Document:

<PAGE>
                                                                    EXHIBIT 4.14

                            SUBORDINATION AGREEMENT

         THIS AGREEMENT is dated as of 14th day of May, 2004 between Barry
Seigel, Jeffery Greenberg, Mark Madigan (collectively the "Principals") and
Greenfield Commercial Credit (Canada) Inc. ("Greenfield");

         WHEREAS Steelbank Inc. (the "Corporation") proposes to enter into a
Factoring and Security Agreement and a General Security Agreement (collectively
the "Greenfield Security") each between the Corporation and Greenfield made the
14th day of May, 2004 pursuant to which Greenfield agreed to provide certain
financing to Corporation;

         WHEREAS the Principals have by purchase agreement dated April 2, 2004,
as amended (the "Purchase Agreement") agreed to sell all of their shares in the
capital stock of the Corporation to BST Acquisition Ltd. ("BST");

         WHEREAS pursuant to the terms of the Purchase Agreement, the
Corporation has guaranteed certain obligations of BST in favour of the
Principals by Guarantee dated as of May 14, 2004 (the "Guarantee") and in
support for such Guarantee, the Corporation has granted to the Principals a
general security agreement over all of the Corporation's assets dated as of May
14, 2004 (the "GSA") (the Guarantee and the GSA collectively, the "Principal
Documents");

         WHEREAS the Corporation and each of the Principals have entered into
employment agreements dated as of May 14, 2004 (collectively the "Employment
Agreements") providing for their continued employment with the Corporation;

         WHEREAS pursuant to the terms of the Guarantee, the Corporation has
agreed to pay to the Principals the aggregate amount of $375,000 in the event
that certain shares in the capital stock of Tarpon Industries, Inc. are not
issued to the Principals on or before December 10, 2004 (the "Corporation's
Covenant");

         WHEREAS it is desirable that the Principals and Greenfield confirm
their respective priorities as creditors of the Corporation and as secured
parties with respect to the assets of the Corporation.

<PAGE>
                                                                              2.

         NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the
mutual covenants and agreements herein contained, other good and valuable
consideration and the sum of Two Dollars ($2.00) of lawful money of Canada paid
by and between Greenfield and the Principals (the receipt and sufficiency of
which consideration are hereby acknowledged), the parties hereto agree as
follows:

1.       Postponement of Payment of Indebtedness.

         The Principals hereby postpone payment by the Corporation to the
Principals of all present and future indebtedness and liability now or
hereafter owing by the Corporation to the Principals, whether direct or
indirect, absolute or contingent, matured (by way of acceleration or otherwise)
or unmatured arising from or out of the Principal Documents (the "PRINCIPAL
DEBT"), but specifically excluding any and all present and future indebtedness
and liability now or hereinafter owning by the Corporation to the Principals
under the Employment Agreements (the "EMPLOYMENT OBLIGATIONS") and so long as
no event of default has occurred under the Senior Security, the Corporation's
payment obligations under the Corporation's Covenant (collectively with the
Employment Obligations, the "EXCLUDED DEBT") to and in favour of the payment of
all present and future indebtedness and liability now or hereafter owing by the
Corporation to Greenfield, whether direct or indirect, absolute or contingent,
matured (by way of acceleration or otherwise) as unmatured (collectively, the
"SENIOR DEBT"). Except for the Excluded Debt and except as permitted under the
terms of the Greenfield Security, the Principals shall not obtain or receive
payment of any amount of the Principal Debt from any person or source until the
Senior Debt has been fully paid in cash and until Greenfield has no obligations
to extend credit to the Corporation.

2.       Postponement and Subordination of Security.

         The Principal hereby postpones and subordinates all existing and future
security heretofore, now or hereafter delivered by the Corporation to the
Principals (collectively, the "PRINCIPAL SECURITY") to and in favour of the
Greenfield Security and all existing and future security heretofore, now or
hereafter delivered by the Corporation to Greenfield (collectively, the "SENIOR
SECURITY"). Notwithstanding any priority to which the Principal may be or may
hereafter become entitled for any reason whatsoever (including, without
limitation, priority by
<PAGE>
                                                                              3.

date and the time or order of creating, granting or executing any document, the
actual or alleged invalidity or unenforceability of any of the Senior
Security, the perfection of, or the giving of notice or any demand for payment
under the date of advance, registration, publication, filing or crystallization
of or in respect of any charge or encumbrance contained in the Principal
Security and the security interests created thereby or by any provisions of any
relevant law or statute), the Senior Security and all rights provided
thereunder or by law or otherwise shall have full and absolute priority over
and with respect to the Principal Security, and the Principal Security shall in
all respects be postponed and rank subordinate and junior to the Senior
Security and all rights provided thereunder or by law otherwise until the
parties hereto agree otherwise in writing or all of the Senior Debt is repaid
in full. All liens, charges, security interests and other encumbrances
contained in the Senior Security shall, in all events and under all
circumstances, rank in priority to all liens, charges, security interests and
other encumbrances contained in the Principal Security.

3.      No Enforcement of the Principal Debt and the Principal Security.

        The Principals shall not, without the prior written consent of
Greenfield, claim, demand, sue for, commence any action, commence any
proceeding or take any step (including exercising any right of set-off,
initiating any bankruptcy or insolvency proceeding or any step or proceeding to
challenge the validity or enforceability of any of the Senior Debt or the
Senior Security, or otherwise) to enforce any right of the Principals pursuant
to or in respect of the Principal Debt (including the collection thereof) or
any of the Principal Security (including the realization thereof), until the
date on which the Senior Debt has been paid in full in cash and Greenfield has
no obligation to extend credit to the Corporation.

4.      Liquidation, Dissolution, Bankruptcy.

        In the event of distribution, division or application, partial or
complete, voluntary or involuntary, by operation of law or otherwise, of all or
any part of the assets of the Corporation, or the proceeds thereof, to
creditors or any proposal by the Corporation to creditors for a readjustment,
reamortization or restructuring of the Senior Debt or the Principal Debt, or
other readjustment of any of the indebtedness or liabilities of the
Corporation, whether by reason of liquidation, bankruptcy, arrangement,
receivership, assignment for the benefit of creditors,
<PAGE>
                                                                              4.

marshalling of the assets or liabilities of the Corporation or any other
action or proceeding involving the readjustment of all or any part of the
Senior Debt or the Principal Debt, or the application of the assets of the
Corporation to the payment or liquidation thereof, or upon the dissolution or
other winding-up of the business of the Corporation, or upon the sale of all or
substantially all of the business of the Corporation, Greenfield shall be
entitled to receive payment in full in cash of the Senior Debt (including
interest accruing to the date of receipt of such payment at the rate applicable
to the relevant part of the Senior Debt, whether or not allowed as a claim in
any such proceeding) before the Principals are entitled to receive any direct
or indirect payment or distribution of any cash or other assets of the
Corporation on account of the Principal Debt and, to that end, Greenfield shall
be entitled to receive directly, for application in payment of the Senior Debt
(to the extent necessary to pay all Senior Debt in full in cash after giving
effect to any substantially concurrent payment or distribution to Greenfield in
respect of the Senior Debt), any payment or distribution of any kind or
character, whether in cash or other assets, which shall be payable or
deliverable upon or with respect to the Principal Debt. To the extent any
payment of Senior Debt (whether by or on behalf of the Corporation, as proceeds
of security or enforcement of any right of set-off or otherwise) is declared to
be fraudulent or preferential, set aside or required to be paid to a trustee,
receiver and manager or other similar person under any bankruptcy, insolvency,
receivership or similar law or proceeding, then if such payment is recoverable
by, or paid over to, such trustee, receiver, receiver and manager or other
person, the Senior Debt or part thereof originally intended to be satisfied
shall be deemed to be reinstated and outstanding as if such payment had not
occurred.

5.       Payments Received by the Principal.

         If, notwithstanding the provisions of this Agreement, prior to the
payment in full in cash of the Senior Debt, the Principals (or any one or more
of them) or any person on its behalf receives any payment from or distribution
of assets of the Corporation on account of the Principal Debt, which under the
provisions of this Agreement, the Principals are not specifically authorized to
receive, then the Principals shall, and will ensure that any such other person
shall, receive and hold such payment or distribution in trust for the benefit
of Greenfield and shall promptly pay the same over to Greenfield in precisely
the form received (except for the endorsement or assignment by the Principals
or such other person where necessary) to the extent
<PAGE>
                                                                              5.

necessary to pay the Senior Debt in full after giving effect to any
substantially concurrent payment or distribution to or for the benefit of
Greenfield in respect of the Senior Debt.

6.        Notice of Default.

          The Principals shall give to Greenfield notice forthwith of any
default by the Corporation of any of the Corporation's indebtedness, liability
or obligations to any of the Principals, which notice shall specify all then
existing defaults in respect of such indebtedness, liability or obligations
which are known to the Principals.

7.        No Waiver of Subordination Provisions.

          No right of Greenfield to enforce the postponements and
subordinations as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Corporation or by any
act or failure to act by Greenfield or any agent of or trustee for Greenfield,
or by any non-compliance by the Corporation with any of the agreements or
instruments relating to the Principal Debt, regardless of any knowledge thereof
which Greenfield may have or be otherwise charged with. Without limitations to
the foregoing, Greenfield may, at any time and from time to time, without the
consent of or notice to the Principals, without incurring responsibility to the
Principals and without impairing or releasing the postponements and
subordinations and other rights or benefits provided in this Agreement or the
obligations hereunder of the Principals to Greenfield, do any one or more of
the following:

     (a)  change the manner, place or terms of payment or change or extend the
          time of payment of, or renew, exchange, amend or alter the terms of
          any Senior Debt, any Senior Security or any guarantee thereof or any
          liability of the Corporation, or any guarantor of the Senior Debt, or
          any liability incurred directly or indirectly in respect thereof, or
          otherwise increase, reduce, amend, alter, renew, exchange, modify or
          supplement in any manner the Senior Debt or any instrument evidencing
          or guaranteeing or securing the same or any agreement under which any
          of the Senior Debt is outstanding;

     (b)  sell, exchange, release, surrender, realize upon, enforce or
          otherwise deal with in any manner any assets pledged or mortgaged for
          or otherwise securing the Senior

<PAGE>
                                                                             6.

         Debt or any liability of the Corporation or any guarantor of the
         Senior Debt, or any liability incurred directly or indirectly in
         respect thereof,

    (c)  settle or compromise any Senior Debt or any other liability of the
         Corporation or any guarantor of the Senior Debt, or any security
         therefor or any liability incurred directly or indirectly in respect
         thereof, and apply any sums by whomsoever paid and however realized
         to any liability (including the Senior Debt) in any manner or order;
         and

    (d)  fail to take or to register or otherwise perfect any lien, mortgage,
         charge or security interest securing the Senior Debt, exercise or
         delay in or refrain from exercising any right or remedy against the
         Corporation or any guarantor of the Senior Debt or any security or any
         other person, and elect any remedy and otherwise deal freely with the
         Corporation and any guarantor of the Senior Debt and with any security.

8.       Application of Payments.

         All payments received by Greenfield may be applied, reversed and
reapplied, in whole or in part, to any of the Senior Debt, as Greenfield in its
sole discretion deems appropriate.

9.       Waivers by The Principal.

         All of the Senior Debt shall be deemed to have been made or incurred
and continued in reliance upon this Agreement. The Principals agree that
Greenfield has made no warranties or representations with respect to the due
execution, legality, validity, completeness, perfection or enforceability of any
agreement or instrument relating to the Senior Debt or the collectibility of the
Senior Debt, that Greenfield shall be entitled to manage and supervise its
financial accommodation to the Corporation in accordance with applicable law and
its usual practices, modified from time to time as it deems appropriate under
the circumstances, without regard to the existence of any rights that the
Principals (or any one or more of them) may now or hereafter have in or to any
of the assets of the Corporation, by virtue of the Principal Debt and that
Greenfield shall have no liability to the Principals (or any one or more of
them) for, and the Principals hereby collectively waive any claims which they
may now or hereafter have (in
<PAGE>
                                                                              7.

respect of the Principal Debt) against Greenfield arising out of, any and all
actions which Greenfield, may take or omit to take (including without limitation
actions with respect to the creation, attachment, perfection or continuation of
liens, mortgages, charges or security interests in any assets at any time
securing payment of the Senior Debt, actions with respect to the occurrence of
any default under any agreement or instrument relating to the Senior Debt,
actions with respect to the foreclosure upon, sale, release or depreciation of,
or failure to realize upon, any assets securing payment of the Senior Debt and
actions with respect to the collection of any claims for all or any part of the
Senior Debt from any account debtor, guarantor or any other person) with respect
to the Senior Debt and any agreement or instrument related thereto or with
respect to the collection of the Senior Debt or the valuation, use, protection
or release of any assets securing payment of the Senior Debt.

10.       Written Waivers.

          No waiver shall be deemed to be made by Greenfield or the Principals
of any of its or his rights hereunder, unless the same shall be in writing
signed by such party, and each waiver, if any, shall (unless specifically
expressed herein to be otherwise) be a waiver only with respect to the specific
instance involved and shall in no way impair the rights of such party or the
obligations of the other party in any other respect or at any other time.

11.       Successors and Assigns.

          The provisions of this Agreement shall be binding on and shall enure
to the benefit of Greenfield and the Principals and their respective
administrators, executors, heirs, trustees, successors and assigns. The
Principals shall not assign, sell or transfer the Principal Debt or the
Principal Security, or any part thereof, to any person, unless such person
agrees, by agreement in writing with and satisfactory to the Lender, to be
bound by the provisions of this Agreement.

12.       Notices.

          Any notice desired or required to be given under this Agreement shall
be in writing and shall be deemed to have been validly served, given or
delivered: (a) when sent, after receipt of confirmation of transmission by
facsimile, telex or similar transmission; (b) the next

<PAGE>
                                                                              8.

business day after deposit with a reputable overnight courier in Ontario with
all charges prepaid; or (c) when delivered, if hand delivered by messenger, all
of which shall be when properly addressed to the party to be notified and sent
to the address or number indicated as follows:

     If to the Lender:

     Greenfield Commercial Credit (Canada) Inc.
     316-20 Queen Street West
     Toronto, Ontario M5H 3R3
     Attention:     Chief Financial Officer
     Facsimile:     416-581-0020

     With a copy to:
     Greenfield Commercial Credit LLC
     300 E. Long Lake Rd., Suite 180
     Bloomfield Hills, Michigan 48304

     Attention:     Credit Manager
     Facsimile:     248-723-6050

     If to the Principals:

     c/o Steelbank Inc.
     5349 Maingate Drive
     Mississauga, Ontario L4W 1G6
     Facsimile:     905-212-1289

     With a copy to:
     Gardiner Roberts LLP
     20 King Street West, Suite 3100
     Toronto, Ontario M5H 3Y2

     Attention:     Fred Ernst
     Facsimile:     416-865-6636

or to such other address of a party hereto as it may designate to the other
party hereto in the manner herein prescribed.

13.  Entire Agreement; Severability.

     This Agreement contains the entire postponement and subordination
agreement between the parties hereto with respect to the indebtedness,
liabilities and assets of the

<PAGE>
                                                                              9.

Corporation. If any of the provisions of this Agreement shall be held invalid
or unenforceable by any court having jurisdiction, this Agreement shall be
construed as if not containing those provisions, and the rights and obligations
of the parties hereto shall be construed and enforced accordingly.

14.      Cumulative Rights.

         The rights, powers and remedies under this Agreement shall be in
addition to all rights, powers and remedies given by virtue of any statute or
rule of law, or any agreement or instrument, all of which rights, powers and
remedies shall be cumulative and may be exercised successively or concurrently.

15.      Information.

         From time to time upon request therefor, each of the Principal and
Greenfield shall provide to the others such information with respect to the
Corporation and its indebtedness and liabilities as may be reasonably requested.

16.      Governing Law.

         This Agreement shall be governed by and construe in accordance with
the laws of Ontario and the federal laws of Canada applicable therein.
<PAGE>
                                                                             10.

17.  Execution in Counterparts.

     This Agreement may be executed in counterparts, each of which when so
executed shall be deemed to be an original and both of which taken together
shall constitute one and the same agreement.

     IN WITNESS WHEREOF the parties hereto have duly executed this Agreement.

SIGNED, SEALED AND DELIVERED  )
in the presence of:           )
                              )
                              )
                              )
----------------------------  )  -------------------------------------------
Witness                       )  Jeffery Greenberg
                              )
/s/ [ILLEGIBLE]               )  /s/ Barry Seigel
----------------------------  )  -------------------------------------------
Witness                       )  Barry Seigel
                              )
                              )
----------------------------  )  -------------------------------------------
Witness                       )  Mark Madigan
                              )

                                 GREENFIELD COMMERCIAL CREDIT
                                 (CANADA) INC.

                                 By: /s/ H. Brock Bundy
                                    ----------------------------------------
                                 Name: H. Brock Bundy
                                 Title: Chief Financial Officer

<PAGE>

TO:       GREENFIELD COMMERCIAL CREDIT (CANADA) INC. ("GREENFIELD")

AND TO:   Barry Seigel, Jeffery Greenberg, Mark Madigan (the "PRINCIPALS")

                              BORROWER'S AGREEMENT

IN CONSIDERATION of the extension of credit by Greenfield to the Corporation,
the Corporation hereby:

1.   consents to the foregoing subordination agreement;

2.   agrees that it will not make any payments to the Principal except as may be
     expressly permitted by the foregoing Senior Security and the subordination
     agreement;

3.   agrees that it shall acquire no rights pursuant to the foregoing
     subordination agreement;

4.   agrees that in order to facilitate any subrogation rights arising pursuant
     to the foregoing subordination agreement, no payments or distributions to
     Greenfield of any cash or other assets to which the Principal would have
     been entitled but for the provisions of the foregoing subordination
     agreement, and no payments over pursuant to the provisions of the foregoing
     subordination agreement made by the Principal to Greenfield shall, as
     between the Corporation and its creditors (other than Greenfield be deemed
     to be a payment or a distribution by the Corporation to or on account of
     the Senior Debt. The Corporation shall, as between itself and such
     creditors, continue to owe all such amounts as Senior Debt, it being
     understood that this provision is solely for the purpose of facilitating
     any subrogation rights arising in favour of the Principal pursuant to the
     foregoing subordination agreement; and

5.   agrees that each of Greenfield and the Principal may provide to the other
     at any time and from time to time any information in its possession or
     control in respect of the Corporation and its affairs including, without
     limitation, notice of any default or impending default.

<PAGE>

All words capitalized in this agreement shall have the meanings assigned to
them by the foregoing subordination agreement.

DATED as of the 14th day of May, 2004.

                                    STEELBANK INC.

                                    By: /s/ Barry Seigel
                                       -----------------------------------------
                                    Name: Barry Seigel, (without personal
                                    Title: President    liability whatsoever)<PAGE>
                                                                   EXHIBIT 10.1

                                 LEASE AGREEMENT

      THIS LEASE, made as of this 22 day of October, 2001, between the CHARLES
J. LOZNAK TRUST, Douglas N. Nelson, Trustee, hereinafter referred to as
"LESSOR", and EUGENE WELDING COMPANY, a Michigan corporation, hereinafter
referred to as "LESSEE".

      W I T N E S S E T H:

PREMISES:

      Lessor, in consideration of the rentals reserved and of promises herein
contained to be kept and performed by Lessee, does hereby demise unto Lessee,
and Lessee does hereby take from Lessor, a certain tract of land, and all
buildings, structures and improvements thereon, described as set forth on
Exhibit "A" attached hereto and made a part hereof (hereinafter called
"Premises").

1.    TERM:

      TO HAVE AND TO HOLD THE SAME, with all the privileges and appurtenances
pertaining thereto for the full term of five (5) years commencing the 14th day
of October, 2001.

2.    RENT:

      Lessee shall, monthly in advance, payable on the first day of each month
during the term hereof, pay to Lessor rental for the Premises at the following
rates:

<TABLE>
<S>                                        <C>
October 14, 2001 to October 13, 2002       $20,440.33/month
October 14, 2002 to October 13, 2003       $21,273.67/month
October 14, 2003 to October 13, 2004       $22,107.00/month
October 14, 2004 to October 13, 2005       $22,940.33/month
October 14, 2005 to October 13, 2006       $25,000.00/month
</TABLE>

3.    TAXES, CHARGES AND ASSESSMENTS:

      Lessee covenants to pay, or cause to be paid, all taxes and charges:

            (a) on account of the use, occupancy or operation of the Premises;

            (b) all real estate taxes, assessments and other charges applicable
      to the Premises. At the commencement and termination of this Lease, all
      real estate taxes payable by Lessee under the provisions of this Section
      shall be

                                       1
<PAGE>

      apportioned between Lessor and Lessee as of the due date of such taxes.

4.    LIABILITY AND CASUALTY INSURANCE:

      (a) Lessee shall at all time during the term of this Lease, at its sole
cost and expense and for the mutual benefit of the Lessor and Lessee, maintain
general public liability insurance against claims for bodily injury, death or
property damage occurring in, upon or about the Premises or in, upon or about
adjoining streets, sidewalks or premises adjacent to the Premises, such
insurance to afford protection to the limit of not less than $1,000,000 in
respect of injury or death to any one person, to the limit of not less than
$1,000,000 in respect of any one accident and to the limit of not less than
$1,000,000 in respect of property damage.

      (b) Lessee shall at all times during the term of this Lease and at its
sole cost and expense keep the building or buildings and improvements on the
Premises insured for replacement cost against loss or damage by fire, lightning,
windstorm, earthquake, hail, explosion, war loss if available, damage from
aircraft and vehicles and smoke damage. Lessee shall furnish Lessor with
certificates indicating that such insurance is in effect and that Lessor is
named as an additional insured. The loss, if any, under any policy provided for
in section (b) hereof shall be adjusted with the insurance companies by Lessee,
subject to the approval of Lessor except in case of a loss of less than
$100,000. All such policies or certificates therefor, issued by the respective
insurers, shall provide that the loss, if any, thereunder, shall be adjusted and
paid as provided in this Lease. The insurance required in this section 4(b) may
be provided under blanket policies issued to Lessee covering the Premises and
other properties owned or leased by Lessee.

      (c) All insurance provided for in Sections 4 (a) and 4(b) shall be
effected with insurance companies approved by the parties, which approval shall
not be unreasonably withheld, under valid and enforceable policies, and such
policies shall name Lessor and Lessee as assureds, as their respective interests
may appear. All such policies of insurance shall provide that such policy shall
not be cancelled without at least ten (10) days prior written notice to each
assured named therein. All policies of insurance referred to in Section 4(b)
shall further provide that any loss shall be payable to Lessor or to the holder
of any mortgage, notwithstanding any act of negligence of Lessee which might
otherwise result in forfeiture of said insurance.

      (d) Lessee shall be responsible to replace or repair any damages which are
covered by the insurance contracts hereinbefore provided using the proceeds of
such insurance to defray the cost of such replacement or repair in accordance
with Section 13 hereof.

                                       2
<PAGE>

5.    LESSOR'S RIGHT TO PERFORM LESSEE'S COVENANTS:

      Lessee covenants and agrees that if it shall at any time fail to pay any
tax, charge or assessment in accordance with the provisions of Section 3, or
shall fail to make any other payment or perform any other act on the part of
Lessee to be made or performed, then Lessor may (but shall not be obligated so
to do), without further demand upon Lessee and without waiving or releasing
Lessee from any obligations of Lessee in this Lease contained: (i) pay any such
tax, charge or assessment, or (ii) make any other payment or perform any other
act on Lessee's part to be performed as in this Lease provided. All sums so paid
by Lessor, and all necessary incidental costs and expenses in connection with
the performance of any such act by Lessor, shall be deemed an additional rent
hereunder and shall be payable to Lessor on demand, and Lessee covenants to pay
any such sum or sums and Lessor shall have (in addition to any other right or
remedy of Lessor) the same rights and remedies in the event of the non-payment
thereof by Lessee as in the case of default by Lessee in the payment of the
fixed rental.

6.    REPAIRS AND MAINTENANCE OF REPAIRS:

      (a) Lessee covenants throughout the term of this Lease, at its sole cost
and expense, to maintain in good and tenantable repair, order and condition, the
buildings and improvements now, or at any time hereafter erected, on the said
land and promptly at Lessee's own cost and expense, to make all repairs,
structural and non-structural. When used in this section, the term "repairs"
shall include replacements or renewals when necessary.

      (b) All property of any kind which may be on the Premises (whether
belonging to the Lessee or to third persons), shall be at the sole risk of
Lessee or those claiming by, through or under Lessee.

7.    COMPLIANCE WITH ORDERS ORDINANCES, ETC.:

      Lessee covenants throughout the term of this Lease, at Lessee's sole cost
and expense, promptly to comply with all statutes, ordinances, orders, rules,
regulations and requirements of all federal, state, county, municipal and other
governments.

8.    MECHANIC'S LIENS:

      If any mechanic's liens are filed against the fee of the Premises or
against the Lessee's leasehold interest in said Premises, they shall be promptly
satisfied by Lessee.

                                       3
<PAGE>

9.    NET LEASE:

      Lessee and Lessor intend that this Lease be absolutely net. Lessee shall
bear all risk of damage to the Premises and shall pay all expenses related to
the Premises.

10.   CONDITION OF PREMISES:

      Lessee acknowledges that it has examined the Premises herein described and
any and all improvements or structures thereon prior to making of this lease and
knows the conditions thereof, and accepts the same in said condition, and
acknowledges that no representations as to the condition thereof have been made
by representatives of Lessor, and that Lessee in entering into this Lease, is
relying solely upon its own examination thereof.

11.   EMINENT DOMAIN:

      In the event that the Demised Premises are wholly taken or condemned for
public purposes by public authorities, then both Lessor and Lessee are released
of all of the obligations hereunder including the obligation to pay any rent
from and after the date when the condemning authority takes possession. The
entire proceeds payable as the result of any such condemnation, or taking in
lieu of condemnation, whether payable for the fee or the leasehold interest in
the fee shall be payable to Lessor; provided, however, that Lessee may make a
claim for its personal property.

      In the event of a partial taking or condemnation for public purposes, the
proceeds thereof shall be payable to Lessor and Lessee shall have the option of
either terminating this Lease or continue occupancy of the remainder of the
Premises under the same terms and conditions. This option to terminate shall be
exercised by notice in writing within 30 days after the partial taking.

12.   INDEMNIFICATION OF LESSOR:

      Lessee agrees to indemnify and save harmless Lessor and the Premises
against any and all losses, injuries, claims, demands and expenses, including
legal expenses, of whatsoever kind and nature and by whomsoever made arising
from or in any manner directly or indirectly growing out of the use and
occupancy or non-use of the Premises or any equipment or facilities thereon or
used in connection therewith, except as provided in Article 9 hereof.

13.   DAMAGE OR DESTRUCTION:

      (a) Lessee covenants and agrees that in case of damage exceeding $25,000
in amount to, or destruction of, the Premises by fire or other casualty, Lessee
shall immediately notify Lessor thereof. Lessee, at its sole cost and expense,
whether or not such damage exceeds $25,000 in amount, shall proceed to restore,
repair

                                       4
<PAGE>

or rebuild the same as nearly as possible to the condition they were in
immediately prior to such damage or destruction. Such restoration, repairs,
replacements, rebuilding or alterations shall be commenced promptly and
prosecuted with reasonable diligence.

      (b) All insurance proceeds received on account of such damage or
destruction shall be applied as hereinafter set forth to the payment of the
costs of the aforesaid restoration, repairs, replacements, rebuilding or
alteration.

      In the case of damage or destruction involving a loss of $100,000 or less,
all such insurance proceeds, if any, shall be paid to Lessee. In the case of
damage or destruction involving a loss of more than such amount, such insurance
proceeds shall be paid to Lessor and shall be disbursed to Lessee from time to
time upon receipt by Lessor of a certificate signed by an officer of the Lessee:

            (i) Requesting payment of a specified amount of such insurance
      proceeds;

            (ii) Describing in reasonable detail work and materials applied by
      Lessee to the restoration;

            (iii) Stating that such specified amount does not exceed the cost of
      such work and materials, including as part thereof the reasonable fees of
      an architect or engineer, if any; and

            (iv) Stating that no part of such cost has previously been made the
      basis of any request for withdrawal of insurance proceeds under this
      section.

Provided, however, that the balance of insurance proceeds shall not be reduced
below the amount specified in an architect's or engineer's certificate as the
amount required to complete the restoration.

      If the insurance proceeds in the hands of Lessor shall be insufficient to
pay the entire cost of such restoration, Lessee shall provide the necessary
additional funds to accomplish the restoration.

14.   DEFAULT:

      (a) If one or more of the following events (herein sometimes called
"events of default") shall happen and be continuing:

            (1) If Lessee defaults in the payment of any one of the rentals
      provided to be paid hereunder and such default shall continue for ten (10)
      days after written notice of such nonpayment by Lessor to Lessee;

                                       5
<PAGE>

            (2) If Lessee defaults in the observance or performance of any other
      covenant, condition, agreement or provision hereof unless (i) such default
      is remedied within thirty (30) days after written notice thereof from
      Lessor to Lessee or (ii) all reasonable and necessary steps to remedy the
      default are taken within such thirty (30) days period and the default in
      fact remedied within six (6) months after such notice; or

            (3) If Lessee admits insolvency or bankruptcy or its inability to
      pay its debts as they may mature, or makes an assignment for the benefit
      of creditors or applies for or consents to the appointment of a trustee or
      receiver for Lessee, or for the major part of its property; or

            (4) If a trustee or receiver is appointed for Lessee or for the
      major part of its property and is not discharged within sixty (60) days
      after such appointment; or,

            (5) If bankruptcy, reorganization arrangements, insolvency or
      liquidation proceedings, or other proceedings for relief under any
      bankruptcy law or similar law for the relief of debtors, are instituted by
      or against Lessee, and if instituted against Lessee are allowed against
      Lessee or are consented to or are not dismissed, stayed or otherwise
      nullified within sixty (60) days after such institution;

than, in any such case, Lessor may, at its option, exercise any one or more of
the following remedies:

                  (i) Lessor may terminate this Lease by giving to Lessee notice
            of Lessor's intention to do so, in which event the term of this
            Lease shall end, and all right, title and interest of Lessee
            hereunder shall expire on the date stated in such notice, which
            shall not be less than ten (10) days after the date of the notice by
            Lessor of its intention so to terminate:

                  (ii) Lessor may terminate the right of Lessee to possession of
            the Premises by giving notice to Lessee that Lessee's right of
            possession shall end on the date stated in such notice, which shall
            not be less than ten (10) days from date of such notice, whereupon
            the right of Lessee to the possession of the Premises or any part
            thereof shall cease on the date stated in such notice;

                  (iii) Lessee may enforce the provisions of this Lease and may
            enforce and protect the right of Lessor hereunder by a suit or suits
            in equity or at law for the specific performance of any covenant or
            agreement contained herein or for the enforcement of any other
            appropriate legal or equitable remedy.

                                       6
<PAGE>

      (b) If Lessor exercises either of the remedies provided for in
subparagraphs (i) or (ii) of Section 14(a), Lessor may then or at any time
thereafter re-enter and take complete and peaceful possession of the Premises,
with or without process of law, and may remove all persons therefrom, and Lessee
covenants in any such event peacefully and quietly to yield up and surrender the
Premises to Lessor.

      (c) If Lessor terminates the right of possession as provided in
subparagraph (ii) of Section 14(a), Lessor may re-enter the Premises and take
possession of all thereof (including any and all equipment and apparatus
thereon), may remove any portion of the equipment, machinery or apparatus
thereon which Lessor elects so to do, and may sublet or relet the Premises or
any part thereof from time to time for all or any part of the unexpired part of
the then term hereof, or for a longer period, and Lessor may collect the rents
from such reletting or subletting, and apply the same, first to the payment of
the expense of re-entry and reletting, and secondly to the fixed rentals herein
provided to be paid by Lessee, and in the event that the proceeds of such
reletting or subletting are not sufficient to pay in full the foregoing, Lessee
shall remain and be liable therefor, and Lessee promises and agrees to pay the
amount of any such deficiency from time to time and Lessee may at any time and
from time to time sue and recover judgment for any such deficiency or
deficiencies.

15.   TERMINATION:

      In the event of the termination of this Lease by Lessor as provided for by
subparagraph (i) of section 14(a), Lessor shall be entitled to recover from
Lessee all the fixed rentals accrued and unpaid for the period up to and
including such termination date, as well as all other additional rentals and
other sums payable by Lessee, or for which Lessee is liable or in respect of
which Lessee under any of the provisions hereof has agreed to indemnify Lessor,
which may be then owing and unpaid, and all costs and expenses, including court
costs and actual attorneys' fees incurred by Lessor in the enforcement of its
rights and remedies hereunder and in addition, Lessor shall be entitled to
recover as damages actual reasonable attorney's fees and court costs, which
Lessor shall have sustained by reason of the breach of any of the covenants of
this Lease other than for the payment of rent.

16.   INSPECTION OF PREMISES BY LESSOR:

      Lessee agrees to permit Lessor and the authorized representatives of
Lessor to enter the Premises at all reasonable times during the usual business
hours for the purpose of inspecting the same or making any necessary repairs to
the Premises and performing any work therein that may be necessary by reason of
Lessee's default under the terms of this Lease.

                                       7
<PAGE>

17.   NOTICES:

      All notices provided for herein shall be in writing and shall be
determined to have been given (unless otherwise required by the specific
provisions hereof in respect of any matter) when delivered personally or when
deposited in the United States mail, register or certified, return receipt
requested, postage prepaid, addressed as follows:

      If to Lessor:      Douglas N. Nelson, Trustee
                         Charles J. Loznak Trust
                         411 Fort Street, Suite A
                         Port Huron, MI  48060

      With a copy to:    Elizabeth M. (Loznak) Maher
                         1561 North River Road
                         St. Clair,  MI  48079

      If to Lessee:      Eugene Welding Company
                         2420 Wills Street
                         Marysville, MI  48040

or to Lessor and Lessee at such other addresses as such of them may designate by
notice duly given in accordance with this section to the other party.

18.   CUMULATIVE REMEDIES - NO WAIVER:

      The specific remedies to which Lessor or Lessee may resort under the terms
of this Lease are cumulative and are not intended to be exclusive of any other
remedies or means to which they may be lawfully entitled in case of any breach
or threatened breach by either of them or any provision of this Lease. The
failure of Lessor to insist in any one or more cases upon the strict performance
of any of the covenants of this Lease, or to exercise any option herein
contained, shall not be construed as a waiver or relinquishment for the future
of such covenant or option. One or more waivers of any covenant or agreement or
condition by the Lessor or Lessee shall not be construed as a waiver of a future
breach of the same covenant, agreement or condition. A receipt by Lessor of rent
with knowledge of the breach of any covenant hereof shall not be deemed a waiver
of any such future or continuing breach, and no waiver, change, modification or
discharge by either party hereto of any provision in this Lease shall be deemed
to have been made or shall be effective unless expressed in writing and signed
by both Lessor and Lessee.

19. ALTERATION: The Lessee, with Lessor's approval, which approval shall not be
unreasonably withheld, may remodel, alter and improve the Premises. Such work
shall be done without injury to any structural portion of the building.

                                       8
<PAGE>

20.   FIXTURES:

      All improvements, alterations and additions which may be erected or made
at any time upon the Premises during the term hereof shall become a part of the
Premises and upon termination of this Lease shall remain the property of Lessor
except to the extent otherwise provided for in any consent or consents delivered
to Lessee by Lessor, which consent or consents shall not be unreasonably
withheld; provided, however, that upon termination of this Lease (except for
termination by reason of default of Lessee as hereinbefore provided), Lessee, at
its sole cost, may remove from the Premises all personal property, trade
fixtures, machinery, equipment, furniture, furnishings and consumable suppliers
not paid for by Lessor, which have been or may hereafter be placed upon the
Premises, whether or not affixed or annexed, unless the removal thereof would
result in damage to the Premises. Any damage caused to the Premises by the
removal of such property shall be restored in a good and workmanlike manner at
the sole expense of the Lessee.

21.   ASSIGNMENT BY LESSEE:

      Any assignment of this Lease or any subletting or underletting shall
require the approval of the Lessor in writing. Such approval shall not be
arbitrarily or unreasonably withheld by the Lessor and shall be given or refused
within ten (10) days following written request by the Lessee of its desire to
assign, sublet or underlet under this agreement.

22.   ENVIRONMENTAL WARRANTIES:

      Lessee shall not use, store, generate, treat or dispose on the Demised
Premises any hazardous substance without the prior written consent of Lessor,
which consent shall not be unreasonably withheld. For purposes of this section,
the term "hazardous substance" means any substance the manufacture, use,
treatment, storage, transportation, or disposal of which is regulated by any law
having as its object the protection of public health, natural resources, or the
environment, including, by way of illustration only and not as a limitation, the
Resource Conservation and Recovery Act; the Comprehensive Environmental
Response, Compensation, and Liability Act; the Toxic Substances Control Act; the
Federal Water Pollution Control Act; the Cleans Air Act; and the Michigan Water
Resources Commission Act.

      Lessee shall promptly supply to Lessor a copy of the reports of any
environmental audit or investigation undertaken on the Demised Premises or
adjacent property, all notices, demands, inquiries, or claims received from any
person or entity as a result of contamination or pollution alleged to be on or
emanating from the Demised Premises or adjacent property, and any reports or
applications for licenses, permits, or approvals submitted by or on

                                       9
<PAGE>

behalf of Lessee to any environmental regulatory agency affecting the Demised
Premises or adjacent property.

      Lessor reserves the right to enter upon and inspect the Demised Premises
at any time, and from time to time, during Lessee's business hours and, on
reasonable notice, at other times.

23.   MISCELLANEOUS:

      (a) The captions of this Lease are for convenience only and are not to be
construed as part of this Lease and shall not be construed as defining or
limiting in any way the scope or intent of the provisions hereof.

      (b) If any term or provision of this Lease shall to any extent be held
invalid or unenforceable, the remaining terms and provisions of this Lease shall
not be affected thereby, but each term and provision of this Lease shall be
valid and be enforced to the fullest extent permitted by law.

      (c) All covenants, agreements and conditions herein contained shall be
binding upon and inure to the benefit of Lessor and Lessee and their respective
successors and assigns and the same shall be construed as covenants running with
the land.

      IN WITNESS WHEREOF, Lessor and Lessee have caused this instrument to be
executed on the day and year first above written.

WITNESS AS TO LESSOR:                CHARLES J. LOZNAK TRUST

/s/                                  BY: /s/ Douglas N. Nelson
------------------------                 ---------------------------------------
                                         Douglas N. Nelson, Trustee

/s/
------------------------

WITNESS AS TO LESSEE;                EUGENE WELDING COMPANY

/s/                                  BY: /s/ Charles Vanella
------------------------                 ---------------------------------------
                                         Charles Vanella
                                         Its:  President
/s/ Debbie Boyne
------------------------

                                       10

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