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                                                                   Exhibit 10.33

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                            CECO ENVIRONMENTAL CORP.

                                       AND

                               CAN-MED TECHNOLOGY

                                WARRANT AGREEMENT

                           Dated as of August 26, 1999

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         WARRANT AGREEMENT (the "Agreement") dated as of August 26, 1999 between
CECO Environmental Corp., a New York corporation (the "Company"), and Can-Med
Technology, an Ontario corporation (hereinafter referred to as a "Holder" or
"Can-Med").
                              W I T N E S S E T H :
                               - - - - - - - - - -

         WHEREAS, Can-Med has loaned in excess of $1,000,000 to the Company; and

         WHEREAS, Can-Med is owned by Icarus, which is owned 50% by Phillip
DeZwirek and 50% by Jason DeZwirek.

         WHEREAS, the interest rate of the loan from Can-Med to the Company is
below the market rate that would be charged to the Company by an unaffiliated
third party; and

         WHEREAS, the Company desires to grant to Can-Med, and Can-Med desires
to accept from the Company, warrant certificates giving Can-Med the right to
purchase shares of the Company's Common Stock.

         NOW, THEREFORE, in consideration of the premises, the payment by
Can-Med to the Company of an aggregate of ten dollars ($10.00), the agreements
herein set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. Grant. Can-Med is granted the right to purchase, from the Company,
at any time from February 26, 2000, until 5:30 p.m., New York time, on August
26, 2009 (the "Expiration Date"), at which time the Warrants expire, up to an
aggregate of 1,000,000 shares (subject to adjustment as provided in Section 8
hereof) of common stock, par value $.01 per share, of the Company ("Common
Stock") at an initial exercise price (subject to adjustment as provided in
Section 11 hereof) of $2.50 per share (the "Exercise Price").

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         2. Warrant Certificates. The warrant certificates (the "Warrant
Certificates") delivered and to be delivered pursuant to this Agreement shall be
in the form set forth in Exhibit A, attached hereto and made a part hereof, with
such appropriate insertions, omissions, substitutions, and other variations as
required or permitted by this Agreement.

         3. Registration of Warrant. The Warrants shall be numbered and shall be
registered on the books of the Company when issued.

         4. Exercise of Warrant.

            4.1 Method of Exercise. The Warrants initially are exercisable at
the product of (i) the Exercise Price multiplied by (ii) the number of shares of
Common Stock purchased (subject to adjustment as provided in Section 11 hereof),
as set forth in Section 8 hereof payable by certified or official bank check in
United States dollars. The product of the number of Warrants exercised at any
one time multiplied by the Exercise Price shall be referred to as the "Purchase
Price." Upon surrender of a Warrant Certificate with the annexed Form of
Election to Purchase duly executed, together with payment of the Purchase Price
for the shares of Common Stock purchased at the Company's principal offices
located at 505 University Avenue, Suite 1400, Toronto, Ontario, Canada, the
registered holder of a Warrant Certificate ("Holder" or "Holders") shall be
entitled to receive a certificate or certificates for the shares of Common Stock
so purchased. The purchase rights represented by each Warrant Certificate are
exercisable at the option of the Holder thereof, in whole or in part (but not as
to fractional shares of the Common Stock). In the case of the purchase of less
than all the shares of Common Stock purchasable under any Warrant Certificate,
the Company shall cancel said Warrant Certificate upon the surrender thereof and

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shall execute and deliver a new Warrant Certificate of like tenor for the
balance of the shares of Common Stock purchasable thereunder.

         5. Issuance of Certificates. Upon the exercise of the Warrants, the
issuance of certificates for shares of Common Stock shall be made forthwith (and
in any event within five (5) business days thereafter) without charge to the
Holder thereof including, without limitation, any tax which may be payable in
respect of the issuance thereof, and such certificates shall (subject to the
provisions of Sections 7 and 9 hereof) be issued in the name of, or in such
names as may be directed by, the Holder thereof; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the issuance and delivery of any such certificates in a
name other than that of the Holder and the Company shall not be required to
issue or deliver such certificates unless or until the person or persons
requesting the issuance thereof shall have paid to the Company the amount of
such tax or shall have established to the satisfaction of the Company that such
tax has been paid.

         The Warrant Certificates and the certificates representing the shares
of Common Stock, or other securities, property or rights issued upon exercise of
the Warrants shall be executed on behalf of the Company by the manual or
facsimile signature of the then present President or any Vice President of the
Company under its corporate seal reproduced thereon, attested to by the manual
or facsimile signature of the then present Secretary or any Assistant Secretary
of the Company. Warrant Certificates shall be dated the date of execution by the
Company upon initial issuance, division, exchange, substitution or transfer.

         6. Transfer of Warrant. The Warrants shall be transferable only on the
books of the Company maintained at its principal office, where its principal

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office may then be located, upon delivery thereof duly endorsed by the Holder or
by its duly authorized attorney or representative accompanied by proper evidence
of succession, assignment or authority to transfer. Upon any registration
transfer, the Company shall execute and deliver new Warrants to the person
entitled thereto.

         7. Restriction On Transfer of Warrants. The Holder of a Warrant
Certificate, by its acceptance thereof, covenants and agrees that the Warrants
are being acquired as an investment and not with a view to the distribution
thereof.

         8. Exercise Price and Number of Securities. Except as otherwise
provided in Section 10 hereof, each of the Warrants are exercisable to purchase
one share of Common Stock at an initial exercise price equal to the Exercise
Price. The Exercise Price and the number of shares of Common Stock for which the
Warrant may be exercised shall be the price and the number of shares of Common
Stock which shall result from time to time from any and all adjustments in
accordance with the provisions of Section 11 hereof.

         9. Registration Rights.

            9.1 Registration Under the Securities Act of 1933. Each Warrant
Certificate and each certificate representing the shares of Common Stock, and
any of the other securities issuable upon exercise of the Warrants and the
securities underlying the securities issuable upon exercise of the Warrants
(collectively, the "Warrant Shares") shall bear the following legend, unless (i)
such Warrants or Warrant Shares are distributed to the public or sold for
distribution to the public pursuant to this Section 9 or otherwise pursuant to a
registration statement filed under the Securities Act of 1933, as amended (the
"Act"), (ii) such Warrants or Warrant Shares are subject to a currently
effective registration statement under the Act; or (iii) the Company has
received an opinion of counsel, in form and substance reasonably satisfactory to

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counsel for the Company, that such legend is unnecessary for any such
certificate:

         THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES
         ISSUABLE UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD EXCEPT
         PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
         SECURITIES ACT OF 1933, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER
         SUCH ACT (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE
         DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH
         OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL FOR THE ISSUER,
         THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

         THE TRANSFER OR EXCHANGE OF THE WARRANTS OR OTHER SECURITIES
         REPRESENTED BY THE CERTIFICATE IS RESTRICTED IN ACCORDANCE WITH THE
         WARRANT AGREEMENT REFERRED TO HEREIN.

            9.2 Piggyback Registration. If, at any time commencing February 26,
2000, and expiring on the Expiration Date, the Company proposes to register any
of its securities, not registered on the date hereof, under the Act (other than
in connection with a merger or pursuant to Form S-4 or Form S-8) it will give
written notice by registered mail, at least thirty (30) days prior to the filing
of each such registration statement, to the Holders of the Warrants and/or the
Warrant Shares of its intention to do so. If any of the Holders of the Warrants
and/or Warrant Shares notify the Company within twenty (20) days after mailing
of any such notice of its or their desire to include any such securities in such
proposed registration statement, the Company shall afford such Holders of the
Warrants and/or Warrant Shares the opportunity to have any such Warrant Shares
registered under such registration statement. In the event that the managing
underwriter for said offering advises the Company in writing that in the
underwriter's opinion the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering without
causing a diminution in the offering price or otherwise adversely affecting the
offering, the Company will include in such registration (a) first, the

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securities the Company proposes to sell, (b) second, the securities held by the
entities that made the demand for registration, (c) third, the Warrants and/or
Warrant Shares requested to be included in such registration which in the
opinion of such underwriter can be sold, pro rata among the Holders of Warrants
and/or Warrant Shares on the basis of the number of Warrants and/or Warrant
Shares requested to be registered by such Holders, and (d) fourth, other
securities requested to be included in such registration.

         Notwithstanding the provisions of this Section 9.2, the Company shall
have the right at any time after it shall have given written notice pursuant to
this Section 9.2 (irrespective of whether a written request for inclusion of any
such securities shall have been made) to elect not to file any such proposed
registration statement or to withdraw the same after the filing but prior to the
effective date thereof.

         9.3 Demand Registration.

            (a) At any time commencing February 26, 2000 and expiring on the
Expiration Date, the Holders of the Warrants and/or Warrant Shares representing
a "Majority" (as hereinafter defined) of the Warrants and/or Warrant Shares
shall have the right on one occasion (which right is in addition to the
registration rights under Section 9.2 hereof), exercisable by written notice to
the Company, to have the Company prepare and file with the Securities and
Exchange Commission (the "Commission"), a registration statement and such other
documents, including a prospectus, as may be necessary in the opinion of both
counsel for the Company and counsel for the Holders, in order to comply with the
provisions of the Act, so as to permit a public offering and sale by such
Holders and any other Holders of the Warrants and/or Warrant Shares who notify
the Company within fifteen (15) days after the Company mails notice of such
request pursuant to Section 9.3(b) hereof (collectively, the "Requesting

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Holders") of their respective Warrant Shares so as to allow the unrestricted
sale of the Warrant Shares to the public from time to time until the earlier of
the following: (i) the Expiration Date, or (ii) the date on which all of the
Warrant Shares requested to be registered by the Requesting Holders have been
sold (the "Registration Period").

            (b) The Company covenants and agrees to give written notice of any
registration request under this Section 9.3 by any Holder or Holders
representing a Majority of the Warrants and/or Warrant Shares to all other
registered Holders of the Warrants and the Warrant Shares within ten (10) days
from the date of the receipt of any such registration request.

            (c) In addition to the registration rights under Section 9.2 and
subsection (a) of this Section 9.3, at any time commencing February 26, 2000 and
expiring on the Expiration Date, the Holders of Warrants and/or Warrant Shares
shall have the right on one occasion, exercisable by written request to the
Company, to have the Company prepare and file with the Commission a registration
statement so as to permit a public offering and sale by such Holders of their
respective Warrant Shares from time to time until the first to occur of the
following: (i) the expiration of this Agreement, or (ii) all of the Warrant
Shares requested to be registered by such Holders have been sold; provided,
however, that the provisions of Section 9.4(b) hereof shall not apply to any
such registration request and registration and all costs incident thereto shall
be at the expense of the Holder or Holders making such request.

         9.4 Covenants of the Company With Respect to Registration. In
connection with any registration under Section 9.2 or 9.3 hereof, the Company
covenants and agrees as follows:

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            (a) The Company shall use its best efforts to file a registration
statement within ninety (90) days of receipt of any demand therefore, and to
have any registration statements declared effective at the earliest possible
time, and shall furnish each Holder desiring to sell Warrant Shares such number
of prospectuses as shall reasonably be requested. The Company shall also file
such applications and other documents as may be necessary to permit the sale of
the Warrant Shares to the public during the Registration Period in those states
to which the Company and the holders of the Warrants and/or Warrant Shares shall
mutually agree.

            (b) The Company shall pay all costs (excluding fees and expenses of
Holder(s)' counsel and any underwriting or selling commissions), fees and
expenses in connection with all registration statements filed pursuant to
Sections 9.2 and 9.3(a) hereof including, without limitation, the Company's
legal and accounting fees, printing expenses, blue sky fees and expenses. The
Holder(s) will pay all costs, fees and expenses in connection with the
registration statement filed pursuant to Section 9.3(c).

            (c) The Company will take all necessary action which may be required
in qualifying or registering the Warrant Shares included in a registration
statement for offering and sale under the securities or blue sky laws of such
states as reasonably are requested by the Holder(s), provided that the Company
shall not be obligated to execute or file any general consent to service of
process or to qualify as a foreign corporation to do business under the laws of
any such jurisdiction.

            (d) The Company shall indemnify the Holder(s) of the Warrant Shares
to be sold pursuant to any registration statement and each person, if any, who
controls such Holder(s) within the meaning of Section 15 of the Act or Section

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20(a) of the Securities Exchange Act of 1934, as amended ("Exchange Act"),
against all loss, claim, damage, expense or liability (including all expenses
reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which any of them may become subject under the Act, the Exchange
Act or otherwise, arising from such registration statement.

            (e) In order to provide for just and equitable contribution under
the Act in any case in which (i) any Holder of the Warrant Shares or controlling
person thereof makes a claim for indemnification but it is judicially determined
(by the entry of a final judgment or decree by a court of competent jurisdiction
and the expiration of time to appeal or the denial of the last right of appeal)
that such indemnification may not be enforced in such case notwithstanding the
fact that the express provisions of Section 9.4(d) hereof provide for
indemnification in such case or (ii) contribution under the Act may be required
on the part of any Holder of the Warrant Shares, or controlling person thereof,
then the Company, any such Holder of the Warrant Shares, or controlling person
thereof shall contribute to the aggregate losses, claims, damages or liabilities
to which they may be subject (which shall, for all purposes of this Agreement,
include, but not be limited to, all costs of defense and investigation and all
attorneys fees), in either such case (after contribution from others) on the
basis of relative fault as well as any other relevant equitable considerations.
The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or a Holder of Warrant Shares, or
controlling person thereof on the other and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and such Holders of such securities and such
controlling persons agree that it would not be just and equitable if
contribution pursuant to this Section 9.4(e) were determined by pro rata

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allocation or by any other method which does not take account of the equitable
considerations referred to in this Section 9.4(e). The amount paid or payable by
an indemnified party as a result of the losses, claims, damages or liabilities
(or actions in respect thereof) referred to above in this Section 9.4(e) shall
be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

            (f) The Holder(s) of the Warrant Shares to be sold pursuant to a
registration statement, and their successors and assigns, shall severally, and
not jointly, indemnify the Company, its officers and directors and each person,
if any, who controls the Company within the meaning of Section 15 of the Act or
Section 20(a) of the Exchange Act, against any loss, claim, damage or expense or
liability (including all expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which they may become
subject under the Act, the Exchange Act or otherwise, arising from information
furnished in writing, by or on behalf of such Holders, or their successors or
assigns, for specific inclusion in such registration statement.

            (g) Nothing contained in this Agreement shall be construed as
requiring the Holder(s) to exercise their Warrants prior to the initial filing
of any registration statement or the effectiveness thereof.

            (h) The Company shall not permit the inclusion of any securities
other than the Warrant Shares to be included in any registration statement filed

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pursuant to Section 9.3 hereof, or permit any other registration statement
(other than a registration statement on Form S-4 or S-8) to be or remain
effective during a one hundred and eighty (180) day period following the
effective date of a registration statement filed pursuant to Section 9.3 hereof,
without the prior written consent of the Holder(s) of the Warrants and Warrant
Shares representing a Majority of such securities or as otherwise required by
the terms of any existing registration rights granted prior to the date of this
Agreement by the Company to the holders of any of the Company's securities.

            (i) The Company shall furnish to each Holder participating in the
offering and to each underwriter, if any, a signed counterpart, addressed to
such Holder or underwriter, of (i) an opinion of counsel to the Company, dated
the effective date of such registration statement (and, if such registration
includes an underwritten public offering, an opinion dated the date of the
closing under the underwriting agreement), and (ii) a "cold comfort" letter
dated the effective date of such registration statement (and, if such
registration includes an underwritten public offering, a "cold comfort" letter
dated the date of the closing under the underwriting agreement) signed by the
independent public accountants who have issued a report on the Company's
financial statements included in such registration statement, in each case
covering substantially the same matters with respect to such registration
statement (and the prospectus included therein) and, in the case of such
accountants' letter, with respect to events subsequent to the date of such
financial statements, as are customarily covered in opinions of issuer's counsel
and in accountants' letters delivered to underwriters in underwritten public
offerings of securities.

            (j) The Company shall as soon as practicable after the effective
date of the registration statement, and in any event within 15 months
thereafter, make "generally available to its security holders" (within the
meaning of Rule 158 under the Act) an earnings statement (which need not be

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audited) complying with Section 11(a) of the Act and covering a period of at
least 12 consecutive months beginning after the effective date of the
registration statement.

            (k) The Company shall enter into an underwriting agreement with the
managing underwriters selected for such underwriting by Holders holding a
Majority of the Warrant Shares requested to be included in such underwriting.
Such agreement shall be satisfactory in form and substance to the Company, each
Holder and such managing underwriters, and shall contain such representations,
warranties and covenants by the Company and such other terms as are customarily
contained in agreements of that type used by the managing underwriter. The
Holder(s) shall be parties to any underwriting agreement relating to an
underwritten sale of their Warrant Shares and may, at their option, require that
any or all of the representations, warranties and covenants of the Company to or
for the benefit of such underwriters shall also be made to and for the benefit
of such Holder(s). Such Holder(s) shall not be required to make any
representations or warranties to or agreements with the Company or the
underwriters except as they may relate to such Holder(s) and their intended
methods of distribution.

            (l) For purposes of this Agreement, the term "Majority" in reference
to the Warrants or Warrant Shares, shall mean in excess of fifty percent (50%)
of the then outstanding Warrants or Warrant Shares that (i) are not held by the
Company, or (ii) have not been resold to the public pursuant to a registration
statement filed with the Commission under the Act or Rule 144 promulgated under
the Act.

         10. Obligations of Holders. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to Section 9 hereof that
each of the selling Holders shall:

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             (a) Furnish to the Company such information regarding themselves,
the Warrant Shares held by them, the intended method of sale or other
disposition of such securities, the identity of and compensation to be paid to
any underwriters proposed to be employed in connection with such sale or other
disposition, and such other information as may reasonably be required to effect
the registration of their Warrant Shares.

             (b) Notify the Company, at any time when a prospectus relating to
the Warrant Shares covered by a registration statement is required to be
delivered under the Act, of the happening of any event with respect to such
selling Holder as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
then existing.

         11. Adjustments to Exercise Price and Number of Securities. The
Exercise Price in effect at any time and the number and kind of securities
purchasable upon the exercise of the Warrants or the securities underlying the
Warrants shall be subject to adjustment from time to time upon the happening of
certain events as follows:

             11.1 Dividend, Subdivision and Combination. In case the Company
shall (i) declare a dividend or make a distribution on its outstanding shares of
Common Stock in shares of Common Stock, (ii) subdivide or reclassify its
outstanding shares of Common Stock into a greater number of shares, or (iii)
combine or reclassify its outstanding shares of Common Stock into a smaller
number of shares, the Exercise Price in effect at the time of the record date
for such dividend or distribution or of the effective date of such subdivision,
combination or reclassification shall be adjusted so that it shall equal the
price determined by multiplying the Exercise Price by a fraction, the
denominator of which shall be the number of shares of Common Stock outstanding

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after giving effect to such action, and the numerator of which shall be the
number of shares of Common Stock outstanding immediately prior to such action.
Such adjustment shall be made successively whenever any event listed above shall
occur.

             11.2 Adjustment in Number of Securities. Upon each adjustment of
the Exercise Price pursuant to the provisions of this Section 11, the number of
Warrant Shares issuable upon the exercise at the adjusted Exercise Price of each
Warrant shall be adjusted to the nearest number of whole shares of Common Stock
determined by multiplying a number equal to the Exercise Price in effect
immediately prior to such adjustment by the number of the applicable Warrant
Shares issuable upon exercise of the Warrants immediately prior to such
adjustment and dividing the product so obtained by the adjusted Exercise Price.

             11.3 Definition of Common Stock. For the purpose of this Agreement,
the term "Common Stock" shall mean (i) the class of stock designated as Common
Stock in the Articles of Incorporation of the Company as of the date hereof, or
(ii) any other class of stock resulting from successive changes or
reclassifications of such Common Stock consisting solely of changes in par
value, or from par value to no par value, or from no par value to par value.

             11.4 Merger or Consolidation. In case of any consolidation of the
Company with, or merger of the Company into, another corporation (other than a
consolidation or merger which does not result in any reclassification or change
of the outstanding Common Stock), the corporation formed by such consolidation
or merger shall execute and deliver to each Holder a supplemental warrant
agreement providing that the Holder of each Warrant then outstanding shall have
the right thereafter (until the Expiration Date) to receive, upon exercise of
such Warrant, the kind and amount of shares of stock and other securities and

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property receivable upon such consolidation or merger to which the Holder would
have been entitled if the Holder had exercised such Warrant immediately prior to
such consolidation, merger, sale or transfer. Such supplemental warrant
agreement shall provide for adjustments which shall be identical to the
adjustments provided in this Section 11. The above provision of this subsection
shall similarly apply to successive consolidations or mergers.

         11.5 No Adjustment of the Exercise Price in Certain Cases. No
adjustment of the Exercise Price shall be made:

             (a) Upon the issuance or sale of the Warrants or the Warrant
Shares;

             (b) Upon the issuance or sale of Common Stock (or any other
security convertible, exercisable, or exchangeable into shares of Common Stock)
upon the direct or indirect conversion, exercise, or exchange of any options,
rights, warrants, or other securities or indebtedness of the Company outstanding
as of the date of this Agreement or granted pursuant to any stock option plan of
the Company in existence as of the date of this Agreement, pursuant to the terms
thereof or issued pursuant to any stock purchase plan in existence as of the
date of this Agreement, pursuant to the terms thereof; or

             (c) If the amount of said adjustment shall be less than ten cents
($.10) per share, provided, however, that in such case any adjustment that would
otherwise be required then to be made shall be carried forward and shall be made
at the time of and together with the next subsequent adjustment which, together
with any adjustment so carried forward, shall amount to at least ten cents
($.10) per share.

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         12. Exchange and Replacement of Warrant Certificates. Each Warrant
Certificate is exchangeable, without expense, upon the surrender thereof by the
registered Holder at the principal executive office of the Company for a new
Warrant Certificate of like tenor and date representing in the aggregate the
Holder's right to purchase the same number of Warrant Shares in such
denominations as shall be designated in such Warrant Certificate at the time of
such surrender.

         Upon receipt by the Company of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of any Warrant Certificate, and,
in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to it and reimbursement to the Company of all reasonable expenses
incidental thereto, and upon surrender and cancellation of the Warrant
Certificate, if mutilated, the Company will make and deliver a new Warrant
Certificate of like tenor, in lieu thereof.

         13. Elimination of Fractional Interests. The Company shall not be
required to issue certificates representing fractions of shares of Common Stock
or other securities upon the exercise of the Warrants, nor shall it be required
to issue scrip or pay cash in lieu of fractional interests, it being the intent
of the parties that all fractional interests shall be eliminated by rounding any
fraction up to the nearest whole number of shares of Common Stock or other
securities, properties or rights.

         14. Reservation and Listing of Securities. The Company shall at all
times reserve and keep available out of its authorized shares of Common Stock,
solely for the purpose of issuance upon the exercise of the Warrants, such
number of shares of Common Stock or other securities, properties or rights as
shall be issuable upon the exercise thereof or the exercise or conversion of any

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other exercisable or convertible securities underlying the Warrants. Every
transfer agent and warrant agent (collectively "Transfer Agent") for the Common
Stock and other securities of the Company issuable upon the exercise of the
Warrants will be irrevocably authorized and directed at all times to reserve
such number of authorized shares of Common Stock and other securities as shall
be requisite for such purpose. The Company will keep a copy of this Agreement on
file with every Transfer Agent for the Common Stock and other securities of the
Company issuable upon the exercise of the Warrants. The Company will supply
every such Transfer Agent with duly executed stock and other certificates, as
appropriate, for such purpose. The Company covenants and agrees that, upon each
exercise of the Warrants and payment of the Purchase Price, all shares of Common
Stock and other securities issuable upon such exercise shall be duly and validly
issued, fully paid, non-assessable and not subject to the preemptive rights of
any stockholder. As long as the Warrants shall be outstanding, the Company shall
use its best efforts to cause all shares of Common Stock and other securities
issuable upon the exercise of the Warrants and the securities underlying the
securities issuable upon exercise of the Warrants to be listed (subject to
official notice of issuance) on all securities exchanges or securities
associations on which the Common Stock issued to the public in connection
herewith may then be listed and/or quoted.

         15. Notices to Warrant Holders. Nothing contained in this Agreement
shall be construed as conferring upon the Holder(s) of the Warrants the right to
vote or to consent or to receive notice as a stockholder in respect of any
meetings of stockholders for the election of directors or any other matter, or
as having any rights whatsoever as a stockholder of the Company. If, however, at
any time prior to the expiration of the Warrants and their exercise, any of the
following events shall occur:

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             (a) the Company shall take a record of the holders of its shares of
Common Stock for the purpose of entitling them to receive a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution
payable otherwise than out of current or retained earnings, as indicated by the
accounting treatment of such dividend or distribution on the books of the
Company; or

             (b) the Company shall offer to all the holders of its Common Stock
any additional shares of capital stock of the Company or securities convertible
into or exchangeable for shares of capital stock of the Company, or any option,
right or warrant to subscribe therefore; or

             (c) a dissolution, liquidation or winding up of the Company (other
than in connection with a consolidation or merger) or a sale of all or
substantially all of its property, assets and business as an entirety shall be
proposed; then in any one or more of said events, the Company shall give written
notice to the registered holders of the Warrants of such event at least fifteen
(15) days prior to the date fixed as a record date or the date of closing the
transfer books for the determination of the stockholders entitled to such
dividend, distribution, convertible or exchangeable securities or subscription
rights, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale. Such notice shall specify such record date or the date of closing
the transfer books, as the case may be. Failure to give such notice or any
defect therein shall not affect the validity of any action taken in connection
with the declaration or payment of any such dividend, or the issuance of any
convertible or exchangeable securities, or subscription rights, options or
warrants, or any proposed dissolution, liquidation, winding up or sale.

         16. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been duly made and
sent when delivered, or mailed by registered or certified mail, return receipt
requested:

                                       19
<PAGE>

             (a) if to the registered Holder of the Warrants, to the address of
such Holder as shown on the books of the Company; or

             (b) if to the Company, to the address set forth in Section 4 hereof
or to such other address as the Company may designate by notice to the Holders.

         17. Supplements; Amendments; Entire Agreement. This Agreement contains
the entire understanding between the parties hereto with respect to the subject
matter hereof and may not be modified or amended except by a writing duly signed
by the party against whom enforcement of the modification or amendment is
sought. The Company and Can-Med may from time to time supplement or amend this
Agreement without the approval of any Holders of Warrant Certificates (other
than Can-Med) in order to cure any ambiguity, to correct or supplement any
provision contained herein which may be defective or inconsistent with any
provisions herein, or to make any other provisions in regard to matters or
questions arising hereunder which the Company and Can-Med may deem necessary or
desirable and which the Company and Can-Med deem shall not adversely affect the
interests of the Holders of Warrant Certificates.

         18. Successors. All of the covenants and provisions of this Agreement
shall be binding upon and inure to the benefit of the Company, the Holder(s) and
their respective successors and assigns hereunder.

         19. Survival of Representations and Warranties. All statements in any
schedule, exhibit or certificate or other instrument delivered by or on behalf
of the parties hereto, or in connection with the transactions contemplated by
this Agreement, shall be deemed to be representations and warranties hereunder.

                                       20
<PAGE>

Notwithstanding any investigations made by or on behalf of the parties to this
Agreement, all representations, warranties and agreements made by the parties to
this Agreement or pursuant hereto shall survive.

         20. Governing Law; Submission to Jurisdiction. This Agreement and each
Warrant Certificate issued hereunder shall be deemed to be a contract made under
the laws of the State of New York and for all purposes shall be construed in
accordance with the laws of said State without giving effect to the rules of
said State governing the conflicts of laws.

         21. Severability. If any provision of this Agreement shall be held to
be invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provision of this Agreement.

         22. Captions. The caption headings of the Sections of this Agreement
are for convenience of reference only and are not intended, nor should they be
construed as, a part of this Agreement and shall be given no substantive effect.

         23. Benefits of this Agreement. Nothing in this Agreement shall be
construed to give to any person or corporation other than the Company and
Can-Med and any other registered Holder(s) of the Warrant Certificates or
Warrant Shares any legal or equitable right, remedy or claim under this
Agreement; and this Agreement shall be for the sole and exclusive benefit of the
Company and Can-Med and any other Holder(s) of the Warrant Certificates or
Warrant Shares.

         24. Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and such counterparts shall together constitute but one and the
same instrument.

                                       21
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, as of the day and year first above written.

                                            CECO ENVIRONMENTAL CORP.

                                            By:______________________

                                            Name:____________________

                                            Title:___________________

                                            CAN-MED TECHNOLOGY

                                            By:______________________

                                            Name:____________________

                                            Title:___________________

                                       22
<PAGE>

                                    EXHIBIT A

                          [FORM OF WARRANT CERTIFICATE]

THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES ISSUABLE
UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (i) AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, (ii) TO THE
EXTENT APPLICABLE, RULE 144 UNDER SUCH ACT (OR ANY SIMILAR RULE UNDER SUCH ACT
RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF
SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL FOR THE ISSUER, THAT AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

THE TRANSFER OR EXCHANGE OF THE WARRANTS OR OTHER SECURITIES REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED IN ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO
HEREIN.

                            EXERCISABLE ON OR BEFORE
                    5:30 P.M., NEW YORK TIME, AUGUST 26, 2009

                                   Warrant No.

                               WARRANT CERTIFICATE

         This Warrant Certificate certifies that , or registered assigns, is the
registered holder of Warrants to purchase initially, at any time from February
26, 2000 until 5:30 p.m., New York time, on August 26, 2009 ("Expiration Date"),
up to shares, of fully-paid and non-assessable common stock, $.01 par value
("Common Stock") of CECO Environmental Corp., a New York corporation (the
"Company"), at the initial exercise price, subject to adjustment in certain
events, of $2.50 per share upon surrender of this Warrant Certificate and
payment of the Exercise Price at the principal executive office of the Company,
but subject to the conditions set forth herein. Payment of the Exercise Price
shall be made by certified or official bank check in United States dollars
payable to the order of the Company.

         No Warrant may be exercised after 5:30 p.m., New York time, on the
Expiration Date, at which time all Warrants evidenced hereby, unless exercised
prior thereto, shall thereafter expire and shall be void.

         The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants issued pursuant to the Warrant Agreement, which
Warrant Agreement is hereby incorporated by reference in and made a part of this
instrument and is hereby referred to for a description of the rights, limitation
of rights, obligations, duties and immunities thereunder of the Company and the
holders (the words "holders" or "holder" meaning the registered holders or
registered holder) of the Warrants.

                                    EXH A-1
<PAGE>

         The Warrant Agreement provides that upon the occurrence of certain
events the Exercise Price and the type and/or number of the Company's securities
issuable thereupon may, subject to certain conditions, be adjusted. In such
event, the Company will, at the request of the holder, issue a new Warrant
Certificate evidencing the adjustment in the Exercise Price and the number
and/or type of securities issuable upon the exercise of the Warrants; provided,
however, that the failure of the Company to issue such new Warrant Certificates
shall not in any way change, alter, or otherwise impair, the rights of the
holder as set forth in the Warrant Agreement.

         Upon due presentment for registration of transfer of this Warrant
Certificate at the principal executive office of the Company, a new Warrant
Certificate or Warrant Certificates of like tenor and evidencing in the
aggregate a like number of Warrants shall be issued to the transferee(s) in
exchange for this Warrant Certificate, subject to the limitations provided
herein and in the Warrant Agreement, without any charge except for any tax or
other governmental charge imposed in connection with such transfer.

         Upon the exercise of less than all of the Warrants evidenced by this
Certificate, the Company shall forthwith issue to the holder hereof a new
Warrant Certificate representing such numbered of unexercised Warrants.

         The Company may deem and treat the registered holder(s) hereof as the
absolute owner(s) of this Warrant Certificate (notwithstanding any notation of
ownership or other writing hereon made by anyone), for the purpose of any
exercise hereof, and of any distribution to the holder(s) hereof, and for all
other purposes, and the Company shall not be affected by any notice to the
contrary.

         All terms used in this Warrant Certificate which are defined in the
Warrant Agreement shall have the meanings assigned to them in the Warrant
Agreement.

         This Warrant Certificate does not entitle any Warrant holder to any of
the rights of a shareholder of the Company.

         IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be duly executed under its corporate seal.

Dated as of ____________________, 199__.

ATTEST:                                           CECO ENVIRONMENTAL CORP.

                                                  By:_____________________[SEAL]
Secretary                                         Name:___________________
                                                  Title:__________________

                                     EXH A-2
<PAGE>

          [FORM OF ELECTION TO PURCHASE PURSUANT TO SECTION 4.1 OF THE
                               WARRANT AGREEMENT]

         The undersigned hereby irrevocably elects to exercise the right,
represented by Warrant Certificate No. , to purchase shares of Common Stock (as
defined in the Warrant Agreement described below) and herewith tenders in
payment for such securities a certified or official bank check payable in United
States dollars to the order of CECO Environmental Corp., a New York corporation
(the "Company") in the amount of $____________, all in accordance with the terms
of Section 4.1 of the Warrant Agreement dated as of August 26, 1999 between the
Company and Can-Med Technology. The undersigned requests that a certificate for
such securities be registered in the name of , whose address is and that such
certificate be delivered to , whose address is , and if said number of shares of
Common Stock shall not be all the shares of Common Stock purchasable hereunder,
that a new Warrant Certificate for the balance of the shares of Common Stock
purchasable under the within Warrant Certificate be registered in the name of
the undersigned warrant holder or his assignee as below indicated and delivered
to the address stated below.

Dated: _____________

                                                  Signature: ___________________
                                                  (Signature must conform in all
                                                  respects to name of holder as
                                                  specified on the face of the
                                                  Warrant Certificate.)

                          Address: _____________________________________________
                                   _____________________________________________

                          _________________________________________________
                          (Insert Social Security or Other Identifying Number of
                          Holder)

Signature Guaranteed: __________________________________________________________
(Signature must be guaranteed by a bank, savings and loan association,
stockbroker, or credit union with membership in an approved signature guaranty
Medallion Program pursuant to Securities Exchange Act Rule 17Ad-15.)

                                     EXH A-3
<PAGE>

                              [FORM OF ASSIGNMENT]

             (To be executed by the registered holder if such holder
                  desires to transfer the Warrant Certificate.)

FOR VALUE RECEIVED ____________________ hereby sells, assigns and transfers unto
[NAME OF TRANSFEREE] Warrant Certificate No.___, together with all right, title
and interest therein, and does hereby irrevocably constitute and appoint
___________________ Attorney, to transfer the within Warrant Certificate on the
books of the within-named Company, with full power of substitution.

Dated: ______________

                    Signature: _________________________________________________
                    (Signature  must  conform in all  respects to name of holder
                    as specified on the face of the Warrant Certificate.)
                    Address: ___________________________________________________
                             ___________________________________________________

                    ____________________________________________________________
                    (Insert Social Security or Other Identifying Number of
                    Holder)

Signature Guaranteed: __________________________________________________________
(Signature must be guaranteed by a bank, savings and loan association,
stockbroker, or credit union with membership in an approved signature guaranty
Medallion Program pursuant to Securities Exchange Act Rule 17Ad-15.)

                                     EXH A-4<PAGE>

                         AMENDMENT TO CREDIT AGREEMENT

     This AMENDMENT TO CREDIT AGREEMENT (this "Agreement") is made as of the
28th day of March, 2000, by and among CECO GROUP, INC., CECO FILTERS, INC., AIR
PURATOR CORPORATION, NEW BUSCH CO., INC., THE KIRK & BLUM MANUFACTURING COMPANY
and KBD/TECHNIC, INC. (the "Borrowers"), PNC BANK, NATIONAL ASSOCIATION ("PNC"),
individually and as agent for itself and the other banks (collectively, the
"Banks") which from time to time are parties to the hereinafter defined Credit
Agreement (in such capacity, the "Agent").

                                   BACKGROUND

     A. The Agent, the Banks and the Borrowers are parties to a Credit Agreement
dated as of December 7, 1999 (the "Credit Agreement").

     B. The Borrowers have requested and the Agent and the Banks have agreed to
amend the Credit Agreement on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and for good and valuable
consideration, the legality and sufficiency of which is hereby acknowledged, the
parties hereto, intending to be legally bound hereby, agree as follows:

     1. Definitions. Capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to them in the Credit Agreement.

     2. Amendments to Credit Agreements. The Credit Agreement is hereby amended
as follows:

     (a) Section 1.1 of the Credit Agreement is hereby amended by deleting the
definitions of "EBITDA Threshold" in its entirety.

     (b) Section 2.1(a) of the Credit Agreement is hereby amended by deleting
all of clause (x)(ii) and inserting the following:

          (ii) "$2,000,000 until Term Loan C shall have been timely paid in full
     and the terms of subsection 6.1(e)(ii) with respect to required EBTIDA of
     CECO shall have been satisfied for any period tested pursuant to such
     subsection, and."

     (c) Section 2.1(b) of the Credit Agreement is hereby amended by deleting
"the EBITDA Threshold shall have been satisfied", and inserting the following:
<PAGE>

     "the terms of subsection 6.1(e)(ii) with respect to required EBITDA of CECO
     shall have been satisfied for any period tested pursuant to such
     subsection,"

     (d) Section 5.1(b) of the Credit Agreement is hereby amended by inserting
the following at the end of such Section:

     "provided that, with respect to monthly periods ending on or before
     February 29, 2000 only, no consolidating statements of income, and no
     consolidating or consolidated balance sheets, statements of cash flow and
     statements of shareholders' equity shall be required to be delivered
     pursuant to this Section 5.1(b) for the applicable month; provided further,
     that the foregoing proviso shall not affect the requirement to deliver any
     other financial statements to be delivered under this subsection;"

     (e) Section 6.1(e) of the Credit Agreement is hereby amended by deleting
the amount "$562,500" in the third line thereof and inserting "$250,000" in its
place.

     3. Amendment to the Loan Documents. All references to the Credit Agreement
in the Loan Documents and in any documents executed in connection therewith
shall be deemed to refer to the Credit Agreement as heretofore amended and as
amended by this Agreement.

     4. Ratification of the Loan Documents. Notwithstanding anything to the
contrary herein contained or any claims of the parties to the contrary, the
Agent, the Banks and the Borrowers agree that the Loan Documents and each of the
documents executed in connection therewith are in full force and effect and each
such document shall remain in full force and effect, as further amended by this
Agreement, and each of the Borrowers hereby ratifies and confirms its
obligations thereunder.

     5. Representations and Warranties.

     (a) Each Borrower hereby certifies that (i) the representations and
warranties of such Borrower in the Credit Agreement are true and correct in all
material respects as of the date hereof, as if made on the date hereof and (ii)
no Event of Default and no event which could become an Event of Default with the
passage of time or the giving of notice, or both, under the Credit Agreement or
the other Loan Documents exists on the date hereof.

     (b) Each Borrower further represents that it has all the requisite power
and authority to enter into and to perform its obligations under this Agreement,
and that the execution, delivery and performance of this Agreement have been
duly authorized by all requisite action and will not violate or constitute a
default under any provision of any applicable law, rule, regulation, order,
writ, judgment, injunction, decree, determination or award presently in effect
or of the Articles of Incorporation or by-laws of such Borrower, or of any
indenture, note, loan or credit agreement, license or any other agreement, lease
or instrument to which such Borrower is a party or by which such Borrower of any
of its properties are bound.

                                       2
<PAGE>

     (c) Each Borrower also further represents that its obligation to repay the
Loans, together with all interest accrued thereon, is absolute and
unconditional, and there exists no right of set off or recoupment, counterclaim
or defense of any nature whatsoever to payment of the Loans.

     (d) Each Borrower also further represents that there have been no changes
to the Articles of Incorporation, by-laws or other organizational documents of
each such Borrower since the most recent date true and correct copies thereof
were delivered to the Agent.

     6. Conditions Precedent. The effectiveness of the amendments set forth
herein is subject to the fulfillment, to the satisfaction of the Agent and its
counsel, of the following conditions precedent:

     (a) The Borrowers shall have delivered to the Agent the following, all of
which shall be in form and substance satisfactory to the Agent and shall be duly
completed and executed:

          (i) This Agreement and the consent of the Guarantor (as defined in the
     Guaranty) attached hereto; and

          (ii) Such additional documents, certificates and information as the
     Agent may require pursuant to the terms hereof or otherwise reasonably
     request.

     (b) After giving effect to the amendments contained herein, the
representations and warranties set forth in the Credit Agreement shall be true
and correct on and as of the date hereof.

     (c) After giving effect to the amendments contained herein, no Event of
Default hereunder, and no event which, with the passage of time or the giving of
notice, or both, would become such an Event of Default shall have occurred and
be continuing as of the date hereof.

     (d) The Borrowers shall have paid the reasonable fees and disbursements of
the Agent's counsel incurred in connection with this Agreement.

     7. No Waiver. Except as expressly provided herein, this Agreement does not
and shall not be deemed to constitute a waiver by the Agent or the Banks of any
Event of Default, or of any event which with the passage of time or the giving
of notice or both would constitute an Event of Default, nor does it obligate the
Agent or the Banks to agree to any further modifications to the Credit Agreement
or any other Loan Document or constitute a waiver of any of the Agent's or the
Banks' other rights or remedies.

                                       3
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

                                       CECO GROUP, INC.

                                       By: /s/ Richard J. Blum
                                           -------------------------
                                       Name:  Richard J. Blum
                                       Title: President, Chief Executive Officer

                                       CECO FILTERS, INC.

                                       By: /s/ Richard J. Blum
                                           -------------------------
                                       Name:  Richard J. Blum
                                       Title:

                                       AIR PURATOR CORPORATION

                                       By: /s/ Richard J. Blum
                                           -------------------------
                                       Name:  Richard J. Blum
                                       Title:

                                       NEW BUSCH CO., INC.

                                       By: /s/ Richard J. Blum
                                           -------------------------
                                       Name:  Richard J. Blum
                                       Title:

                                       4
<PAGE>

                                        THE KIRK & BLUM MANUFACTURING COMPANY

                                        By: /s/ Richard J. Blum
                                            -------------------------
                                        Name:  Richard J. Blum
                                        Title: President

                                        KBD/TECHNIC, INC.

                                        By: /s/ Richard J. Blum
                                            -------------------------
                                        Name:  Richard J. Blum
                                        Title: Chairman

                                        PNC BANK, NATIONAL ASSOCIATION,
                                         as Agent and as a Bank

                                        By: /s/ Nicholas J. Rucciuti
                                            -------------------------

                                        FIFTH THIRD BANK, as a Bank

                                        By: /s/ David R. Alexander
                                            -------------------------

                                        BANK ONE, N.A., as a Bank

                                        By: /s/ Mark G. Palazzo
                                            -------------------------

                                        5
<PAGE>

                              GUARANTOR'S CONSENT

     By Corporate Guaranty, dated December 7, 2000 (the "Guaranty"), the
undersigned (the "Guarantor") guaranteed to the Agent and the Banks (as defined
therein), subject to the terms and conditions set forth therein, the prompt
payment and performance of all of the Obligations (as defined therein). The
Guarantor consents to the Borrowers' execution of the foregoing Amendment to
Credit Agreement. The Guarantor hereby acknowledges and agrees that the Guaranty
remains unaltered and in full force and effect and is hereby ratified and
confirmed.

                                     CECO ENVIRONMENTAL CORP.

                                     By: /s/ Marshall Morris
                                         ---------------------------------------
                                     Title: Chief Financial Officer

                                       6

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