Document:

LaSalle Bank Midwest N.A.             LaSalle Business Credit, a division of ABN
                                      AMRO Bank, N.V., Canada Branch

                                  June 18, 2007

VIA FACSIMILE AND ELECTRONIC MAIL

Mr. James Bradshaw                        Mr. James Bradshaw
Chief Executive Officer                   Chief Executive Officer
Eugene Welding Co.                        Steelbank Tubular Inc.
2420 Wills Street                         2495 Haines Road
Marysville, Michigan 48040                Mississauga, Ontario
Facsimile: (810) 364-7252                 CANADA
                                          Facsimile: (810) 364-7252

 Re: Notice of Events of Default; Reservation of Rights; Forbearance and Consent
     ---------------------------------------------------------------------------

Dear Mr. Bradshaw:

     Reference is made to: (i) that certain Loan and Security  Agreement,  dated
as of August 11, 2004 (as amended, restated,  supplemented or otherwise modified
from time to time, the "Eugene Loan  Agreement"),  by and between Eugene Welding
Co.  ("Eugene") and LaSalle Bank Midwest N.A. (f/k/a Standard Federal Bank N.A.)
("LaSalle  Midwest");  (ii) that  certain  Waiver and Fourth  Amendment  to Loan
Agreement and  Reaffirmation of Guaranty,  dated as of April 30, 2007 (the "EWCO
Amendment"),  by and among Eugene, guarantor Tarpon Industries,  Inc. ("Tarpon,"
and together with Eugene and  Steelbank,  the  "Company")  and LaSalle  Midwest;
(iii) that  certain Loan  Agreement,  dated as of February 17, 2005 (as amended,
restated,  supplemented or otherwise  modified from time to time, the "Steelbank
Loan  Agreement,"  and  together  with the  Eugene  Loan  Agreement,  the  "Loan
Agreements"),  by and between  Steelbank  Inc.  (now known as Steelbank  Tubular
Inc.)  ("Steelbank,"  and together  with Eugene,  the  "Borrowers")  and LaSalle
Business  Credit,  a division of ABN AMRO Bank,  N.V.,  Canada Branch  ("LaSalle
Canada,"  and together  with  LaSalle  Midwest,  the  "Lenders");  and (iv) that
certain Second Amendment to Loan Agreement and Reaffirmation of Guarantee, dated
as of April 30, 2007 (the  "Steelbank  Amendment,"  and  together  with the EWCO
Amendment, the "Restructuring  Amendments"),  by and among Steelbank, Tarpon and
LaSalle Canada.  Capitalized  terms used but not otherwise  defined herein shall
have the meanings ascribed to such terms in the respective Loan Agreements.

     Pursuant to terms of each of the Restructuring Amendments,  the Company was
required  to have  consummated  "Supplemental  Equity  Raise 2" in an  aggregate
amount not less than $1,000,000 no later than May 1, 2007. The Company's failure
to comply with such requirement  constituted an immediate Event of Default under
Section  15(s) of the Steelbank  Loan  Agreement and Section 15(r) of the Eugene
Loan  Agreement  (together,  the  "Specified  Defaults").  Each of the Specified
Defaults are continuing as of the date hereof.

<PAGE>

     Pursuant  to our  letter to you dated May 11,  2007,  the  Lenders  agreed,
notwithstanding  the occurrence and continuation of the Specified  Defaults,  to
(i) forbear from exercising their default-related  rights and remedies under the
Loan  Agreements,  the Other  Agreements  (as defined each Loan  Agreement)  and
applicable law, and (ii) continue making Revolving Loans to Eugene and Steelbank
in  accordance  with the terms of the  respective  Loan  Agreements  (including,
without limitation, the Revolving Loan Limit set forth in Section 2 of each Loan
Agreement),  in each case until the  earlier of the  deadline  imposed by Laurus
Master Fund Ltd.  ("Laurus") for consummation of Supplemental  Equity Raise 2 or
5:00 p.m.  prevailing  Eastern time on May 15, 2007 (such  earlier  date,  the "
Original Forbearance Deadline").

     The  Forbearance  Deadline  has  passed,  and in  light  of  the  Company's
continued failure to obtain the required equity capital from Supplemental Equity
Raise 2 as required under the Loan Agreements, the Lenders remain very concerned
about the Company's financial condition.

     Despite the occurrence and  continuation of the Specified  Defaults and the
passage of the Original  Forbearance  Deadline,  the Company has  requested  (1)
that,  during the period from June 12, 2007 through  July 12, 2007,  the Lenders
(a) forbear from exercising default-related rights and remedies and (b) continue
to make Loans to the Borrowers as reflected on and in accordance with the budget
attached  hereto as Exhibit A (the "Budget") (the  forbearance  described in the
preceding  clause  (a)  and the  continued  making  of  Loans  described  in the
preceding clause (b) are collectively  referred to herein as the "Forbearance"),
and (2) that the  Lenders  consent  to the  Company's  execution,  delivery  and
performance  of and under the  subordinated  debt documents  attached  hereto as
Exhibit B and any other supplemental, amended, related or ancillary documents in
connection   therewith  (the  "Subordinated  Debt  Documents"),   including  the
Financing  Agreement  among  Joseph  Gunnar  &  Co.,  LLC as  "Placement  Agent"
("Gunnar"),  High Capital  Funding,  LLC as "Lead Investor"  ("HCF") and various
other "Investors" (together with High Capital, the "Investors") and the Exhibits
thereto.

     The  Lenders  hereby  consent  to the  Company's  execution,  delivery  and
performance  of and under the  Subordinated  Debt  Documents  and the  company's
incurrence of subordinated debt in accordance with the terms of the Subordinated
Debt   Documents   (the   "New   Subordinated   Debt"),    provided   that   (a)
contemporaneously with the execution of the Subordinated Debt Documents, each of
the Company,  Gunnar, HCF and each other Investor,  and Laurus Master Fund, Ltd.
("Laurus")   shall  execute  a   subordination   agreement   governing  the  New
Subordinated  Debt  in the  form  attached  hereto  as  Exhibit  C or  otherwise
acceptable   to  the  Lenders  in  the  Lenders'  sole   discretion   (the  "New
Subordination Agreement"), (b) each party that becomes party to the Subordinated
Debt Documents as an Investor  after the date hereof  executes and becomes party
to the New  Subordination  Agreement  contemporaneously  with or  prior  to such
party's execution of the Subordinated Debt Documents and funding thereunder; (c)
no payments (including  payments of principal,  interest and fees) shall be made
to any of  Gunnar,  HCF  or any  other  Investor  or  Laurus  unless  explicitly
permitted  by the  New  Subordination  Agreement  and  (d)  proceeds  of the New
Subordinated  Debt  will be used by the  Company  only to fund  ordinary  course
business  expenses  of the  Borrowers,  and will  not be used to pay any  Laurus
Indebtedness.

     Notwithstanding the existence and continuance of the Specified Defaults and
the passage of the  Original  Forbearance  Deadline,  the Lenders are willing to
forbear from exercising their default-related rights and remedies under the Loan
Agreements, the Other Agreements (as defined each Loan Agreement) and applicable

                                       2
<PAGE>

law and to continue to make Loans to the Borrowers  from the date hereof through
the  earlier  to  occur  of (1)  July  12,  2007 or (2) the  date on  which  the
Forbearance  is  terminated  in  accordance  with the terms  hereof as set forth
herein (the "New Forbearance Period").  Notwithstanding anything to the contrary
set  forth  herein,  it  shall be an event  of  default  hereunder,  and the New
Forbearance  Period shall terminate  immediately and without further notice,  if
any of the following occurs at any time hereunder (and the Lenders may determine
in their sole  discretion  whether any such event of default and termination has
occurred):

     (a) the Excess  Availability  under and as defined  in the  Steelbank  Loan
Agreement,  calculated  using a Maximum  Revolving  Loan  Limit of Four  Million
Canadian Dollars (Cdn. $4,000,000), being reduced to an amount less than zero at
any time;

     (b) the  Excess  Availability  under  and as  defined  in the  Eugene  Loan
Agreement, calculated using a Maximum Revolving Loan Limit of Five Million, Five
Hundred Thousand Dollars ($5,500,000), being reduced to an amount less than zero
at any time;

     (c) the Company failing to receive at least Five Hundred  Thousand  Dollars
($500,000) of New Subordinated  Debt cash proceeds under the  Subordinated  Debt
Documents and subject to the New  Subordination  Agreement on or before June 20,
2007;

     (d) the  Company  failing to receive a total of at least Nine  Hundred  and
Fifteen  Thousand  Dollars  ($915,000)  of New  Subordinated  Debt cash proceeds
(inclusive  of the  $500,000  described in the  preceding  clause (c)) under the
Subordinated Debt Documents and subject to the New Subordination Agreement on or
before June 23, 2007;

     (e) the Company  failing to receive a total of at least One  Million  Seven
Hundred  Thousand Dollars  ($1,700,000) of New  Subordinated  Debt cash proceeds
(inclusive  of the  $915,000  described in the  preceding  clause (d)) under the
Subordinated Debt Documents and subject to the New Subordination Agreement on or
before June 30, 2007;

     (f) any of the Company,  Laurus,  Gunnar or any of the Investors failing to
comply with any terms,  conditions,  covenants,  promises,  agreements  or other
obligations  set  forth  in any  Subordinated  Debt  Document,  in that  certain
Subordination  Agreement  among Laurus and the Lenders  dated as of December 13,
2005 (as amended from time to time in accordance  with its terms,  the "Original
Subordination Agreement") and in the New Subordination Agreement;

     (g) a  default  or an  "Event  of  Default"  (or  term of  similar  import)
occurring  and  continuing   unwaived  at  any  time  under  the  terms  of  any
subordinated  debt of any Obligor that is subject to the Original  Subordination
Agreement  or  the  New  Subordination  Agreement  or  any  other  subordination
agreement to which Lenders are a party, including,  without limitation, any term
or condition of the Subordinated Debt Documents;

     (h) the Company failing to diligently pursue and consummate the transaction
contemplated by the Subordinated Debt Documents in accordance with the terms and
conditions set forth in the Subordinated Debt Documents;

                                       3
<PAGE>

     (i)  Borrowers  failing  to comply  with any line item on the Budget in any
respect and at any time during the New  Forbearance  Period (with the  permitted
variances  set forth  below),  or using Loan  proceeds  and  proceeds of the New
Subordinated Debt for any use other than ordinary course business expenses or in
amounts  exceeding 105% of the amounts listed in each  disbursement line item on
the Budget or the amount listed for total  disbursements set forth on the Budget
for  each  period,  on a  cumulative  basis,  set  forth on the  Budget,  or the
Borrowers  failing  to  generate  gross  sales  of at  least  95% of the  "Sales
Forecast" line item in the Budget for each period,  on a cumulative  basis,  set
forth on the Budget or receive  collections  of accounts  receivable of at least
95% of the "Collections  Forecast" line item in the Budget for each period, on a
cumulative basis, set forth on the Budget;

     (j)  Borrowers  failing to deliver  detailed  reports to Lenders with every
funding request and no less often than once per week reporting Borrowers' sales,
collections and disbursements during the period since the prior report, arranged
by the same line item  categories  and with the same  detail as set forth in the
Budget  and  listing  the  variance,  if any,  from the sales,  collections  and
disbursements set forth in each line item of the Budget for such period;

     (k) Laurus  exercising (or commencing the exercise of) any  default-related
rights and remedies under its existing  subordinated debt documentation with the
Company or  applicable  law, or taking any actions  that are in violation of the
terms and conditions of the Original Subordination Agreement;

     (l)  the  Investors   exercising   (or  commencing  the  exercise  of)  any
default-related  rights and  remedies  under their  existing  subordinated  debt
documentation with the Company or applicable law, or taking any actions that are
in violation of the terms and conditions of the New Subordination Agreement;

     (m) Borrowers  paying the  Liabilities  under one of the Loan Agreements in
full without  simultaneously  also paying the  Liabilities  under the other Loan
Agreement in full as well; or

     (n) a default or an Event of  Default  other  than the  Specified  Defaults
occurring under either of the Loan Agreements.

     Except as otherwise set forth herein,  the Lenders  continue to reserve the
right to exercise any or all of their rights and remedies  under the  respective
Loan  Agreements,  the Other  Agreements  (as  defined in each Loan  Agreement),
applicable  law or  otherwise,  at any time and in any  manner.  Notwithstanding
anything to the contrary set forth herein and  notwithstanding  the Forbearance,
the Lenders reserve their rights under the respective Loan Agreements, the Other
Agreements (as defined in each Loan  Agreement),  applicable law or otherwise to
institute such reserves as Lenders elect in their sole  discretion  from time to
time,  during the New Forbearance  Period or otherwise.  Nothing herein shall be
construed or interpreted as being a waiver of the Lenders'  respective rights or
remedies  under the Loan  Agreements,  the Other  Agreements (as defined in each
Loan Agreement),  applicable law or of any default or Event of Default under the
respective  Loan  Agreements  (including,   without  limitation,  any  Specified
Default). No oral representations or course of dealing on the part of any Lender
or any of its officers, employees, agents, counsel or other representatives, and
no failure or delay by any Lender  with  respect to the  exercise  of any right,
power,  privilege  or  remedy  under  any  of the  Loan  Agreements,  any  Other
Agreements (as defined in each Loan  Agreement) or applicable law, shall operate
as a waiver  thereof,  and the single or  partial  exercise  of any such  right,
power,  privilege or remedy  shall not preclude any later  exercise of any other
right, power, privilege or remedy. The Lenders are under no obligation to extend

                                       4
<PAGE>

or renew the New  Forbearance  Period or waive any existing or future default or
Event  of  Default  arising  under  any  Loan  Agreement   (including,   without
limitation,  any Specified  Default).  Any agreement by the Lenders to extend or
renew the New  Forbearance  Period  must be set forth in  writing  and signed by
Lenders and by an officer of each of Tarpon and the  Borrowers,  and the Company
acknowledges  that no Lender has made any  assurances to the Company  concerning
the  likelihood of an extension or renewal of the New  Forbearance  Period.  The
Company has disclosed and will continue to so disclose to its  shareholders  and
investors (including Laurus and the Investors), among other things, that (i) the
Specified Defaults have not been waived by the Lenders, (ii) the Lenders reserve
all of their rights and remedies with respect to the Specified Defaults upon any
expiration or termination of the New  Forbearance  Period  regardless of whether
the  Company  receives  any  or all of the  proceeds  of New  Subordinated  Debt
specified herein or any proceeds of any other indebtedness or equity investment.
Without limiting the generality of any of the foregoing,  the Lenders  expressly
reserve their right under the  respective  Loan  Agreements to demand  immediate
payment of  interest on all or any  portion of the  Liabilities  under each Loan
Agreement  at the default  rate during the  continuance  of any Event of Default
(including any Specified Default).

     The Company  acknowledges  and agrees that the  Lenders are  providing  the
Forbearance  (and any Loans provided during the New  Forbearance  Period) as set
forth above to fund the  disbursements set forth on the Budget at the request of
the Company,  and that the Company continues to be responsible for operating its
businesses in the manner it deems appropriate.

     In  consideration  for the Lenders  agreeing to the continued  forbearance,
extensions of credit and other accommodations set forth herein, Eugene shall pay
to LaSalle  Midwest a  non-refundable  forbearance  fee of $25,000 and Steelbank
shall pay to LaSalle Canada a  non-refundable  forbearance  fee of $25,000 (both
such forbearance fees, collectively, the "Forbearance Fee"). The Forbearance Fee
shall be fully earned by the respective  Lenders upon the execution and delivery
of this letter agreement and shall be payable in U.S.  dollars  immediately upon
any  expiration or termination  of the New  Forbearance  Period (and the Company
acknowledges  that  the  Lenders  have  the  right  under  the  respective  Loan
Agreements to charge the Forbearance  Fee to the applicable  loans upon such Fee
becoming payable pursuant to this paragraph).

     Without in any way  limiting  the  foregoing  reservation  of  rights,  the
Lenders   direct  the   Company's   attention  to  the  terms  of  the  Original
Subordination  Agreement and demand the Company's  strict  compliance  therewith
(including, without limitation, the prohibitions on payment on account of Junior
Debt as defined therein).

                                       5

<PAGE>

     Please  indicate the Company's  acknowledgment  of and  agreement  with the
terms and  conditions  of this  letter by  signing  where  indicating  below and
returning a signed copy to the Lenders  via fax at (248)  822-5809,  Attn:  Greg
Gentry.

                                      Very truly yours,

                                      LASALLE BANK MIDWEST N.A.

                                      By: /s/ Brian Kundich
                                          ---------------------------------
                                          Brian Kundich
                                          First Vice President

                                      LASALLE BUSINESS CREDIT, A DIVISION OF
                                      ABN AMRO BANK, N.V., CANADA BRANCH

                                     By:  /s/ Aaron Tuner
                                          ---------------------------------
                                          Aaron Tuner
                                          Senior Vice President

                                          /s/ David Carson
                                          ---------------------------------
                                          David Carson
                                          Vice President

Acknowledged and Agreed:

EUGENE WELDING CO., a Michigan corporation

By: /s/ James W. Bradshaw
---------------------------
Name: James W. Bradshaw
Its:  Chief Executive Officer

STEELBANK TUBULAR INC., a New Brunswick corporation

By: /s/ James W. Bradshaw
---------------------------
Name: James W. Bradshaw
Its:  Chief Executive Officer

TARPON INDUSTRIES, INC., a Michigan corporation

By: /s/ James W. Bradshaw
---------------------------
Name: James W. Bradshaw
Its:  Chief Executive Officer

                                       6
<PAGE>

cc (via email):     Martin Battaglia
                    Brian Kundich
                    David Heller
                    Peter Knight
                    Dan McAuliffe
                    Robert D. Gordon
                    John Tucker (Laurus)

                                       7
<PAGE>
                                    EXHIBITS

[Each of the exhibits to this Agreement has been intentionally omitted]

         Exhibit A  Budget

         Exhibit B  Subordinated Debt Documents,  including  Financing Agreement
                    and all Exhibits thereto.

         Exhibit C  Subordination AgreementSUBORDINATION AGREEMENT

     This SUBORDINATION AGREEMENT (this "Agreement") is made as of this 18th day
of June,  2007,  by and among  LaSalle Bank Midwest  N.A.  ("LaSalle"),  LaSalle
Business  Credit,  a division of ABN AMRO Bank N.V.,  Canada Branch ("ABN AMRO")
(LaSalle and ABN AMRO are referred to herein  collectively and individually,  as
the context may permit, as "Lender"), High Capital Funding, LLC ("High Capital")
and other future  investors that become  signatories  hereto (together with High
Capital, the "Subordinated Creditor").

     WHEREAS, Tarpon Industries,  Inc., a Michigan corporation ("Borrower"),  is
indebted to Laurus, pursuant to a Promissory Note dated December 13, 2005 in the
original  principal  amount  of  $6,000,000  (including  all  substitutions  and
replacements  thereof,  the  "Subordinated  Note"),  which is  secured  by (i) a
guaranty,  dated as of December 13,  3005,  from Eugene  Welding Co.,  Steelbank
Tubular,  Inc., MTM Acquisition  Company,  JS&T Acquisition Company and FM, Inc.
(collectively,  the "Subsidiaries"),  and (ii) a Master Security Agreement and a
Stock Pledge Agreement, each dated as of December 13, 2005, each between Laurus,
Borrower and the Subsidiaries (collectively, the "Laurus Debt Instruments"), and
Borrower  and the  Subsidiaries  will or may  from  time  to time  hereafter  be
otherwise indebted to Laurus in various sums;

     WHEREAS, Eugene Welding Co. is indebted to LaSalle pursuant to that certain
Loan and Security  Agreement  dated August 11, 2004 (as the same may be amended,
supplemented or replaced from time to time, the "Eugene Loan  Agreement") and is
secured by a guaranty of the Borrower and Steelbank Tubular Inc.;

     WHEREAS,  Steelbank  Tubular Inc. is indebted to ABN AMRO  pursuant to that
certain  Loan  Agreement  dated  February  17, 2005 (as the same may be amended,
supplemented or replaced from time to time, the "Steelbank Loan  Agreement") and
is secured by a guaranty of the Borrower and Eugene Welding Co.;

     WHEREAS,  Laurus  Master Fund,  Ltd.  ("Laurus"),  LaSalle and ABN AMRO are
parties to that certain Subordination Agreement made as of December 13, 2005 (as
amended,  restated,  modified  or  supplemented  from time to time,  the "Laurus
Subordination Agreement"), setting forth the respective rights and intercreditor
relationship of Laurus and Lender;

     WHEREAS,  Subordinated  Creditor  has  entered  into  a  certain  financing
agreement  with  the  Borrower  dated  as  of  June  11,  2007  (the  "Financing
Agreement")  pursuant  to  which  has or will  issue  certain  notes in favor of
Subordinated  Creditor (the "Bridge Notes;" the Financing Agreement,  the Bridge
Notes and all other  documents  and  instruments  executed  and/or  delivered in
connection  therewith are referred to herein  collectively as the  "Subordinated
Creditor Debt Instruments");

<PAGE>

     WHEREAS,  Subordinated  Creditor is desirous of having Lender extend and/or
continue the extension of credit to Borrower and the  Subsidiaries  from time to
time as Lender in its sole  discretion may determine,  and Lender has refused to
consider  the  extension  and/or  continued  extension  of such credit until the
Subordinated  Creditor  Debt (as  defined  below)  and  Subordinated  Creditor's
Collateral  (as defined  below) is  subordinated  to the Senior Debt (as defined
below) and the Lender's  Collateral (as defined below) in the manner hereinafter
set forth; and

     WHEREAS,  the extension and/or continued extension of credit, as aforesaid,
by Lender is necessary or desirable to the conduct and operation of the business
of Borrower and the  Subsidiaries,  and will inure to the personal and financial
benefit of the Subordinated Creditor.

     NOW,  THEREFORE,   in  consideration  of  the  extension  and/or  continued
extension  of credit by Lender to Borrower  and/or the  Subsidiaries,  as Lender
may,  in its  sole  discretion,  determine,  and for  other  good  and  valuable
consideration to Subordinated  Creditor, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto hereby agree that:

     (A) Subordinated  Creditor  subordinates the indebtedness  evidenced by the
Subordinated  Creditor Debt Instruments,  and all substitutions and replacements
thereof,  as well as any and all other  indebtedness now or at any time or times
hereafter  owing by Borrower or any  Subsidiary,  or any  successor or assign of
Borrower or any Subsidiary,  including without limitation, a receiver,  trustee,
or   debtor-in-possession   (the  term  "Borrower"  and   "Subsidiary"  as  used
hereinafter  shall  include any such  successors  or  assigns)  to  Subordinated
Creditor,  whether  such  indebtedness  is  absolute  or  contingent,  direct or
indirect and howsoever  evidenced,  including  without  limitation  all interest
thereon  (collectively,  the  "Subordinated  Creditor  Debt")  to  any  and  all
indebtedness  now or at any time or times hereafter owing by Borrower and/or any
Subsidiary to Lender  (whether  absolute or  contingent,  direct or indirect and
howsoever evidenced,  including without limitation all interest thereon, whether
or not such interest is allowed in a bankruptcy or similar  proceeding)  and all
other demands, claims, liabilities or causes of action for which Borrower and/or
any Subsidiary may now or at any time or times hereafter in any way be liable to
Lender,  whether  under any  agreement,  instrument,  or document  executed  and
delivered  or  made  by  Borrower  or any  Subsidiary  to  Lender  or  otherwise
(collectively, the "Senior Debt");

     (B)  Subordinated  Creditor agrees not to ask for or receive from Borrower,
any  Subsidiary or any other person or entity any security for the  Subordinated
Creditor  Debt  not  specifically  granted  by the  Subordinated  Creditor  Debt
Instruments;  agrees to subordinate all security interests,  liens, encumbrances
and  claims,  whether now  existing  or  hereafter  arising,  including  without
limitation  claims under guaranties of the Subordinated  Creditor Debt, which in
any way secure the  payment of the  Subordinated  Creditor  Debt  ("Subordinated
Creditor's  Collateral")  to all security  interests,  liens,  encumbrances  and
claims, whether now existing or hereafter arising,  including without limitation

                                       2
<PAGE>

claims under  guaranties of the Senior Debt, which in any way secure the payment
of the Senior Debt (the "Lender's Collateral");

     (C)  Subordinated  Creditor  agrees  that it will not take  any  action  to
enforce any of its liens or claims on Subordinated Creditor's Collateral, unless
and until Lender has, in writing, notified Subordinated Creditor that the Senior
Debt has been paid in full and all obligations  arising in connection  therewith
have been  discharged;  agrees that in the event Lender  forecloses  or realizes
upon or enforces  any of its rights  with  respect to  Lender's  Collateral,  or
Borrower or any  Subsidiary  sells any of Lender's  Collateral  in a transaction
consented to by Lender,  Subordinated Creditor shall, upon demand,  execute such
terminations,  partial  releases and other  documents as Lender  requests in its
sole  discretion to release  Subordinated  Creditor's  lien and claims upon such
Lender's Collateral to the extent of such parties' interest therein; agrees that
it shall have no right to  possession  of any assets  included  in the  Lender's
Collateral,  whether by judicial  action or  otherwise,  unless and until Lender
has, in writing,  notified  Subordinated  Creditor  that all the Senior Debt has
been paid in full and all obligations arising in connection  therewith have been
discharged; agrees that it will not contest the validity,  perfection,  priority
or  enforceability  of any lien or security interest now or hereafter granted to
secure the Senior Debt; and agrees that, as between Lender and the  Subordinated
Creditor, the terms of this Subordination  Agreement shall govern even if all or
part of the Lender's claim or the liens or security  interests  securing payment
thereof, are avoided, disallowed, set aside or otherwise invalidated;

     (D) Subordinated  Creditor agrees to instruct Borrower and the Subsidiaries
not to pay, and agrees not to accept payment of, or assert,  demand,  sue for or
seek to  enforce  against  Borrower,  the  Subsidiaries  or any other  person or
entity, by setoff or otherwise,  all or any portion of the Subordinated Creditor
Debt or any of the  Subordinated  Creditor  Debt  Instruments  unless  and until
Lender has, in writing,  notified Subordinated Creditor that the Senior Debt has
been paid in full and all obligations arising in connection  therewith have been
discharged;  except,  however,  until  the  occurrence  of an event  that  would
constitute an Event of Default  (with or without  notice or lapse of time) under
that certain Loan and Security  Agreement between Eugene Welding Co. and LaSalle
dated August 11, 2004, as the same may be amended, supplemented or replaced from
time to time (the "EWCO Loan  Agreement"),  or under that certain Loan Agreement
between Steelbank Tubular Inc. and ABN AMRO dated February 17, 2005, as the same
may be amended,  supplemented or replaced from time to time (the "Steelbank Loan
Agreement"),  or under any other loan  agreement  between  Lender  and  Borrower
and/or any other Subsidiary (such other loan agreements, the EWCO Loan Agreement
and the  Steelbank  Loan  Agreement are  collectively  referred to herein as the
"Loan Agreement"),  Borrower may make and Subordinated  Creditor may accept from
Borrower  regularly  scheduled  payments of  principal  and  interest  under the
Subordinated  Creditor Debt  Instruments on an  unaccelerated  basis when and as
due, to the extent such payments  would not otherwise  cause an Event of Default
under the Loan Agreement;

     (E)  Notwithstanding  anything to the contrary stated herein,  in the event
that the Borrower  completes a Qualified  Offering (as defined in the  Financing
Agreement as in effect on the date hereof)  raising a minimum of  $6,000,000  of

                                       3
<PAGE>

gross  proceeds,  then  payment of  principal  and  accrued  interest  under the
Subordinated  Creditor Debt Instruments may be made to the Subordinated Creditor
provided that (1) no Event of Default under the Steelbank  Loan Agreement or the
EWCO Loan Agreement  (including,  without limitation,  any Specified Default, as
such term is  defined  below) is then  outstanding  and (2) the New  Forbearance
Period (as  defined in that  certain  letter  agreement  between  Lender and the
Company  dated as of June 18,  2007  (the  "Forbearance  Letter"))  has not been
terminated and has not ended by its terms;

     (F) Borrower and Subordinated  Creditor  acknowledge that as of the date of
this  Agreement,  Events of Default have  occurred,  are continuing and have not
been waived by Lender  under the Loan  Agreement  (as further  described  in the
Forbearance Letter, the "Specified Defaults"),  and therefore, as of the date of
this Agreement and until further notice from Lender to Subordinated  Creditor to
the  contrary,  Borrower may not make and  Subordinated  Creditor may not accept
from Borrower any payment of  principal,  interest or any other amount under the
Subordinated Creditor Debt Instruments notwithstanding Paragraph (D) above;

     (G) Subordinated  Creditor  subrogates Lender to the Subordinated  Creditor
Debt and Subordinated  Creditor's  Collateral and irrevocably  authorizes Lender
(i) to collect, receive, enforce and accept any and all sums or distributions of
any kind that may become due,  payable or  distributable on or in respect of the
Subordinated Creditor Debt or Subordinated  Creditor's Collateral,  whether paid
directly by  Borrower or paid or  distributed  in any  liquidation,  bankruptcy,
arrangement, receivership, assignment, reorganization or dissolution proceedings
or otherwise,  and (ii) in Lender's sole discretion,  to make and present claims
therefor in, and take such other actions as Lender deems  necessary or advisable
in connection with, any such proceedings, in Lender's name; and agrees that upon
the written request of Lender,  it will promptly assign,  endorse and deliver to
and deposit with Lender all agreements, instruments and documents evidencing the
Subordinated  Creditor  Debt,  including  without  limitation  the  Subordinated
Creditor Debt Instruments;

     (H)  Subordinated  Creditor  agrees  to  receive  and hold in trust for and
promptly turn over to Lender,  in the form received  (except for the endorsement
or assignment by Subordinated  Creditor where  necessary),  any sums at any time
paid to, or received by, Subordinated Creditor in violation of the terms of this
Agreement and to reimburse Lender for all costs, including reasonable attorney's
fees,  incurred  by  Lender  in  the  course  of  collecting  said  sums  should
Subordinated Creditor fail to voluntarily turn the same over to Lender as herein
required.  If  Subordinated  Creditor  fails to  endorse or assign to Lender any
items  of  payment   received  by  Subordinated   Creditor  on  account  of  the
Subordinated Creditor Debt or Subordinated  Creditor's Collateral,  Subordinated
Creditor  hereby  irrevocably  makes,  constitutes  and appoints Lender (and all
persons  designated by Lender for that purpose) as Subordinated  Creditor's true
and lawful attorney and agent-in-fact, to make such endorsement or assignment in
Subordinated Creditor's name; and

                                       4
<PAGE>

     (I)  Subordinated  Creditor  agrees  that it shall not  modify or amend any
agreement,  instrument  or  document  evidencing  or securing  the  Subordinated
Creditor  Debt,  including  without  limitation the  Subordinated  Creditor Debt
Instruments, without the prior written consent of Lender.

     Subordinated  Creditor  represents and warrants to Lender that Subordinated
Creditor has not assigned or otherwise  transferred  the  Subordinated  Creditor
Debt or the Subordinated  Creditor's Collateral,  or any interest therein to any
person or entity,  that  Subordinated  Creditor will make no such  assignment or
other  transfer  thereof  unless the  instrument  of  assignment  or transfer is
endorsed  with proper  notice of this  Agreement and such assignee or transferee
agrees  to be bound by its  terms,  and that  all  agreements,  instruments  and
documents  evidencing  the  Subordinated  Creditor  Debt  and  the  Subordinated
Creditor's  Collateral  will be endorsed with proper  notice of this  Agreement.
Subordinated Creditor will promptly deliver to Lender a copy of the Subordinated
Creditor  Debt  Instruments,   as  well  as  copies  of  all  other  agreements,
instruments and documents hereafter  evidencing any Subordinated  Creditor Debt.
Subordinated  Creditor  represents  and warrants to Lender that the  outstanding
principal  amount of  Subordinated  Creditor Debt evidenced by the  Subordinated
Creditor Debt Instruments as of the date of this Agreement is $500,000, and such
principal  amount  shall not be  increased  to more  than a total of  $1,700,000
without the prior written consent of the Lender.

     Subordinated  Creditor  expressly  waives all notice of the  acceptance  by
Lender of the  subordination  and other  provisions  of this  Agreement  and all
notices not specifically  required pursuant to the terms of this Agreement,  and
Subordinated Creditor expressly waives reliance by Lender upon the subordination
and other provisions of this Agreement as herein provided  Subordinated Creditor
consents  and  agrees  that all  Senior  Debt shall be deemed to have been made,
incurred  and/or  continued  at the  request  of  Subordinated  Creditor  and in
reliance upon this Agreement.  Subordinated Creditor agrees that Lender has made
no warranties or  representations  with respect to the due execution,  legality,
validity,  completeness  or  enforceability  of the documents,  instruments  and
agreements  evidencing the Senior Debt,  that Lender shall be entitled to manage
and supervise its financial  arrangements  with Borrower and the Subsidiaries in
accordance  with its  usual  practices,  without  impairing  or  affecting  this
Agreement, and that Lender shall have no liability to Subordinated Creditor, and
Subordinated Creditor hereby waives any claim which it may now or hereafter have
against  Lender  arising out of (i) any and all actions  which  Lender  takes or
omits  to  take  (including  without  limitation  actions  with  respect  to the
creation,  perfection  or  continuation  of liens or security  interests  in any
existing or future Lender's  Collateral,  actions with respect to the occurrence
of an event of default under any documents, instruments or agreements evidencing
the Senior Debt, actions with respect to the foreclosure upon, sale, release, or
depreciation  of, or failure to realize  upon,  any of Lender's  Collateral  and
actions with respect to the  collection  of any claim for all or any part of the
Senior Debt from any account  debtor,  guarantor or other person or entity) with
respect to the documents,  instruments and agreements evidencing the Senior Debt
or to the  collection of the Senior Debt or the  valuation,  use,  protection or
release  of  Lender's  Collateral  (ii)  Lender's  election  in  any  proceeding
instituted under Canadian  bankruptcy and insolvency laws or under Chapter 11 of
Title 11 of United States Code (11 U.S.C.  ss.ss. 101 et. seq.) (the "Bankruptcy

                                       5
<PAGE>

Code"), of the application of Section  1111(b)(2) of the Bankruptcy Code, and/or
(iii) any  borrowing or grant of a security  interest  under  Section 364 of the
Bankruptcy  Code or by court order by Borrower or any  Subsidiary,  as debtor in
possession.  Without  limiting the  generality  of the  foregoing,  Subordinated
Creditor waives the right to assert the doctrine of marshalling  with respect to
any of the Lender's Collateral,  and consents and agrees that Lender may proceed
against  any or all of the  Lender's  Collateral  in such order as Lender  shall
determine in its sole discretion.

     Subordinated Creditor agrees that Lender, at any time and from time to time
hereafter, may enter into such agreements with Borrower and/or any Subsidiary as
Lender may deem proper extending the time of payment of or renewing or otherwise
altering the terms of all or any of the Senior Debt or affecting any of Lender's
Collateral,  and may sell or surrender  or  otherwise  deal with any of Lender's
Collateral,  and may release any balance of funds of Borrower or any  Subsidiary
with  Lender,  without  notice to  Subordinated  Creditor and without in any way
impairing or affecting this Agreement.

     This  Agreement  shall be  irrevocable  and shall  constitute  a continuing
agreement of  subordination  and shall be binding on the undersigned and each of
their respective  successors and assigns,  and shall inure to the benefit of the
other parties hereto, and each of their respective  successors and assigns until
the earlier of the following: (i) Lender has, in writing,  notified Subordinated
Creditor  that all of the Senior Debt has been paid in full and all  obligations
arising in connection  therewith  have been  discharged,  and (ii)  Subordinated
Creditor has, in writing,  notified Lender that all of the Subordinated Creditor
Debt has been paid in full and all obligations  arising in connection  therewith
have been  discharged.  Lender  may  continue,  without  notice to  Subordinated
Creditor, to lend monies, extend credit and make other accommodations to or for
the account of Borrower and/or any Subsidiary on the faith hereof.  Subordinated
Creditor  hereby  agrees  that all  payments  received by Lender may be applied,
reversed, and reapplied, in whole or in part, to any of the Senior Debt, without
impairing or affecting this  Agreement.  This  Agreement  shall not inure to the
benefit of any third parties.

     Subordinated  Creditor  hereby  assumes  responsibility  for keeping itself
informed of the financial condition of Borrower,  the Subsidiaries,  any and all
endorsers  and any and all  guarantors  of the Senior Debt and the  Subordinated
Creditor Debt and of all other circumstances bearing upon the risk of nonpayment
of the Senior Debt and the  Subordinated  Creditor  Debt that  diligent  inquiry
would reveal, and Subordinated  Creditor hereby agrees that Lender shall have no
duty to advise  Subordinated  Creditor of information  known to Lender regarding
such condition or any such circumstances or to undertake any investigation not a
part of its regular business routine; and Lender hereby agrees that Subordinated
Creditor  shall  have  no  duty  to  advise  Lender  of  information   known  to
Subordinated  Creditor  regarding such condition or any such circumstances or to
undertake  any  investigation  not a part of its regular  business  routine.  If
Lender, in its sole discretion, undertakes, at any time or from time to time, to
provide any information of the type described  herein to Subordinated  Creditor,
Lender shall be under no obligation to subsequently  update any such information
or to provide any such  information to  Subordinated  Creditor on any subsequent

                                       6
<PAGE>

occasion; and if Subordinated Creditor, in its sole discretion,  undertakes,  at
any time or from time to time, to provide any  information of the type described
herein  to  Lender,  Subordinated  Creditor  shall  be under  no  obligation  to
subsequently  update any such  information or to provide any such information to
Lender on any subsequent occasion.

     Subordinated Creditor hereby authorizes Lender to file and/or record UCC or
PPSA financing  statements for the purpose of providing  notice to third parties
of the existence and effect of this Agreement.

     No  waiver  shall  be  deemed  to be made by  Lender  of any of its  rights
hereunder  unless the same shall be in writing  signed on behalf of Lender,  and
each such  waiver,  if any,  shall be a waiver only with respect to the specific
matter or  matters to which the  waiver  relates  and shall in no way impair the
rights of Lender or the  obligations of  Subordinated  Creditor to Lender in any
other respect at any other time.

     Nothing  contained  herein  shall  be  deemed  to  alter,  modify,   amend,
supplement or replace the Laurus Subordination Agreement,  which remains in full
force and effect.  In the event of any  conflict or  inconsistency  between this
Agreement  and the Laurus  Subordination  Agreement,  the  Laurus  Subordination
Agreement shall control.

     THIS AGREEMENT SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF THE
STATE OF MICHIGAN.

     To  induce  Lender  to  accept  this   Agreement,   Subordinated   Creditor
irrevocably  agrees that,  subject to Lender's sole and absolute  election,  ALL
ACTIONS OR PROCEEDINGS IN ANY WAY, MANNER OR RESPECT,  ARISING OUT OF OR FROM OR
RELATED TO THIS  AGREEMENT  SHALL BE LITIGATED IN COURTS HAVING SITUS WITHIN THE
CITY OF GRAND RAPIDS, STATE OF MICHIGAN.  SUBORDINATED  CREDITOR HEREBY CONSENTS
AND SUBMITS TO THE  JURISDICTION  OF ANY LOCAL,  STATE OR FEDERAL COURTS LOCATED
WITHIN SAID CITY AND STATE. SUBORDINATED CREDITOR HEREBY WAIVES ANY RIGHT IT MAY
HAVE  TO  TRANSFER  OR  CHANGE  THE  VENUE  OF ANY  LITIGATION  BROUGHT  AGAINST
SUBORDINATED CREDITOR BY LENDER IN ACCORDANCE WITH THIS PARAGRAPH.

     SUBORDINATED  CREDITOR  HEREBY  WAIVES  ALL  RIGHTS TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING WHICH PERTAINS DIRECTLY OR INDIRECTLY TO THIS AGREEMENT.

                                       7
<PAGE>

IN WITNESS  WHEREOF,  this  Agreement  has been  executed as of this 18th day of
June, 2007.

                            HIGH CAPITAL FUNDING, LLC

                            By: /s/ Fred A. Brasch
                                --------------------------------------------
                                Fred A. Brasch

                            Address:
                            333 Sandy Springs Circle, Suite 230
                            Atlanta, GA 30328

                            Attention: Fred A. Brasch, CFO

                            [SUBORDINATED CREDITOR]

                            By:
                                ----------------------------------
                                   [Subordinated Creditor]

                            Address:

                            -----------------------------------------------
                            -----------------------------------------------
                            -----------------------------------------------
                            Attention:
                                      -----------------------------------------

                           [SUBORDINATED CREDITOR]

                            By:
                                ----------------------------------
                                   [Subordinated Creditor]

                            Address:
                            -----------------------------------------------
                            -----------------------------------------------
                            -----------------------------------------------
                            Attention:
                                      -----------------------------------------

                                       8
<PAGE>

                           [SUBORDINATED CREDITOR]

                            By:
                                ----------------------------------
                                   [Subordinated Creditor]

                            Address:
                            -----------------------------------------------
                            -----------------------------------------------
                            -----------------------------------------------
                            Attention:
                                      -----------------------------------------

                           [SUBORDINATED CREDITOR]

                            By:
                                ----------------------------------
                                   [Subordinated Creditor]

                            Address:
                            -----------------------------------------------
                            -----------------------------------------------
                            -----------------------------------------------
                            Attention:
                                      -----------------------------------------

                                       9
<PAGE>

ACKNOWLEDGMENT OF SIGNATURES
STATE OF                            )
         ---------------------------
                                    ) SS.
COUNTY OF                           )
          --------------------------

     I,  _____________,  a  Notary  Public  in and  for  the  state  and  county
aforesaid,  do  hereby  certify  that  before  me this day  personally  appeared
_______________,  known  to me to be  the  _______________  of the  entity  that
executed the foregoing Agreement, and acknowledged to me that he (they) executed
and delivered the foregoing  Agreement for and on behalf of the entity,  for the
uses set forth therein.

     IN WITNESS  WHEREOF,  I have  hereunto set my hand and  official  seal this
______ day of ________, 2007.

                                  --------------------------------------------
                                  Notary Public
                                  My Commission Expires:
                                                        ----------------------

                                       10
<PAGE>

                      BORROWER'S AND SUBSIDIARIES' CONSENT

     Borrower  and  the  Subsidiaries  each  hereby  consents  to the  foregoing
Agreement  (and the terms  thereof)  and  agrees to abide  thereby  and to keep,
observe and perform the several matters and things therein  intended to be kept,
observed and performed by it, and  specifically  agrees not to make any payments
contrary to the terms of said Agreement.

     A  breach  of any  of the  terms  and  conditions  of  this  consent  shall
constitute an "Event of Default"  under the Eugene Loan  Agreement and under the
Steelbank Loan Agreement.

FM, INC.                                     TARPON INDUSTRIES, INC.

By: /s/ James W. Bradshaw                    By: /s/ James W. Bradshaw
    ---------------------------                  ---------------------------
Name:  James W. Bradshaw                         Name:  James W. Bradshaw
Title: Chief Executive Officer                   Title: Chief Executive Officer

                                             EUGENE WELDING CO.

                                             By /s/ James W. Bradshaw
                                                -----------------------------
                                                Title: Chief Executive Officer

                                             STEELBANK TUBULAR INC.

                                             By /s/ James W. Bradshaw
                                                -----------------------------
                                                Title: Chief Executive Officer

                                             MTM ACQUISITION COMPANY

                                             By /s/ James W. Bradshaw
                                                -----------------------------
                                                Title: Chief Executive Officer

                                             JS&T ACQUISITION COMPANY

                                             By /s/ James W. Bradshaw
                                                -----------------------------
                                                Title: Chief Executive Officer

                                       11
<PAGE>

                          ACKNOWLEDGMENT OF SIGNATURES

STATE OF                            )
         ---------------------------
                                    ) SS.
COUNTY OF                           )
          --------------------------

     I, ______________________,  a Notary Public in and for the state and county
aforesaid,  do  hereby  certify  that  before  me this day  personally  appeared
________________  known to me to be the  ______________  of the corporation that
executed the foregoing  consent and  acknowledged  to me that he (they) executed
and delivered the foregoing  consent for and on behalf of the  corporation,  for
the uses set forth therein.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal this ____
day of _________, 2007.

                                           ------------------------------------
                                           Notary Public
                                           My Commission Expires:
                                                                 ---------------

                          ACKNOWLEDGMENT OF SIGNATURES

STATE OF                            )
         ---------------------------
                                    ) SS.
COUNTY OF                           )
          --------------------------

     I, ______________________,  a Notary Public in and for the state and county
aforesaid,  do  hereby  certify  that  before  me this day  personally  appeared
_____________  known to me to be the __________ of the corporation that executed
the  foregoing  consent  and  acknowledged  to me that he  (they)  executed  and
delivered the foregoing  consent for and on behalf of the  corporation,  for the
uses set forth therein.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal this ____
day of _____________, 2007.

                                           ------------------------------------
                                           Notary Public
                                           My Commission Expires:
                                                                 ---------------

                                       12
<PAGE>

                          ACKNOWLEDGMENT OF SIGNATURES

STATE OF                            )
         ---------------------------
                                    ) SS.
COUNTY OF                           )
          --------------------------

     I, ______________________,  a Notary Public in and for the state and county
aforesaid,  do  hereby  certify  that  before  me this day  personally  appeared
_____________  known to me to be the __________ of the corporation that executed
the  foregoing  consent  and  acknowledged  to me that he  (they)  executed  and
delivered the foregoing  consent for and on behalf of the  corporation,  for the
uses set forth therein.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal this ____
day of _____________, 2007.

                                           ------------------------------------
                                           Notary Public
                                           My Commission Expires:
                                                                 ---------------

                          ACKNOWLEDGMENT OF SIGNATURES

STATE OF                            )
         ---------------------------
                                    ) SS.
COUNTY OF                           )
          --------------------------

     I, ______________________,  a Notary Public in and for the state and county
aforesaid,  do  hereby  certify  that  before  me this day  personally  appeared
_____________  known to me to be the __________ of the corporation that executed
the  foregoing  consent  and  acknowledged  to me that he  (they)  executed  and
delivered the foregoing  consent for and on behalf of the  corporation,  for the
uses set forth therein.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal this ____
day of _____________, 2007.

                                           ------------------------------------
                                           Notary Public
                                           My Commission Expires:
                                                                 ---------------

                                       13
<PAGE>

                          ACKNOWLEDGMENT OF SIGNATURES

STATE OF                            )
         ---------------------------
                                    ) SS.
COUNTY OF                           )
          --------------------------

     I, ______________________,  a Notary Public in and for the state and county
aforesaid,  do  hereby  certify  that  before  me this day  personally  appeared
_____________  known to me to be the __________ of the corporation that executed
the  foregoing  consent  and  acknowledged  to me that he  (they)  executed  and
delivered the foregoing  consent for and on behalf of the  corporation,  for the
uses set forth therein.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal this ____
day of _____________, 2007.

                                           ------------------------------------
                                           Notary Public
                                           My Commission Expires:
                                                                 ---------------

                          ACKNOWLEDGMENT OF SIGNATURES

STATE OF                            )
         ---------------------------
                                    ) SS.
COUNTY OF                           )
          --------------------------

     I, ______________________,  a Notary Public in and for the state and county
aforesaid,  do  hereby  certify  that  before  me this day  personally  appeared
_____________  known to me to be the __________ of the corporation that executed
the  foregoing  consent  and  acknowledged  to me that he  (they)  executed  and
delivered the foregoing  consent for and on behalf of the  corporation,  for the
uses set forth therein.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal this ____
day of _____________, 2007.

                                           ------------------------------------
                                           Notary Public
                                           My Commission Expires:
                                                                 ---------------

                                       14
<PAGE>

                                LENDER'S CONSENT

     LaSalle hereby consents and agrees to the foregoing Agreement (and the
terms thereof).

                                LASALLE BANK MIDWEST N.A.

                                By: /s/ Brian Kunich
                                    --------------------------------------
                                    Brian Kunich
                                    First Vice President

     ABN AMRO hereby  consents and agrees to the  foregoing  Agreement  (and the
terms thereof).

                                 LASALLE BUSINESS CREDIT, a division of
                                 ABN AMRO BANK N.V., CANADA BRANCH

                                 By:  /s/ Aaron Tuner
                                      ---------------------------------
                                      Aaron Tuner
                                      Senior Vice President

                                      /s/ David Carson
                                      ---------------------------------
                                      David Carson
                                      Vice President

                          ACKNOWLEDGMENT OF SIGNATURES

STATE OF                            )
         ---------------------------
                                    ) SS.
COUNTY OF                           )
          --------------------------

     I,  ______________________  a Notary Public in and for the state and county
aforesaid,  do  hereby  certify  that  before  me this day  personally  appeared
_____________, known to me to be the __________ of the corporation that executed
the  foregoing  consent  and  acknowledged  to me that he  (they)  executed  and
delivered the foregoing  consent for and on behalf of the  corporation,  for the
uses set forth therein.

     IN WITNESS WHEREOF, I have hereunto set my hand and official seal this ____
day of __________, 2007.

                                        ______________________________________
                                        Notary Public
                                        My Commission Expires:  ______________

                 (Additional acknowledgement on following page)

                                       15
<PAGE>

                          ACKNOWLEDGMENT OF SIGNATURES

STATE OF                            )
         ---------------------------
                                    ) SS.
COUNTY OF                           )
          --------------------------

     I,  ______________________  a Notary Public in and for the state and county
aforesaid,  do  hereby  certify  that  before  me this day  personally  appeared
_____________, known to me to be the __________ of the corporation that executed
the  foregoing  consent  and  acknowledged  to me that he  (they)  executed  and
delivered the foregoing  consent for and on behalf of the  corporation,  for the
uses set forth therein.

     IN WITNESS WHEREOF,  I have hereunto set my hand and official seal this ___
day of ___________________, 2007.

                                         ______________________________________
                                         Notary Public
                                         My Commission Expires:  ______________

                                       16
<PAGE>

                                 LAURUS CONSENT

     Laurus hereby consents and agrees to the foregoing Agreement (and the terms
thereof);  provided that, Laurus' consent to the foregoing Agreement shall in no
way alter or modify the  obligations of and/or  restrictions  placed upon Tarpon
Industries,  Inc. ("Tarpon"),  the Subsidiaries of Tarpon, High Capital Funding,
LLC ("High  Capital")  and/or other  future  investors  that become  signatories
thereto ("Other  Investors") under that certain other  Subordination  Agreement,
dated as of June 18,  2007 by and  between  Laurus,  High  Capital and the Other
Investors, as consented to by various parties.

                                         LAURUS MASTER FUND, LTD.

                                         By: /s/Eugene Grin
                                           ------------------------------------
                                         Title: Director

                          ACKNOWLEDGMENT OF SIGNATURES

STATE OF NEW YORK              )
                               ) SS.
COUNTY OF NEW YORK             )

     I,  Christian  Thomas,  a Notary  Public in and for the  state  and  county
aforesaid,  do hereby certify that before me this day personally appeared Eugene
Grin,  known to me to be the Director of Laurus Master Fund,  Ltd. that executed
the  foregoing  consent  and  acknowledged  to me that he  (they)  executed  and
delivered the foregoing  consent for and on behalf of the  corporation,  for the
uses set forth therein.

     IN WITNESS  WHEREOF,  I have  hereunto set my hand and  official  seal this
18th day of June, 2007.

                                      /s/Christian Thomas
                                      ---------------------------------------
                                      Notary Public
                                      My Commission Expires:  3/28/09

                                       17

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