obligor to
     vote (under any proxy given by the Collateral Agent (or its nominee) in
     connection herewith or otherwise) or to receive dividends shall cease and
     all such rights shall become vested solely and absolutely in the Collateral
     Agent.

(2)  Any dividends received by the Obligor contrary to Section 2.7(1) or any
     other moneys or property which may be received by the Obligor after the
     Security Interest has become enforceable for, or in respect of, the
     Collateral shall be received as trustee for the Collateral Agent and the
     Secured Creditors and shall be immediately paid over to the Collateral
     Agent.

(3)  For greater certainty, the Securities and Instruments shall include any
     substitutions therefor, additions thereto or proceeds thereof and all
     interests, rights and claims of the Obligor in respect thereof, arising out
     of any
<PAGE>

                                      -11-

     consolidation, subdivision, reclassification, stock dividend or similar
     increase or decrease in or alteration of the capital of the issuer of the
     Securities and Instruments or any other event and all interest, dividends,
     cash, options, warrants, rights, instruments and other property and monies
     now or hereafter received, distributed or declared in respect of or in
     exchange for such Securities and Instruments and all other rights,
     interests and claims of the Obligor in respect of such Securities and
     Instruments or evidenced thereby.

                                   ARTICLE 3
                                  ENFORCEMENT

Section 3.1  Enforcement.

     The Security Interest shall be and become enforceable against the Obligor
if and when the Obligor shall fail to pay or perform all or any portion of the
Secured Obligations, when due and payable or to be performed, as the case may
be.

Section 3.2  Remedies.

     Whenever the Security Interest has become enforceable, the Collateral Agent
may realize upon the Collateral and enforce the rights of the Collateral Agent
and the Secured Creditors by:

     (a)  entry onto any premises where Collateral consisting of tangible
          personal property may be located;

     (b)  entry into possession of the Collateral by any method permitted by
          law;

     (c)  sale or lease of all or any part of the Collateral;

     (d)  exercise and enforce all rights and remedies of a holder of the
          Securities and Instruments as if the Collateral Agent were the
          absolute owner thereof (including, if necessary, causing the
          Collateral to be registered in the name of the Collateral Agent or its
          nominee if not already done);

     (e)  collection of any proceeds arising in respect of the Collateral;

     (f)  collection, realization or sale of, or other dealing with, the
          accounts;

     (g)  license or sublicense, whether on an exclusive or nonexclusive basis,
          any Intellectual Property for such term and on such conditions and in
          such manner as the Collateral Agent shall in its sole judgment
          determine (taking into account such provisions as may be necessary to
          protect and preserve such Intellectual Property);

     (h)  appointment by instrument in writing of a receiver (which term as used
          in this amended and restated security agreement includes a receiver
          and
<PAGE>

                                      -12-

          manager) or agent of all or any part of the Collateral and removal or
          replacement from time to time of any receiver or agent;

     (i)  institution of proceedings in any court of competent jurisdiction for
          the appointment of a receiver of all or any part of the Collateral;

     (j)  institution of proceedings in any court of competent jurisdiction for
          sale or foreclosure of all or any part of the Collateral;

     (k)  filing of proofs of claim and other documents to establish claims to
          the Collateral in any proceeding relating to the Obligor; and

     (l)  any other remedy or proceeding authorized or permitted under the PPSA
          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
Collateral Agent and the Secured Creditors however created.  The Collateral
Agent shall not be bound to exercise any right or remedy, and the exercise of
rights and remedies shall be without prejudice to the rights of the Collateral
Agent and the Secured Creditors in respect of the Secured Obligations including
the right to claim for any deficiency.

Section 3.3  Additional Rights.

     In addition to the remedies set forth in Section 3.2, the Collateral Agent
may, whenever the Security Interest has become enforceable:

     (a)  require the Obligor, at the Obligor's expense, to assemble the
          Collateral at a place or places designated by notice in writing and
          the Obligor agrees to so assemble the Collateral;

     (b)  require the Obligor, by notice in writing, to disclose to the
          Collateral Agent the location or locations of the Collateral and the
          Obligor agrees to make such disclosure when so required;

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

     (d)  carry on all or any part of the business of the Obligor and, to the
          exclusion of all others including the Obligor, enter upon, occupy and
          use all or any of the premises, buildings, and other property of or
          used by the Obligor for such time as the Collateral Agent sees fit,
          free of charge, and the Collateral Agent and the Secured Creditors
          shall not be liable to the Obligor for any act, omission or negligence
          in so doing or for any rent, charges, depreciation or damages incurred
          in connection with or resulting from such action;
<PAGE>

                                      -13-

     (e)  borrow for the purpose of carrying on the business of the Obligor or
          for the maintenance, preservation or protection of the Collateral and
          grant a security interest in the Collateral, whether or not in
          priority to the Security Interest, to secure repayment; and

     (f)  commence, continue or defend any judicial or administrative
          proceedings for the purpose of protecting, seizing, collecting,
          realizing or obtaining possession or payment of the Collateral, and
          give good and valid receipts and discharges in respect of the
          Collateral 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 Obligor.

Section 3.4  Receiver's Powers.

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

(2)  Any receiver appointed by the Collateral Agent shall act as agent for the
     Collateral Agent for the purposes of taking possession of the Collateral,
     but otherwise and for all other purposes (except as provided below), as
     agent for the Obligor.  The receiver may sell, lease, or otherwise dispose
     of Collateral as agent for the Obligor or as agent for the Collateral Agent
     as the Collateral Agent may determine in its discretion.  The Obligor
     agrees to ratify and confirm all actions of the receiver acting as agent
     for the Obligor, and to release and indemnify the receiver in respect of
     all such actions.

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

Section 3.5  Appointment of Attorney.

     The Obligor hereby irrevocably appoints the Collateral Agent (and any
officer thereof) as attorney of the Obligor (with full power of substitution) to
exercise in the name of and on behalf of the Obligor, whenever the Security
Interest has become enforceable, any of the Obligor's right (including the right
of disposal), title and interest in and to the Collateral including the
execution, endorsement, delivery and transfer of the Collateral to the
Collateral Agent, its nominees or transferees, and the Collateral Agent 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 Collateral to the same
extent as the Obligor might do. All acts of the attorney are ratified and
approved, and the attorney shall not be liable for any act, failure to act or
any other matter or thing, except for its own gross negligence or wilful
misconduct. This appointment and power
<PAGE>

                                      -14-

of substitution, being coupled with an interest, are irrevocable and shall not
terminate upon the bankruptcy, dissolution, winding up or insolvency of the
Obligor.

Section 3.6  Dealing with the Collateral.

(1)  The Collateral Agent and the Secured Creditors shall not be obliged to
     exhaust their recourse against the Obligor or any other Person or against
     any other security they may hold in respect of the Secured Obligations
     before realizing upon or otherwise dealing with the Collateral in such
     manner as the Collateral Agent may consider desirable.

(2)  The Collateral Agent and the Secured Creditors may grant extensions or
     other indulgences, take and give up securities, accept compositions, grant
     releases and discharges and otherwise deal with the Obligor and with other
     Persons, sureties or securities as they may see fit without prejudice to
     the Secured Obligations, the liability of the Obligor or the rights of the
     Collateral Agent and the Secured Creditors in respect of the Collateral.

(3)  Except as otherwise provided by law or this amended and restated security
     agreement, the Collateral Agent and the Secured Creditors shall not be (i)
     liable or accountable for any failure to collect, realize or obtain payment
     in respect of the Collateral, (ii) bound to institute proceedings for the
     purpose of collecting, enforcing, realizing or obtaining payment of the
     Collateral or for the purpose of preserving any rights of any persons in
     respect of the Collateral, (iii) responsible for any loss occasioned by any
     sale or other dealing with the Collateral or by the retention of or failure
     to sell or otherwise deal with the Collateral, or (iv) bound to protect the
     Collateral from depreciating in value or becoming worthless.

Section 3.7  Standards of Sale.

     Without prejudice to the ability of the Collateral Agent to dispose of the
Collateral in any manner which is commercially reasonable, the Obligor
acknowledges that:

     (a)  the Collateral may be disposed of in whole or in part;

     (b)  the Collateral 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 such Collateral may be the Collateral Agent, a Secured
          Creditor or a customer of any such Person;

     (d)  any sale conducted by the Collateral Agent shall be at such time and
          place, on such notice and in accordance with such procedures as the
          Collateral Agent, in its sole discretion, may deem advantageous;
<PAGE>

                                      -15-

     (e)  the Collateral may be disposed of in any manner and on any terms
          necessary to avoid violation of applicable law (including compliance
          with such procedures as may restrict the number of prospective bidders
          and purchasers, require that the prospective bidders and purchasers
          have certain qualifications, and restrict the prospective bidders and
          purchasers to persons who will represent and agree that they are
          purchasing for their own account for investment and not with a view to
          the distribution or resale of the Collateral) or in order to obtain
          any required approval of the disposition (or of the resulting
          purchase) by any governmental or regulatory authority or official;

     (f)  a disposition of the Collateral may be on such terms and conditions as
          to credit or otherwise as the Collateral Agent, in its sole
          discretion, may deem advantageous; and

     (g)  the Collateral Agent may establish an upset or reserve bid or price in
          respect of the Collateral.

Section 3.8  Dealings by Third Parties.

(1)  No Person dealing with the Collateral Agent, any of the Secured Creditors
     or an agent or receiver shall be required to determine (i) whether the
     Security Interest has become enforceable, (ii) whether the powers which
     such Person is purporting to exercise have become exercisable, (iii)
     whether any money remains due to the Collateral Agent or the Secured
     Creditors by the Obligor, (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 other dealing by the Collateral
     Agent or any Secured Creditor with the Collateral, or (vi) how any money
     paid to the Collateral Agent or the Secured Creditors has been applied.

(2)  Any bona fide purchaser of all or any part of the Collateral from the
     Collateral Agent or any receiver or agent shall hold the Collateral
     absolutely, free from any claim or right of whatever kind, including any
     equity of redemption, of the Obligor, which it specifically waives (to the
     fullest extent permitted by law) as against any such purchaser together
     with all rights of redemption, stay or appraisal which the Obligor has or
     may have under any rule of law or statute now existing or hereafter
     adopted.

Section 3.9  Registration Rights

     If the Collateral Agent shall determine to exercise its right to sell any
or all of the Securities pledged hereunder, and if in the opinion of the
Collateral Agent it is necessary or advisable to have any such Securities to be:

     (a)  qualified for distribution by prospectus pursuant to the applicable
          securities legislation in any or all provinces of Canada, the Obligor
          will cause the issuer thereof to (i) use its best efforts to file, and
          obtain a receipt from the applicable securities regulatory
          authorities, for a preliminary and
<PAGE>

                                      -16-

          final prospectus offering for sale such number of Securities as the
          Collateral Agent shall direct; and (ii) execute and deliver, and cause
          the directors and officers of such issuer to execute and deliver, all
          such certificates, instruments and documents, and do or cause to be
          done all such other acts as may be, in the opinion of the Collateral
          Agent, necessary or advisable to qualify such Securities for
          distribution by prospectus pursuant to the applicable securities
          legislation in any or all provinces of Canada; or

     (b)  sold or registered under the provisions of the U.S. Securities Act of
          1933, as amended, the Obligor will cause the issuer thereof to (i)
          execute and deliver, and cause the directors and officers of such
          issuer to execute and deliver, all such instruments and documents, and
          do or cause to be done all such other acts as may be, in the opinion
          of the Collateral Agent, necessary or advisable to register the
          Securities pledged hereunder, or that portion thereof to be sold,
          under the provisions of the U.S. Securities Act of 1933, as amended,
          (ii) use its best efforts to cause the registration statement relating
          thereto to become effective and to remain effective for a period of
          one year from the date of the first public offering of the Securities
          pledged hereunder, or that portion thereof to be sold, and (iii) make
          all amendments thereto and/or to the related prospectus which, in the
          opinion of the Collateral Agent, are necessary or advisable, all in
          conformity with the requirements of the U.S. Securities Act of 1933,
          as amended, and the rules and regulations applicable thereto.

The Obligor agrees to cause such issuer to comply with the provisions of the
securities legislation in effect in any or all of the provinces of Canada, the
U.S. Securities Act of 1933, as amended, and the securities or "Blue Sky" laws
of any jurisdictions outside Canada, in each case, which the Collateral Agent
shall designate.

                                  ARTICLE 4
                   REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 4.1  General Representations, Warranties and Covenants.

     The Obligor hereby represents and warrants and covenants and agrees that:

     (a)  Title to Collateral, etc.  The Obligor is the owner of the Collateral
          free from any adverse lien, security interest or other encumbrance,
          except for the Security Interest created by this security agreement
          and other liens permitted by the Amended and Restated Credit
          Agreement.  Except for outstanding accounts in the aggregate amount of
          no more than Cdn. $50,000, none of the account debtors in respect of
          any accounts, chattel paper or general intangibles and none of the
          obligors in respect of any instruments included in the Collateral is a
          Governmental Entity.
<PAGE>

                                      -17-

     (b)  Continuous Perfection.  The Obligor's place of business or, if more
          than one, the chief executive office is indicated on the perfection
          certificate delivered by the Obligor to the Collateral Agent herewith
          and attached as Schedule "B" (the "Perfection Certificate").  The
          Obligor will not change the same, or the name, identity or corporate
          structure of the Obligor in any manner, without providing at least
          fifteen (15) days prior written notice to the Collateral Agent.
          Except for sales of inventory made in the ordinary course of business,
          the Collateral, to the extent not delivered to the Collateral Agent
          pursuant to Section 2.3(3), will be kept at those locations listed on
          the Perfection Certificate, and the Obligor will not remove the
          Collateral from such locations, without providing at least fifteen
          (15) days prior written notice to the Collateral Agent.

     (c)  No Liens.  Except for the Security Interest herein granted and liens
          permitted by the Amended and Restated Credit Agreement, the Obligor
          shall be the owner of the Collateral free from any lien, security
          interest or other encumbrance, and the Obligor shall defend the same
          against all claims and demands of all persons at any time claiming the
          same or any interests therein adverse to the Collateral Agent or any
          of the Secured Creditors.  The Obligor shall not pledge, mortgage or
          create, or suffer to exist a security interest in the Collateral in
          favour of any person other than the Collateral Agent, for the benefit
          of the Secured Creditors, except for liens permitted by the Amended
          and Restated Credit Agreement.

     (d)  Pledged Securities and Instruments.

          (i)   The shares pledged by the Obligor hereunder constitute all the
                issued and outstanding shares of all classes and instruments of
                the shares and instruments of each issuer owned by the Obligor
                and have been duly and validly issued and are fully paid and
                non-assessible;

          (ii)  No person, firm or corporation has or will have any written or
                oral option, warrant, right, call, commitment, conversion right,
                right of exchange or other agreement or any right or privilege
                (whether by law, pre-emptive or contractual) capable of becoming
                an option, warrant, right, call, commitment, conversion right,
                right of exchange or other agreement to acquire any right or
                interest in any of the Securities and Instruments;

          (iii) Each of the Securities and Instruments pledged by the Obligor
                hereunder constitutes, where applicable, the legal, valid and
                binding obligation of the Obligor with respect thereto,
                enforceable in accordance with its terms, subject to the effects
                of bankruptcy, insolvency, fraudulent conveyance, reorganization
                and other similar laws relating to or affecting creditors"
                rights severally,
<PAGE>

                                      -18-

               general equitable principles (whether considered in a proceeding
               in equity or at law) and an implied covenant of good faith and
               fair dealing;

          (iv) Without the prior written consent of the Collateral Agent, the
               Obligor will not (A) vote to enable, or take any other action to
               permit, any issuer to issue any shares or other equity securities
               of any nature or to issue any other securities convertible into
               or granting the right to purchase or exchange for any shares or
               other equity securities of any nature of any issuer, (B) sell,
               assign, transfer, exchange, or otherwise dispose of, or grant any
               option with respect to, the Securities and Instruments or
               proceeds thereof (except pursuant to a transaction expressly
               permitted by the Amended and Restated Credit Agreement), (C)
               create, incur or permit to exist any Lien or option in favour of,
               or any claim of any person with respect to, any of the Securities
               and Instruments or proceeds thereof, or any interest therein,
               except for the security interests created by this amended and
               restated security agreement or (D) enter into any agreement or
               undertaking restricting the right or ability of the Obligor or
               the Collateral Agent to sell, assign or transfer any of the
               Securities pledged hereunder or proceeds thereof;

          (v)  In the case where the Obligor is an issuer, such issuer agrees
               that (A) it will be bound by the terms of this amended and
               restated security agreement relating to the Securities pledged
               hereunder and issued by it and will comply with such terms
               insofar as such terms are applicable to it, and (B) the terms of
               Section 4.1(d)(vi) and Section 3.9 shall apply to it, mutatis
               mutandis, with respect to all actions that may be required of it
               pursuant to Section 4.1(d)(vi) and Section 3.9 with respect to
               the Securities pledged hereunder and issued by it; and

          (vi) The Obligor hereby authorizes and instructs each issuer of any
               Securities pledged by the Obligor hereunder to (A) comply with
               any instruction received by it from the Collateral Agent in
               writing that (x) states that an Event of Default has occurred and
               is continuing and (y) is otherwise in accordance with the terms
               of this amended and restated security agreement, without any
               other or further instructions from the Obligor, and the Obligor
               agrees that each issuer shall be fully protected in so complying,
               and (B) unless otherwise expressly permitted hereby, pay any
               dividends or other payments with respect to the Securities
               pledged hereunder by the Obligor directly to the Collateral
               Agent.
<PAGE>

                                      -19-

     (e)  No Transfers.  The Obligor will not sell or offer to sell or otherwise
          transfer the Collateral or any interest therein except as permitted
          under the Amended and Restated Credit Agreement.

     (f)  Maintenance of Insurance.  The Obligor will maintain with financially
          sound and reputable insurers insurance with respect to its properties
          and business against such casualties and contingencies as shall be in
          accordance with general practices of businesses engaged in similar
          activities in similar geographic areas.  Such insurance shall be in
          such minimum amounts that the Obligor will not be deemed a co-insurer
          under applicable insurance laws, regulations and policies and
          otherwise shall be in such amounts, contain such terms, be in such
          forms and be for such periods as may be reasonably satisfactory to the
          Collateral Agent.  In addition, all such insurance shall be payable to
          the Collateral Agent as loss payee under a "standard" or "New York"
          loss payee clause for the benefit of the Secured Creditors.  Without
          limiting the foregoing, the Obligor will (a) keep all of its physical
          property insured with casualty or physical hazard insurance on an "all
          risks" basis, with broad form flood and earthquake coverages and
          electronic data processing coverage, with a full replacement cost
          endorsement and an "agreed amount" clause in an amount equal to 100%
          of the full replacement cost of such property, (b) maintain all such
          workers' compensation or similar insurance as may be required by law
          and (c) maintain, in amounts and with deductibles equal to those
          generally maintained by businesses engaged in similar activities in
          similar geographic areas, general public liability insurance against
          claims of bodily injury, death or property damage occurring, on, in or
          about the properties of the Obligor business interruption insurance;
          and product liability insurance.

     (g)  Insurance Proceeds.  The proceeds of any casualty insurance in respect
          of any casualty loss of any of the Collateral shall, subject to the
          rights, if any, of the other parties with a prior interest in the
          property covered thereby, (a) so long as no Event of Default (as
          defined in the Amended and Restated Credit Agreement) has occurred and
          is continuing, be disbursed to the Obligor for direct application by
          such Obligor solely to the repair or replacement of its property so
          damaged or destroyed and (b) in all other circumstances, be at its
          sole option, disburse from time to time all or any part of such
          proceeds so held as cash collateral, upon such terms and conditions as
          the Collateral Agent may reasonably prescribe, for direct application
          by the Obligor solely to the repair or replacement of the Obligor's
          property so damaged or destroyed, or the Collateral Agent may apply
          all or any part of such proceeds to the Secured Obligations in
          accordance with the provisions of the Amended and Restated Credit
          Agreement.
<PAGE>

                                      -20-

     (h)  Notice of Cancellation, etc.  All policies of insurance shall provide
          for at least fifteen (15) days prior written cancellation notice to
          the Collateral Agent.  In the event of failure by the Obligor to
          provide and maintain insurance as herein provided, the Collateral
          Agent may, at its option, provide such insurance and charge the amount
          thereof to the Obligor.  The Obligor shall furnish the Agent with
          certificates of insurance and policies evidencing compliance with the
          foregoing insurance provision.

     (i)  Maintenance of Collateral; Compliance with Law.  The Obligor will keep
          its Collateral in good order and repair, ordinary wear and tear
          excepted, and will not use the same in violation of law or any policy
          of insurance therein.  The Collateral Agent, or its designee, may
          inspect the Collateral at any reasonable time, wherever located.  The
          Obligor will pay promptly when due all taxes, assessments,
          governmental charges and levies upon the Collateral or incurred in
          connection with the use or operation of such Collateral or incurred in
          connection with this amended and restated security agreement except to
          the extent otherwise expressly permitted by the Amended and Restated
          Credit Agreement.  The Obligor has at all times operated and will
          continue to operate its business in compliance with all applicable
          provisions of federal, provincial and local statutes and regulations
          dealing with the control, shipment, storage or disposal of hazardous
          materials or substances, except where a failure to so comply would not
          have a Material Adverse Effect (as defined in the Amended and Restated
          Credit Agreement).

     (j)  Status of Accounts Collateral.  The Obligor will, with respect to the
          Collateral (i) maintain books and records pertaining to the Collateral
          in such detail, form and scope as the Collateral Agent reasonably
          requires, (ii) immediately notify the Collateral Agent if any account
          in excess of Cdn.$50,000 arises out of contracts with any Governmental
          Entity, and execute any instruments and take any steps required by the
          Collateral Agent in order that all moneys due or to become due under
          the contract are assigned to the Collateral Agent and notice of such
          assignment be given to the Governmental Entity, and (iii) if any
          amount payable under or in connection with any account in excess of
          Cdn.$50,000 is evidenced by a promissory note or other instrument,
          immediately pledge, endorse, assign and deliver to the Collateral
          Agent the promissory note or instrument, as additional Collateral.

     (k)  Perfection and Protection of Security Interest.  The Obligor will
          perform, execute and deliver, all acts, agreements and other documents
          as may be reasonably requested by the Collateral Agent at any time to
          register, file, signify, publish, perfect, maintain, protect, and
          enforce the Security Interest including (i) executing, recording and
          filing of the financing or other statements in connection therewith,
          in form and substance satisfactory to the Collateral Agent and pay all
          taxes, fees and other
<PAGE>

                                      -21-

          charges payable in connection therewith, (ii) delivering to the
          Collateral Agent the originals of all instruments, documents and
          chattel paper and all other Collateral of which the Collateral Agent
          determines it should have physical possession in order to perfect and
          protect the Security Interest, duly endorsed or assigned to the
          Collateral Agent, (iii) delivering to the Collateral Agent warehouse
          receipts covering any portion of the Collateral located in warehouses
          and for which warehouse receipts are listed, (iv) placing notations on
          its books of account to disclose the Security Interest, (v) delivering
          to the Collateral Agent all letters of credit on which the Obligor is
          named beneficiary, and (vi) taking such other steps as are deemed
          necessary by the Collateral Agent to maintain the Security Interest.

     (l)  Additional Security.  The Obligor will grant to the Collateral Agent,
          for the benefit of the Secured Creditors, security interests and
          mortgages in such assets and properties of the Obligor as are not
          covered hereunder or as may be requested from time to time by the
          Collateral Agent pursuant to documentation reasonably satisfactory in
          form and substance to the Collateral Agent constituting valid and
          enforceable perfected security interests superior to and prior to the
          rights of all third persons and subject to no other Liens, except as
          permitted under the Amended and Restated Credit Agreement.
          Immediately upon the request of the Collateral Agent, the Obligor
          shall furnish the Collateral Agent in writing the description of all
          Intellectual Property or applications for Intellectual Property of the
          Obligor.  In addition, the Obligor shall deliver to the Collateral
          Agent a copy of the certificate of registration of, or application
          for, such Intellectual Property with a Confirmation of Security
          Interest in the form of Schedule "D" hereto in respect of such
          Intellectual Property confirming the assignment for security of such
          Intellectual Property to the Collateral Agent hereunder and, upon
          request of the Collateral Agent, shall immediately make all such
          filings, registrations and recordings as are necessary or appropriate
          to perfect the Security Interest granted to the Collateral Agent in
          the Intellectual Property.

     (m)  Further Assurances.  The Obligor will make, execute, endorse,
          acknowledge, file and/or deliver, or cause to be made, executed,
          endorsed, acknowledged, filed or delivered, to the Collateral Agent
          from time to time such vouchers, invoices, schedules, confirmatory
          assignments, conveyances, financing statements, transfer endorsements,
          powers of attorney, certificates, real property surveys, reports and
          other assurances or instruments and take such further steps relating
          to the Collateral or any other property or assets of the Obligor as
          the Collateral Agent may reasonably require.  The Obligor will cause
          to be delivered to the Collateral Agent such opinions of counsel,
          title insurance and other related documents as may be reasonably
          requested by the Collateral Agent to assure themselves that this
          Section 4.1 has been complied with.
<PAGE>

                                      -22-

Section 4.2  Representations, Warranties and Covenants Concerning Intellectual
             Property.Section"4.2 Representations, Warranties and Covenants
             Concerning Intellectual Property.

     (a)  Schedule "C" lists all intellectual property owned by the Obligor in
          its own name on the date hereof.

     (b)  On the date hereof, all material Intellectual Property of the Obligor
          described in Schedule "C" is valid, subsisting, unexpired and
          enforceable, has not been abandoned and does not infringe the
          intellectual property rights of any other person.

     (c)  Except as set forth in Schedule "C", on the date hereof, none of the
          Intellectual Property is the subject of any licensing or franchise
          agreement pursuant to which the Obligor is the licensor or franchisor.

     (d)  No decision or judgment has been rendered by any Governmental Entity
          which would limit, cancel or question the validity of, or the
          Obligor"s rights in, any Intellectual Property in any respect that
          could reasonably be expected to have a Material Adverse Effect.

     (e)  No action or proceeding is pending, or, to the knowledge of the
          Obligor, threatened, on the date hereof seeking to limit, cancel or
          question the validity of any Intellectual Property or the Obligor"s
          ownership interest therein, or which, if adversely determined, would
          have a material adverse effect on the value of any Intellectual
          Property.

     (f)  The Obligor (either itself or through licensees) will (A) continue to
          use each material trademark on each and every trademark class of goods
          applicable to its current line as reflected in its current catalogues,
          brochures and price lists in order to maintain such trademark in full
          force free from any claim of abandonment for non-use, (B) maintain as
          in the past the quality of products and services offered under such
          trademark, (C) use such trademark with the appropriate notice of
          registration and all other notices and legends required by applicable
          requirements of law, (D) not adopt or use any mark which is
          confusingly similar or a colourable imitation of such trademark unless
          the Collateral Agent, for the ratable benefit of the Secured
          Creditors, shall obtain a perfected security interest in such mark
          pursuant to this amended and restated security agreement, and (v) not
          (and not permit any licensee or sublicensee thereof to) do any act or
          knowingly omit to do any act whereby such trademark may become
          invalidated or impaired in any way.

     (g)  The Obligor (either itself or through licensees) will not do any act,
          or omit to do any act, whereby any material patent may become
          forfeited, abandoned or dedicated to the public.
<PAGE>

                                      -23-

     (h)  The Obligor (either itself or through licensees) (A) will employ each
          material copyright and (B) will not (and will not permit any licensee
          or sublicensee thereof to) do any act or knowingly omit to do any act
          whereby any material portion of the copyrights may become invalidated
          or otherwise impaired.  The Obligor will not (either itself or through
          licensees) do any act whereby any material portion of the copyrights
          may fall into the public domain.

     (i)  The Obligor (either itself or through licensees) will not do any act
          that knowingly uses any material Intellectual Property to infringe the
          intellectual property rights of any other Person.

     (j)  The Obligor will notify the Collateral Agent and the Secured Creditors
          immediately if it knows, or has reason to know, that any application
          or registration relating to any material Intellectual Property may
          become forfeited, abandoned or dedicated to the public, or of any
          adverse determination or development (including, without limitation,
          the institution of, or any such determination or development in, any
          proceeding in the Canadian Intellectual Property Office or any court
          or tribunal in any country) regarding the Obligor's ownership of, or
          the validity of, any material Intellectual Property or the Obligor's
          right to register the same or to own and maintain the same.

     (k)  Whenever the Obligor, either by itself or through any agent, employee,
          licensee or designee, shall file an application for the registration
          of any Intellectual Property with the Canadian Intellectual Property
          Office or any similar office or agency in any other country or any
          political subdivision thereof, the Obligor shall report such filing to
          the Collateral Agent within five Business Days after the last day of
          the fiscal quarter in which such filing occurs.  Upon request of the
          Collateral Agent, the Obligor shall execute and deliver, and have
          recorded, any and all agreements, instruments, documents, and papers
          as the Collateral Agent may request to evidence the Collateral Agent's
          and the Secured Creditors' security interest in any copyright, patent
          or trademark and the goodwill and general intangibles of the Obligor
          relating thereto or represented thereby.

     (l)  The Obligor will take all reasonable and necessary steps, including,
          without limitation, in any proceeding before the Canadian Intellectual
          Property Office or any similar office or agency in any other country
          or any political subdivision thereof, to maintain and pursue each
          application (and to obtain the relevant registration) and to maintain
          each registration of the material Intellectual Property, including,
          without limitation, filing of applications for renewal, affidavits of
          use and affidavits of incontestability.
<PAGE>

                                      -24-

     (m)  In the event that any material Intellectual Property is infringed,
          misappropriated or diluted by a third party, the Obligor shall (A)
          take such actions as the Obligor shall reasonably deem appropriate
          under the circumstances to protect such Intellectual Property and (B)
          if such Intellectual Property is of material economic value, promptly
          notify the Collateral Agent after it learns thereof and sue for
          infringement, misappropriation or dilution, to seek injunctive relief
          where appropriate and to recover any and all damages for such
          infringement, misappropriation or dilution, to seek injunctive relief
          where appropriate and to recover any and all damages for such
          infringement, misappropriation or dilution.

                                  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 Obligor at:

     Weigh-Tronix Canada, ULC
     c/o Weigh-Tronix, LLC
     293 S. Main Street
     Providence, Rhode Island 02903

     Attention:                   Don MacKenzie
                                  Chief Financial Officer

     Telephone:                   (401) 272-4402
     Facsimile:                   (401) 751-8829

(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
<PAGE>

                                      -25-

     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  Releases.

     (a)  At such time as the Loans, the Reimbursement Obligations and the Other
          Obligations (other than Borrower Hedge Agreement Obligations) (as such
          capitalized terms are defined in the Amended and Restated Credit
          Agreement) shall have been paid in full, the Commitments (as defined
          in the Amended and Restated Credit Agreement) have been terminated and
          no Letters of Credit shall be outstanding, the Collateral shall be
          released from the Security Interest created hereby, and this amended
          and restated security agreement and all obligations (other than those
          expressly stated to survive such termination) of the Collateral Agent
          and the Obligor hereunder shall terminate, all without delivery of any
          instrument or performance of any act by any party, and all rights to
          the Collateral shall revert to the Obligor.  At the request and sole
          expense of the Obligor following any such termination, the Collateral
          Agent shall deliver to the Obligor any Collateral held by the
          Collateral Agent hereunder, and execute and deliver to the Obligor
          such documents as the Obligor shall reasonably request to evidence
          such termination.

     (b)  If any of the Collateral shall be sold, transferred or otherwise
          disposed of by the Obligor in a transaction permitted by the Amended
          and Restated Credit Agreement, then the Collateral Agent, at the sole
          expense of the Obligor, shall execute and deliver to the Obligor all
          releases or other documents reasonably necessary or desirable for the
          release of the Security Interest created hereby in such Collateral.

Section 5.3  No Merger, Survival of Representations and Warranties.

     This amended and restated security agreement shall not operate by way of
merger of any of the Secured Obligations and no judgment recovered by the
Collateral Agent or any of the Secured Creditors shall operate by way of merger
of, or in any way affect, the Security Interest, which is in addition to, and
not in substitution for, any other security now or hereafter held by the
Collateral Agent and the Secured Creditors in respect of the Secured
Obligations.

Section"5.4  Further Assurances.Section"5.4  Further Assurances.

     The Obligor shall from time to time, whether before or after the Security
Interest shall have become enforceable, do all acts and things and execute and
deliver all transfers, assignments and instruments as the Collateral Agent may
reasonably require for (i) protecting the Collateral, (ii) perfecting the
Security Interest, and (iii) exercising all powers, authorities and discretions
conferred upon the Collateral Agent.  The Obligor shall, from time to time after
the Security Interest has become enforceable, do all acts and things and execute
and deliver all transfers, assignments and instruments as
<PAGE>

                                      -26-

the Collateral Agent may require for facilitating the sale or other disposition
of the Collateral in connection with its realization.

Section 5.5  Supplemental Security.

     This amended and restated security agreement is in addition and without
prejudice to and supplemental to all other security now held or which may
hereafter be held by the Collateral Agent or the Secured Creditors.

Section 5.6  Successors and Assigns.

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

Section 5.7  Overdue Amounts.

     Until paid, all amounts due and payable by the Obligor hereunder shall be a
debt secured by the Collateral and shall bear, whether before or after
judgement, interest at the rate of interest for overdue principal set forth in
the Amended and Restated Credit Agreement.

Section 5.8  Severability.

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

Section 5.9  Waivers, etc.

     No amendment of this amended and restated security agreement and no consent
or waiver by the Collateral Agent or the Secured Creditors in respect hereof
shall be effective unless made in writing and signed by an authorized officer of
the Collateral Agent and then such amendment, consent or waiver shall be
effective only in the specific instance and for the specific purpose for which
given. Any such amendment shall be effective only if also signed by the Obligor.
No failure or delay on the part of the Collateral Agent or the Secured Creditors
in exercising a right under this amended and restated security agreement shall
operate as a waiver of, or impair, any right of the Collateral Agent or the
Secured Creditors however created. No single or partial exercise of a right
shall preclude any further exercise of such right or the exercise of any other
right.

Section 5.10 Application of Proceeds.

(1)  At such intervals as may be agreed upon by the Borrowers and the Collateral
     Agent, or if an Event of Default shall have occurred and be continuing, at
     any time at the Collateral Agent"s election, the Collateral Agent may apply
     all or any
<PAGE>

                                      -27-

     part of the proceeds constituting the Collateral, in payment of
     the Secured Obligations in the following order:

          (i)     to pay incurred and unpaid fees of the Collateral Agent under
                  the Loan Documents;

          (ii)    to the Collateral Agent, for application by it towards payment
                  of amounts then due and owing and remaining unpaid in respect
                  of the Secured Obligations, pro rata among the Secured
                  Creditors according to the amounts of the Secured Obligations
                  then due and owing and remaining unpaid to the Secured
                  Creditors;

          (iii)   to the Collateral Agent, for the application by it towards
                  repayment of the Secured Obligations, pro rata among the
                  Secured Creditors according to the amounts of the Secured
                  Obligations then held by the Secured Creditors; and

          (iv)    any balance of such proceeds remaining after the Secured
                  Obligations have been paid in full, no Letters of Credit shall
                  be outstanding and the Commitments (as defined in the Amended
                  and Restated Credit Agreement) shall have been terminated
                  shall be paid over to the Borrowers or to whomsoever may be
                  lawfully entitled to receive the same.

(2)  It is understood that the Obligor shall remain liable to the extent of any
     deficiency between (x) the amount of the proceeds of the Collateral and (y)
     the aggregate outstanding amount of the Secured Obligations.

Section 5.11  Collateral Agent

     By accepting the benefits of this amended and restated security agreement,
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.
<PAGE>

                                      -28-

Section 5.12  No Novation.

     Neither the execution and delivery of this amended and restated security
agreement nor the grant of the Security Interest hereunder shall constitute or
create any novation of the Original Security Agreement.  Except as amended and
restated in this amended and restated security agreement, the Collateral Agent
and the Obligor acknowledge and agree that the Original Security Agreement
continues in full force and effect and is enforceable against the Obligor in
accordance with its terms.

Section 5.13  Governing Law.

     This amended and restated security agreement 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 parties hereto have caused this amended and restated
security agreement to be executed by their duly authorized officers as of the
date first above written.

                                 WEIGH-TRONIX CANADA, ULC

                                 Per: /s/ Weigh-Tronix Canada, ULC
                                      ------------------------------
                                      Authorized Signing Officer

                                 FLEET NATIONAL BANK

                                 Per: /s/ Fleet National Bank
                                      --------------------------
                                      Authorized Signing Officer
<PAGE>

                                  SCHEDULE A
                          INSTRUMENTS AND SECURITIES

Nil.
<PAGE>

                                  SCHEDULE B
                            PERFECTION CERTIFICATE
<PAGE>

                                  SCHEDULE C
                             INTELLECTUAL PROPERTY

Nil.
<PAGE>

                                 SCHEDULE "D"
                   FORM OF CONFIRMATION OF SECURITY INTEREST
                           IN INTELLECTUAL PROPERTY

     WHEREAS:

     A.  Weigh-Tronix Canada, ULC (the "Debtor"), an unlimited company
incorporated and existing under the laws of the Province of Nova Scotia with
offices at [address], is the owner of the [trade-
marks/patents/copyrights/industrial designs] set forth in Exhibit A hereto, the
registrations and applications for the [trade-
marks/patents/copyrights/industrial designs] identified therein and the
underlying goodwill associated with such [trade-
marks/patents/copyrights/industrial designs] (collectively, the "[Trade-Marks/
Patents/Copyrights/Industrial Designs]"); and

     B.  Fleet National Bank, as agent for certain lenders (the "Collateral
Agent"), with offices at [address], has entered into an agreement with the
Debtor, as reflected by a separate document entitled the "Amended and Restated
Security Agreement" dated as of the [*] day of [*], [*] by which the Debtor
granted to the Collateral Agent, a security interest in certain property,
including the [Trade-Marks/Patents/Copyrights/Industrial Designs], in
consideration of the provision of certain credit facilities to the Debtor;

     NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are acknowledged and in accordance with the terms and
obligations set forth in the Amended and Restated Security Agreement, the Debtor
confirms the grant to the Collateral Agent of a security interest in and to the
[Trade-Marks/Patents/Copyrights/Industrial Designs].

     DATED at Toronto on this [*] day of [*], [*].

                                               WEIGH-TRONIX CANADA,  ULC

                                               Per:/s/ Weigh-Tronix Canada, ULC
                                                   ----------------------------
                                                   Authorized Signing Officer

     DATED at Toronto on this [*] day of [*], [*], before me appeared and the
person who signed this instrument, who acknowledged that [he/she] signed it as a
free act on [his/her] behalf or on behalf of the corporation identified and
referred to herein as the Debtor.

____________________________
Signature of Notary Public
<PAGE>

                                   EXHIBIT A
               TRADE-MARKS/PATENTS/COPYRIGHTS/INDUSTRIAL DESIGNS<PAGE>

                                                                   EXHIBIT 10.12

                           WEIGH-TRONIX CANADA, ULC

                                 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

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

                        AMENDED AND RESTATED GUARANTEE

                                 June 13, 2000

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

                               Stikeman Elliott
<PAGE>

                               TABLE OF CONTENTS

                                   ARTICLE 1
                                  DEFINITIONS

<TABLE>
<S>                                                                    <C>
Section 1.1    Defined Terms.........................................   2
Section 1.2    Terms Incorporated by Reference.......................   5
Section 1.3    Certain Phrases, etc..................................   5
Section 1.4    Gender and Number.....................................   5
Section 1.5    Headings, etc.........................................   5

                                   ARTICLE 2
                                   GUARANTEE

Section 2.1    Guarantee.............................................   5
Section 2.2    Absolute Liability....................................   6

                                   ARTICLE 3
                                  ENFORCEMENT

Section 3.1    Remedies..............................................   7
Section 3.2    Impairment of Security................................   7
Section 3.3    Amount of Guaranteed Obligations......................   7
Section 3.4    Payment on Demand.....................................   7
Section 3.5    Assignment and Postponement...........................   8
Section 3.6    Suspension of Guarantor Rights........................   8
Section 3.7    No Prejudice to Secured Creditors or Collateral
               Agent.................................................   9
Section 3.8    Postponement of Subrogation...........................   9
Section 3.9    No Set-off............................................  10
Section 3.10   Successors of SWT.....................................  10
Section 3.11   Continuing Guarantee..................................  10
Section 3.12   Supplemental Security.................................  11
Section 3.13   Security for Guarantee................................  11
Section 3.14   Right of Set-off......................................  11
Section 3.15   Interest Act (Canada).................................  11
Section 3.16   Taxes and Other Taxes.................................  12
Section 3.17   Judgment Currency.....................................  13

                                   ARTICLE 4
                   REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 4.1    Representations and Warranties........................  14
Section 4.2    Survival of Representations and Warranties............  15
Section 4.3    Amended and Restated Credit Agreement.................  15
</TABLE>
<PAGE>

                                      -2-

                                   ARTICLE 5
                                    GENERAL
<TABLE>
<S>                                                                    <C>
Section 5.1    Notices................................................ 15
Section 5.2    Currency............................................... 16
Section 5.3    Further Assurances..................................... 16
Section 5.4    Successors and Assigns................................. 17
Section 5.5    Severability........................................... 17
Section 5.6    No Novation............................................ 17
Section 5.7    Waivers, etc........................................... 17
Section 5.8    Application of Proceeds................................ 17
Section 5.9    Governing Law.......................................... 18
</TABLE>
<PAGE>

                        AMENDED AND RESTATED GUARANTEE

     Amended and Restated Guarantee dated as of the 13/th/ day of June, 2000,
made by WEIGH-TRONIX CANADA, ULC, an unlimited company incorporated and existing
under the laws of the Province of Nova Scotia, to and in favour of the Secured
Creditors and the Collateral Agent.

     WHEREAS:

     A.   The Guarantor, other guarantors referred to therein, the Original
Borrowers, Fleet National Bank (as successor to BankBoston N.A.), as the
Fronting Bank and as the Fronting Agent, the other lending institutions listed
on Schedule I thereto, and the Original Agent entered into the Existing Credit
Agreement providing for the making of credit facilities available to the
Original Borrowers;

     B.   the Guarantor entered into the Original Guarantee whereby the
Guarantor guaranteed the payment and performance of the Original Borrowers
obligations under the Existing Credit Agreement;

     C.   pursuant to an assignment and acceptance agreement dated as of the
13th day of June, 2000 between, inter alia, the Guarantor, the Original
Borrowers, the Original Creditors, the Lenders, the Agent, and the Collateral
Agent, the parties to the Existing Credit Agreement assigned, inter alia, all of
their respective rights and obligations under the Existing Credit Agreement and
the other Loan Documents to the parties to the Amended and Restated Credit
Agreement;

     D.   in connection with the foregoing, the Guarantor 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 amended and restated the Existing Credit Agreement on the terms
and conditions contained in the Amended and Restated Credit Agreement;

     E.   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 amend and restate the Original Guarantee in its
entirety on the terms and conditions herein contained;

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

     G.   the Guarantor has, contemporaneously herewith, executed and delivered
to the Collateral Agent for the benefit of and as agent of the Secured
<PAGE>

                                      -2-

Creditors, the Guarantor Security Documents as continuing collateral security
for the obligations of the Guarantor under this Amended and Restated 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:

                                   ARTICLE1
                                  DEFINITIONS

Section 1.1    Defined Terms.
     As used in this Amended and Restated 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 13th day of June, 2000, among the Guarantor,
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.

     "Amended and Restated Guarantee" means the Original Guarantee, as amended
and restated as this Amended and Restated Guarantee, as the same may be amended,
modified, extended, renewed, replaced, restated or supplemented from time to
time.

     "Borrowers" means, collectively, the Guarantor and SWT.

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

                                      -3-

     "Credit Documents" means, collectively, the Amended and Restated Credit
Agreement, the 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.

     "Existing Credit Agreement" means the credit agreement dated as of May 1,
1998 among, the Original Borrowers, the Guarantor, the guarantors referred to
therein, Fleet National Bank, (as successor to BankBoston N.A.), as the Foreign
Agent and as the Fronting Bank, other lending institutions listed on Schedule I
thereto and the Original Agent, as 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 thereunder or any increase in the amount
borrowed) all or any portion of, the indebtedness under such agreement or any
successor agreements.

     "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.

     "Guarantor" 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.

     "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 Amended and
Restated 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
<PAGE>

                                      -4-

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.

     "Original Agent" means Fleet National Bank, as successor to BankBoston,
N.A., acting as administrative agent for the Original Lenders under the Existing
Credit Agreement.

     "Original Borrowers" means, collectively, Palometa Investments B.V., SWT
Limited, Salter Housewares Holdings Limited and Salter Housewares Limited, as
borrowers under the Existing Credit Agreement and their respective successors
and permitted assigns.

     "Original Collateral Agent" means the Original Agent acting as collateral
agent for various secured creditors pursuant to the Original Guarantee.

     "Original Creditors" means, collectively, the Original Lenders, the
Original Agent and the Original Collateral Agent.

     "Original Guarantee" means a guaranty by the Guarantor dated as of the 1st
day of May, 1998, guaranteeing the payment and performance of the Original
Borrowers" obligations under the Existing Credit Agreement as amended, modified,
supplemented and in effect immediately prior to the execution and delivery of
this amended and restated guarantee.

     "Original Lenders" means, collectively, the lenders party to the Existing
Credit Agreement and their respective successors and permitted 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.
<PAGE>

                                      -5-

Section 1.2    Terms Incorporated by Reference.

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

Section 1.3    Certain Phrases, etc.

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

                                   ARTICLE2
                                   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 SWT
to the Collateral Agent and the Secured Creditors or any of them arising out of,
in connection with or pursuant to, the Amended and Restated Credit Agreement and
the other Credit Documents and the due performance and compliance by SWT with
all of the terms and conditions of the Amended and Restated Credit Agreement and
each other Credit Document to which it 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 Amended and Restated Guarantee.
<PAGE>

                                      -6-

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 Amended and Restated
Guarantee shall be absolute and unconditional irrespective of:

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

     (b)  any contest by SWT or any other Person as to the amount of the
          Guaranteed Obligations, the validity or enforceability of any terms of
          the 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 SWT;

     (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 SWT 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
          Credit Documents or the Guaranteed Obligations and this Amended and
          Restated Guarantee shall apply to the Guaranteed Obligations as so
          changed, indulged, amended, supplemented, altered, renewed, restated,
          replaced, refinanced, modified or increased;

     (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 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 SWT, the
          Guarantor or any other Person or any action taken with respect to this
          Amended and Restated 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;
<PAGE>

                                      -7-

     (g)  the assignment of all or any part of the benefits of this Amended and
          Restated 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, SWT or any other
          Person in respect of the Guaranteed Obligations or this Amended and
          Restated Guarantee.

                                   ARTICLE3
                                  ENFORCEMENT

Section 3.1    Remedies.

     The Secured Creditors and the Collateral Agent shall not be bound to
exhaust their recourse against SWT 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 Amended and Restated 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 SWT or any other Person shall not
discharge pro tanto or limit or lessen the liability of the Guarantor under this
Amended and Restated Guarantee.

Section 3.3    Amount of Guaranteed Obligations.

     Any account settled or stated by or between the Collateral Agent and SWT,
or if any such account has not been settled or stated immediately before demand
for payment under this Amended and Restated 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 SWT to the Secured Creditors and the
Collateral Agent or remains unpaid by SWT 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
<PAGE>

                                      -8-

Collateral Agent under this Amended and Restated 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
(including any adjustment to give effect to the provisions of the Interest Act
(Canada)).

Section 3.5    Assignment and Postponement.

(1)  All obligations, liabilities and indebtedness of SWT 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
Amended and Restated 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 Amended and Restated 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 SWT by the 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 Amended and
Restated Guarantee (i) to be indemnified by SWT, (ii) to claim contribution from
any other
<PAGE>

                                      -9-

guarantor of the debts, liabilities or obligations of SWT, 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 Amended and Restated
Guarantee by any act or failure to act on the part of SWT, 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, SWT or any other Person and this Amended and
Restated 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 SWT 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 SWT, the Guarantor or any other Person, and (v)
apply any sums from time to time received to the Guaranteed Obligations. In
their dealings with SWT, 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 SWT.

Section 3.8    Postponement of Subrogation.

     Any rights of subrogation acquired by the Guarantor by reason of payment
under this Amended and Restated 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 held by the Secured Creditors
and the Collateral Agent. In the event (i) of the liquidation, winding-up or
bankruptcy of SWT (whether voluntary or compulsory), (ii) that SWT makes a bulk
sale of any of its assets within the provisions of any bulk sales legislation,
or (iii) that SWT 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 SWT. No valuation or retention of their
security by the Secured Creditors or the
<PAGE>

                                     -10-

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 Amended and Restated Guarantee without regard to any
defence, counter-claim or right of set-off available to it.

Section 3.10   Successors of 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, SWT or its business shall not affect or in any way limit or
lessen the liability of the Guarantor under this Amended and Restated Guarantee
or under any of the Guarantor Security Documents. This Amended and Restated
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 SWT.

Section 3.11   Continuing Guarantee.

     This Amended and Restated 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 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 Amended and Restated 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 SWT or otherwise, all as though the payment had not been made.
<PAGE>

                                     -11-

Section 3.12   Supplemental Security.

     This Amended and Restated 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 Amended and Restated 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
Amended and Restated 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 Amended and Restated 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 purpose of the Interest Act (Canada), whenever any interest, fee or
commission payable under this Amended and Restated 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 days, as the case may be, the
principle or deemed reinvestment of interest does not apply to any interest
calculation under this Amended and Restated Guarantee, and the rates of interest
stipulated in this
<PAGE>
                                     -12-

Amended and Restated 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 Amended and Restated 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 Amended and Restated 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 Amended and Restated Guarantee or under
any of the Guarantor Security Documents or from the execution, delivery or
registration of, or otherwise with respect to, this Amended and Restated
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
<PAGE>

                                     -13-

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 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
Amended and Restated 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 Amended and Restated 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,
<PAGE>

                                     -14-

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.

                                   ARTICLE4
                   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 Amended and
Restated 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 an unlimited
          company duly incorporated, organized and validly existing under the
          laws of the Province of Nova Scotia, Canada.

     (c)  Idem.  The authorized capital of the Guarantor consists of 100,000
          common shares, of which 100 common shares have been issued and are
          outstanding as fully paid and non-assessable.  SWT Holdings B.V. 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.

     (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.
<PAGE>
                                     -15-

     (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.

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.

                                   ARTICLE5
                                    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:
<PAGE>

                                     -16-

(a)  to the Guarantor at:

     Weigh-Tronix Canada, ULC
     c/o Weigh-Tronix, LLC
     293 S. Main Street
     Providence, Rhode Island 02903

     Attention:        Don MacKenzie
                       Chief Financial Officer

     Telephone:        (401) 272-4402
     Facsimile:        (401) 751-8829

(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    Currency.

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

Section 5.3    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
Amended and Restated 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 SWT on a continuing basis all information
desired by the Guarantor concerning the financial condition of SWT and that the
Guarantor will look to SWT and not to the Collateral Agent or the Secured
Creditor, in order for the Guarantor to keep adequately informed of changes in
SWT"s financial condition.
<PAGE>

                                     -17-

Section 5.4    Successors and Assigns.

     This Amended and Restated 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 Amended and Restated Guarantee without the prior written consent of
the Collateral Agent.

Section 5.5    Severability.

     If any provision of this Amended and Restated 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 5.6    No Novation.

     The execution and delivery of this Amended and Restated Guarantee shall not
constitute or create any novation of the Original Guarantee. Except as amended
and restated in this Amended and Restated Guarantee, the Collateral Agent and
the Guarantor acknowledge and agree that the Original Guarantee continues in
full force and effect and is enforceable in accordance with its terms.

Section 5.7    Waivers, etc.

     None of the terms and conditions of this Amended and Restated Guarantee may
be changed, amended, 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.
<PAGE>

                                     -18-

Section 5.9    Governing Law.

     This Amended and Restated 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.

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

                                            WEIGH-TRONIX CANADA, ULC

                                            Per:/s/ Weigh-Tronix Canada, ULC
                                                ----------------------------
                                                Authorized Signing Officer

                                            FLEET NATIONAL BANK

                                            Per:/s/ Fleet National Bank
                                                ----------------------------
                                                Authorized Signing Officer
<PAGE>

                                 SCHEDULE "A"
                         GUARANTOR SECURITY DOCUMENTS

1.   Amended and Restated Security Agreement dated as of June 13, 2000 made by
     Weigh-Tronix Canada, ULC 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 Weigh-Tronix Canada, ULC
     to and in favour of Fleet National Bank.

3.   Debenture Pledge Agreement dated as of June 13, 2000 made by Weigh-Tronix
     Canada, ULC to and in favour of Fleet National Bank for the benefit of and
     as agent of the Secured Creditors.

4.   Deed of Hypothec dated as of June 13, 2000 made by Weigh-Tronix Canada, ULC
     to and in favour of Fleet National Bank.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]