Document:

Exhibit 10.03

     GENERAL  ASSIGNMENT  OF  BOOK  DEBTS

1.     For  valuable consideration, receipt of which is hereby acknowledged, the
undersigned  1418276  ONTARIO  INC., having its chief executive office and chief
place  of  business  at  30  West  Beaver  Creek Road, Suite 109, Richmond Hill,
Ontario  L4B  3K1, hereby assigns and transfers to the LAURENTIAN BANK OF CANADA
(hereinafter referred to as the "Bank"), a chartered bank having its head office
at  the  City of Montreal, in the Province of Quebec, and having a branch office
at  989  Derry Road, Suite 303, Mississauga, Ontario, L5T 2J8 in the Province of
Ontario  all debts, chattel paper, accounts, claims, moneys and choses in action
which  now are or which may at any time hereafter be due or owing to or owned by
the  undersigned  and  also  all  contracts,  securities, bills, notes and other
documents  now  held  or owned or which may be hereafter taken, held or owned by
the  undersigned  or  anyone on behalf of the undersigned in respect of the said
debts,  accounts,  claims, moneys, and choses in action or any part thereof, and
also  all  books  and  papers  recording,  evidencing or relating to said debts,
accounts,  claims, moneys, and choses in action or any part thereof (hereinafter
referred  to  as  the  "Collateral").

2.     The undersigned agrees that the Collateral shall be held by the Bank as a
general  and  continuing collateral security for the payment of all obligations,
indebtedness and liabilities, present or future, direct or indirect, absolute or
contingent,  matured  or  not,  of  the undersigned to the Bank, wheresoever and
howsoever  incurred, and any ultimate unpaid balance thereof, and as a first and
prior  claim  upon  the  Collateral.

3.     The  undersigned undertakes and agrees to furnish and deliver to the Bank
for  the  purposes  hereof, whenever requested by any manager or official of the
Bank,  a  list  of  all the debtors of the undersigned with the amounts owing by
each and the securities therefor, and/or all the said deeds, documents, writing,
papers,  books  of  account  and  other  books, and to furnish the Bank with all
information  which  may  assist  in  the  collection  thereof.

4.     The  undersigned  expressly  authorizes  the Bank to collect, demand, sue
for,  enforce,  recover and receive the Collateral and to give valid and binding
receipts  and  discharges therefor and in respect thereof, the whole to the same
extent  and  with the same effect as if the Bank were the absolute owner thereof
and  without  regard  to  the  state of accounts between the undersigned and the
Bank.

5.     The Bank may collect, realize, sell or otherwise deal with the Collateral
or  any  part thereof in such manner, upon such terms and conditions and at such
time,  whether  before or after default, as may seem to it advisable and without
notice  to  the  undersigned.

6.     All  moneys  collected  or  received by the undersigned in respect of the
Collateral  shall  be  received  as trustee for the Bank, and shall be forthwith
paid  over  to  the  Bank  by  the  undersigned.

7.     The  Bank may apply the amounts collected or received by it on account of
such parts of the indebtedness and liabilities of the undersigned to the Bank as
to  the  Bank  seems  best or hold the same in a separate collateral account for
such  time  as  it  may  see fit and then apply the same as aforesaid, the whole
without  prejudice  to  its  claim  for  any  deficiency.

8.     The  Bank  may  compound,  compromise, grant extensions of time and other
indulgences,  take  and  give up securities, accept compositions, grant releases
and  discharges  and  otherwise  deal  with  the debtors of the undersigned, the
undersigned and others, and with the Collateral and other securities as the Bank
may see fit, without prejudice to the liability of the undersigned or the Bank's
right  to  hold  and  realize  this  security.

9.     The  Bank  shall not be liable or accountable for any failure to collect,
realize  or  obtain  payment  of the Collateral or any part thereof and the Bank
shall  not  be  bound  to  institute  proceedings for the purpose of collecting,
realizing  or obtaining payment of the same or for the purpose of preserving any
rights  of the Bank, the undersigned or any other person, firm or corporation in
respect  of  the  same,  and  the  Bank shall not be responsible for any loss or
damage which may occur in consequence of the negligence of any officer, agent or
solicitor  employed  in  the  collection  or  realization  thereof.

<PAGE>
10.     The  Bank may charge on its own behalf and also pay to others reasonable
sums  for expenses incurred and for services rendered (expressly including legal
advice  and  services)  in  or  in  connection with collecting, realizing and/or
obtaining  payment  of the Collateral or any part thereof and may add the amount
of  such  sums  to  the  indebtedness  of  the  undersigned.

11.     The  undersigned shall from time to time forthwith on the Bank's request
furnish  to  the  Bank  in  writing  all  information  requested relating to the
aforesaid  debts,  accounts,  claims, moneys, chattel paper and choses in action
and  the  aforesaid contracts, securities, bills, notes, books, papers and other
documents  and  the  Bank  shall  be  entitled from time to time to inspect such
contracts,  securities, bills, notes, books, papers and other documents and make
copies  thereof  and for such purpose the Bank shall have access to all premises
occupied  by  the  undersigned.

12.     The  undersigned  shall,  from  time,  to  time  forthwith on the Bank's
request do, make and execute all such financing statements, further assignments,
documents,  acts,  matters  and things as may be required by the Bank of or with
respect  to  the  Collateral  or  any part thereof or as may be required to give
effect  to  these  presents, and the undersigned hereby constitutes and appoints
the  manager  or acting manager for the time being of the above mentioned branch
of  the  Bank  the  true and lawful attorney of the undersigned irrevocable with
full  power  of  substitution  to  do,  make  and  execute  all such statements,
assignments,  documents,  acts, matters or things with the right to use the name
of  the  undersigned  wherever  and  whenever  it  may  be  deemed  necessary or
expedient.  The  undersigned  hereby  waives  any right to receive a copy of any
financing  statement, financing change statement or verification statement filed
at  any  time  in  respect  of  this  agreement.

13.     This  agreement  shall  be  a continuing agreement in every respect, and
shall  be  binding  upon  the  heirs,  executors, administrators, successors and
assigns  of  the parties hereto.  No remedy for the enforcement of the rights of
the  Bank hereunder shall be exclusive of or dependent on any other such remedy,
but  any  one  or  more  of  such  remedies  may  from time to time be exercised
independently  or in combination.  The security interest created or provided for
by  this  agreement  is  intended to attach when this agreement is signed by the
undersigned  and  delivered  to  the  Bank.

14.     For  greater  certainty  it  is  declared that any and all future loans,
advances  or  other value which the Bank may in its discretion make or extend to
or  for  the  account of the undersigned shall be secured by this agreement.  If
more  than  one person executes this agreement their obligations hereunder shall
be  joint  and  several.

15.     The  Customer  acknowledges  receipt  of  a  fully executed copy of this
agreement.

16.     This agreement shall be governed by and construed in accordance with the
laws  of  the Province in which the Collateral is located and the laws of Canada
applicable  therein.

17.     Whenever  the  context  so  requires  the  singular  number  shall  be
interpreted  as  plural,  the  masculine  gender  as  feminine  or  neuter,  and
vice-versa.

<PAGE>
In  witness  whereof  the  undersigned  has  executed  this  agreement  this
22nd  day  of  February,  2002

                            1418276  ONTARIO  INC.
                            Name  of  Company
                            30  West  Beaver  Creek Road, Suite 109,
                            Richmond  Hill,  Ontario  L4B  3K1

                             per:___/s/Kim  Allen  ________________________
                                            Name:  Kim  Allen
                                            Title:   President
                                            c/s

                             per:_____/s/  Angelo  Boujos______________________
                                           Name:  Angelo  Boujos
                                           Title:    Chairman

                                   We  have  authority  to  bind the CorporationExhibit 10.04
                           GENERAL SECURITY AGREEMENT

                                                    (Commercial  Lending)

          THIS  AGREEMENT  made  the  22nd  day  of February,  2002

BETWEEN: 1418276 ONTARIO INC., having its chief executive office and chief place
     of business at 30 West Beaver Creek Road, Suite 109, Richmond Hill, Ontario
     L4B  3K1,  Fax  No.  (905)  709-5264

    (hereinafter  called  the  "COMPANY")

AND: LAURENTIAN  BANK  OF CANADA, having an office at 989 Derry Road, Suite 303,
     Mississauga,  Ontario,  L5T  2J8,  Fax  No.  (905)  564-7796

     (hereinafter  called  the  "BANK")

          In  consideration  of  the sum of One Dollar ($1.00) now paid to it by
the  Bank  (receipt  of  which  is  hereby  acknowledged), and to secure the due
payment  and  performance  of all Obligations (hereinafter defined), the Company
hereby  agrees  with  the  Bank  and  provides  as  follows:

                                    ARTICLE 1

                                 INTERPRETATION

1.1     DEFINITIONS
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          As  used  herein  the  following  expressions shall have the following
meanings:

"ADJUSTED  PRE-TAX  EARNINGS" of the Company means the sum of (a) the net income
of  the  Company  for the period in question, after extraordinary items, capital
gains  and capital losses but before provision for taxes respecting such income,
and  (b)  amounts  paid  to the Management Group and deducted from income of the
Company  for the period in question, to the extent such amounts have been either
(i)  applied  to subscribe for share capital of the Company, or (ii) advanced to
the  Company  and  effectively  postponed  in  favour  of  the  Bank;

"AFFILIATE"  has  the meaning ascribed to such term in the Business Corporations
Act,  the  Companies  Act  or  the  Corporations Act, as the case may be, of the
Applicable  Province (and if such Act does not define such term, Affiliate shall
have  the  meaning  ascribed  to  such  term  in  the  Business Corporations Act
(Ontario)),  including  the  corporations  (if any) referred to as Affiliates in
Schedule  "E"  hereto;

"ANNUALIZED  CASH  FLOW" means the Cash Flow for the period in question, divided
by the proportion which the period in question is of the financial year in which
the  period  occurs;

"APPLICABLE  PROVINCE"  means the province where the office of the Bank referred
to  herein  is  located;

"BUSINESS  DAY"  means  any  day except Saturday, Sunday or a statutory holiday;

"CAPITAL EXPENDITURE" means any expenditure which would be chargeable to capital
or  fixed  asset  accounts  and  includes the total of all instalments of rental
expressed to be payable during the whole term of each lease of personal property
which  would  be  classified  as  a  capital  lease;

"CASH  FLOW"  of  the  Company  for any period means the after-tax profit of the
Company  for  the  period:

     (a)     plus  depreciation  and  amortization;
     (b)     less  profit  or  plus  loss  resulting from the recognition of the
             Company's  minority  interest  in  investments;
     (c)     plus  deferred  income  tax;
<PAGE>

     (d)     less  capitalized  expenses;
     (e)     plus  after-tax  portion  of  management  bonuses;
     (f)     less  gain  or  plus  loss  on  the  sale  of  fixed  assets;  and
     (g)     less  the  minority  shareholders'  share  of  losses  or  plus the
             minority  shareholders'  share  of  profits  from  consolidated
             Subsidiaries as  have  been  deducted  or  added  in  determining
             such  profit;

"COLLATERAL"  means  all property and assets of the Company whether specifically
charged  or subjected to the floating charge under Section 0 (except as excluded
pursuant  to  Section  0);

"CURRENT  RATIO"  means  the  ratio  of  Current  Assets to Current Liabilities;

"CURRENT ASSETS" of the Company means the aggregate current assets but excluding
amounts  owing to the Company by any person not dealing at arm's length with the
Company  except  in  respect of credit extended on normal trade terms arising on
the  sale  of  Inventory  in  the  ordinary  course  of  business;

"CURRENT  LIABILITIES"  of the Company means the aggregate liabilities which are
payable within twelve months from the date as of which the determination of such
liabilities is being made, including the portion of Financial Indebtedness which
is  due  within  twelve  months  from  such  date,  but  excluding  any  amounts
effectively  postponed  in favour of the Bank, and in the case of Long Term Debt
which  matures  during  such  period  the  payments scheduled to be due shall be
deemed  to  be  the amount of principal that would have been amortized over that
period  in  accordance  with the amortization schedule applicable to the debt if
the  debt  had  not  matured;

"DEBT  SERVICE"  of  the  Company  for  any period means the aggregate principal
payments  on  Long  Term  Debt  (including,  without  limitation,  the principal
component of capital lease obligations) due and payable, or scheduled to be due,
during  such  period;

"ENCUMBRANCE"  means  any  mortgage,  lien, pledge, assignment, charge, security
interest,  title  retention  agreement,  hypothec,  levy,  execution,  seizure,
attachment, garnishment, right of distress or other claim in respect of property
of  any  nature  or  kind  whatsoever  howsoever  arising  (whether  consensual,
statutory or arising by operation of law or otherwise) and includes arrangements
known  as  sale  and  lease-back,  sale  and  buy-back  and  sale with option to
buy-back;

"ENVIRONMENTAL  ASSESSMENT"  means  any  inquiry, investigation or report of the
environmental  condition  of  the  Premises;

"ENVIRONMENTAL  LAWS" means all applicable federal, provincial, regional, state,
municipal  or  local laws, common law, statutes, regulations, ordinances, codes,
rules,  guidelines,  requirements, certificates of approval, licences or permits
relating  to  Hazardous  Substances  or  the  use,  consumption,  handling,
transportation,  storage or Release thereof including without limitation (and in
addition  to  any such laws relating to the environment generally) any such laws
relating  to public health, occupational health and safety, product liability or
transportation;

"ENVIRONMENTAL ORDER" means any prosecution, order, decision, notice, direction,
report,  recommendation  or request issued, rendered or made by any Governmental
Authority  in  connection  with  Environmental  Laws  or  Environmental  Orders;

"EVENT OF DEFAULT" means any one or more of the events set out or referred to in
Section  0;

"FINANCIAL  INDEBTEDNESS"  of  the  Company  means  the  aggregate  (without
duplication)  of  the  following  amounts:

     (a)     money  borrowed,  indebtedness  represented  by  notes payable, and
drafts  accepted  representing  extensions  of credit (including, as regards any
note or draft issued at a discount, any amount that could reasonably be regarded
as  being  the  amortized  portion  of  such  discount  as  at  the  date  of
determination);

<PAGE>
     (b)     all  obligations  (whether  or not with respect to the borrowing of
money)  which  are  evidenced  by  bonds,  debentures,  notes  or  other similar
instruments or not so evidenced but which would be considered to be indebtedness
for  borrowed  money;

     (c)     all  indebtedness upon which interest charges are customarily paid;

     (d)     net  amounts  payable  pursuant  to  interest  swap  arrangements;

     (e)     capital  lease  obligations  and  all  other indebtedness issued or
assumed as full or partial payment for property or services or by way of capital
contribution;

     (f)     all  letters  of  credit  and  letters  of  guarantee  issued  by a
financial  institution  at  the  request  of  or for the benefit of the Company;

     (g)     any  guarantee (other than by endorsement of negotiable instruments
for  collection  or  deposit  in the ordinary course of business) in any manner,
directly  or indirectly, of any part or all of any obligation of a type referred
to  in  any  of  paragraphs  (a)  to  (e)  above;  and

     (h)     any  of  the  foregoing amounts in respect of any Subsidiary of the
Company  whose  accounts  are  not  required under generally accepted accounting
principles  to  be  consolidated  with  the  accounts  of  the  Company;

including  (without  limitation)  all  Obligations  BUT  EXCLUDING:

     (i)     trade  payables,  expenses  accrued  in  the  ordinary  course  of
business, customer advance payments and deposits received in the ordinary course
of  business unless the time for due payment of which extends, or is intended to
extend,  more  than twelve months from the date as of which the determination of
Financial  Indebtedness  is  being  made;  and

     (j)     indebtedness  of  the  Company  which  is  effectively postponed in
favour  of  the  Bank.

"FUTURE  DEBT  SERVICE"  of  the  Company  for  any  period  means the aggregate
principal  payments  on  Long  Term  Debt  (including,  without  limitation, the
principal  component  of  capital  lease obligations) scheduled to be due during
such  period, but in the case of Long Term Debt which matures during such period
the  payments  scheduled to be due shall be deemed to be the amount of principal
that  would  have  been  amortized  over  that  period  in  accordance  with the
amortization  schedule  applicable  to  the  debt  if  the debt had not matured;

"GOVERNMENTAL  AUTHORITY" means any nation, government, province, state, region,
municipality  or  other  political  subdivision  or any governmental department,
ministry, commission, board, agency or instrumentality or other public authority
or  person,  domestic  or  foreign, exercising executive, legislative, judicial,
regulatory or administrative functions of, or pertaining to, government, and any
corporation  or  other  entity  owned  or  controlled  (through stock or capital
ownership  or  otherwise)  by  any  of  the  foregoing and includes any court of
competent  jurisdiction;

"GUARANTOR"  means any person who has guaranteed the indebtedness of the Company
in  favour  of  the  Bank;

"HAZARDOUS  SUBSTANCE"  means  any  substance,  combination  of  substances  or
by-product  of  any substance which is or may become hazardous, toxic, injurious
or  dangerous  to  any  person,  property,  air,  land,  water,  flora, fauna or
wildlife;  and  includes  but is not limited to contaminants, pollutants, wastes
and  dangerous,  toxic,  deleterious  or  designated substances as defined in or
pursuant  to  any  Environmental  Laws  or  Environmental  Orders;

"INTEREST  COVERAGE"  means  the  ratio  of  (a) the sum of (i) Adjusted Pre-tax
Earnings  and  (ii)  Interest  Expense to (b) Interest Expense in respect of any
period,  excluding  from Interest Expense for the purpose of clause (b) interest
incurred  in respect of indebtedness which is effectively postponed in favour of
the  Bank;

<PAGE>
"INTEREST EXPENSE" means the expense for interest and all other charges incurred
in  respect  of  all  indebtedness  of  the  Company  in  respect of any period,
including  all  rental  expense  under each lease which would be classified as a
capital  lease  (other  than  the  principal  component  thereof);

"LEASE"  means  any lease (whether now existing, presently arising or created in
future)  whereby  the Premises or any part thereof are demised and leased to the
Company;

"LOAN DOCUMENT" means this Agreement, any of the Security Documents or any other
agreement  or  instrument (whether now existing, presently arising or created in
future)  delivered  by  the  Company  or  by  any  Guarantor  to  the  Bank;

"LONG  TERM  DEBT"  of the Company means that part of the aggregate liabilities,
including Financial Indebtedness, which matures by its terms on, or is renewable
at  the  sole option of the Company to, a date more than 12 months from the date
as  of  which the determination of such liabilities is being made, excluding the
portion  thereof  that  is included in Current Liabilities (other than the final
payment  due  in  respect  of  any  Long  Term  Debt);

"MANAGEMENT  GROUP" means the directors and officers of the Company from time to
time,  including the individuals (if any) referred to as the Management Group in
Schedule  "E"  hereto;

"NORMAL  BUSINESS"  has  the  meaning  ascribed  thereto in Schedule "E" hereof;

"OBLIGATIONS"  means  all  monies  now  or  at  any  time  and from time to time
hereafter  owing or payable by the Company to the Bank and all other obligations
(whether  now  existing,  presently  arising  or  created  in the future) of the
Company  in  favour  of  the  Bank,  and whether direct or indirect, absolute or
contingent,  matured  or not, whether arising from agreement or dealings between
the Bank and the Company or from any agreement or dealings with any third person
by  which the Bank may be or become in any manner whatsoever a creditor or other
obligee  of  the Company or however otherwise arising and whether the Company be
bound  alone  or  with  another  or  others  and whether as principal or surety,
including,  without  limitation,  monies  payable  or  obligations  arising  in
connection  with  the  Offer  of  Finance;

"OCCUPANTS"  means the Company, its tenants and other occupants of any Premises;

"OFFER  OF  FINANCE"  means  at  any  time  the prevailing agreement between the
Company  and  the  Bank  setting  out the terms and conditions applicable to the
borrowings by the Company from the Bank, and for the time being means the letter
specified  as  the  Offer  of  Finance  in  Schedule  "E"  hereto;

"PERMITTED  ENCUMBRANCES"  means  the  following:

     (a)     liens  for  taxes,  assessments, governmental charges or levies not
for  the  time  being  due  and  delinquent;

     (b)     easements,  rights  of way or other similar rights in land existing
at  the  date of this Agreement which individually or in the aggregate do not in
the  Bank's  opinion materially detract from the value of the property concerned
or  materially  impair  its use in the operation of the business of the Company;

     (c)     rights  reserved  to or vested in any Governmental Authority by the
terms  of  any  lease,  licence, franchise, grant or permit, or by any statutory
provision, to terminate the same or to require annual or other periodic payments
as  a  condition  of  the  continuance  thereof;

     (d)     any  Encumbrance  the  validity  of which is being contested by the
Company  in  good faith by appropriate legal proceedings and in respect of which
either

<PAGE>
(i)  security  adequate  in  the  opinion of the Bank has been provided to it to
     ensure  payment  of  such  liens

          or

(ii) the  Bank  is of the opinion that such liens are not materially prejudicial
     to  the  security  hereof;

     (e)     any reservations, limitations, provisos and conditions expressed in
any  original grant from the Crown which do not in the Bank's opinion materially
detract from the value of the property concerned or materially impair its use in
the  operation  of  the  business  of  the  Company;

     (f)     title defects or irregularities which, in the opinion of counsel to
the  Bank,  are  of  a  minor nature and in the aggregate will not in the Bank's
opinion  materially  detract  from  the  value  of  the  property  concerned  or
materially  impair  its  use  in  the  operation of the business of the Company;

     (g)     Purchase  Money  Securities;  and

     (h)     the  Encumbrances  set  out  in  Schedule  "C"  hereto;

"PREMISES"  means  all  lands and premises owned or occupied by the Company from
time to time (including without limitation the lands and premises referred to in
Schedule  "A"  hereto);

"PURCHASE  MONEY  SECURITY"  means  any  Encumbrance  given,  reserved, created,
assumed  or  arising  by  operation  of  law,  whether  or  not in favour of the
transferor,  after  the  date  hereof  to  provide  or secure, or to provide the
Company  with  funds  to pay the whole or any part of, the consideration for the
acquisition  of  tangible  personal  property  other  than  Inventory  where:

(a)  the principal amount of such Encumbrance is originally at least 75% but not
     greater  than  100%  of  the  cost  to  the  Company of all of the property
     encumbered  thereby,  and

(b)  the  Encumbrance  only  covers  the  property being acquired by the Company

and  includes the renewal, extension or refunding of any such Encumbrance and of
the  indebtedness  represented  thereby upon the same property provided that the
indebtedness  secured  thereby  and  the  security  therefor  are  not increased
thereby;

"RECEIVER" shall include one or more of a receiver, receiver-manager or receiver
and  manager  of all or a portion of the undertaking, property and assets of the
Company  appointed  by  the  Bank  pursuant to this Agreement or by or under any
judgment  or  order  of  a  court;

"RELEASE"  includes  abandon,  add, deposit, discharge, disperse, dispose, dump,
emit,  empty,  escape,  leach,  leak,  migrate,  pour,  pump,  release or spill;

"RESTRICTED  LEASE"  means  any  lease of real or personal property other than a
lease  which  would  be  classified  as  a  capital  lease;

"SECURITY  DOCUMENTS"  means,  collectively,  this  Agreement  and  all  other
agreements  and  other instruments delivered to the Bank by the Company (whether
now  existing or presently arising) for the purpose of establishing, perfecting,
preserving  or  protecting  any  security  held  by  the  Bank in respect of any
Obligations;

"SHAREHOLDER  OWNERSHIP"  has  the meaning ascribed to such term in Schedule "E"
hereto;

"SUBSIDIARY"  means  a  corporation  in  which the Company owns, directly and/or
indirectly  through  one or more Subsidiaries, a majority of shares carrying the
right  to  elect  at  least a majority of the members of the board of directors;

"TANGIBLE NET WORTH" of the Company means the aggregate of share capital, earned
and  contributed  surplus  (or  less  any deficit), plus any indebtedness of the
Company which is effectively postponed in favour of the Bank, less the aggregate
of (a) any amount due from its directors, officers, shareholders and Affiliates,
(b)  the  amount  of  any  investments  in its Affiliates, (c) intangible assets
including  (without limitation) goodwill, franchises, copyrights, trademarks and
patents,  and  (d)  any  appraisal  increase  credit;

<PAGE>
"VOTING  CONTROL"  means  the  direct  or  indirect  ownership  or  control of a
sufficient  number of outstanding shares of a corporation to elect a majority of
its  directors;  and "Voting Control of the Company" means the Voting Control of
the  Company  stated in the Offer of Finance or such different Voting Control as
shall  have  been  effected  with  the  prior  written  consent of the Bank; and

"WORKING  CAPITAL"  means  the  amount  (if  any) by which Current Assets exceed
Current  Liabilities.

1.2     INTERPRETATION
        --------------

     1.2.1     "THIS  AGREEMENT", "HERETO", "HEREBY", "HEREUNDER", "HEREIN", and
similar  expressions  refer  to  the  whole  of  this  Agreement  and not to any
particular Article, Section, subsection, paragraph, clause, subdivision or other
portion  hereof.

     1.2.2     The  expression  "NOT  DEALING  AT  ARM'S LENGTH" has the meaning
ascribed  to  it  by  the  Income  Tax  Act  (Canada).

     1.2.3     Except  as  expressly provided herein, terms which are defined in
the  Personal  Property  Security  Act of the Applicable Province shall have the
same  meaning  where  used  herein.

     1.2.4     Words  importing  the singular number only include the plural and
vice  versa  and  words  importing  gender  shall  include all genders and words
importing  persons  include  individuals,  partnerships,  corporations,  trusts,
unincorporated  associations, joint ventures, Governmental Authorities and other
entities.

     1.2.5     All  financial  or  accounting  determinations,  reports  and
statements  provided  for  in  this  Agreement  shall  be  made  or  prepared in
accordance with generally accepted accounting principles applied in a consistent
manner  and  shall,  unless otherwise indicated in the Offer of Finance, be made
and  prepared  on  a  consolidated  basis.

     1.2.6     The  headings  of  the  Articles  and  Sections  are inserted for
convenience  of  reference  only  and  shall  not  affect  the  construction  or
interpretation  of  this  Agreement.

1.3     GOVERNING  LAW
        --------------

          This  Agreement  shall be governed by and construed in accordance with
the  laws  of  the  Applicable  Province.

                                    ARTICLE 2
                                    SECURITY

2.1     CHARGE
        ------

          Subject  to the exceptions set forth in Section 0, the Company hereby:

     2.1.1     grants,  sells,  assigns,  conveys, transfers, mortgages, pledges
and  charges, as and by way of fixed and specific mortgage, pledge and charge to
and  in  favour  of the Bank, and grants to the Bank a security interest in, all
personal  property  of  every nature and kind whatsoever and wheresoever situate
now  or at any time and from time to time owned by the Company or in which or in
respect  of  which  the  Company has any interest or rights of any kind together
with  all  Proceeds  thereof and therefrom, renewals thereof, Accessions thereto
and  substitutions  therefor,  including, without limiting the generality of the
foregoing,  the  following  described  property:

<PAGE>
          (a)     All  inventory  of  whatsoever  kind  (INCLUDING VEHICLES) and
wheresoever  situate  now  owned  or hereafter acquired by the Company including
without  limiting  the  generality  of the foregoing, goods for sale or lease or
that  have  been  leased; goods furnished or to be furnished under a contract of
service;  goods  which  are  raw materials, work in process or materials used or
consumed  in a business or profession of the Company; goods used or procured for
packing;  finished  goods; industrial growing crops, oil, gas and other minerals
to  be  extracted;  timber  to be cut; and the young of animals after conception
("INVENTORY");

          (b)     All  book  accounts and book debts and generally all accounts,
debts,  dues,  claims,  choses  in  action  and demands of every nature and kind
howsoever arising or secured including letters of credit, and advices of credit,
which  are now due, owing or accruing or growing due to or owned by or which may
hereafter  become  due, owing or accruing or growing due or owned by the Company
including but not limited to claims against the Crown and claims under insurance
policies  ("ACCOUNTS");

          (c)     All  machinery, equipment, tools, apparatus, plants, fixtures,
furniture,  vehicles,  goods  and other tangible personal property of whatsoever
nature  and  kind,  now  owned  or  hereafter acquired by the Company other than
Inventory  ("EQUIPMENT");

          (d)     All  chattel  paper  now  owned  or  hereafter acquired by the
Company  ("CHATTEL  PAPER");

          (e)     All warehouse receipts, bills of lading and other documents of
title,  whether  negotiable or otherwise, now owned or hereafter acquired by the
Company  ("DOCUMENTS  OF  TITLE");

          (f)     All instruments now owned or hereafter acquired by the Company
("INSTRUMENTS");

          (g)     All  deeds, documents, writings, papers, books of accounts and
other  books  and  records,  whether  or not in computerized form, evidencing or
relating  to  Accounts,  Chattel  Paper, Instruments or Documents of Title or by
which  such  are  or  may  hereafter be secured, evidenced, acknowledged or made
payable;  and  all  contracts,  securities,  instruments  and  other  rights and
benefits  in  respect  thereof;

          (h)     All  shares,  securities, stocks, warrants, bonds, debentures,
debenture  stock  or  the  like  now owned or hereafter acquired by the Company;

          (i)     All intangible property and intangibles now owned or hereafter
acquired  by  the  Company  including,  but  not  limited  to, choses in action,
goodwill,  patents,  trademarks,  copyrights  and  other  industrial  property
("INTANGIBLES");

          (j)     All  monies  other  than  trust  monies  lawfully belonging to
others;

          (k)     Any property in any form (including fixtures) derived directly
or  indirectly  from  any dealings with any property herein described (including
all  products  and  cash  and  non-cash  proceeds  thereof);  indemnification or
compensation  for  any  such  property  lost,  destroyed, damaged or lawfully or
unlawfully  taken  or  injuriously  affected;  all  increases,  additions  and
accessions  thereto  and  substitutions  and  replacements  thereof;

          (l)     All  personal  property,  if  any,  described  in Schedule "B"
hereto;  and

     2.1.2     charges  as  and  by  way  of  a floating charge the whole of the
undertaking  of  the  Company  and  all  of  its  property  and assets, real and
personal,  movable  and  immovable, tangible and intangible, of every nature and
kind  whatsoever  and  wheresoever  situate, both present and future (other than
property  and  assets  from  time to time effectively subjected to the fixed and
specific  mortgages,  charges  and  security  interests created hereby or by any
instrument  supplemental  hereto).

<PAGE>
2.2     EXCEPTIONS
        ----------

     2.2.1     Exception  as  to  Leases
     -----     -------------------------

          The  last  day  of  any term of years reserved by any lease, verbal or
written,  or  any  agreement  therefor,  now  held  or hereafter acquired by the
Company is excepted out of the Collateral, but the Company shall stand possessed
of  any  such reversion upon trust to assign and dispose thereof as the Bank may
direct.  Where  the  giving  of  a fixed and specific mortgage and charge on any
real  or personal property held by the Company under lease  requires the consent
of  the  lessor  of such property, the giving of the fixed and specific mortgage
and  charge  hereunder on such property shall not take effect until such consent
is  obtained  or  legally dispensed with but the suspension of the effect of the
fixed  and  specific  mortgage  and charge on such property shall not affect the
fixed  and  specific  mortgage  and charge on any other property of the Company.

     2.2.2     Exception  as  to  Consumer  Goods
     -----     ----------------------------------

          Consumer  goods  now  held  or  hereafter  acquired by the Company are
excepted  out  of  the  Mortgaged  Property.

2.3     CHARGE  VALID  IRRESPECTIVE  OF  ADVANCE  OF  MONEY
        ---------------------------------------------------

          The  mortgages,  pledges  and charges hereby created shall have effect
and  be  deemed  to be effective whether or not the monies or obligations hereby
secured or any part thereof shall be advanced or owing or in existence before or
after  or  upon  the  date  of  this  Agreement  and  neither the giving of this
Agreement nor any advance of funds shall oblige the Bank to advance any funds or
any additional funds.  The Company acknowledges that the parties have not agreed
to  postpone  the  time  for  attachment  of  any of the charges created hereby,
including the floating charge created hereby, all of which shall attach upon the
execution  hereof  or,  in the case of after-acquired Collateral, as soon as the
Company  acquires  rights therein.  The Company acknowledges that value has been
given.

2.4     SUPPLEMENTAL  INDENTURES
        ------------------------

          The  Company shall from time to time on demand by the Bank execute and
deliver  such  further  deeds  or  indentures  supplemental  hereto, which shall
thereafter  form  part  hereof,  for  the  purpose of mortgaging to the Bank any
property  now  owned or hereafter acquired by the Company and falling within the
description  of  the Collateral, for correcting or amplifying the description of
any property hereby mortgaged or intended so to be, or for any other purpose not
inconsistent  with  the  terms  of  this  Agreement.

2.5     CONTINUING  SECURITY
        --------------------

          This Agreement and any other security given with the Bank's consent in
replacement  thereof, substitution therefor or in addition thereto shall be held
by  the  Bank as general and continuing security for due payment and performance
of  all  Obligations, including without limitation all costs and amounts payable
pursuant  hereto and interest on the Obligations at the rate or rates applicable
thereto  in  accordance  with  the  Offer of Finance or the prevailing agreement
between  the  Bank  and  the  Company.  Any and all payments made at any time in
respect  of  the  Obligations and the proceeds realized from any securities held
therefor  (including moneys realized from the enforcement of this Agreement) may
be  applied  (and  reapplied  from  time  to  time  notwithstanding any previous
application) to such part or parts of the Obligations as the Bank sees fit.  The
Bank  may hold as additional security hereunder any increase or profits or other
proceeds  realized from the Collateral (including money) for such period of time
as  the  Bank  sees  fit  or  the  Bank may hold such monies unappropriated in a
collateral  account  to apply against the Obligations when and how the Bank sees
fit.  The  Company  shall  be  accountable for any deficiency and the Bank shall
distribute  any  surplus  as  required  by  law.

<PAGE>

                                    ARTICLE 3
                         REPRESENTATIONS AND WARRANTIES

3.1     GENERAL  REPRESENTATIONS  AND  WARRANTIES
        -----------------------------------------

          The Company represents, warrants and covenants to and with the Bank as
follows:

     3.1.1     Incorporation  and  Status
               --------------------------

          The Company is duly incorporated and validly subsisting under the laws
of  its jurisdiction of incorporation or continuance and has the corporate power
and  capacity  to  own its properties and assets and to carry on its business as
presently  carried  on  by  it  or as contemplated in the Offer of Finance to be
carried  on  by  it  and  holds all material licences, permits and assets as are
required  to  own  its  properties  and  assets and to carry on business in each
jurisdiction  in  which  it  does  so.  The  Company's  chief executed office is
located at 30 WEST BEAVER CREEK ROAD, SUITE 109, RICHMOND HILL, ONTARIO L4B 3K1.

     3.1.2     Power  and  Capacity
               --------------------

          The Company has the corporate power and capacity to enter into each of
the  Security  Documents to which it is a party and to do all acts and things as
are  required  or  contemplated hereunder or thereunder to be done, observed and
performed  by  it.

     3.1.3     Due  Authorization  and  Enforceability
               ---------------------------------------

          The  Company has taken all necessary corporate action to authorize the
execution,  delivery  and performance of each of the Security Documents to which
it is a party and each such document constitutes, or upon execution and delivery
will  constitute,  a  valid  and  binding  obligation of the Company enforceable
against  it  in  accordance  with  its  terms,  subject  only  to  the following
qualifications:

          (a)     an  order  of  specific  performance  and  an  injunction  are
discretionary  remedies,  and  in particular, may not be available where damages
are  considered  an  adequate  remedy;  and

          (b)     enforcement  may  be  limited  by  bankruptcy,  insolvency,
liquidation,  reorganization,  reconstruction  and  other similar laws generally
affecting  enforceability  of  creditors'  rights.

     3.1.4     No  Contravention
               -----------------

          The  execution  and  delivery of this Agreement and the other Security
Documents  and  the performance by the Company of its obligations thereunder (i)
does not and will not violate any law or any provision of the articles, by-laws,
constating  documents  or  other  organizational  documents  of  the  Company or
constitute  a  breach  of  any  existing  contractual or other obligation of the
Company  or  contravene  any  licence or permit to which the Company is subject,
(ii)  will  not result in the creation of, or require the Company to create, any
Encumbrance  in favour any person other than the Bank, and (iii) will not result
in  or  permit  the  acceleration  of  the maturity of any indebtedness or other
obligation  of  the  Company.

<PAGE>
     3.1.5     No  Consents  Required
               ----------------------

          No authorization, consent or approval of, or filing with or notice to,
any person is required in connection with the execution, delivery or performance
of  this  Agreement  or  any  of  the  other  Security Documents by the Company.

     3.1.6     Leases
               ------

          With  respect  to  each  Lease  now  existing:

     (a)  the  copy  of  the  Lease  provided  to  the  Bank contains the entire
          agreement between the Company, the lessee and any guarantor, surety or
          indemnitor  respecting  the  subject  matter  and  there  have been no
          modifications,  amendments  or  extensions  thereto  or  thereof;  and

     (b)  the  Lease  is  in  full  force  and  effect  and  in  good  standing.

     3.1.7     Financial  Statements
               ---------------------

          The  financial  statements of the Company in the form delivered by the
Company  to  the  Bank  have been prepared in accordance with generally accepted
accounting  principles  and  fairly,  completely  and  accurately  present  the
financial  condition  of  the  Company  and  the financial information presented
therein  for  the period and as at the date thereof.  Since the date of the last
financial  statements  delivered to the Bank there has been no development which
has  had  or  will  have  a material adverse effect upon the business, property,
financial  condition  or  prospects  of  the  Company or upon the ability of the
Company  to  perform  its  obligations  under  any  of  the  Security Documents.

     3.1.8     Solvency
               --------

          The  Company  is  not  an  insolvent  person within the meaning of the
Bankruptcy  and  Insolvency  Act  (Canada).

     3.1.9     No  Litigation
               --------------

          There  are no actions, suits, judgments, awards or proceedings pending
or,  to  the knowledge of the Company, threatened against the Company before any
court  or  government  department, commission, board, agency or instrumentality,
domestic  or foreign, or before any other authority, or before any arbitrator of
any  kind,  which  would,  if  determined  adversely  to the Company, materially
adversely affect its business, property, financial condition or prospects or its
ability to perform any of the provisions of any Security Document to which it is
a  party or which purports to affect the legality, validity or enforceability of
any  Security  Document,  and  the Company is not in default with respect to any
judgment, order, writ, injunction, award, rule or regulation of any Governmental
Authority  or  any arbitrator, which individually or in the aggregate results in
any  such  material  adverse  effect.

     3.1.10     No  Default
                -----------

          The  Company is not in default or breach under any material commitment
or  obligation  (including,  without  limitation,  obligations  in  relation  to
Financial  Indebtedness)  or  under  any  order,  writ,  decree or demand of any
Governmental Authority or with respect to any leases, licences or permits to own
and/or  operate material properties and assets or to carry on business and there
exists  no  state  of  facts which, after notice or the passage of time or both,
would  constitute such a default or breach; and there are not any proceedings in
progress,  pending  or  threatened,  which  may  result  in  the  revocation,
cancellation,  suspension  or  any  adverse  modification  of  any  such leases,
licences  or  permits.

<PAGE>
     3.1.11     All  Material  Information  Supplied
                ------------------------------------

          The Company has provided to the Bank all material information relating
to  the  financial  condition,  business  and  prospects  of the Company and the
Guarantors  (if  any) and all such information is true, accurate and complete in
all  material  respects.

     3.1.12     Serial  Numbered  Goods  and  Fixtures
                --------------------------------------

          Full  particulars  (including  serial number, year, make and model) of
each  motor  vehicle, trailer, mobile home, boat, outboard motor and aircraft in
which  the Company has rights and which is not Inventory are set out in Schedule
"B"  hereto.  None  of the goods comprised in the Collateral are fixtures except
any  fixtures  that  are  described  so  that  they may be readily identified in
Schedule  "B"  hereto and that are affixed or attached to the Premises described
in  Schedule  "A"  hereto.

     3.1.13     Consumer  Goods
                ---------------

          None of the Collateral now owned or hereafter acquired is now or shall
at  any  time  be  Consumer  Goods  of  the  Company.

3.2     ENVIRONMENTAL  REPRESENTATIONS  AND  WARRANTIES
        -----------------------------------------------

          The Company represents, warrants and covenants to and with the Bank as
follows:

     3.2.1     The  Collateral  and the operations of the Occupants now and will
at  all  times  in future comply in all material respects with all Environmental
Laws  and  Environmental  Orders.

     3.2.2     After  due  and  diligent inquiry, it has been found that, except
for  substances  necessary  to  the  carrying  on  of the Normal Business of the
Company,  there  is  no  Hazardous  Substance  on  or in any of the Premises, no
Hazardous Substance has ever been used, stored, located or Released on or in any
of the Premises, no part of the Premises is or has ever been contaminated by any
Hazardous  Substance.

     3.2.3     After due and diligent inquiry and except as approved by the Bank
in  writing,  it  has  been  found  that  there  are  no:

          (a)     underground  or  above-ground  storage  tanks;

          (b)     asbestos  or  material  containing  asbestos;

          (c)     urea  formaldehyde  or  material containing urea formaldehyde;

          at,  on  or  under  the Premises and none of the foregoing will at any
time  in  future  be  placed, installed or Released at, on or under the Premises
without  the  prior  written  consent  of  the  Bank.

     3.2.4     Any  underground  or above-ground storage tanks located at, on or
under  the  Premises  which have been approved by the Bank have been identified,
registered,  constructed,  operated  and maintained as required by Environmental
Laws  and  Environmental  Orders  and  they  are  presently  in  a state of good
condition and repair, have not leaked and are not presently leaking any of their
contents.

     3.2.5     There  is  no  judicial  or  administrative  proceeding  or
investigation pending and no Environmental Order has been issued or, to the best
of  the Company's knowledge, threatened concerning the possible violation of any
Environmental  Laws  or  Environmental Orders by any of the Occupants, by any of
the  operations  of  the  Occupants  or otherwise in relation to the Collateral.

     3.2.6     To  the  best  of the Company's knowledge (after due and diligent
inquiry), no condition exists as to any parcel of real property contiguous to or
in  close proximity with the Premises which would require a qualification to any
of the representations or warranties in this Section 0 if such condition applied
to  the  Premises.

<PAGE>
     3.2.7     Except  for substances necessary to the carrying on of the Normal
Business of the Company, no Hazardous Substance shall be brought onto or used on
or in any part of the Premises without the prior written consent of the Bank and
any Hazardous Substance brought onto or into any part of the Premises or used by
any  person  on  or  in  any part of the Premises shall be transported, used and
stored  only  in  accordance  with  all  Environmental  Laws,  other  lawful
requirements,  prudent  industrial  standards  (including without limitation any
published  environmental  standards  of any applicable industry association) and
any  requirements  of  applicable  insurance  policies.

     3.2.8     The  Company  has  created, properly organized and maintained all
documentation  and  records  concerning environmental matters as required by any
Environmental  Laws or Environmental Orders and will maintain such documentation
and  records  at  all  times  in  future  as  aforesaid.

     3.2.9     The Company has provided to the Bank any Environmental Assessment
and  related  documentation  concerning any of the Premises in its possession or
control  and shall promptly provide to the Bank any such material as the Company
may  obtain  in  future.

     3.2.10     The  Company  shall  promptly  notify  the  Bank  if  it:

          (a)  receives  notice from any Governmental Authority of any violation
               or potential violation of any Environmental Laws or Environmental
               Orders, including the Release of a Hazardous Substance, which may
               have  occurred  or  been  committed  or  is  about to occur or be
               committed;

          (b)  receives  notice that any administrative or judicial complaint or
               Environmental  Order  has  been issued or filed or is about to be
               issued  or  filed  against  any  of  the  Occupants  or  their
               representatives  alleging violations of any Environmental Laws or
               Environmental  Orders  or  requiring  the taking of any action in
               connection  with  any  Hazardous  Substance;

          (c)  learns of the enactment of any Environmental Laws or the issuance
               of  any  Environmental  Orders  which may have a material adverse
               effect  on  the  Premises  or  the  operations  or the condition,
               financial  or  otherwise,  of  any  of  the  Occupants;  or

          (d)  knows  of  or suspects that any Hazardous Substance (other than a
               substance  necessary to the carrying on of the Normal Business of
               the  Company)  has  been brought onto any part of the Premises or
               that  there is any actual, threatened or potential Release of any
               Hazardous  Substance (whether or not a substance necessary to the
               carrying  on  of the Normal Business of the Company) on, from, in
               or  under  any  part  of  the  Premises.

     3.2.11     The  Company  hereby  grants  to  the Bank and its employees and
agents  an  irrevocable  and  non-exclusive  licence,  subject  to the rights of
tenants,  to  enter  any  of the Premises to conduct testing and monitoring with
respect  to  Hazardous  Substances  and  to  remove  and  analyze  any Hazardous
Substance  at  the cost and expense of the Company (which cost and expense shall
be  secured  hereby).

     3.2.12     The  Company shall indemnify the Bank and hold the Bank harmless
against  and  from  all  loss,  costs,  damages  and expenses which the Bank may
sustain,  incur  or  be  or  become  liable for by reason of or arising from the
presence,  clean-up,  removal or disposal of any Hazardous Substance referred to
in  this  section  or compliance with Environmental Laws or Environmental Orders
relating  thereto,  including  any  clean-up,  decommissioning,  restoration  or
remediation  of  the  Premises  and  other  affected lands or property (and this
indemnification shall survive the satisfaction, release or extinguishment of the
indebtedness  secured  hereby).

<PAGE>
3.3     TITLE
        -----

          The  Company  covenants  with the Bank that, subject only to Permitted
Encumbrances,  it  lawfully owns, as legal and beneficial owner, and is lawfully
possessed  of  the  Collateral  and  all  property  and  assets indicated by the
financial  statements  which  it has delivered to the Bank to be owned by it and
has  good  right  and  authority to mortgage and charge the same as provided for
herein,  free and clear of all Encumbrances (other than Permitted Encumbrances),
and  it  will  warrant  and  defend  the  title  thereto as well as to any other
property, rights and interests hereafter acquired by the Company.  No person has
any  agreement  or right or option to acquire any of such property (except under
unfilled  purchase  orders  accepted  in the ordinary course of business for the
sale  of  Inventory).

                                    ARTICLE 4

                            COVENANTS OF THE COMPANY

4.1     GENERAL  COVENANTS
        ------------------

          So  long  as this Agreement remains outstanding, the Company covenants
and  agrees  as  follows:

     4.1.1     To  Pay  Costs
               --------------

          The  Company  shall pay all costs, charges and expenses of or incurred
by  the  Bank  (a)  incidental  to the preparation, execution and filing of this
Agreement  and any other Security Documents and any instruments relating thereto
or  required  by  the  Offer  of  Finance  (including  without  limitation  any
supplemental security or any instrument amending any of the Security Documents),
(b)  in  inspecting  the Collateral or in or about taking, recovering or keeping
possession  of  any  of  the  Collateral  or  in  any other proceedings taken in
enforcing  the  remedies  provided  herein  or  otherwise  in  relation  to this
Agreement  or  the  Collateral, or by reason of non-payment of the moneys hereby
secured,  (c)  the  costs  of  any sale proceedings hereunder, whether such sale
proves  abortive  or not, and (d) the costs of any Receiver with respect to, and
all  expenditures  made  by  the  Bank  or  any Receiver in the course of, doing
anything  hereby  permitted  to  be done by the Bank or such Receiver (including
without  limitation  any  costs and expenditures relating to compliance with the
Bankruptcy  and Insolvency Act (Canada)).  All such costs and expenses and other
monies  payable hereunder, together with interest at the highest rate applicable
to  any Obligations, shall be payable on demand and shall constitute a charge on
the  Collateral.  Without  limiting  the generality of the foregoing, such costs
shall extend to and include any legal costs incurred by or on behalf of the Bank
as  between  solicitor  and  own  client.

     4.1.2     To  Pay  Certain  Debts
               -----------------------

          The  Company  shall  punctually  pay  and  discharge every obligation,
failure to pay or discharge which might result in any lien or charge or right of
distress,  forfeiture,  termination  or  sale or any other remedy being enforced
against  the  Collateral  and  provide  to  the  Bank when required satisfactory
evidence  of  such payment and discharge, but the Company may on giving the Bank
such  security  (if  any)  as  the  Bank  may  require  refrain  from  paying or
discharging  any  obligation  so long as it contests in good faith its liability
therefor.

     4.1.3     To  Maintain  Corporate  Existence  and  Security
               -------------------------------------------------

          The  Company  shall:

          (a)     maintain  its  corporate  existence;

          (b)     diligently  preserve  all  its  rights,  licences,  powers,
                  privileges,  franchises  and  goodwill;

<PAGE>
          (c)     observe and perform all of its obligations and comply with all
conditions under leases, licences and other agreements to which it is a party or
upon  or  under  which  any  of  the  Collateral  is  held;

          (d)     carry  on  and  conduct its business in a proper and efficient
manner  so  as  to  preserve  and  protect  the Collateral and income therefrom;

          (e)     keep  proper  books  of  account  with  correct entries of all
transactions  in  relation  to  its  business;

          (f)     observe  and  conform  to all valid requirements of law and of
any  Governmental Authority relative to the Collateral or the carrying on by the
Company  of  its  business;

          (g)     repair  and  keep  in  repair and good order and condition all
property,  including  the  Collateral,  the  use  of  which  is  necessary  or
advantageous  in  connection  with  its  business;

          (h)     immediately  notify the Bank in writing of any proposed change
of  name  of  the  Company  or of the Company's chief place of business or chief
executive  office;

          (i)     keep  the  Bank  constantly  informed  in  writing  as  to the
location  of  the  Collateral  and the books of account and other records of the
Company;

          (j)     immediately  deliver  to  the  Bank  any negotiable instrument
forming  part  of  the  Collateral;

          (k)     effect  such registrations as may be required by the Bank from
time  to  time  to  protect  the  security  hereof;  and

          (l)     prevent  the Collateral from being or becoming an accession to
property  not  secured  hereby  or  becoming  affixed  to  any  real  property.

     4.1.4     Leases
               ------

          (a)  The  Company  shall at all times perform and discharge all of the
               lessee's  covenants  and  obligations  under  any  Lease.

          (b)  The  Company  will  not  without  the written consent of the Bank
               terminate,  surrender,  amend,  alter  or  vary  the  terms  and
               conditions  of  the any Lease. Nor shall the Company, without the
               written  consent  of  the Bank, waive performance by the landlord
               under any of the Leases or release any of the said landlords from
               any  obligations  under  their  respective  Leases.

     4.1.5     To  Insure
               ----------

          The  Company  shall  keep  the  Collateral  and  the operations of the
Company  insured in such amounts as the Bank may reasonably require against loss
or  damage  by  fire  and  such  other  risks  as the Bank may from time to time
specify,  with  insurers  approved by the Bank.  The Company shall whenever from
time  to  time requested by the Bank provide the Bank with satisfactory evidence
of such insurance and any renewal thereof which shall at all times be subject to
mortgage clauses in a form approved by the Bank, and shall at the request of the
Bank  forthwith  name  the  Bank  as  first loass payee and assign, transfer and
deliver  unto  the  Bank  the  policy  or  policies  of such insurance. Evidence
satisfactory  to  the  Bank of the renewal of every policy of insurance shall be
provided  to  the  Bank  at least seven (7) days before the termination thereof.

<PAGE>
     4.1.6     To  Furnish  Proofs
               -------------------

          The  Company  shall  forthwith  on the happening of any loss or damage
furnish  at  its  own  expense all necessary proofs and do all necessary acts to
enable  the  Bank  to obtain payment of the insurance monies, which, in the sole
discretion of the Bank, may be applied in reinstating the insured property or be
paid  to  the  Company  or  be applied in payment of the monies owing hereunder,
whether  due  or  not then due, or paid partly in one way and partly in another.

     4.1.7     Inspection  by  the  Bank
               -------------------------

          The Company shall allow any employees or authorized agents of the Bank
at  any reasonable time to enter the premises of the Company in order to inspect
the  Collateral  and  to  inspect  the books and records of the Company and make
extracts  therefrom,  and  shall  permit  the  Bank  prompt access to such other
persons  as  the  Bank  may  deem  necessary  or  desirable  for the purposes of
inspecting  or  verifying  any matters relating to any part of the Collateral or
the  books and records of the Company, provided that any information so obtained
shall  be  kept  confidential,  save  as  required by the Bank in exercising its
rights  hereunder.

     4.1.8     Accounts
               --------

          Subject  to  any  Permitted  Encumbrances  thereon,  Accounts shall be
received by the Company in trust for the Bank; provided that as long as an Event
of  Default has not occurred the Company may collect and use the Accounts in the
ordinary  course  of  business.

     4.1.9     Deliver  Information
               --------------------

          The  Company  shall deliver to the Bank at the close of each financial
year  of  the  Company one copy of its annual financial statements, which unless
otherwise  indicated  in  the  Offer  of Finance shall be prepared on an audited
basis by independent auditors of the Company, qualified and entitled to carry on
in  the  Applicable  Province  the  practice  of public accounting and auditing,
including  the  balance  sheet  and  statements of income, retained earnings and
changes  in  financial  position,  together with all supporting schedules.  Such
financial statements shall be signed by an authorized officer of the Company and
shall  be  accompanied  by a detailed report of the auditors (which report shall
not  be  qualified  in  any  material  respect).  The Company shall deliver such
financial  statements  to  the  Bank,  together  with  such other statements and
reports  as  may  be  required pursuant to the Offer of Finance, within the time
periods  stipulated  therein.  The  Company  shall provide to the Bank any other
information  concerning its financial position and business operations which the
Bank  may  from  time  to  time  request.

     4.1.10     Notice  of  Litigation  and  Damage
                -----------------------------------

          The  Company  will promptly give written notice to the Bank of (a) all
claims  or  proceedings pending or threatened against the Company which may give
rise to uninsured liability in excess of $25,000.00 or which may have a material
adverse  affect  on the business or operations of the Company, (b) all damage to
or  loss  or destruction of any property comprising part of the Collateral which
may  give  rise to an insurance claim in excess of $25,000 and (c) all uninsured
damage  to  or loss or destruction of property comprising part of the Collateral
in  excess of $25,000;  and will supply the Bank with all information reasonably
requested  in  respect  of  any  such  matters.

<PAGE>
     4.1.11     Notice  of  Default
                -------------------

          The  Company  will  promptly  give  written  notice to the Bank of the
occurrence  of  any Event of Default or of any event which after notice or lapse
of  time  would  constitute  an  Event  of  Default.

     4.1.12     Representations  and  Warranties
                --------------------------------

          The  representations  and  warranties made by the Company in Article 4
shall be true and correct on each day that this Agreement or any of the Security
Documents  remains in force, with the same effect as if such representations and
warranties  had  been made and given on and as of such day (except to the extent
any  such  representation and warranty is expressly limited to a particular date
or  particular  period  or  time), notwithstanding any investigation made at any
time  by  or  on  behalf  of  the  Bank.

     4.1.13     Not  to  Create  Certain  Charges
                ---------------------------------

          The  Company shall not, without the prior written consent of the Bank,
create  or  permit to arise any Encumbrance on any of the Collateral (other than
Permitted  Encumbrances),  and  will  not  permit  any Subsidiary to do the same
(except  in favour of the Company).  Nothing herein contained shall be construed
as  subordinating  the  Bank's interest in the Collateral in favour of any third
party  who  claims  the  Collateral  by  virtue  of  a  Permitted  Encumbrance

     4.1.14     Not  to  Sell
                -------------

          The  Company  shall  not,  except  as  otherwise  permitted hereunder,
remove,  destroy,  lease,  sell  or  otherwise dispose of any of the Collateral;
provided  that  the  Company  may  sell, lease or otherwise dispose of Equipment
which  has become worn out or damaged or otherwise unsuitable for their purposes
on  condition  that it shall substitute therefor, subject to the lien hereof and
free  from  prior liens or charges, property of equal value so that the security
hereby  constituted  shall  not  thereby  be in any way reduced or impaired; and
provided  further  that the Company may sell Inventory in the ordinary course of
business  and  for  the  purpose  of  carrying  on  the  same.

     4.1.15     Not  to  Make  Certain  Changes
                -------------------------------

          The  Company  shall not without the prior written consent of the Bank:

          (a)     change  its  financial  year  end;

          (b)     purchase,  establish or acquire in any manner any new business
undertaking;

          (c)     materially  change  the  nature  of  the Company's business as
presently  carried  on;

          (d)     amalgamate,  consolidate or merge or enter into a partnership,
joint  venture  or  syndicate with any other person, or acquire or establish any
Subsidiary;

          (e)     enter into any transaction, or permit any Subsidiary to do so,
outside  the  ordinary  active  business  operations  of  the  Company  and  its
Subsidiaries;

          (f)     acquire  or  invest  in  any  securities except instruments or
securities  issued  by  a financial institution or liquid securities traded on a
recognized  public  securities exchange and acquired only for the Company's cash
management  purposes  or  permit  any  Subsidiary  to  do  so;  or

          (g)     remove any of the Collateral or any of the books of account or
other  records  of  the  Company  from the jurisdiction where presently located.

<PAGE>
     4.1.16     Serial  Numbered  Goods  and  Fixtures
                --------------------------------------

          Upon the acquisition by the Company from time to time of rights in any
motor vehicles, trailers, mobile homes, boats, outboard motors or aircraft which
are  not  Inventory and which are not fully described in Schedule "B" hereto, or
upon  repossession  by  or  return to the Company of any such goods, the Company
will  forthwith  give  written notice to the Bank of full particulars (including
the  serial  number)  of  the  same.  The  Company  will not permit goods now or
hereafter comprised in the Collateral to become fixtures unless they are, or are
to  be, affixed or attached to the Premises described in Schedule "A" hereto and
unless  the  goods  are  described  in  Schedule  "B" hereto so that they may be
readily  identified.

                                    ARTICLE 5
                         EVENTS OF DEFAULT AND REMEDIES

5.1     EVENTS  OF  DEFAULT
        -------------------

          The  occurrence  of  any  of  the following events shall constitute an
Event  of  Default  under  this  Agreement:

     5.1.1     if  default  occurs  in  payment or performance of any Obligation
(whether  arising  herein  or  otherwise);

     5.1.2     if  any  representation or warranty made by the Company herein or
in  any other Loan Document or in any certificate, statement or report furnished
in  connection  with or pursuant to the Offer of Finance is found to be false or
incorrect  in  any  way so as to make it materially misleading when made or when
deemed  to  have  been  made;

     5.1.3     if  default occurs in payment or performance of any obligation in
favour of any person to whom the Company is indebted except obligations to trade
creditors  incurred  in  the ordinary course of business which do not materially
and  adversely  affect  the  financial  condition  of  the  Company;

     5.1.4     if  default  occurs  in  payment or performance of any obligation
(whether  now existing, presently arising or created in future) of any Affiliate
of  the  Company  in  favour  of  the  Bank;

     5.1.5     if  the Company commits an act of bankruptcy or becomes insolvent
within  the meaning of any bankruptcy or insolvency legislation applicable to it
or  a  petition  or  other process for the bankruptcy of the Company is filed or
instituted;

     5.1.6     if  any  act,  matter  or  thing is done toward, or any action or
proceeding is launched, had or taken for, terminating the corporate existence of
the  Company,  whether  by  winding-up,  surrender  of  charter  or  otherwise;

     5.1.7     if  the  Company  ceases  to  carry  on  its business or makes or
proposes to make any sale of its assets in bulk or any sale of its assets out of
the  usual  course  of  its  business;

     5.1.8     if  any  proposal is made or any petition is filed by the Company
under  any  law  having  for  its  purpose  the  extension  of time for payment,
composition  or  compromise  of  the  liabilities  of  the  Company  or  other
reorganization or arrangement respecting its liabilities or if the Company gives
notice  of its intention to make or file any such proposal or petition including
without  limitation  an application to any court for an order to stay or suspend
any  proceedings  of creditors pending the making or filing of any such proposal
or  petition;

     5.1.9     if any receiver, administrator or manager of the property, assets
or  undertaking  of  the  Company  or  a  substantial  part thereof is appointed
pursuant  to  the terms of any trust deed, trust indenture, debenture or similar
instrument  or  by  or  under  any  judgment  or  order  of  any  court;

<PAGE>
     5.1.10     if  any  balance  sheet or other financial statement provided by
the Company to the Bank pursuant to the provisions hereof is false or misleading
in  any  material  respect;

     5.1.11     if the Company permits any sum which has been admitted as due by
it  or  is  not disputed to be due by it and which forms, or is capable of being
made,  an  Encumbrance  upon any of the Collateral in priority to, or pari passu
with, the charge created by this Agreement to remain unpaid for thirty (30) days
after  proceedings  have  been  taken  to  enforce  the  same  as  such  charge;

     5.1.12     if  any  proceedings  are  taken  to  enforce  any  Encumbrance
affecting  any  of  the  Collateral;

     5.1.13     if the validity of any Loan Document is brought into question or
disputed  in  whole  or  in  part  where the effect of any such invalidity would
materially adversely affect the interests of the Bank hereunder or in connection
with  the  Offer  of  Finance;

     5.1.14     if  any  action  is  taken or power or right be exercised by any
Governmental Authority or if any claim or proceeding is pending or threatened by
any person which may have a material adverse effect on the Company, its business
or  operations,  its  properties  or  its  prospects;

     5.1.15     if  in  the  opinion  of  the Bank a material adverse change has
occurred  in the financial condition or business of the Company which may impair
the  ability or willingness of the Company to perform its obligations hereunder,
under  the  Offer  of  Finance  or  under any other Loan Document or if the Bank
considers  that the Collateral is in jeopardy or that the Bank is insecure;  and

     5.1.16     if  any  event  occurs  with respect to any Guarantor which if a
like  event  had  occurred with respect to the Company would have constituted an
Event  of  Default.

5.2     CONSEQUENCES  OF  AN  EVENT  OF  DEFAULT
        ----------------------------------------

          Upon the occurrence of an Event of Default, any obligation of the Bank
to  make  further  loans or advances or extend other credit to the Company shall
immediately terminate and all Obligations and all monies secured hereby shall at
the  option  of the Bank become forthwith due and payable whereupon the floating
charge  hereby  created shall crystallize, all of the rights and remedies hereby
conferred  in respect of the Collateral shall become immediately enforceable and
any  and  all additional and collateral securities for payment of this Agreement
shall  become  immediately  enforceable.

5.3     ENFORCEMENT
        -----------

          Upon  the  happening  of  any Event of Default the Bank shall have the
following  rights  and  powers:

     5.3.1     to  enter  into  possession of all or any part of the Collateral;

     5.3.2     to  preserve  and  maintain  the  Collateral  and  make  such
replacements  thereof  and  additions  thereto  as  it  deems  advisable;

     5.3.3     to  borrow  money in the Company's name or in the Bank's name, to
borrow  money  on  the  security  of the Collateral or to advance the Bank's own
money  to  the  Company,  in  any  case  upon  such  terms  as the Bank may deem
reasonable  and  upon  the  security  hereof;

     5.3.4     to  pay or otherwise satisfy in whole or in part any Encumbrances
which,  in  the  Bank's  opinion,  rank  in  priority  to  the  security hereof;

     5.3.5     after  entry  by its officers or agents or without entry to sell,
lease  or  otherwise  dispose  in  any  way whatsoever of all or any part of the
Collateral  either  en  bloc  or separately at public auction or by tender or by
private  agreement and at such time or times and on such terms and conditions as
the  Bank  in its absolute discretion may determine and without any notice to or
concurrence  of  the  Company  except  as  may  be  required  by applicable law;

<PAGE>
     5.3.6     by  instrument  in  writing  to  appoint  any  person  or persons
(whether  an  officer  or  officers  of  the  Bank  or  not)  (herein called the
"Receiver") as receiver or receiver-manager of all or any part of the Collateral
and  to  remove  any  Receiver so appointed and appoint another or others in his
stead;

     5.3.7     to  exercise  any  of  the  rights  of  a secured party under the
Personal  Property  Security  Act of the Applicable Province or any other rights
available  at  law  or  equity;

     5.3.8     to  transfer  or  require  the transfer of any securities forming
part  of  the  Collateral  to  the  Bank  and to exercise all rights, including,
without  limitation,  voting  rights  attached  to  such  securities;  and

     5.3.9     to  bring  proceedings in any court of competent jurisdiction for
the appointment of a receiver or a receiver-manager of all or any portion of the
Collateral.

          The security of this Agreement may be realized and the rights enforced
by  any  remedy or in any manner authorized or permitted by this Agreement or by
law  or equity and no remedy for the realization of the security hereof shall be
exclusive of or dependent upon any other remedy and all or any remedies may from
time  to  time  be  exercised  independently  or  in  any  combination.

5.4     DISPOSITION
        -----------

          Without  limiting  the  generality of the foregoing it shall be lawful
for  the  Bank:

     5.4.1     to  make  any  sale, lease or other disposition of the Collateral
either  for  cash or upon credit or partly for one and partly for the other upon
such conditions as to terms of payment as it in its absolute discretion may deem
proper;

     5.4.2     to  rescind  or  vary  any  contract  for  sale,  lease  or other
disposition  that  the  Bank  may  have entered into pursuant hereto and resell,
release or redispose of the Collateral with or under any of the powers conferred
herein;  and

     5.4.3     to  stop, suspend or adjourn any sale, lease or other disposition
from  time  to  time  and  to hold the same as adjourned without further notice.

          Upon  any  such  sale,  lease  or  other disposition the Bank shall be
accountable  only  for  money  actually  received  by  it.  The Company shall be
accountable  for  any  deficiency  and  the Bank shall distribute any surplus as
required  by  law.  The  Bank  may deliver to the purchaser or purchasers of the
Collateral  or any part thereof good and sufficient conveyances or deeds for the
same  free  and  clear  of  any  claim  by the Company.  The purchaser or lessee
receiving any disposition of the Collateral or any part thereof need not inquire
whether  default  under  this Agreement has actually occurred but may as to this
and  all  other  matters  rely upon a statutory declaration of an officer of the
Bank,  which declaration shall be conclusive evidence as between the Company and
any  such  purchaser or lessee, and the purchaser or lessee need not look to the
application  of  the purchase money, rent or other consideration given upon such
sale,  lease  or  other  disposition,  which  shall  not  be  affected  by  any
irregularity of any nature or kind relating to the crystallizing or enforcing of
the  security  hereof or the taking of possession of the Collateral or the sale,
lease  or  other  disposition  thereof.

<PAGE>
5.5     POWERS  OF  RECEIVER
        --------------------

          Any Receiver appointed as aforesaid shall have the power without legal
process:

     5.5.1     to take possession of the Collateral or any part thereof wherever
the  same  may  be  found;

     5.5.2     to  carry  on  the business of the Company or any part thereof in
the  name  of  the  Company  or  of  the  Receiver;  and

     5.5.3     to  exercise on behalf of the Bank all of the rights and remedies
herein  granted  to  the  Bank,

and  without  in  any way limiting the foregoing the Receiver shall have all the
powers  of  a  receiver  appointed  by  a  court of competent jurisdiction.  Any
Receiver  shall,  so  far as concerns responsibility for his acts, be deemed the
agent  of  the Company, and the Bank shall not be in any way responsible for any
misconduct  or  negligence  on  the  part  of any Receiver or any loss resulting
therefrom.

5.6     APPLICATION  OF  MONEYS
        -----------------------

          All  moneys  actually  received  by  the  Bank  or  by the Receiver in
enforcing the security of this Agreement shall be applied, subject to the proper
claims  of  any  other  person:

     5.6.1     first,  to  pay or reimburse the Bank and any Receiver the costs,
charges,  expenses  and  advances payable by the Company in accordance herewith;

     5.6.2     second,  in or toward the payment to the Bank of all other moneys
owing  hereunder  or  secured  hereby  in  such  order  as  the Bank in its sole
discretion  may  determine;  and

     5.6.3     third,  any  surplus  shall  be  distributed  as required by law.

5.7     POWERS  OF  DIRECTORS  AND  OFFICERS
        ------------------------------------

          Upon  the  Bank  declaring  as  aforesaid that the security hereof has
become  enforceable  and  crystallized  or the Company receiving notice from the
Bank  of the taking of possession of any of the Collateral or of the appointment
of a Receiver, all the powers, functions, rights and privileges of the directors
and  officers  of  the  Company  with  respect  to  the  property,  business and
undertaking  of  the  Company  shall  cease  except  to  the extent specifically
continued  at any time by the Bank in writing, the whole to the extent permitted
by  law.

5.8     LIMITATIONS  ON  LIABILITY
        --------------------------

          Neither  the  provisions  of this Agreement nor anything done under or
pursuant  to  the  rights,  remedies  and powers conferred upon the Bank and the
Receiver,  whether  hereunder  or otherwise, will render the Bank a mortgagee in
possession.  Neither the Bank nor any Receiver will be bound to collect, dispose
of,  realize,  enforce  or  sell  any  securities, Instruments, Chattel Paper or
Intangibles (including any Accounts) comprised in the Collateral or to allow any
such  Collateral  to  be sold or disposed of, nor will it be responsible for any
loss  occasioned by any such sale or other dealing or for any failure to sell or
so  act,  nor  will it be responsible for any failure to take necessary steps to
preserve  rights  against  others  in respect of such Collateral, nor will it be
responsible  for  any  loss  occasioned by the failure to exercise any rights in
respect of Collateral within the time limited for the exercise thereof.  Neither
the  Bank  nor  the  Receiver  will  be obligated to keep Collateral separate or
identifiable.

<PAGE>

                                    ARTICLE 6
                                    GENERAL

6.1     WAIVER
        ------

          No  act or omission by the Bank in any manner whatever in the premises
shall  extend  to  or  be taken to affect any provision hereof save only express
waiver  in writing.  A waiver of default shall not extend to, or be taken in any
manner  whatsoever  to  affect  the  rights  of  the  Bank  with respect to, any
subsequent  default,  whether  similar or not.  The Company waives every defence
based  upon  any  or  all  indulgences  that  may  be  granted  by  the  Bank.

6.2     OTHER  SECURITIES
        -----------------

          The rights of the Bank hereunder shall not be prejudiced nor shall the
liabilities  of  the Company or of any other person be reduced in any way by the
taking  of  any  other  security  of  any  nature  or kind whatsoever whether in
addition  to,  or  in  substitution  of, existing security either at the time of
execution  of  this  Agreement  or  at  any  time  hereafter.

6.3     NO  MERGER  OR  NOVATION
        ------------------------

          Neither  the  taking  of any judgment nor the exercise of any power of
seizure  or sale shall operate to extinguish the liability of the Company to pay
the moneys hereby secured nor shall the same operate as a merger of any covenant
herein  contained  or  of  any other Obligation, nor shall the acceptance of any
payment  or  other  security  constitute  or  create  any  novation.

6.4     AMALGAMATION
        ------------

          The  Company  acknowledges  that  if  it  amalgamates  with  any other
corporation or corporations (a) the Collateral and the lien created hereby shall
extend  to  and  include all the property and assets of each of the amalgamating
corporations  and  the  amalgamated corporation and to any property or assets of
the  amalgamated  corporation  thereafter  owned  or  acquired,  (b)  the  term,
"COMPANY",  where  used  herein  shall  extend  to  and  include  each  of  the
amalgamating  corporations  and  the  amalgamated corporation, and (c) the term,
"Obligations",  where used herein shall extend to and include the Obligations of
each  of the amalgamating corporations and the amalgamated corporation.  Nothing
in this Section 6.4 shall be interpreted as permitting the Company to amalgamate
in  violation  of  any  covenant of the Company contained herein or in any other
agreement  binding  the  Company.

<PAGE>

6.5     POWER  OF  ATTORNEY
        -------------------

          The  Company  for valuable consideration irrevocably appoints the Bank
and  its  officers  from  time to time or any of them to be the attorneys of the
Company  in  the  name  of  and  on  behalf  of  the  Company
 to  execute  and  do any deeds, transfers, conveyances, assignments, assurances
and  things  which  the  Company ought to execute and do under the covenants and
provisions  herein contained and generally to use the name of the Company in the
exercise  of  all  or  any  of  the  powers  hereby  conferred  on  the  Bank.

6.6     THE  BANK  MAY  REMEDY  DEFAULT
        -------------------------------

          If  the Company fails to do anything hereby required to be done by it,
the  Bank  may,  but shall not be obliged to, do such thing and all sums thereby
expended by the Bank shall be payable forthwith by the Company, shall be secured
hereby  and  shall  have  the  benefit  of  the lien hereby created, but no such
performance  by the Bank shall be deemed to relieve the Company from any default
hereunder.

6.7     PURCHASE  MONEY  SECURITY  INTEREST
        -----------------------------------

          The  Company  acknowledges  that  the security interest in any item of
Collateral  and its proceeds shall constitute a purchase-money security interest
to  the  extent  it  secures  Obligations  incurred by the Company to enable the
Company to acquire rights in such Collateral.  The Bank hereby reserves title to
any  item  of  Collateral  which  may  be  sold by the Bank to the Company until
satisfaction  of  the  Obligations  as  aforesaid.

6.8     TAXES  AND  RESERVE  REQUIREMENTS
        ---------------------------------

          In  case  the  Bank  is  or becomes subject to any tax with respect to
payments  of principal, interest or other amounts by the Company hereunder or in
respect of any of the Obligations (except for taxes on the overall net income of
the  Bank)  or  to any reserve or similar requirement against assets held by, or
deposits in or for the account of, or loans by, an office of the Bank, or to any
other  condition  with  respect  to this Agreement, and the result of any of the
foregoing  is  to  increase  the  cost  to the Bank of making or maintaining any
Obligation  or  to  reduce  the  income receivable by the Bank in respect of any
Obligation,  then  the Company shall pay to the Bank on demand that amount which
shall  compensate  the  Bank for such additional cost or reduction in income.  A
certificate of the Bank setting forth the amount of such additional compensation
and  the  basis therefor shall be submitted by the Bank to the Company and shall
be  conclusive  evidence,  in  the  absence  of  manifest error, of such amount.

6.9     SASKATCHEWAN  WAIVER
        --------------------

          To  the  extent  permitted  by law, the Company hereby agrees that the
provisions  of  the  Limitation  of  Civil  Rights  Act (Saskatchewan), The Land
Contracts  (Actions)  Act (Saskatchewan), and The Saskatchewan Farm Security Act
(Saskatchewan),  as  may  be  applicable,  shall  have  no  application  to this
Agreement,  the  security  interest  granted to the Bank herein, or to any other
agreement  or  interest arising collateral hereto, or as a result hereof, or any
replacement  or  substitution  therefor  and  to  all  extensions,  renewals  or
amendments  of  the  same.

6.10     ADDITIONAL  PROVISIONS
         ----------------------

          Any  provisions  set  forth in Schedule "D" hereto form part hereof to
the  same  extent  and  effect  as  if  set  forth  in  the  body  hereof.

6.11     NOTICES
         -------

          Any notice or written communication given pursuant to or in connection
with  this  Agreement  shall  be in writing and shall be given by delivering the
same  personally  or  by  prepaid  courier,  prepaid  registered  mail, telex or
telecopier,  addressed  to the party to be notified at the address of such party
set  out herein or at such other address of which such party has given notice to
the  other parties hereto.  Any such notice shall be conclusively deemed to have
been  given  and  received  on the day of actual receipt by the addressee or, if
given  by  prepaid  registered  mail,  on  the  third Business Day following the
mailing  date  (absent  a  general  disruption  in  postal  service.)

<PAGE>
6.12     OFFER  OF  FINANCE
         ------------------

          This  Agreement is being issued by the Company to the Bank pursuant to
the  terms  of  the  Offer of Finance.  All terms and conditions of the Offer of
Finance shall remain in full force and effect, except to the extent inconsistent
with  the  provisions  of  this  Agreement  in which case the provisions of this
Agreement  shall  govern  and  prevail.

6.13     RECEIPT
         -------

          The  Company  hereby  acknowledges  receipt  of  a  true  copy of this
Agreement  and,  to the extent permitted by law, waives any right it may have to
receive  a  copy  of  any  financing  statement,  financing change statement and
verification  statement  filed  from  time  to  time  in respect of the security
created  hereby.

6.14     SUCCESSORS  AND  ASSIGNS,  ETC.
         -------------------------------

          This  Agreement  and  all its provisions shall enure to the benefit of
the  Bank, its successors and assigns and shall be binding upon the Company, its
successors  and  assigns,  and  every  reference  herein to a party hereto shall
include  such  party's  successors  and  assigns as if specifically named.  Time
shall  be  in  all  respects  of  the  essence  hereof.

          IN WITNESS WHEREOF the Company has hereunto affixed its Corporate Seal
attested  by  the hands of its proper officers duly authorized in that behalf as
of  the  22nd  day  of  February,  2002.

                              1418276  ONTARIO  INC.
                              Name  of  Company
                              30  West  Beaver  Creek Road, Suite 109,
                              Richmond  Hill,  Ontario  L4B  3K1

                              per:___/s/  Kim  Allen  ________________________
                                          Name:  Kim  Allen
                                          Title:   President
                                          c/s

                              per:_____/s/  Angelo  Boujos______________________
                                            Name:  Angelo  Boujos
                                            Title:    Chairman

<PAGE>
                           We  have  authority  to  bind  the Corporation

                        LAURENTIAN  BANK  OF  CANADA

                        Per:___/s/  Bruce  Knight_______________________________
                                           Name:
                                           Title:

                        Per:____/s/Karim  Habib______________________________
                                          Name:
                                          Title:

                                  SCHEDULE "A"

                                    PREMISES

Municipal  Address
------------------

30  West  Beaver  Creek  Road,  Suite  109,  Richmond  Hill,  Ontario  L4B  3K1

<PAGE>
                                  SCHEDULE "B"
                                    EQUIPMENT

ALL  ASSETS

                                  SCHEDULE "C"
                             PERMITTED ENCUMBRANCES

PERSONAL  PROPERTY  SECURITY  ACT
---------------------------------
NONE

OTHER  SECURED  LIABILITIES
---------------------------

SECURED  PARTY                    REGISTRATION  PARTICULARS          AMOUNT

NONE

BANK  INDEBTEDNESS
------------------

NONE
THE  CHARTS  ON  THIS  PAGE  ARE  IN  TABLES  (WITH  NO  LINES)

                                  SCHEDULE "D"
                              ADDITIONAL PROVISIONS

1.     The  Company will continue to operate as a non-operating holding company.

2.     In  the  event  that  any  Affiliate  of  the  Company  that is currently
inactive,  as declared by the auditor of the Company, becomes active at any time
in  the  future,  and if the Company advances any monies to such Affiliate, then
the  Company hereby covenants and undertakes to cause such Affiliate to grant in
favour  of  the  Bank  a  first  ranked  general security agreement over all the
property  of  such  Affiliate  before  any  advances are made to such Affiliate.

3.     All  existing  Priority  Claims, which term means the aggregate amount of
all claims (i) created or arising by operation of law without the consent of the
Company,  or  any  of its Affiliates, under statute, regulation, common or other
law  which  rank  prior  to  or  pari  passu with any security held by the Bank,
including  without  limitation  income tax withheld from employees, unemployment
insurance  premiums, Canada Pension Plan contributions, vacation pay, provincial
sales  tax, federal excise and goods service taxes, Workers Safety and Insurance
Board contributions or (ii) of suppliers which rank pari passu with any security
held  by  the  Bank,  shall  be  paid  in full on or before May 31, 2002 and the
Corporation and its Affiliates shall furnish the Bank with proof of such payment
on  or  before  May  31,  2002.

For  the  purposes  of  this  document,  Affiliate  shall  mean  the  following
corporations:  CableTec Communications Inc., Multilink Network Services Inc. and
Coastal  Network  Services  Inc.

<PAGE>
                                  SCHEDULE "E"

                            MISCELLANEOUS PARTICULARS

1.1     "AFFILIATE"  includes  the  following  corporations:

Universe2U Inc.; Universe2U Canada Inc.; CableTec Communications Inc.; Multilink
Network  Services  Inc.  and  Coastal  Network  Services  Inc.

1.2     "MANAGEMENT  GROUP"  includes  the  following  persons:

Kim  Allen,  Angelo  Boujos

1.3     "NORMAL  BUSINESS"  means  the  following  activities:

Holding  Company

1.4     "OFFER  OF  FINANCE"  for the time being means the letter of the Bank to
the  Company  dated the 15th day of  February, 2002, as accepted by the Company;

1.5     "SHAREHOLDER  OWNERSHIP"  means  the  direct  or  indirect  beneficial
ownership  of  shares  of  the  Company  as  follows:

Owner                    Class  of  Shares               Number  of  Shares
-----                    -----------------               ------------------

Universe2U  Inc.               Common                           100

                        Exchangeable  Shares                     5,758,000
                       (as  such  shares  are  defined  in
                        the  constating  documents
                        of  the  Company)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]