Document:

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                                                                   EXHIBIT 10.36

                              BST ACQUISITION LTD.

                            FORM OF PROMISSORY NOTE

Date: [-], 2004                                                 CDN$1,200,000.00

      FOR VALUE RECEIVED, BST Acquisition Ltd. (the "MAKER"), a New Brunswick
Corporation with its principal office and place of business at 44 Chipman Hill,
Suite 1000, P.O. Box 7289, Station "A", Saint John, New Brunswick, E2L 2A9,
PROMISES TO PAY to or to the order of Bolton Steel Tube Co. Ltd. an Ontario
Corporation with its principal place of business at 455A Piercey Road, Bolton,
ON L7E 5B8 ("BOLTON") on [ 15th MONTH ANNIVERSARY DATE OF THE CLOSING DATE] (the
"MATURITY DATE"), at the City of Toronto or at such other place or places as
Bolton may designate in writing from time to time, the principal amount of ONE
MILLION TWO HUNDRED THOUSAND DOLLARS (Cdn. $1,200,000.00) in lawful money of
Canada, with interest on such amount at the rate, calculated in the manner and
payable at the times specified in this Note.

      This Note is being delivered by the Maker to Bolton as evidence of the
Maker's obligation to pay a portion of the purchase price payable to Bolton as
set out in Section 1.8 (c) of an asset purchase agreement dated [-] 2004 among
Bolton, Tarpon Industries, Inc., the Maker and others (the "ASSET PURCHASE
AGREEMENT").

      The amounts remaining from time to time unpaid and outstanding under this
Note shall bear interest, both before and after the occurrence of an Event of
Default (as hereinafter defined) and before and after judgment to the date of
the payment in full of all such amounts, at the rate of 8% per annum. Interest
at such rate shall be calculated and payable monthly, in arrears, on the 1st day
of each and every month hereafter, commencing on [-] 1, 2004. Overdue interest
shall bear interest at the same rate, calculated as aforesaid.

      The Maker covenants and agrees that all amounts due and payable hereunder
shall be paid as and when due, in full, without any deduction, abatement or
set-off whatsoever, provided that: (a) the Maker shall have the right and
privilege of prepaying the whole or any portion of the amounts under this Note
from time to time remaining unpaid and outstanding at any time or times without
notice, bonus or penalty; and (b) if the Maker is, prior to the amounts owing
hereunder coming due pursuing a bona fide claim against Bolton under the Asset
Purchase Agreement, in which case any amount of principal otherwise payable by
the Maker to Bolton hereunder, to a maximum aggregate of such claim, shall be
paid to the escrow agent under the escrow agreement of even date herewith to be
dealt with in accordance therewith pending resolution of such claim (provided
that such amount shall continue to bear interest as provided herein and provided
further that unless legal proceedings have been commenced by the Maker in
respect of such claim, the escrow agent shall pay to Bolton all such amounts on
21st month anniversary date of the Closing Date). The foregoing provision shall
not restrict Bolton from making any claim pursuant to this note or any guarantee
or security in respect thereof.

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                                      -2-

      If an Event of Default (as hereinafter defined) occurs, then the whole of
the principal amount of this Note remaining unpaid, and all accrued and unpaid
interest thereon, shall be immediately due and payable two days after demand.

      The occurrence of any of the following events shall constitute an "EVENT
OF DEFAULT" for purposes of this Note:

1.    The Maker (or any of its affiliates or assignees) fails to pay any amount
      due to Bolton under this Note or under any other agreement when such
      amount becomes due and payable and such failure to pay such amount remains
      unremedied for three (3) calendar days;

2.    The Maker breaches or fails to perform any obligation pursuant to this
      Note or in any material respect, pursuant to any other agreement with
      Bolton;

3.    If any event occurs which results in the acceleration of the maturity of
      any of the indebtedness of the Maker to Bolton or to others under any
      indenture, agreement or undertaking;

4.    If Tarpon Industries, Inc. is in default under its guarantee to Bolton;

5.    A judgment or execution order for the payment of money in excess of Fifty
      Thousand Dollars (Cdn. $50,000.00) is issued or rendered as against the
      Maker, and either (i) enforcement proceedings have been commenced pursuant
      to such judgment or execution order, or (ii) there is a period of at least
      fifteen (15) consecutive days during which a stay of enforcement of the
      judgment or execution order (by reason of a pending appeal or otherwise)
      is not in effect; or

6.    The Maker (i) becomes insolvent or generally not able to pay its debts as
      they become due, (ii) admits in writing its inability to pay its debts
      generally or makes a general assignment for the benefit of creditors,
      (iii) institutes or has instituted against it any proceeding seeking (a)
      to adjudicate it a bankrupt or insolvent, (b) liquidation, winding-up,
      reorganization, arrangement, adjustment, protection, relief or composition
      of it or its debts under any law relating to bankruptcy, insolvency,
      reorganization or relief of debtors including, but not limited to, any
      plan of compromise or arrangement or other corporate proceeding involving
      its creditors, or (c) the entry of an order for relief or the appointment
      of a receiver, receiver-manager, custodian, trustee or other similar
      official for it or for any substantial part of its properties and /or
      assets, and in the case of any such proceeding instituted against it (but
      not instituted by it), either the proceeding remains undismissed or
      unstayed for a period of 30 calendar days or more, or any of the actions
      sought in such proceeding (including, but not limited to, the entry of an
      order for relief against it or the appointment of a receiver,
      receiver-manager, trustee, custodian or other similar official for it or
      for any substantial part of its properties and assets) occurs, or (iv)
      takes any corporate action to authorize any of the above actions.

      The Maker hereby waives presentment for payment, notice of non-payment,
protest and notice of protest and agrees and consents to all extensions or
renewals of this Note without notice.

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                                      -3-

      This Note is not negotiable or otherwise transferable by Bolton without
the prior written consent of the Maker save and except that Bolton shall be
entitled to assign this Note to its lenders without the consent of the Maker.

      The Maker acknowledges and agrees that mention in this Note of any
particular right or remedy available to Bolton in regards to any default by the
Maker or any Event of Default shall not preclude Bolton from exercising, or
limit the extent of, any other remedy in respect thereof, whether at law or in
equity, or any other provision of this Note. No remedy available hereunder to
Bolton shall be interpreted as being exclusive or dependent upon any other
remedy, and Bolton may from time to time exercise, at its option, any one or
more remedies independently or in combination.

      No condoning, excusing or overlooking by Bolton of any default by the
Maker under this Note shall operate as a waiver of any of the Vendors' rights or
any of the Maker's obligations hereunder and no waiver shall be inferred from or
implied by anything done, delayed or omitted to be done by Bolton, save and
except only an express waiver in writing given by Bolton to the Maker.

      This Note shall be construed, governed by and interpreted and enforced in
accordance with the laws of the Province of Ontario and the federal laws of
Canada applicable therein. The Maker irrevocably submits and agrees to attorn to
the Courts of the Province of Ontario in the event of any suit, action or other
legal proceeding in regards to this Note or any matter arising therefrom.

      In the event that any portion of this Note shall be declared by a Court of
competent jurisdiction to be invalid, illegal or unenforceable at law, then such
portion shall be deemed severed from this Note, and the remaining portions shall
remain in full force and effect and binding upon the Maker.

      This Note shall be binding upon the Maker and its successors (including
but not limited to successors by amalgamation) and permitted assigns. This Note
shall enure to the benefit of Bolton and its successors and permitted assigns.

      IN WITNESS WHEREOF the Maker has executed this Note.

                                        BST ACQUISITION LTD.

                                        By: ___________________________________
                                            Name:
                                            Title: President<PAGE>

                                                                   EXHIBIT 10.37

                       FORM OF GENERAL SECURITY AGREEMENT

                 THIS AGREEMENT made as of the *, day of * 2004

BETWEEN:

                        BST ACQUISITION, LTD., a corporation incorporated under
                        the laws of the Province of New Brunswick with its
                        principal place of business and chief executive office
                        at 44 Chipman Hill, Suite 1000, P.O. Box 7289, Station
                        "A", Saint John, New Brunswick, E2L 2A9

                        (hereinafter called the "DEBTOR")

                        - and -

                        BOLTON STEEL TUBE CO. LTD., a corporation incorporated
                        under the laws of Ontario, with its office at 455A
                        Piercey Road, Bolton, Ontario, L7E 5B8

                        (hereinafter called the "CREDITOR")

            WHEREAS the Debtor and the Creditor, together with others, are
parties to an asset purchase agreement dated *, 2004 (the "ASSET PURCHASE
AGREEMENT");

            AND WHEREAS pursuant to the Asset Purchase Agreement the Debtor has
executed and delivered to the Creditor a promissory note dated the date hereof
in the principal amount of $1,200,000 (the "NOTE");

            AND WHEREAS in order to provide security for the payment of the
amounts owing under the Note and certain other obligations as set out herein,
the Debtor has executed among other security documents, this General Security
Agreement in favour of the Creditor;

            IN CONSIDERATION OF good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by the Debtor, the Debtor agrees to
enter into this Agreement on the terms and conditions hereinafter set out.

                                    ARTICLE I
                                 INTERPRETATION

1.1 Defined Terms - In this Agreement, unless there in something in the context
or subject matter inconsistent therewith,

      (a)   "ACT" means the Personal Property Security Act, (Ontario), as
            amended from time to time, and any regulations thereto;

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                                     - 2 -

      (b)   "COLLATERAL" has the meaning set out in Section 2.1 hereof;

      (c)   "OBLIGATIONS" means the aggregate of all indebtedness, obligations
            and liabilities of the Debtor to the Creditor pursuant to the Note,
            pursuant to the obligation of the Debtor to pay for inventories
            pursuant to Section 1.8(d) of the Asset Purchase Agreement and
            pursuant to this Agreement;

      (d)   "PERMITTED ENCUMBRANCES" means any one or more of the following:

            (i)   liens for taxes, assessments or governmental charges or levies
                  not at the time due or the validity of which is being
                  contested at the time by the Debtor in good faith by proper
                  legal proceedings;

            (ii)  the lien of any judgment rendered in an amount not to exceed
                  $50,000 or claim filed against the Debtor which it is
                  contesting in good faith by proper legal proceedings;

            (iii) undetermined or inchoate liens and charges incidental to
                  current operations which have not at such time been filed
                  pursuant to law against the Debtor or which relate to
                  obligations not due or delinquent;

            (iv)  security given to a public utility or any municipality,
                  governmental or other public authority when required by such
                  utility or other authority in connection with the operations
                  of the Debtor, all in the ordinary course of its business;

            (v)   security given to the Creditor;

            (vi)  security given to the Debtor's bank to which the Creditor has
                  consented in writing in advance in accordance with the Asset
                  Purchase Agreement; and

            (vii) a pledge of all of the shares of Steelbank Inc. to the former
                  owners of Steelbank Inc. pursuant to a pledge agreement of the
                  Debtor and such individuals.

1.2 Other Usages - References to "THIS AGREEMENT", "HEREOF, "HEREIN", "HERETO"
and like references refer to this General Security Agreement and not to any
particular article, section or other subdivision of this Agreement.

1.3 Plural and Singular - Where the context so requires, words importing the
singular number include the plural and vice versa.

1.4 Headings - The insertion of headings in this Agreement is for convenience of
reference only and will not affect the construction or interpretation of this
Agreement.

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                                       - 3 -

1.5 Currency - Unless otherwise specified herein, all statements of or
references to dollar amounts in this Agreement will mean lawful money of Canada.

                                   ARTICLE II
                               SECURITY INTEREST

2.1 Description of Collateral - The following undertaking, property and assets
of the Debtor will be subject to the security interest in favour of the Creditor
created by this Agreement:

      (a)   Accounts - all debts, accounts, demands, claims and choses in action
            which now are, or which may at any time hereafter be, due or owing
            to or owned by the Debtor; all securities, mortgages, bills, notes
            and other documents now held or owned, or which may be hereafter
            taken, held or owned, by or on behalf of the Debtor, in respect of
            the said debts, accounts, demands, claims and choses in action or
            any part thereof; and all books, documents and papers recording,
            evidencing or relating to the said debts, accounts, demands, claims
            and choses in action or any part thereof, all of which are herein
            collectively called the "ACCOUNTS";

      (b)   Documents - all books, accounts, invoices, letters, papers,
            documents and other records in any form evidencing or relating to
            collateral subject to the Security Interest, all of which are herein
            collectively called the "DOCUMENTS";

      (c)   Documents of Title - any writing now or hereafter owned by the
            Debtor that purports to be issued by or addressed to a bailee and
            purports to cover such goods and chattels in the bailee's possession
            as are identified or fungible portions of an identified mass,
            whether such goods and chattels are Inventory or Equipment, and
            which writing is treated as establishing that the person in
            possession of such writing is entitled to receive, hold and dispose
            of the said writing and the goods and chattels it covers, and
            further, whether such writing is negotiable in form or otherwise,
            including bills of lading and warehouse receipts, all of which are
            herein collectively called the "DOCUMENTS OF TITLE";

      (d)   Equipment - all tools, machinery, equipment, plant, furniture,
            chattels, fixtures, vehicles of any kind, parts, accessories and
            other tangible personal property now owned or hereafter acquired by
            the Debtor which are not Inventory, all of which is herein
            collectively called the "EQUIPMENT";

      (e)   Instruments - all present and future bills, notes and cheques (as
            such are defined pursuant to the Bills of Exchange Act (Canada)),
            and all other writings that evidence a right to the payment of money
            and are of a type that in the ordinary course of business are
            transferred by delivery without

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            any necessary endorsement or assignment, all of which are herein
            collectively called the "INSTRUMENTS";

      (f)   Intangibles - all intangible property now owned or hereafter
            acquired by the Debtor and which is not Accounts including, without
            limitation, all contractual rights, chattel paper, goodwill,
            patents, trademarks, trade names, copyrights and other intellectual
            property of the Debtor, all of which are herein collectively called
            the "INTANGIBLES";

      (g)   Inventory - all present and future inventory of the Debtor,
            including all raw materials, materials used or consumed in the
            business or profession of the Debtor, work-in-progress, finished
            goods, goods used for packing, materials used in the business of the
            Debtor not intended for sale, and goods acquired or held for sale or
            furnished or to be furnished under contracts of rental or service,
            all of which is herein collectively called the "INVENTORY";

      (h)   Money - all present and future money of the Debtor, whether
            authorized or adopted by the Parliament of Canada as part of its
            currency or any foreign government as part of its currency, all of
            which is herein collectively called the "MONEY";

      (i)   Securities - all present and future securities, as defined in the
            Securities Act (Ontario), held by the Debtor, including shares,
            options, rights, warrants, joint venture interests, interests in
            limited partnerships, bonds, debentures and all other documents
            which constitute evidence of a share, participation or other
            interest of the Debtor in property or in an enterprise or which
            constitute evidence of an obligation of the issuer; and including an
            uncertificated security within the meaning of Part VI (Investment
            Securities) of the Business Corporations Act, (Ontario) and all
            substitutions therefor and dividends and income derived therefrom,
            all of which are herein collectively called the "SECURITIES";

      (j)   Undertaking - all present and future personal property, business,
            and undertaking of the Debtor not being Inventory, Equipment,
            Accounts, Intangibles, Documents of Title, Instruments, Money,
            Securities or Documents all of which is herein collectively called
            the "UNDERTAKING"; and

      (k)   Proceeds - all personal property in any form derived directly or
            indirectly from any dealing with collateral subject to the Security
            Interest or the proceeds therefrom, and including any payment
            representing indemnity or compensation for loss of or damage thereto
            or the proceeds therefrom, all of which are herein collectively
            called the "PROCEEDS;"

all of the above mentioned undertaking, property and assets of the Debtor are
herein called the "COLLATERAL." Notwithstanding the foregoing, to the extent
that the creation of the Security

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                                       -5-

Interest would constitute a breach or permit the acceleration or termination of
any agreement, right, licence or permit of the Debtor (each, a "RESTRICTED
Asset"), the Security Interest shall not attach to the Restricted Asset but the
Debtor shall hold its interest in the Restricted Asset in trust for the
Creditor. The Security Interest shall not extend to consumer goods.

2.2 Further Description of Collateral - Without limiting the generality of the
description of Collateral as set out in Section 2.1, for greater certainty the
Collateral shall include the personal property of the Debtor as described in
Section 2.1 hereof, located on or about or in transit to or from the address of
the Debtor set out on the first page of this Agreement and the location(s) set
out in any Schedule "A" attached hereto, and all present and future personal
property of the Debtor of the nature or type described in any Schedule "B"
attached hereto. The Debtor agrees to promptly inform the Creditor in writing of
the acquisition by the Debtor of any personal property which is not of the
nature or type described herein, and the Debtor agrees to execute and deliver at
its own expense from time to time amendments to this Agreement or additional
security agreements as may be reasonably required by the Creditor in order that
the Security Interest shall attach to such personal property.

2.3 Grant of Security Interest - As general and continuing security for the
payment and performance of all Obligations, the Debtor hereby grants to the
Creditor a security interest in the Collateral.

Whenever used elsewhere in this Agreement, the expression "SECURITY INTEREST"
refers to the security interest created in the paragraph above.

2.4 Attachment of Security Interest - The Debtor and the Creditor hereby
acknowledge their mutual intention that the Security Interest will attach to the
Collateral when the Debtor executes and delivers this Agreement and hereby
acknowledge and agree that the Debtor has rights in the Collateral and that
value has been given, and the Debtor and Creditor have not agreed to postpone
the time for attachment of the Security Interest.

2.5 Schedules - This Agreement will be in full force and effect whether or not
Schedule "A" or Schedule "B" or any other schedule herein referred to has been
completed.

                                   ARTICLE III
            REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE DEBTOR

3.1 Representations and Warranties - The Debtor hereby represents and warrants
as follows to the Creditor and acknowledges that the Creditor is relying thereon
(and each of such representations and warranties shall be deemed to be a
condition):

      (a)   the Debtor has the capacity and authority to incur the Obligations,
            create the Security Interest and generally perform its obligations
            under this Agreement;

      (b)   the execution and delivery of this Agreement and the performance by
            the Debtor of its Obligations hereunder has been duly authorized by
            all necessary proceedings;

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                                       -6-

      (c)   except for the Security Interest and Permitted Encumbrances, the
            Collateral is owned by the Debtor free from any mortgage, lien,
            charge, encumbrance, pledge, security interest or other claim
            whatsoever;

      (d)   the chief executive office of the Debtor is located at the address
            of the Debtor as set out on the first page of this Agreement;

      (e)   the Collateral, except for Inventory in transit, is located at the
            places as set out in Schedule "A" attached hereto and at no other
            place;

      (f)   the Collateral does not include any goods which are used or acquired
            by the Debtor for use primarily for personal, family or household
            purposes; and

      (g)   the Debtor is not a party to, bound by or subject to any indenture,
            mortgage, lease, agreement, instrument, charter or by-law provision,
            statute, regulation, order, judgment, decree or law which would be
            violated, contravened or breached by, or under which any default
            would occur as a result of the execution and delivery by the Debtor
            of this Agreement or the performance by the Debtor of any of the
            terms hereof.

3.2 Covenants - The Debtor hereby covenants and agrees as follows:

      (a)   the Debtor will keep the Collateral in good order, condition and
            repair and not use the Collateral in violation of the provisions of
            this Agreement or any other agreement relating to the Collateral or
            any applicable statute, law, by-law, rule, regulation or ordinance;

      (b)   the Debtor will pay all rents, taxes, rates, levies, assessments and
            any other charges of every nature which may be lawfully imposed upon
            the Collateral, or any part thereof, and upon the income and profits
            of the Debtor, when the same becomes payable;

      (c)   the Debtor will obtain, observe and perform all its obligations
            under leases, licences and Agreements necessary for the proper
            conduct of its business and the preservation and protection of the
            Collateral and the income therefrom;

      (d)   the Debtor will perform all obligations incidental to any trust
            imposed upon it by statute and will ensure that any breaches of the
            said obligations and the consequences of any such breach will be
            promptly remedied;

      (e)   the Debtor will permit a representative of the Creditor to inspect
            the Collateral and the operations of the Debtor and for that purpose
            to enter the Debtor's premises and any other location where the
            Collateral may be situated during reasonable business hours and upon
            reasonable notice;

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                                       -7-

      (f)   the Debtor will deliver to the Creditor from time to time, promptly
            upon request such information concerning the Collateral, the Debtor
            and the Debtor's business and affairs as the Creditor may reasonably
            request;

      (g)   the Debtor will keep proper books of account and records covering
            all its business and affairs on a current basis and will permit a
            representative of the Creditor to inspect the Debtor's books of
            account, records and documents and to make copies therefrom during
            reasonable business hours and upon reasonable notice;

      (h)   the Debtor will pay all costs and expenses of the Creditor, its
            agents, officers and employees (including without limitation legal
            fees and disbursements on a solicitor and his own client basis)
            incurred with respect to:

            (i)   the exercising of any or all of the rights, remedies and
                  powers of the Creditor under this Agreement; and

            (ii)  recovering or repossessing the Collateral and any other
                  proceedings taken for the purpose of enforcing the remedies
                  provided herein, including without limitation, the appointment
                  of a Receiver (as hereinafter defined), whether by order of
                  the court or by private appointment;

            (iii) the Debtor will indemnify the Creditor for all costs and
                  expenses as set out in Section 3.2(h) and agrees that all such
                  costs and expenses will be payable by the Debtor to the
                  Creditor on demand and will bear interest at the highest rate
                  borne by any of the Obligations. Such interest will be
                  calculated and payable in the same manner as the highest rate
                  borne by any of the Obligations;

      (i)   if the Debtor changes its name, it will promptly notify the Creditor
            in writing of the details of such change;

      (j)   the Debtor shall insure and keep insured the Collateral against loss
            or damage by fire, theft and other insurable risks specified by the
            Creditor and obtain and maintain public liability insurance in the
            amount which is specified by the Creditor (acting reasonably). All
            such insurance shall contain provisions and be with insurers which
            are satisfactory to the Creditor. The Debtor shall duly pay all
            premiums and other monies payable for maintaining such insurance and
            shall cause such insurance to be payable to the Creditor as its
            interest may appear and to contain a standard mortgage clause in a
            form satisfactory to the Creditor subject to prior claims of
            Debtor's bank referred to in Section 1.1(d)(vi). The Debtor hereby
            assigns to the Creditor by way of security all such insurance and
            all proceeds arising therefrom subject to prior claims of Debtor's
            bank referred to in Section 1.1(d)(vi). The Debtor shall deliver to
            the Creditor,

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                                       -8-

            at the Creditor's request, certified copies of each insurance
            policy, evidence of the payment of such premiums and other monies,
            and evidence of the assignment of such insurance to the Creditor;
            and

      (k)   the Collateral, other than inventory in transit, is now and will be
            located at the address or addresses set forth on Schedule "A"; and

      (l)   the Debtor shall promptly notify the Creditor of any changes in the
            location(s) of Collateral and of any new location(s) of Collateral
            and of any change in any information provided in this Agreement and
            of any actual or potential claim affecting the Debtor, the
            Collateral or the Security Interest.

                                   ARTICLE IV
                 RESTRICTIONS ON SALE OR DISPOSAL OF COLLATERAL

4.1 General Restrictions - Except as herein provided in Section 4.3, the Debtor
will not, without the prior written consent of the Creditor, which consent will
not be unreasonably withheld:

      (a)   sell, lease, surrender, abandon or otherwise dispose of the
            Collateral or any part thereof; or

      (b)   move or transfer the Collateral or any part thereof from its present
            location, being the location set out in Schedule "A" attached
            hereto.

4.2 Proceeds Held in Trust - Upon and during the continuance of an event of
default hereunder, all Proceeds that are moneys collected or received by the
Debtor will be received by the Debtor in trust for the Creditor and will be
forthwith paid to the Creditor.

4.3 Permitted Sales - The Debtor may, at any time, provided that there is no
event of default, without the consent of the Creditor:

      (a)   lease, sell, license, consign or otherwise deal with items of
            Inventory in the ordinary course of its business so that the
            purchaser thereof takes title clear of the security interest created
            by this Agreement but if such sale or lease results in an Account,
            such Account will be subject to the security interest created by
            this Agreement;

      (b)   sell or otherwise dispose of such part of its Equipment which has
            become worn out or damaged or otherwise unsuitable for its purpose.

                                    ARTICLE V
                            DEFAULT AND ENFORCEMENT

5.1 Events of Default - All of the Obligations will immediately become due and
the Security Interest hereby constituted will immediately become enforceable in
each and every one of the following events:
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                                       -9-

      (a)   if the Debtor defaults in payment or performance of any of the
            Obligations;

      (b)   if any of the warranties of the Debtor contained herein is found to
            be false or incorrect in any material respect; or

      (c)   if any event occurs which results in the acceleration of the
            maturity of any of the indebtedness of the Debtor to others under
            any indenture, agreement or undertaking;

      (d)   the Debtor (i) becomes insolvent or generally not able to pay its
            debts as they become due, (ii) admits in writing its inability to
            pay its debt generally or makes a general assignment for the benefit
            of creditors, (iii) institutes or has instituted against it any
            proceeding seeking (a) to adjudicate it a bankrupt or insolvent, (b)
            liquidation, winding-up, reorganization, arrangement, adjustment,
            protection, relief or composition of it or its debts under any law
            relating to bankruptcy, insolvency, reorganization or relief of
            debtors including, but not limited to, any plan of compromise or
            arrangement or other corporate proceeding involving its creditors,
            or (c) the entry of an order for relief or the appointment of a
            receiver, receiver-manager, custodian, trustee or other similar
            official for it or for any substantial part of its properties and/or
            assets, and in the case of any such proceeding instituted against it
            (but not instituted by it), either the proceeding remains
            undismissed or unstayed for a period of 30 calendar days or more, or
            any of the actions sought in such proceeding (including, but not
            limited to, the entry of an order for relief against it or the
            appointment of a receiver, receiver-manager, trustee, custodian or
            other similar official for it or for any substantial part of its
            properties and assets) occurs, or (iv) takes any corporate action to
            authorize any of the above actions;

      (e)   if a writ of execution, distress, attachment or similar process is
            issued or levied against all or a substantial portion of the
            property or assets of the Debtor in connection with any default by
            it in the payment of any amount in excess of Cdn. $50,000, or a
            final judgment or order in respect of such a default shall be
            rendered against the Debtor by a court of competent jurisdiction and
            such judgment or order shall not be satisfied in accordance with its
            terms and shall continue unstayed and in effect for 30 days or shall
            not be diligently contested by the Debtor in good faith in
            proceedings before a court of competent jurisdiction; or

      (f)   if a default under any indenture or instrument under which the
            Debtor has at the date of this Agreement or shall hereafter have
            outstanding indebtedness in excess of Cdn. $50,000 or the equivalent
            amount thereof in another currency shall occur and be continuing and
            any such indebtedness shall have been accelerated or shall be or
            become due and

<PAGE>

                                      -10-

            payable prior to the date on which the same would otherwise have
            become due and payable; or

      (g)   if any guarantor of the Debtor to the Creditor is in default under
            its guarantee to the Creditor.

5.2         Remedies - At any time after the happening of any event by which the
Security Interest hereby constituted becomes enforceable, the Creditor will have
the following rights, powers and remedies, subject to compliance with the Act:

      (a)   to appoint any person to be an agent or any person to be a receiver,
            manager or receiver and manager (herein called the "RECEIVER") of
            the Collateral and to remove any Receiver so appointed and to
            appoint another if the Creditor so desires; it being agreed that any
            Receiver appointed pursuant to the provisions of this Agreement will
            have all of the powers of the Creditor hereunder, and in addition,
            will have the power to carry on the business of the Debtor;

      (b)   to make payments to parties having prior charges or encumbrances on
            properties on which the Debtor may hold charges or encumbrances;

      (c)   to take possession of all or any part of the Collateral with power
            to exclude the Debtor, its agents and its servants therefrom;

      (d)   to preserve, protect and maintain the Collateral and make such
            replacements thereof and additions thereto as the Creditor may deem
            advisable;

      (e)   to sell, lease or dispose of all or any part of the Collateral
            whether by public or private sale or lease or otherwise in such
            manner and on such terms as to the Creditor may seem commercially
            reasonable, including, without limitation, terms that provide time
            for payment or credit, provided that:

            (i)   the Creditor or the Receiver will not be required to sell,
                  lease or dispose of the Collateral, but may peaceably and
                  quietly take, hold, use, occupy, possess and enjoy the
                  Collateral, without molestation, eviction, hindrance or
                  interruption by the Debtor or any other person or persons
                  whomsoever;

            (ii)  the Creditor or the Receiver may convey, transfer and assign
                  to a purchaser or purchasers the title to any of the
                  Collateral so sold; and

            (iii) subject to Section 5.7, the Debtor will be entitled to be
                  credited with the actual proceeds of any such sale, lease or
                  other disposition only when such proceeds are received by the
                  Creditor or the Receiver in cash;

<PAGE>

                                      -11-

      (f)   to seize, collect, demand, enforce, recover and receive all or any
            part of the Accounts, and to notify account debtors of the Debtor to
            pay such Accounts to the Creditor or the Receiver, and to give valid
            and binding receipts and discharges therefor and in respect thereof,
            and to compromise all or any part of the Accounts that may seem bad
            or doubtful to the Creditor or the Receiver, and to give time for
            payment thereof, with or without security;

      (g)   to enjoy and exercise all of the rights and remedies of a secured
            party under the Act;

      (h)   to dispose of all or any part of the Collateral in the condition in
            which it was on the date possession of it was taken, or after any
            commercially reasonable repair, processing or preparation for
            disposition;

      (i)   if the Collateral is perishable, or the Creditor or the Receiver
            believes on reasonable grounds that the Collateral will decline
            speedily in value, the Collateral is of a type customarily sold on a
            recognized market, the cost of care and storage of the Collateral is
            disproportionately large relative to its value, or the Receiver
            disposes of the Collateral in the course of the Debtor's business
            then the Creditor or Receiver may sell or otherwise dispose of that
            part of the Collateral without giving any notice whatsoever;

      (j)   to commence, continue or defend proceedings in any court of
            competent jurisdiction in the name of the Creditor, the Receiver or
            the Debtor for the purpose of exercising any of the rights, powers
            and remedies set out in this Section 5.2, including the institution
            of proceedings for the appointment of a receiver, manager or
            receiver and manager of the Collateral; and

      (k)   at the sole option of the Creditor elect to retain all or any part
            of the Collateral in satisfaction of the Obligations.

5.3         Receiver as Agent - The Receiver will be deemed to be the agent of
the Debtor for the purpose of establishing liability for the acts or omissions
of the Receiver and the Creditor will not be liable for such acts or omissions
and, without restricting the generality of the foregoing, the Debtor hereby
irrevocably authorizes the Creditor to give instructions to the Receiver
relating to the performance of its duties as set out herein.

5.4         Expenses of Enforcement and Borrowings - The Debtor will pay to the
Receiver the remuneration of the Receiver and all costs and expenses (including,
without limitation, legal fees and disbursements on a solicitor and his own
client basis) incurred by the Receiver pursuant to its appointment and the
exercise of its powers hereunder and the obligations of the Debtor pursuant to
this Section 5.4 will be payable on demand and will bear interest at the rate
and in the manner set out in the Note.

5.5         Indulgences and Releases - Either the Creditor or the Receiver may
grant extensions of time and other indulgences, take and give up securities,
accept compositions, grant releases and discharges, release any part of the
Collateral to third parties and otherwise deal with

<PAGE>

                                      -12-

the Debtor, debtors of the Debtor, sureties and others and with the Collateral
and other security as the Creditor or the Receiver may see fit without prejudice
to the Obligations or the right of the Creditor and the Receiver to hold and
realize the Collateral.

5.6         Creditor Not Liable for Failure to Exercise Remedies - Neither the
Creditor nor the Receiver will be liable or accountable to the Debtor or to any
other person for any failure to exercise any of the rights, powers and remedies
set out in Section 5.2, and neither of them will be bound to commence, continue
or defend proceedings for the purpose of exercising the same or for the purpose
of preserving or protecting any rights of the Creditor, the Debtor or any other
party in respect of the same.

5.7         Proceeds of Disposition - Subject to the claims, if any, of the
prior secured creditors of the Debtor, all moneys received by the Creditor or by
the Receiver pursuant to Section 5.2 will be applied as follows:

      (a)   first, in payment of all costs and expenses incurred by the Creditor
            in the exercise of all or any of the powers granted to it under this
            Agreement, including, without limitation, the costs and expenses in
            Subsection 3.2(h), payment of all of the remuneration of the
            Receiver and all costs and expenses incurred by the Receiver in the
            exercise of all or any of the powers granted to it under this
            Agreement, including, without limitation, the remuneration, costs
            and expenses referred to in Section 5.4;

      (b)   second, in payment of all amounts of money borrowed or advanced by
            either of the Creditor or the Receiver pursuant to the powers set
            out in this Agreement and any interest thereon;

      (c)   third, in payment of the Obligations, provided that if there are not
            sufficient moneys to pay all of the Obligations, the Creditor may
            apply the moneys available to such part or parts thereof as the
            Creditor, in its sole discretion, may determine;

      (d)   fourth, in satisfaction of any indebtedness or liability secured by
            any security interest in the Collateral subordinate to the security
            interest created by this Agreement if written demand therefor is
            received by the Creditor or the Receiver before the distribution of
            the proceeds of disposition of the Collateral is completed; and

      (e)   fifth, in payment of any surplus to the Debtor.

5.8         Debtor Liable for Deficiency - If the moneys received by the
Creditor or by the Receiver pursuant to Section 5.2 are not sufficient to pay
the claims set out in Section 5.7(a), (b) or (c), the Debtor will immediately
pay to the Creditor the amount of such deficiency.

5.9         Restriction on Debtor - Upon the Creditor taking possession of the
Collateral or the appointment of a Receiver, all the powers, functions, rights
and privileges of the Debtor or any officer, director, servant or agent of the
Debtor with respect to the Collateral will be suspended unless specifically
continued by the written consent of the Creditor; however, all other

<PAGE>

                                      -13-

powers, functions, rights and privileges of the Debtor or any officer, director,
servant or agent of the Debtor will be unaffected by such events.

5.10          Rights Cumulative - All rights and remedies of the Creditor set
out in this Agreement will be cumulative and no right or remedy contained herein
is intended to be exclusive but each will be in addition to every other right or
remedy contained herein or in any existing or future security document or now or
hereafter existing at law or in equity or by statute. The taking of a judgment
or judgments with respect to any of the Obligations will not operate as a merger
of any of the covenants contained in this Agreement.

                                   ARTICLE VI
                                     GENERAL

6.1           Document Filings - Debtor hereby authorizes the Creditor to file
such financing statements and other documents and do such acts, matters and
things (including completing and adding schedules hereto identifying the
Collateral or any Permitted Encumbrances affecting the Collateral or identifying
the locations at which the Debtor's business is carried on and the Collateral
and records relating thereto are situate) as the Creditor may deem appropriate
to perfect and continue the Security Interest, to protect and preserve the
Collateral and to realize upon the Security Interest.

6.2           Discharge - The Security Interest shall be discharged upon, but
only upon, full and final payment and performance of the Obligations. Upon
discharge of the Security Interest and at the request and expense of the Debtor,
the Creditor shall execute and deliver to the Debtor such releases and
discharges as the Debtor may reasonably require.

6.3           Waiver - The failure of the Creditor to enforce at any time any of
the provisions of this Agreement or any of its rights in respect thereto or to
insist upon strict adherence to any term of this Agreement will not be
considered to be a waiver of such provision, right or term or in any way to
affect the validity of this Agreement or deprive the Creditor of the right
thereafter to insist upon strict adherence to that term or any other term of
this Agreement. The exercise by the Creditor of any of its rights provided by
this Agreement will not preclude or prejudice the Creditor from exercising any
other right it may have by reason of this Agreement or otherwise, irrespective
of any previous action or proceeding taken by it hereunder. Any waiver by the
Creditor hereto of the performance of any of the provisions of this Agreement
will be effective only if in writing and signed by a duly authorized
representative of the Creditor.

6.4           Creditor as Attorney - The Debtor hereby irrevocably appoints the
Creditor and any person further designated by the Creditor to be the attorney of
the Debtor, so long as an event of default is continuing, for and in the name of
the Debtor to sign, execute or do any deeds, documents, transfers, demands,
assignments, assurances, consents or things that the Debtor is obliged to sign,
execute or do hereunder and, after the happening of any event by which the
security hereby constitutes becomes enforceable, to commence, continue or defend
any proceedings authorized to be taken hereunder and generally to sue in the
name of the Debtor in the exercise of all or any of the powers hereby conferred
on the Creditor.

<PAGE>

                                      -14-

6.5 Protest - The Debtor waives protest of any Instrument constituting the
Collateral at any time held by the Creditor on which the Debtor is in any way
liable and notice of any other action taken by the Creditor.

6.6 Successors and Assigns - This Agreement is not assignable by either the
Creditor or by the Debtor without the prior written consent of the other.
Subject to the foregoing, this Agreement shall enure to the benefit of and be
binding upon the parties hereto and their respective successors and permitted
assigns.

6.7 Amendments - Save for any schedules which may be added hereto pursuant to
the provisions hereof, no modification, variation or amendment of any provision
of this Agreement shall be made except by a written agreement, executed by the
parties hereto and no waiver of any provision hereof shall be effective unless
in writing.

6.8 Notice - All payments and communications which may be or are required to be
given by either party to the other herein, shall (in the absence of any specific
provision to the contrary) be in writing and delivered or sent by prepaid
registered mail or telecopier to the parties at their following respective
addresses:

         (a)      If to the Creditor at:

                  Mr. Gary D. Lewis
                  BST Acquisition, Ltd.
                  P.O. Box 36940
                  Grosse Point, Michigan 48236

                  with a copy to:

                  Richard E. Clark
                  Stikeman Elliott
                  5300 Commerce Court West
                  199 Bay Street
                  Toronto, Ontario M5L 1B9

         (b)      If  to the Debtor at:

                  Mr. Winston Penny
                  Bolton Steel Tube Co. Ltd.
                  455A Piercey Road
                  Bolton, Ontario L7E 5B8

                  with a copy to:

                  Daniel P. Ferguson
                  WeirFoulds LLP
                  The Exchange Tower, Suite 1600
                  P.O. Box 480, 130 King Street West
                  Toronto, Ontario  M5X 1J5

<PAGE>

                                      -15-

and any such payment or communication shall be deemed to have been duly given
when mailed. A communication given by any other means shall be deemed duly given
when actually received by the addressee. Either party may from time to time
change its address hereinbefore set forth by notice to the other of them in
accordance with this Section.

6.9 Further Assurances - The Debtor agrees from time to time, subsequent to the
date hereof, to execute and deliver or cause to be executed and delivered to the
Creditor of such instruments or further assurances as may, in the reasonable
opinion of the Creditor, be necessary or desirable to give effect to the
provisions of this Agreement.

6.10 Additional Security - The Security Interest is in addition to and not in
substitution for any other security now or hereafter held by the Creditor and is
intended to be a continuing Agreement and shall remain in full force and effect.
The taking of any action or proceedings or the refraining from so doing, or any
other dealing with any other security for the moneys secured hereby, shall not
release or affect the Security Interest hereby granted or any proceedings
hereunder for the realization of the security hereby granted and shall not
release or affect any other security held by the Creditor for the moneys hereby
secured.

6.11 No Obligation to Advance - Neither the execution nor delivery of this
Agreement will obligate the Creditor to advance any moneys to the Debtor.

6.12 Binding Effect - This Agreement will enure to the benefit of the Creditor
and be binding upon the Debtor and their respective successors and permitted
assigns.

6.13 Governing Law - This Agreement shall be governed by and construed in
accordance with the laws of the Province of Ontario and the federal laws of
Canada applicable therein (but without giving effect to any conflict of laws
rules). The Debtor agrees that the Courts of Ontario shall have jurisdiction to
entertain any action or other legal proceedings based on any provisions of this
Agreement. The Debtor does hereby attorn to the jurisdiction of the Courts of
the Province of Ontario.

6.14 Time of the Essence - Time shall be of the essence of this Agreement and of
every part hereof and no extension or variation of this Agreement shall operate
as a waiver of this provision.

6.15 Partial Invalidity - If any provision of this Agreement or the application
thereof to any person or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this Agreement, or the application of such
provision to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby and each provision of
this Agreement shall be valid and enforced to the fullest extent permitted by
law and be independent of every other provision of this Agreement.

6.16 Construction Clause - This Agreement has been negotiated and approved by
counsel on behalf of all parties hereto and, notwithstanding any rule or maxim
of construction to the contrary, any ambiguity or uncertainty will not be
construed against any party hereto by reason of the authorship of any of the
provisions hereof.

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