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<SEC-DOCUMENT>0000950129-09-000148.txt : 20090121
<SEC-HEADER>0000950129-09-000148.hdr.sgml : 20090121
<ACCEPTANCE-DATETIME>20090121173048
ACCESSION NUMBER:		0000950129-09-000148
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20090121
FILED AS OF DATE:		20090121
DATE AS OF CHANGE:		20090121

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PRECISION DRILLING TRUST
		CENTRAL INDEX KEY:			0001013605
		STANDARD INDUSTRIAL CLASSIFICATION:	DRILLING OIL & GAS WELLS [1381]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A0
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14534
		FILM NUMBER:		09537312

	BUSINESS ADDRESS:	
		STREET 1:		150 - 6TH AVENUE S.W.
		STREET 2:		SUITE 4200
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P 3Y7
		BUSINESS PHONE:		403-264-0251

	MAIL ADDRESS:	
		STREET 1:		150 - 6TH AVENUE S.W.
		STREET 2:		SUITE 4200
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2P 3Y7

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PRECISION DRILLING CORP
		DATE OF NAME CHANGE:	19960506
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>h65518e6vk.htm
<DESCRIPTION>FORM 6-K - CURRENT REPORT
<TEXT>
<HTML>
<HEAD>
<TITLE>e6vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 6-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>REPORT OF FOREIGN PRIVATE ISSUER<BR>
Pursuant to Section&nbsp;13a-16 or 15d-16 of the<BR>
Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>January&nbsp;21, 2009</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Commission File Number: 001-14534
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Precision Drilling Trust</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>4200, 150 &#151; 6th Avenue S.W.<BR>
Calgary, Alberta<BR>
Canada T2P 3Y7</B><BR>
(Address of principal executive offices)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Form&nbsp;20-F &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form&nbsp;40-F &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#120;</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation&nbsp;S-T Rule&nbsp;101(b)(1): &#95;&#95;&#95;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation&nbsp;S-T Rule&nbsp;101(b)(7): &#95;&#95;&#95;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule&nbsp;12g3-2(b) under the
Securities Exchange Act of 1934.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Yes &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-family: Wingdings">&#120;</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If &#147;Yes&#148; is marked, indicate below the file number assigned to the registrant in connection
with Rule&nbsp;12g3-2(b): 82-<U> N/A .</U>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>











<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">








<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>PRECISION DRILLING TRUST<BR>
By its Administrator PRECISION DRILLING<BR>
CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated: January 21, 2009&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Darren Ruhr
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">  Darren Ruhr&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Corporate Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX TO EXHIBITS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description of Exhibit</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Credit Agreement among Precision Drilling Trust, Precision
Drilling Corporation, HSBC Bank Canada, the
Toronto-Dominion Bank, Deutsche Bank Securities, Inc., and
Royal Bank of Canada dated December&nbsp;23, 2008.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bridge Credit Agreement among Precision Drilling Trust,
Precision Drilling Corporation, HSBC Bank USA National
Association, Royal Bank of Canada and Deutsche Bank AG
Cayman Islands Branch dated December&nbsp;23, 2008.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>h65518exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">$1,200,000,000
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CREDIT AGREEMENT

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">among

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PRECISION DRILLING TRUST,
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as a Guarantor,

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">PRECISION DRILLING CORPORATION,
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Borrower,

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">The Several Lenders from Time to Time Parties Hereto,
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">HSBC BANK CANADA and

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">THE TORONTO-DOMINION BANK,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Co-Documentation Agents,

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">DEUTSCHE BANK SECURITIES INC.,
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Syndication Agent,

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">and
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">ROYAL BANK OF CANADA,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Administrative Agent

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Dated as of December&nbsp;23, 2008
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">RBC CAPITAL MARKETS<SUP style="font-size: 85%; vertical-align: text-top">*</SUP> and DEUTSCHE BANK SECURITIES INC.,
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Joint Lead Arrangers and Joint Bookrunners

</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>RBC Capital Markets is the global brand name for the
corporate and investment banking businesses of Royal Bank of Canada and its
affiliates.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->





<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>TABLE OF CONTENTS</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1. DEFINITIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.1 Defined Terms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.2 Other Definitional Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.3 Currency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.4 Concerning the Trustees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2. AMOUNT AND TERMS OF COMMITMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.1 Term Commitments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.2 Procedure for Term Loan Borrowing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.3 Repayment of Term Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.4 Revolving Commitments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.5 Procedure for Revolving Loan Borrowing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.6 Bankers&#146; Acceptances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.7 Circumstances Making Bankers&#146; Acceptances Unavailable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.8 Swingline Commitment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.9 Procedure for Swingline Borrowing; Refunding of Swingline Loans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.10 Commitment Fees, etc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.11 Termination or Reduction of Revolving Commitments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.12 Optional Prepayments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.13 Mandatory Prepayments and Commitment Reductions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.14 Conversion and Continuation Options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.15 Limitations on Eurodollar Tranches</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.16 Interest Rates and Payment Dates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.17 Computation of Interest and Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.18 Inability to Determine Interest Rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.19 Pro Rata Treatment and Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.20 Requirements of Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.21 Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.22 Indemnity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.23 Change of Lending Office</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.24 Replacement of Lenders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.25 Incremental Facilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.26 Additional Borrowers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.27 Defaulting Lenders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3. NORTH AMERICAN LETTERS OF CREDIT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.1 North American L/C Commitment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.2 Procedure for Issuance of North American Letter of Credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.3 Fees and Other Charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.4 North American L/C Participations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.5 Reimbursement Obligation of the Borrower</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.6 Obligations Absolute</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.7 Letter of Credit Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.8 Cash Collateralization of North American Letters of Credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->i&nbsp;<!-- /Folio -->

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">3.9 Applications</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4. CANADIAN LETTERS OF CREDIT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.1 Canadian L/C Commitment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.2 Procedure for Issuance of Canadian Letter of Credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.3 Fees and Other Charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.4 Canadian L/C Participations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.5 Reimbursement Obligation of the Borrower</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.6 Obligations Absolute</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.7 Letter of Credit Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.8 Cash Collateralization of Canadian Letters of Credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">4.9 Applications</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5. REPRESENTATIONS AND WARRANTIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.1 Financial Condition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.2 No Change</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.3 Existence; Compliance with Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.4 Power; Authorization; Enforceable Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.5 No Legal Bar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.6 Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.7 No Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.8 Ownership of Property; Liens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.9 Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.10 Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.11 Federal Regulations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.12 Labor Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.13 ERISA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.14 Canadian Pension and Benefit Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.15 Investment Company Act; Other Regulations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.16 Subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.17 Use of Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.18 Environmental Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.19 Accuracy of Information, etc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.20 Security Documents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.21 Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.22 Solvency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.23 Certain Documents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6. CONDITIONS PRECEDENT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">6.1 Conditions to Initial Extension of Credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">6.2 Conditions to Each Extension of Credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7. AFFIRMATIVE COVENANTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.1 Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.2 Certificates; Other Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.3 Payment of Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.4 Maintenance of Existence; Compliance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.5 Maintenance of Property; Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.6 Inspection of Property; Books and Records; Discussions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.7 Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.8 Environmental Laws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.9 Interest Rate Protection</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.10 Additional Collateral, etc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.11 Guarantors; Ownership of Assets by Loan Parties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.12 Maintenance of Credit Ratings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8. NEGATIVE COVENANTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.1 Financial Condition Covenants</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.2 Indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.3 Liens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.4 Fundamental Changes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.5 Disposition of Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.6 Restricted Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.7 Capital Expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.8 Investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.9 Optional Payments and Modifications of Certain Debt Instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.10 Transactions with Affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.11 Sales and Leasebacks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.12 Swap Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.13 Changes in Fiscal Periods</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.14 Negative Pledge Clauses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.15 Clauses Restricting Subsidiary Distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.16 Material Change in Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.17 Amendments to Acquisition Documents and other Material Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.18 Redemption Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;9. EVENTS OF DEFAULT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;10. THE AGENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.1 Appointment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.2 Delegation of Duties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.3 Exculpatory Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.4 Reliance by Administrative Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.5 Notice of Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">108</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.6 Non-Reliance on Agents and Other Lenders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.7 Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">109</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.8 Withholding Tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.9 Agent in Its Individual Capacity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.10 Successor Administrative Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.11 Qu&#233;bec</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.12 Co-Documentation Agents and Syndication Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;11. MISCELLANEOUS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.1 Amendments and Waivers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.2 Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.3 No Waiver; Cumulative Remedies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.4 Survival of Representations and Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.5 Payment of Expenses and Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">113</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.6 Successors and Assigns; Participations and Assignments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.7 Adjustments; Set-off</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.8 Counterparts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.9 Severability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.10 Integration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.11 <B>GOVERNING LAW</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.12 Submission To Jurisdiction; Waivers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.13 Acknowledgements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.14 Releases of Guarantees and Liens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.15 Confidentiality</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.16 <B>WAIVERS OF JURY TRIAL</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.17 USA PATRIOT Act</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.18 Judgment Currency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.19 Permitted Reorganization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.20 Reallocation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">122</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><u>SCHEDULES</u>:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commitments</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Excluded Subsidiaries</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1C
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specified Operating Facilities</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.6(b)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney Terms &#150; Bankers&#146; Acceptances</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consents, Authorizations, Filings and Notices</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.16
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiaries</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.18
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Environmental Matters</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.20(a)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">UCC Filing Jurisdictions</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.20(b)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material Real Property</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.20(c)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PPSA Filing Jurisdictions</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.2(d)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Existing Indebtedness</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.3(f)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Existing Liens</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.8(l)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Existing Investments</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Existing Agreements Restricting Subsidiary Distributions</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.17
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material Contracts</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><u>EXHIBITS</u>:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">A-1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of US Guarantee and Collateral Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">A-2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Canadian Collateral Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Compliance Certificate</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">C
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Closing Certificate</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">D
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Assignment and Assumption</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">E-1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Legal Opinion of Bennett Jones LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">E-2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Legal Opinion of Mayer Brown LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">E-3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Legal Opinion of General Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Prepayment Option Notice</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">G
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Exemption Certificate</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">H
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Lender Joinder Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">I
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Borrower Joinder Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">J
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Market Disruption Notice</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->v&nbsp;<!-- /Folio -->

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CREDIT AGREEMENT (this &#147;<U>Agreement</U>&#148;), dated as of December&nbsp;23, 2008, among PRECISION
DRILLING TRUST, an Alberta unincorporated open-ended investment trust (&#147;<U>Holdings</U>&#148;),
PRECISION DRILLING CORPORATION, a corporation amalgamated under the laws of the Province of Alberta
(the &#147;<U>Borrower</U>&#148;), the several banks and other financial institutions or entities from time
to time parties to this Agreement (the &#147;<U>Lenders</U>&#148;), HSBC BANK CANADA and THE
TORONTO-DOMINION BANK, as co-documentation agents (in such capacity, the &#147;<U>Co-Documentation
Agents</U>&#148;), DEUTSCHE BANK SECURITIES INC., as syndication agent (in such capacity, the
&#147;<U>Syndication Agent</U>&#148;), and ROYAL BANK OF CANADA, as administrative agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto hereby agree as follows:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 1. DEFINITIONS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Defined Terms</u>. As used in this Agreement, the terms listed in this Section&nbsp;1.1 shall have the respective
meanings set forth in this Section&nbsp;1.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ABR</U>&#148;: for any day, a rate per annum (rounded upwards, if necessary, to the next
1/100 of 1%) equal to the greatest of (a)&nbsp;the Corporate Base Rate in effect on such day, (b)&nbsp;the
Federal Funds Effective Rate in effect on such day plus <FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT> of 1% and (c) (i)&nbsp;the Eurodollar Rate or
(ii)&nbsp;if a Market Disruption Event pursuant to Section&nbsp;2.18 has occurred and is continuing, the
Market Disruption Eurodollar Rate, in each case of the foregoing clauses (i)&nbsp;and (ii)&nbsp;for an
Interest Period of one month plus 1%. Any change in the ABR due to a change in the Corporate Base
Rate or the Federal Funds Effective Rate shall be effective as of the opening of business on the
effective day of such change in the Corporate Base Rate or the Federal Funds Effective Rate,
respectively. Notwithstanding the foregoing, if the &#147;ABR&#148; as determined in accordance with the
immediately preceding sentences is less than 4.25% for any day, then for all purposes of this
Agreement and the other Loan Documents, in respect of the Tranche B Term Loans, the &#147;ABR&#148; shall be
deemed equal to 4.25% for such day.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ABR Loans</U>&#148;: Loans the rate of interest applicable to which is based upon the ABR.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acceptance Fee</U>&#148;: a fee payable in Canadian Dollars by the Borrower with respect to
the acceptance of a Bankers&#146; Acceptance by a Lender under this Agreement, as set forth in Section
2.6(f).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquisition</U>&#148;: as defined in Section&nbsp;6.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquisition Agreement</U>&#148;: the Agreement and Plan of Merger, dated as of August&nbsp;24,
2008, by and among Holdings, the Borrower, Precision Lobos Corporation and the Target, as amended
by the amendment thereto dated as of December&nbsp;2, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquisition Documentation</U>&#148;: collectively, the Acquisition Agreement and all
schedules, exhibits and annexes thereto and any material agreements among Holdings, the Borrower,
Precision Lobos Corporation, the Target and/or any of their respective Subsidiaries affecting the
terms thereof or entered into in connection therewith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Additional Borrower</U>&#148;: as defined in Section&nbsp;2.26.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Adjustment Date</U>&#148;: as defined in the Applicable Pricing Grid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Administrative Agent</U>&#148;: Royal Bank of Canada, as the administrative agent for the
Lenders under this Agreement and the other Loan Documents, together with any of its successors.
</DIV>

</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;2
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148;: as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such Person. For purposes of this
definition, &#147;control&#148; of a Person means the power, directly or indirectly, either to (a)&nbsp;vote 10%
or more of the securities having ordinary voting power for the election of directors (or persons
performing similar functions) of such Person or (b)&nbsp;direct or cause the direction of the management
and policies of such Person, whether through the ownership of Capital Stock or other ownership
interests, by contract or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agents</U>&#148;: the collective reference to the Syndication Agent, the Co-Documentation
Agents and the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aggregate Exposure</U>&#148;: with respect to any Lender at any time, an amount equal to (a)
until the Closing Date, the aggregate amount of such Lender&#146;s Commitments at such time and (b)
thereafter, the sum of (i)&nbsp;the aggregate then unpaid principal amount of such Lender&#146;s Term Loans
and (ii)&nbsp;the amount of such Lender&#146;s Revolving Commitments then in effect or, if the Revolving
Commitments have been terminated, the amount of such Lender&#146;s Revolving Extensions of Credit then
outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aggregate Exposure Percentage</U>&#148;: with respect to any Lender at any time, the ratio
(expressed as a percentage) of such Lender&#146;s Aggregate Exposure at such time to the Aggregate
Exposure of all Lenders at such time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreed Currency</U>&#148;: as defined in Section&nbsp;11.18.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148;: as defined in the preamble hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Margin</U>&#148;: for each Type of Loan, the rate per annum set forth under the
relevant column heading below (subject, in the case of Term Loans, to increase pursuant to Section
2.25):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>&#091;Redacted pursuant to Section&nbsp;12.2 of national instrument 51-102&#093;</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">; <U>provided</U>, that on and after the first Adjustment Date occurring after the completion
of two full fiscal quarters of Holdings after the Closing Date, the Applicable Margin with respect
to Revolving Loans and Swingline Loans will be determined pursuant to the Applicable Pricing Grid;
<U>provided</U>, <U>further</U>, that the Applicable Margin with respect to Incremental Term
Loans shall be the rates agreed pursuant to Section&nbsp;2.25.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Pricing Grid</U>&#148;: the table set forth below:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>&#091;Redacted pursuant to Section&nbsp;12.2 of national instrument 51-102&#093;</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of the Applicable Pricing Grid, changes in the Applicable Margin resulting
from changes in the Consolidated Leverage Ratio shall become effective on the date (the
&#147;<U>Adjustment Date</U>&#148;) that is three Business Days after the date on which financial statements
are delivered to the Lenders pursuant to Section&nbsp;7.1 and shall remain in effect until the next
change to be effected pursuant to this paragraph. If any financial statements referred to above
are not delivered within the time periods specified in Section&nbsp;7.1, then, until the date that is
three Business Days after the date on which such financial statements are delivered, the highest
rate set forth in each column of the Applicable Pricing
Grid shall apply. Each determination of the Consolidated Leverage Ratio pursuant to the Applicable
Pricing Grid shall be made in a manner consistent with the determination thereof pursuant to
Section&nbsp;8.1.
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Application</U>&#148;: an application, in such form as each Issuing Lender may specify from
time to time, requesting such Issuing Lender to open a Letter of Credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Approved Fund</U>&#148;: as defined in Section&nbsp;11.6(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Arrangers</U>&#148;: Royal Bank of Canada and Deutsche Bank Securities Inc., in their
capacities as Joint Lead Arrangers and Joint Bookrunners.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Sale</U>&#148;: any Disposition of property or series of related Dispositions of
property (excluding any such Disposition permitted by clause (a), (b), (c), (d), (g), (h), (i)&nbsp;or
(j)&nbsp;of Section&nbsp;8.5) that yields gross proceeds to any Group Member (valued at the initial principal
amount thereof in the case of non-cash proceeds consisting of notes or other debt securities and
valued at fair market value in the case of other non-cash proceeds) in excess of $3,000,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assignee</U>&#148;: as defined in Section&nbsp;11.6(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assignment and Assumption</U>&#148;: an Assignment and Assumption, substantially in the form
of Exhibit&nbsp;D.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Available Canadian Revolving Commitment</U>&#148;: as to any Canadian Revolving Lender at any
time, an amount equal to the excess, if any, of (a)&nbsp;such Lender&#146;s Canadian Revolving Commitment
then in effect <U>over</U> (b)&nbsp;such Lender&#146;s Canadian Revolving Extensions of Credit then
outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Available North American Revolving Commitment</U>&#148;: as to any North American Revolving
Lender at any time, an amount equal to the excess, if any, of (a)&nbsp;such Lender&#146;s North American
Revolving Commitment then in effect <U>over</U> (b)&nbsp;such Lender&#146;s North American Revolving
Extensions of Credit then outstanding; <U>provided</U>, that in calculating any Lender&#146;s North
American Revolving Extensions of Credit for the purpose of determining such Lender&#146;s Available
North American Revolving Commitment pursuant to Section&nbsp;2.10(a), the aggregate principal amount of
Swingline Loans then outstanding shall be deemed to be zero.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>BA Equivalent Loan</U>&#148;: as defined in Section&nbsp;2.6(c).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bankers&#146; Acceptance</U>&#148; and &#147;<U>BA</U>&#148;: a bill of exchange, including a depository
bill issued in accordance with the Depository Bills and Notes Act (Canada), denominated in Canadian
Dollars, drawn by the Borrower and accepted by a Lender and shall include a BA Equivalent Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Base Case Operating Cash Flow Before Working Capital</U>&#148;: for any fiscal quarter, the
amount set forth in the table below opposite such fiscal quarter:<SUP style="font-size: 85%; vertical-align: text-top"> </SUP>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Base Case Operating Cash</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Fiscal Quarter Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Flow Before Working Capital</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">182,407,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">81,085,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">168,255,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">196,510,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">192,944,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">84,209,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">176,445,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">209,422,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">178,066,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Base Case Operating Cash</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Fiscal Quarter Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Flow Before Working Capital</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">76,332,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">163,591,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">194,129,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">182,616,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">80,420,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">168,283,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">199,198,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">186,525,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">81,920,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">172,420,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">204,924,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">203,801,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">95,285,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">191,151,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">225,107,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Benefitted Lender</U>&#148;: as defined in Section&nbsp;11.7(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Board</U>&#148;: the Board of Governors of the Federal Reserve System of the United States
(or any successor).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrower</U>&#148;: as defined in the preamble hereto; <U>provided</U>, that such term shall
also include any Person that becomes an Additional Borrower pursuant to Section&nbsp;2.26 and, following
a Permitted Reorganization, the New Borrower (if applicable).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrower Joinder Agreement</U>&#148;: an agreement substantially in the form of Exhibit&nbsp;I.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrowing Date</U>&#148;: any Business Day specified by the Borrower as a date on which the
Borrower requests the relevant Lenders to make Loans hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bridge Credit Agreement</U>&#148;: the Bridge Credit Agreement, dated as of the Closing Date,
among Holdings, the Borrower, the lenders party thereto and Deutsche Bank Securities Inc, as
administrative agent, as amended, supplemented or otherwise modified from time to time as permitted
hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bridge Loans</U>&#148;: the &#147;Loans&#148; as defined in the Bridge Credit Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business</U>&#148;: as defined in Section&nbsp;5.18(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148;: a day other than a Saturday, Sunday or other day on which commercial
banks in New York City, Calgary or Toronto are authorized or required by law to close,
<U>provided</U>, that with respect to notices and determinations in connection with, and payments
of principal and interest on, Eurodollar Loans, such day is also a day for trading by and between
banks in Dollar deposits in the interbank eurodollar market.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Benefit Plans</U>&#148;: all material employee benefit plans or arrangements subject
to Canadian law or regulation maintained or contributed to by Holdings or any of its Subsidiaries
that are not Canadian Pension Plans, including all profit sharing, savings, supplemental
retirement, retiring allowance, severance, pension, deferred compensation, welfare, bonus,
incentive compensation, phantom
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">stock and all life, health, dental and disability plans and arrangements in which the
employees or former employees of Holdings or any of its Subsidiaries participate or are eligible to
participate but excluding all stock option or stock purchase plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Collateral Agreement</U>&#148;: collectively, the Canadian Collateral Agreement to
be executed by Holdings, the Borrower and each Subsidiary Guarantor organized under the laws of
Canada or any province thereof party thereto, substantially in the form of Exhibit&nbsp;A-2, and related
documents (if any), in each case made by Holdings, the Borrower and/or such Subsidiary Guarantors
in favor of, or for the benefit of, the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Dollars</U>&#148; and &#147;<U>C$</U>&#148;: dollars in the lawful currency of Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Issuing Lender</U>&#148;: each of Royal Bank of Canada, HSBC Bank Canada, The
Toronto-Dominion Bank and any other Canadian Revolving Lender approved by the Administrative Agent
and the Borrower that has agreed in its sole discretion to act as a &#147;Canadian Issuing Lender&#148;
hereunder, or any of their respective affiliates, in each case in its capacity as issuer of any
Canadian Letter of Credit. Each reference herein to &#147;the Canadian Issuing Lender&#148; shall be deemed
to be a reference to the relevant Canadian Issuing Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian L/C Commitment</U>&#148;: C$0.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian L/C Obligations</U>&#148;: at any time, an amount equal to the sum of (a)&nbsp;the
aggregate then undrawn and unexpired amount of the then outstanding Canadian Letters of Credit and
(b)&nbsp;the aggregate amount of drawings under Canadian Letters of Credit that have not then been
reimbursed pursuant to Section&nbsp;4.5.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian L/C Participants</U>&#148;: the collective reference to all the Canadian Revolving
Lenders other than the Canadian Issuing Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Letters of Credit</U>&#148;: as defined in Section&nbsp;4.1(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Pension Plans</U>&#148;: all plans or arrangements which are considered to be
pension plans for the purposes of any applicable pension benefits standards statute or regulation
in Canada established, maintained or contributed to by Holdings or any of its Subsidiaries for
their employees or former employees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Prime Rate</U>&#148;: on any day, the greater of (a)&nbsp;the annual rate of interest
announced from time to time by the Administrative Agent as being its reference rate then in effect
for determining interest rates on Canadian Dollar-denominated commercial loans made by it in Canada
and (b)&nbsp;the CDOR Rate for a one month term in effect from time to time plus 1.0% per annum.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Prime Rate Loans</U>&#148;: Loans denominated in Canadian Dollars the rate of
interest applicable to which is based upon the Canadian Prime Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Reimbursement Obligation</U>&#148;: the obligation of the Borrower to reimburse the
Canadian Issuing Lender pursuant to Section&nbsp;4.5 for amounts drawn under Canadian Letters of Credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Revolving Commitment</U>&#148;: as to any Lender, the obligation of such Lender, if
any, to make Canadian Revolving Loans and participate in Canadian Letters of Credit in an aggregate
principal and/or face amount not to exceed the amount set forth under the heading &#147;Canadian
Revolving Commitment&#148; opposite such Lender&#146;s name on Schedule&nbsp;1.1A or in the Assignment and
Assumption
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">pursuant to which such Lender became a party hereto, as the same may be changed from time to
time pursuant to the terms hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Revolving Extensions of Credit</U>&#148; shall mean with respect to any Canadian
Revolving Lender at any time, an amount equal to the sum of (a)&nbsp;the aggregate principal amount of
such Lender&#146;s Canadian Revolving Loans then outstanding and (b)&nbsp;such Lender&#146;s Canadian Revolving
Percentage of the Canadian L/C Obligations then outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Revolving Lender</U>&#148;: each Lender that has a Canadian Revolving Commitment or
that holds Canadian Revolving Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Revolving Loan</U>&#148;: as defined in Section&nbsp;2.4(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Revolving Percentage</U>&#148;: as to any Canadian Revolving Lender at any time, the
percentage which such Lender&#146;s Canadian Revolving Commitment then constitutes of the Total Canadian
Revolving Commitments or, at any time after the Canadian Revolving Commitments shall have expired
or terminated, the percentage which the aggregate principal amount of such Lender&#146;s Canadian
Revolving Loans then outstanding constitutes of the aggregate principal amount of the Canadian
Revolving Loans then outstanding, <U>provided</U>, that, in the event that the Canadian Revolving
Loans are paid in full prior to the reduction to zero of the Total Canadian Revolving Extensions of
Credit, the Canadian Revolving Percentages shall be determined in a manner designed to ensure that
the other outstanding Canadian Revolving Extensions of Credit shall be held by the Canadian
Revolving Lenders on a comparable basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian &#147;SIFT&#148; Rules</U>&#148;: the rules provided for by the <I>Income Tax Act </I>(Canada)
concerning &#147;Specified Investment Flow-Through&#148; or &#147;SIFT&#148; entities, which generally serve to levy a
tax at corporate income tax rates on income distributions from such entities after December&nbsp;31,
2010.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Capex Deposit</U>&#148;: as defined in the definition of &#147;Capital Expenditures&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Capital Expenditures</U>&#148;: for any period, with respect to any Person and without
duplication, the aggregate of (i)&nbsp;all expenditures by such Person and its Subsidiaries for the
acquisition or leasing (pursuant to a capital lease) of fixed or capital assets or additions to
equipment (including replacements, capitalized repairs and improvements during such period) that
should be capitalized under GAAP on a consolidated balance sheet of such Person and its
Subsidiaries for such period and (ii)&nbsp;all Capex Deposits by such Person and its Subsidiaries during
such periods; <U>provided</U>, <U>however</U>, that Capital Expenditures shall not include:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) interest capitalized in accordance with GAAP during such period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) expenditures that are accounted for as capital expenditures of such Person and that
actually are paid for or reimbursed by a third party (excluding Holdings, the Borrower or
any Subsidiary) or with insurance proceeds to rebuild or replace fixed or capital assets
that were the subject of a Recovery Event and for which none of Holdings, the Borrower or
any Subsidiary has provided or is required to provide or incur, directly or indirectly, any
financial consideration or obligation or other material consideration or obligation to such
third party or any other Person in respect of such capital expenditures (whether before,
during or after such period);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the book value of any asset owned by such Person prior to or during such period to
the extent that such book value is included as a capital expenditure during such period as a
result of such Person reusing or beginning to reuse such asset during such period without a
corresponding expenditure actually having been made in such period, <U>provided</U> that
(i)&nbsp;any
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">expenditure necessary in order to permit such asset to be reused shall be included as a
Capital Expenditure during the period that such expenditure actually is made and (ii)&nbsp;such
book value shall have been included in Capital Expenditures when such asset was originally
acquired;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the purchase price of equipment purchased during such period to the extent the
consideration therefor consists of any combination of (i)&nbsp;used or surplus equipment traded
in at the time of such purchase or (ii)&nbsp;the proceeds of a concurrent sale of used or surplus
equipment, in each case, in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &#147;lost in hole&#148; replacement capital expenditures to the extent invoiced to customers
of the Borrower or its Subsidiaries in the ordinary course of business (and paid by such
customers within 90&nbsp;days);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) expenditures to the extent funded by a prepayment or deposit (&#147;<U>Capex
Deposit</U>&#148;) that was either (i)&nbsp;made on or prior to December&nbsp;31, 2008 or (ii)&nbsp;if made
after December&nbsp;31, 2009, is included in the calculation of Capital Expenditures for a prior
year; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) non-cash adjustments to the fixed or capital assets in the period due to changes in
GAAP, accounting policy or the adoption of new accounting rules.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Capital Lease Obligations</U>&#148;: as to any Person, the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP and, for the purposes
of this Agreement, the amount of such obligations at any time shall be the capitalized amount
thereof at such time determined in accordance with GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Capital Stock</U>&#148;: any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation) and any and all warrants, rights or options to purchase any
of the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Cash Equivalents</U>&#148;: (a)&nbsp;marketable direct obligations issued by, or unconditionally
guaranteed by, the United States or Canadian government or issued by any agency thereof and backed
by the full faith and credit of the United States or Canada, as applicable, in each case maturing
within one year from the date of acquisition; (b)&nbsp;certificates of deposit, time deposits,
eurodollar time deposits, bankers&#146; acceptances or overnight bank deposits having maturities of six
months or less from the date of acquisition issued by any Lender or by any commercial bank
organized under the laws of the United States or Canada or any state or province thereof having
combined capital and surplus of not less than $15,000,000,000; and (c)&nbsp;securities with maturities
of one year or less from the date of acquisition issued or fully guaranteed by any state, province,
commonwealth or territory of the United States or Canada, by any political subdivision or taxing
authority of any such state, province, commonwealth or territory of the United States or Canada or
by any foreign government, the securities of which state, province, commonwealth, territory,
political subdivision, taxing authority or foreign government (as the case may be) are rated at
least A by S&#038;P or A by Moody&#146;s, or the equivalent thereof by DBRS, Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>CDOR Rate</U>&#148;: on any day, with respect to a particular term as specified herein, the
annual rate of discount or interest which is the arithmetic average of the discount rates for such
term applicable to Canadian Dollar bankers&#146; acceptances identified as such on the Reuters Screen
CDOR Page at approximately 10:00&nbsp;A.M. Toronto time on such day, or if such day is not a Business
Day, then on the immediately preceding Business Day (as adjusted by the Administrative Agent after
10:00&nbsp;A.M. Toronto
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">time to reflect any error in any posted rate or in the posted average annual rate). If the
rate does not appear on the Reuters Screen CDOR Page as contemplated above, then the CDOR Rate on
any day shall be calculated as the arithmetic average of the annual discount rates for such term
applicable to Canadian Dollar bankers&#146; acceptances of, and as quoted by, the Schedule&nbsp;I Reference
Banks, as of 10:00&nbsp;A.M. Toronto time on that day, or if that day is not a Business Day, then on the
immediately preceding Business Day. If any Schedule&nbsp;I Reference Bank does not furnish a timely
quotation, the Administrative Agent shall determine the relevant discount rate on the basis of the
quotations furnished by the remaining Schedule&nbsp;I Reference Banks.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Centralized Banking Agreement</U>&#148;: the centralized banking agreement to be entered into
among the Borrower, Precision Limited Partnership and Royal Bank of Canada providing for the
administration of and netting of balances between Canadian bank accounts maintained by the Borrower
and certain Subsidiaries with Royal Bank of Canada, as amended, restated or otherwise modified from
time to time including, but not limited to, through the addition of new Subsidiaries as parties
thereto and withdrawals of Subsidiaries therefrom from time to time, and including any replacement
thereof entered into by the Borrower and any Subsidiaries with Royal Bank of Canada from time to
time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Centralized Swingline Loans</U>&#148;: as defined in Section&nbsp;2.8.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Change of Control</U>&#148;: (a)&nbsp;prior to a Permitted Reorganization and other than as a
result of a Permitted Reorganization (i)&nbsp;any Person becomes a Control Person in respect of
Holdings, (ii)&nbsp;the board of trustees of Holdings shall cease to consist of a majority of Continuing
Trustees, (iii)&nbsp;the board of directors of the Borrower shall cease to consist of a majority of
Continuing Directors, (iv)&nbsp;Holdings shall cease to own and control, beneficially, directly or
indirectly, 100% of each class of outstanding Capital Stock of the Borrower (disregarding the
Exchangeable LP Units) free and clear of all Liens (except Liens created by the Security Documents)
or (v)&nbsp;a Specified Change of Control shall occur or (b)&nbsp;after a Permitted Reorganization (i)&nbsp;any
&#147;person&#148; or &#147;group&#148; (as such terms are used in Sections&nbsp;13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the &#147;Exchange Act&#148;)) shall become, or obtain rights (whether by means or
warrants, options or otherwise) to become, the &#147;beneficial owner&#148; (as defined in Rules&nbsp;13(d)-3 and
13(d)-5 under the Exchange Act), directly or indirectly, of more than 35% of any class of the
outstanding Voting Capital Stock of Parent, (ii)&nbsp;the board of directors (or similar governing body)
of Parent (if other than the New Borrower) shall cease to consist of a majority of Continuing
Directors, (iii)&nbsp;the board of directors (or similar governing body) of the New Borrower shall cease
to consist of a majority of Continuing Directors, (iv)&nbsp;Parent (if other than the New Borrower)
shall cease to own and control, beneficially, directly or, so long as the shares of the Borrower
continue to be pledged as Collateral, indirectly, 100% of each class of outstanding Capital Stock
of the New Borrower free and clear of all Liens (except Liens created by the Security Documents) or
(v)&nbsp;a Specified Change of Control shall occur.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Date</U>&#148;: the date on which the conditions precedent set forth in Section&nbsp;6.1
shall have been satisfied, which date is December&nbsp;23, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Code</U>&#148;: the Internal Revenue Code of 1986, as amended from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Co-Documentation Agents</U>&#148;: as defined in the preamble hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Collateral</U>&#148;: all property of the Loan Parties, now owned or hereafter acquired, upon
which a Lien is purported to be created by any Security Document.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commitment</U>&#148;: as to any Lender, the sum of the Tranche A-1 Term Commitment, the
Tranche A-2 Term Commitment, the Tranche B-1 Term Commitment, the Tranche B-2 Term Commitment and
the Revolving Commitment of such Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commitment Fee Rate</U>&#148;: 0.60% per annum; <U>provided</U>, that on and after the first
Adjustment Date occurring after the completion of two full fiscal quarters of the Borrower after
the Closing Date, the Commitment Fee Rate will be determined pursuant to the Applicable Pricing
Grid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Compliance Certificate</U>&#148;: a certificate duly executed by a Responsible Officer
substantially in the form of Exhibit&nbsp;B.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Computation Period</U>&#148;: any of, as relevant, (i)&nbsp;the two fiscal quarter period ending
June&nbsp;30, 2009, (ii)&nbsp;the three fiscal quarter period ending September&nbsp;30, 2009, and (iii)&nbsp;any period
of four consecutive fiscal quarters ending thereafter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Conduit Lender</U>&#148;: any special purpose corporation organized and administered by any
Lender for the purpose of making Loans otherwise required to be made by such Lender and designated
by such Lender in a written instrument; <U>provided</U>, that the designation by any Lender of a
Conduit Lender shall not relieve the designating Lender of any of its obligations to fund a Loan
under this Agreement if, for any reason, its Conduit Lender fails to fund any such Loan, and the
designating Lender (and not the Conduit Lender) shall have the sole right and responsibility to
deliver all consents and waivers required or requested under this Agreement with respect to its
Conduit Lender, and <U>provided</U>, <U>further</U>, that no Conduit Lender shall (a)&nbsp;be entitled
to receive any greater amount pursuant to Sections&nbsp;2.20, 2.21, 2.22 or 11.5 than the designating
Lender would have been entitled to receive in respect of the extensions of credit made by such
Conduit Lender or (b)&nbsp;be deemed to have any Commitment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Confidential Information Memorandum</U>&#148;: the Confidential Information Memorandum dated
September&nbsp;2008, as supplemented prior to the Closing Date, and furnished to certain Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Assets</U>&#148;: the consolidated assets of Holdings and its Subsidiaries,
determined in accordance with GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Cash Flow</U>&#148;: for any period, Consolidated Net Income (excluding, for
certainty, any income tax expenses, penalties and interest related to the Contingent Tax
Liabilities) for such period (prior to distributions made pursuant to Section&nbsp;8.6(d)) <U>plus</U>
Consolidated Interest Expense, deferred income taxes and depreciation, non-cash depletion and
amortization expense and any other non-cash expenses and charges deducted in the compilation of
such Consolidated Net Income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Current Assets</U>&#148;: at any date, all amounts (other than cash and Cash
Equivalents) that would, in conformity with GAAP, be set forth opposite the caption &#147;total current
assets&#148; (or any like caption) on a consolidated balance sheet of Holdings and its Subsidiaries at
such date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Current Liabilities</U>&#148;: at any date, all amounts that would, in
conformity with GAAP, be set forth opposite the caption &#147;total current liabilities&#148; (or any like
caption) on a consolidated balance sheet of Holdings and its Subsidiaries at such date, but
excluding without duplication (a)&nbsp;the current portion of any Funded Debt of Holdings and its
Subsidiaries, (b)&nbsp;all Indebtedness consisting of Revolving Loans or Swingline Loans and (c)&nbsp;all
Indebtedness in respect of Specified Operating Facilities and other local lines of credit permitted
under Section&nbsp;8.2(q), in each case to the extent otherwise included therein.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated EBITDA</U>&#148;: for any period, Consolidated Net Income for such period
<U>plus</U>, without duplication and to the extent reflected as a charge in the determination of
such Consolidated Net Income for such period, the sum of (a)&nbsp;income tax expense, including interest
and penalties thereon, (b)&nbsp;interest expense, amortization or writeoff of debt discount (including
original issue discount) and debt issuance costs and commissions, discounts and other fees and
charges associated with Indebtedness (including the Loans), (c)&nbsp;depreciation, non-cash depletion
and amortization expense, (d)&nbsp;amortization of intangibles (including, but not limited to, goodwill)
and organization costs and any other non-cash expenses and charges in the period (including
non-cash foreign exchange expenses), (e)&nbsp;any extraordinary non-cash expenses or losses (including,
whether or not otherwise includable as a separate item in the statement of such Consolidated Net
Income for such period, losses on the sale of assets outside of the ordinary course of business)
all, in the case of clauses (a)&nbsp;through (e)&nbsp;above, as determined on a consolidated basis, and (f)
for purposes of any determination of Consolidated EBITDA for any four fiscal quarter period ending
on or prior to December&nbsp;31, 2010, the amount of any documented non-recurring restructuring and
integration costs (including severance costs, costs of closing offices, moving costs, terminations
of leases and other agreements, new accounting systems, new office space and travel costs)
associated with the Acquisition and incurred during any such period, to the extent reasonable
back-up is provided to support such costs upon request by the Administrative Agent;
<U>provided</U>, that the aggregate amount of such costs that may be added to Consolidated EBITDA
pursuant to this clause (f)&nbsp;shall not exceed $50,000,000 and <U>minus</U>, (a)&nbsp;to the extent
included in the determination of such Consolidated Net Income for such period, the sum of (i)
interest income, (ii)&nbsp;any extraordinary income or gains (including, whether or not otherwise
includable as a separate item in the statement of such Consolidated Net Income for such period,
gains on the sales of assets outside of the ordinary course of business), (iii)&nbsp;income tax credits
(to the extent not netted from income tax expense) and (iv)&nbsp;any other non-cash income (including
non-cash foreign exchange income) all, in the case of clauses (i)&nbsp;through (iv)&nbsp;above, as determined
on a consolidated basis, (b)&nbsp;any cash payments made during such period in respect of items
described in clause (e)&nbsp;above subsequent to the fiscal quarter in which the relevant non-cash
expenses or losses were reflected as a charge in the statement of Consolidated Net Income, all as
determined on a consolidated basis and (c)&nbsp;solely for the purpose of determining the Consolidated
Fixed Charge Coverage Ratio, any Distributions (excluding, for certainty, any distributions made in
the form of Trust Units, Capital Stock, Redemption Notes or loans, but not excluding any cash
payments made with respect to such loans) made as permitted pursuant to Section&nbsp;8.6(d) during such
period; <U>provided</U>, that such Distributions for purposes of this clause (c)&nbsp;shall be deemed
to be (i)&nbsp;for the fiscal quarter of Holdings ending March&nbsp;31, 2009, the sum of (A)&nbsp;the amount of
Distributions actually paid during such fiscal quarter <U>plus</U> (B)&nbsp;the product of (x)&nbsp;the
amount of Distributions declared but not paid for the month of March&nbsp;2009 <U>times</U> (y)&nbsp;nine,
(ii)&nbsp;for the fiscal quarter of Holdings ending June&nbsp;30, 2009, the sum of (A)&nbsp;the amount of
Distributions actually paid during such fiscal quarter and the previous fiscal quarter <U>plus</U>
(B)&nbsp;the product of (x)&nbsp;the amount of Distributions declared but not paid for the month of June&nbsp;2009
<U>times</U> (y)&nbsp;six and (iii)&nbsp;for the fiscal quarter of Holdings ending September&nbsp;30, 2009, the
sum of (A)&nbsp;the amount of Distributions actually paid during such fiscal quarter and the previous
two fiscal quarters <U>plus</U> (B)&nbsp;the product of (x)&nbsp;the amount of Distributions declared but
not paid for the month of September&nbsp;2009 <U>times</U> (y)&nbsp;three. For the purposes of calculating
Consolidated EBITDA for any period of four consecutive fiscal quarters (each, a &#147;Reference Period&#148;)
pursuant to any determination of the Consolidated Leverage Ratio, (i)&nbsp;if at any time during such
Reference Period Holdings or any Subsidiary shall have made any Material Disposition, the
Consolidated EBITDA for such Reference Period shall be reduced after giving pro forma effect
thereto by an amount equal to the Consolidated EBITDA (if positive) attributable to the property
that is the subject of such Material Disposition for such Reference Period or increased by an
amount equal to the Consolidated EBITDA (if negative) attributable thereto for such Reference
Period and (ii)&nbsp;if during such Reference Period Holdings or any Subsidiary shall have made a
Material Acquisition, Consolidated EBITDA for such Reference Period shall be calculated after
giving <U>pro</U> <U>forma</U> effect thereto as if such Material Acquisition occurred on the
first day of such Reference Period. As used in this definition, &#147;Material Acquisition&#148; means any
acquisition of property or series of related acquisitions of property that (a)
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">constitutes assets comprising all or substantially all of an operating unit of a business or
constitutes all or substantially all of the common stock of a Person and (b)&nbsp;involves the payment
of consideration by Holdings and its Subsidiaries in excess of $25,000,000; and &#147;Material
Disposition&#148; means any Disposition of property or series of related Dispositions of property that
yields gross proceeds to Holdings or any of its Subsidiaries in excess of $25,000,000;
<U>provided</U>, that in determining the Consolidated Leverage Ratio, the Consolidated Interest
Coverage Ratio and the Consolidated Fixed Charge Coverage Ratio for purposes of Section&nbsp;8.1,
Consolidated EBITDA for the fiscal quarters ended June&nbsp;30, 2008 and September&nbsp;30, 2008 shall be
C$116,960,000 and C$203,747,000 respectively (prior to giving effect to clause (c)&nbsp;of the
deductions above). For the avoidance of doubt, &#147;Consolidated EBITDA&#148; for the fiscal quarter ending
December&nbsp;31, 2008 shall include results from the Target for all of such fiscal quarter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Fixed Charge Coverage Ratio</U>&#148;: for any period, the ratio of (a)
Consolidated EBITDA for such period to (b)&nbsp;Consolidated Fixed Charges for such period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Fixed Charges</U>&#148;: for any period, the sum (without duplication) of (a)
Consolidated Interest Expense paid in such period, (b)&nbsp;the aggregate amount actually paid by
Holdings and its Subsidiaries during such period on account of Upgrade Capital Expenditures
(excluding the principal amount of Indebtedness (other than any Loans) incurred in connection with
such expenditures and the amount of expenditures paid with the Net Cash Proceeds of any issuance of
Trust Units or Capital Stock by Holdings), (c)&nbsp;scheduled payments made during such period on
account of principal of Indebtedness of Holdings or any of its Subsidiaries (including scheduled
principal payments in respect of the Term Loans (other than the final scheduled payment in respect
of the Tranche A-1 Term Loans made on the Tranche A-1 Maturity Date and the final scheduled payment
in respect of the Tranche A-2 Term Loans made on the Tranche A-2 Maturity Date) and payments of
Revolving Loans accompanying required reductions of the Revolving Commitments) and (d)&nbsp;net income
tax expenses for Holdings and its Subsidiaries for such period paid in cash (excluding, for
certainty, any income tax expenses, penalties and interest related to the Contingent Tax
Liabilities); <U>provided</U>, that in determining the Consolidated Fixed Charge Coverage Ratio
for purposes of Section&nbsp;8.1(c) for the fiscal quarters of Holdings ending March&nbsp;31, 2009, June&nbsp;30,
2009 and September&nbsp;30, 2009, Consolidated Fixed Charges for the relevant period shall be deemed to
equal Consolidated Fixed Charges for such fiscal quarter (and, in the case of the latter two such
determinations, each previous fiscal quarter commencing after the Closing Date) <U>multiplied
by</U> 4, 2 and 4/3, respectively; <U>provided</U>, <U>further</U>, that any final income tax
payment made during the 2009 fiscal year and attributable to tax liability for the 2008 fiscal year
shall not be multiplied by 4, 2 or 4/3, as the case may be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Interest Coverage Ratio</U>&#148;: for any period, the ratio of (a)&nbsp;Consolidated
EBITDA for such period to (b)&nbsp;Consolidated Interest Expense for such period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Interest Expense</U>&#148;: for any period, (a)&nbsp;total cash interest expense
(including that attributable to Capital Lease Obligations) of Holdings and its Subsidiaries for
such period with respect to all outstanding Indebtedness of Holdings and its Subsidiaries
(including all cash commissions, discounts in respect of bankers&#146; acceptances and other fees and
charges owed with respect to letters of credit and bankers&#146; acceptance financing and net costs
under Swap Agreements in respect of interest rates to the extent such net costs are allocable to
such period in accordance with GAAP and, for the avoidance of doubt, excluding any debt discount
(including original issue discount), debt issuance costs and commissions, brokerage fees,
underwriter fees and other upfront fees and other fees associated with Indebtedness (including the
Loans)) <U>minus</U> (b)&nbsp;total cash interest income of Holdings and its Subsidiaries, in each case
determined on a consolidated basis; <U>provided</U>, that in determining the Consolidated Interest
Coverage Ratio for purposes of Section&nbsp;8.1(b) for the fiscal quarters of Holdings ending March&nbsp;31,
2009, June&nbsp;30, 2009 and September&nbsp;30, 2009, Consolidated Interest Expense for the relevant period
shall be deemed to equal Consolidated Interest Expense for such fiscal quarter (and, in the
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">case of the latter two such determinations, each previous fiscal quarter commencing after the
Closing Date) <U>multiplied by</U> 4, 2 and 4/3, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Leverage Ratio</U>&#148;: as at the last day of any period, the ratio of (a)
Consolidated Total Debt on such day to (b)&nbsp;Consolidated EBITDA for such period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Net Income</U>&#148;: for any period, the consolidated net income (or loss) of
Holdings and its Subsidiaries, determined on a consolidated basis in accordance with GAAP;
<U>provided</U> that there shall be excluded (a)&nbsp;the income (or deficit) of any Person accrued
prior to the date it becomes a Subsidiary of Holdings or is merged into or consolidated with
Holdings or any of its Subsidiaries, (b)&nbsp;the income (or deficit) of any Person (other than a
Subsidiary of Holdings) in which Holdings or any of its Subsidiaries has an ownership interest,
except to the extent that any such income is actually received by Holdings or such Subsidiary in
the form of dividends or similar distributions and (c)&nbsp;the undistributed earnings of any Subsidiary
of Holdings to the extent that the declaration or payment of dividends or similar distributions by
such Subsidiary is not at the time permitted by the terms of any Contractual Obligation (other than
under any Loan Document) or Requirement of Law applicable to such Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Total Debt</U>&#148;: at any date, without duplication, (a)&nbsp;the aggregate
principal amount of all Indebtedness (other than Indebtedness specified in clause (j)&nbsp;of the
definition thereof and Indebtedness permitted under Section&nbsp;8.2(g) to the extent cash in respect of
the repurchase, redemption, conversion or settlement of the Existing Convertible Securities has
been and remains on deposit with the trustee thereof) of Holdings and its Subsidiaries at such
date, determined on a consolidated basis in accordance with GAAP, <U>minus</U> (b)&nbsp;the amount, up
to $50,000,000, of cash pledged to cash collateralize Term Loans, Letters of Credit and/or
Swingline Loans pursuant to Sections&nbsp;2.13(b), 2.13(d), 2.27(a), 3.8 and 4.8 to the extent that (i)
such cash has been subject to a perfected first priority Lien in favor of the Administrative Agent
for the benefit of the Lenders for at least 90&nbsp;days and (ii)&nbsp;during the time such cash is so
pledged no Group Member controls or is permitted access to such cash; <U>provided</U>, that no
amounts shall be subtracted pursuant to this clause (b)&nbsp;unless at least $25,000,000 of cash is so
pledged.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Working Capital</U>&#148;: at any date, the excess of Consolidated Current
Assets on such date <U>over</U> Consolidated Current Liabilities on such date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contingent Tax Liabilities</U>&#148;: the contingent tax liabilities disclosed in note 9 to
the most recent financial statements of Holdings described in Section&nbsp;5.1(b) delivered to the
Lenders prior to the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Continuing Directors</U>&#148;: in respect of any Person, the directors (or other Persons
performing similar functions) of such Person on the Closing Date, after giving effect to the
Acquisition and the other transactions contemplated hereby, and each other director (or similar
Person), if, in each case, such other director&#146;s (or other Person&#146;s (who is performing similar
functions)) nomination for election to the board of directors (or other body performing similar
functions) of such Person is recommended by a majority of the then Continuing Directors or the
Continuing Trustees, as the case may be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Continuing Trustees</U>&#148;: the trustees of Holdings on the Closing Date, after giving
effect to the Acquisition and the other transactions contemplated hereby, and each other trustee,
if, in each case, such other trustee&#146;s nomination for election to the board of trustees of Holdings
is recommended by a majority of the then Continuing Trustees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contract Period</U>&#148;: the term selected by the Borrower applicable to Bankers&#146;
Acceptances in accordance with Section&nbsp;2.6(b)(i) .
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contractual Obligation</U>&#148;: as to any Person, any provision of any security issued by
such Person or of any agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Control Person</U>&#148;: any Person that holds or is one of a combination of Persons acting
jointly or in concert that acquires or controls more than 35% of the outstanding Trust Units or a
sufficient number of Trust Units, Exchangeable LP Units or other units or beneficial interests in
Holdings, to elect or appoint a majority of the Trustees of Holdings; <U>provided</U>, that for
purposes of this definition, the term &#147;control&#148; as applied to any Trust Units means the possession,
directly or indirectly, of the power to cause the voting of voting rights associated with any Trust
Unit or with any Exchangeable LP Units or any other securities convertible into Trust Units or
Exchangeable LP Units, whether through the ownership of voting securities, by contract or
otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Convertible Debentures</U>&#148;: any convertible subordinated debentures or notes issued by
Holdings which satisfy each of the following conditions: (i)&nbsp;an initial final maturity or due date
in respect of repayment of principal thereof extending beyond the Tranche B-1 Maturity Date and the
Tranche B-2 Maturity Date; (ii)&nbsp;no scheduled or mandatory payment or repurchase of principal
thereunder (other than acceleration following an event of default in regard thereto or payments
which can be satisfied by the delivery of Trust Units or other Capital Stock of Holdings as
contemplated in clause (vii)&nbsp;below and other than on a change of control of Holdings where a Change
of Control would also occur) prior to the Tranche B-1 Maturity Date or Tranche B-2 Maturity Date;
(iii)&nbsp;all amounts payable in respect of principal, premium (if any) or interest under such
debentures or notes are by their express terms subordinate and junior in right of payment to all
obligations under this Agreement and the other Loan Documents; (iv)&nbsp;upon and during the continuance
of an Event of Default or acceleration of the time for repayment of any of the Indebtedness under
this Agreement which has not been rescinded, no enforcement steps or enforcement proceedings may be
commenced in respect of such debentures or notes; (v)&nbsp;upon any distribution of assets of Holdings
on any dissolution, winding up, total liquidation or reorganization of Holdings (whether in
bankruptcy, insolvency or receivership proceedings or upon an assignment for the benefit of
creditors or any other marshalling of the assets and liabilities of such Person, or otherwise), all
obligations under this Agreement and the other Loan Documents shall first be paid in full, or
provisions made for such payment, before any payment is made on account of principal, premium (if
any) or interest payable in regard to such debentures or notes; (vi)&nbsp;the occurrence of a Default or
Event of Default hereunder or the acceleration of the time for repayment of any of the obligations
under this Agreement or enforcement of the rights and remedies of the Administrative Agent and the
Lenders hereunder or under any other Loan Document shall not in and of themselves (A)&nbsp;cause a
default or event of default (with the passage of time or otherwise) under such debentures or notes
or the indenture governing the same or (B)&nbsp;cause or permit the obligations under such debentures or
notes to be due and payable prior to the stated maturity thereof; and (vii)&nbsp;payments of interest or
principal due and payable under such debentures or notes can be satisfied, at the option of
Holdings (but subject to the definition of &#147;Change of Control&#148;), by delivering Trust Units or other
Capital Stock of Holdings in accordance with the indenture or agreement governing such debentures
or notes (whether such Trust Units or other Capital Stock of Holdings are received by the holders
of such debentures or notes as payment or are sold by a trustee or representative under such
indenture or agreement to provide cash for payment to holders of such debentures or notes).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Corporate Base Rate</U>&#148;: for any day, the rate of interest per annum determined by
Royal Bank of Canada from time to time as its prime commercial lending rate for Dollar loans in the
United States for such day. The Corporate Base Rate is not necessarily the lowest rate that Royal
Bank of Canada is charging any corporate customer.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Debtor Relief Laws</U>&#148;: any of Title 11 of the United States Code entitled
&#147;Bankruptcy&#148;, the <I>Bankruptcy and Insolvency Act </I>(Canada), the <I>Companies&#146; Creditors Arrangement Act</I>
(Canada) and the <I>Winding Up and Restructuring Act </I>(Canada), each as now and hereafter in effect,
any successors to such statutes and any other applicable liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization or other similar debtor relief law of Canada, the United States or any other
applicable jurisdiction from time to time in effect and affecting the rights of creditors
generally.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Default</U>&#148;: any of the events specified in Section&nbsp;9, whether or not any requirement
for the giving of notice, the lapse of time, or both, has been satisfied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Defaulting Lender</U>&#148;: (a)&nbsp;any Lender that (i)&nbsp;has failed to fund any portion of any
Loan, participations in Letters of Credit or participations in Swingline Loans required to be
funded by it hereunder within one Business Day of the date required to be funded by it hereunder,
unless the subject of a good faith dispute (or a good faith dispute that is subsequently cured),
(ii)&nbsp;has notified the Borrower, the Administrative Agent, any Issuing Lender or the Swingline
Lender that it does not intend to comply with its funding obligations under this Agreement or has
made a public statement to the effect that it does not intend to comply with its funding
obligations under this Agreement or under other existing agreements under which it has an
obligation to extend credit, (iii)&nbsp;has failed, within one Business Day after request by the
Administrative Agent, to provide written confirmation that it will comply with the terms of this
Agreement relating to its obligations to fund prospective Loans and participations in then
outstanding Letters of Credit or Swingline Loans, (iv)&nbsp;has otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid by it hereunder
within one Business Day of the date when due, unless the subject of a good faith dispute (or a good
faith dispute that is subsequently cured) or (v)&nbsp;has been deemed insolvent or become the subject of
a bankruptcy or insolvency proceeding and (b)&nbsp;solely for purposes of Section&nbsp;2.27, (i)&nbsp;any Lender
described in the preceding clause (a)&nbsp;and (ii)&nbsp;as determined by the Administrative Agent and the
Swingline Lender or any Issuing Lender, as applicable, in their reasonable discretion, any Lender
that (A)&nbsp;is in default of its obligations under any other existing credit or loan documentation
under which it has a commitment to extend credit or (B)&nbsp;has a reasonable probability of becoming a
Defaulting Lender, as determined by the Administrative Agent, Swingline Lender or Issuing Lender,
as applicable, on a factually supportable basis upon the current market or financial condition of
such Lender at the time of such determination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Discount Proceeds</U>&#148;: for any Bankers&#146; Acceptance issued hereunder, an amount
calculated on the applicable Borrowing Date or date of conversion or continuation by multiplying
(a)&nbsp;the face amount of the Bankers&#146; Acceptance by (b)&nbsp;the quotient obtained by dividing (i)&nbsp;one by
(ii)&nbsp;the sum of one plus the product of (A)&nbsp;the Discount Rate applicable to the Bankers&#146; Acceptance
and (B)&nbsp;a fraction, the numerator of which is the applicable Contract Period and the denominator of
which is 365, with the quotient being rounded up or down to the fifth decimal place and .00005
being rounded up.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Discount Rate</U>&#148;: with respect to an issue of Bankers&#146; Acceptances with the same
maturity date, (a)&nbsp;for a Revolving Lender which is a Schedule&nbsp;I Lender, the average CDOR Rate for
the appropriate term and (b)&nbsp;for a Revolving Lender which is not a Schedule&nbsp;I Lender, the lesser of
(i)&nbsp;the rate set out in clause (a)&nbsp;above plus 0.10% per annum and (ii)&nbsp;the annual rate (calculated
on the basis of 365&nbsp;days) expressed as a percentage determined by the Administrative Agent as being
the arithmetic average of the discount rates for Canadian Dollar bankers&#146; acceptances (having a
comparable face value and a comparable issue and maturity date to the face value and issue and
maturity date of such issue of Bankers&#146; Acceptances) quoted to the Administrative Agent by the
Reference Lenders at or about 10:00&nbsp;A.M. (Toronto time) on the Borrowing Date, conversion date or
refunding date.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Disposition</U>&#148;: with respect to any property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof. The terms &#147;<U>Dispose</U>&#148; and
&#147;<U>Disposed of</U>&#148; shall have correlative meanings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Distributable Cash Flow</U>&#148;: for any period, Consolidated Cash Flow for such period
determined without regard to non-cash working capital, <U>plus</U>, without duplication, proceeds
of Dispositions made as permitted by Section&nbsp;8.5 during the applicable period not otherwise
reinvested or applied toward the prepayment of Term Loans in accordance with Section&nbsp;2.13,
<U>minus</U> principal, interest and other debt service payments (including all cash commissions,
discounts in respect of bankers&#146; acceptances and other fees and charges owed with respect to
letters of credit and bankers&#146; acceptance financing and net costs under Swap Agreements in respect
of interest rates to the extent such net costs are allocable to such period in accordance with GAAP
but excluding any debt discount (including original issue discount), debt issuance costs and
commissions, brokerage fees, underwriter fees and other upfront fees and other fees associated with
Indebtedness (including the Loans)) made during such period in respect of Indebtedness (including
the Loans) of Holdings or any of its Subsidiaries (other than principal payments in respect of
revolving credit loans (including the Revolving Extensions of Credit, Specified Operating
Facilities and local lines of credit permitted under Section&nbsp;8.2(q)) to the extent not accompanied
by a permanent reduction in the accompanying revolving credit commitments).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Distributions</U>&#148;: as defined in Section&nbsp;8.6(d).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dollar Equivalent Amount</U>&#148;: with respect to any amount of Canadian Dollars on any
date, the equivalent amount in Dollars of such amount of currency as determined using the
applicable Exchange Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dollars</U>&#148; and &#147;<U>$</U>&#148;: dollars in lawful currency of the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Draft</U>&#148;: a blank bill of exchange, within the meaning of the <I>Bills of Exchange Act</I>
(Canada), drawn by the Borrower on a Revolving Lender or Tranche A-2 Term Lender, as applicable,
denominated in Canadian Dollars and bearing such distinguishing letters and numbers as such Lender
may determine, but which at such time, except as otherwise provided herein, has not been completed
or accepted by such Lender; <U>provided</U> <U>however</U> that the Administrative Agent may
require such Lender to use a general form of Bankers&#146; Acceptance satisfactory to the Borrower and
such Lender, each acting reasonably, provided by the Administrative Agent for such purpose in place
of the Lender&#146;s own forms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ECF Percentage</U>&#148;: (a)&nbsp;75% if the Consolidated Leverage Ratio as of the last day of
such fiscal year is greater than or equal to 2.00 to 1.00, (b)&nbsp;50% if the Consolidated Leverage
Ratio as of the last day of such fiscal year is less than 2.00 to 1.00 but greater than or equal to
1.25 to 1.00, (c)&nbsp;25% if the Consolidated Leverage Ratio as of the last day of such fiscal year is
less than 1.25 to 1.00 but greater than or equal to 0.75 to 1.00 and (d)&nbsp;0% if the Consolidated
Leverage Ratio as of the last day of such fiscal year is less than 0.75 to 1.00.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Laws</U>&#148;: any and all foreign, Federal, state, provincial, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements of
any Governmental Authority or other Requirements of Law (including common law) regulating, relating
to or imposing liability or standards of conduct concerning protection of human health or the
environment, as now or may at any time hereafter be in effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Liabilities</U>&#148;: any and all liabilities for any Release, any
environmental damage, any costs (including any response costs) or natural resource damages caused
or alleged to have been caused to any Person, property or the environment as a result of any
Release or the condition of any
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">property or asset, related in any way to the operations of the Borrower or any Subsidiaries,
whether or not caused by a breach of Environmental Laws, including, without limitation, all such
liabilities arising from or related to: any surface, underground, air, ground water or surface
water contamination; the abandonment or plugging of any well; restorations and reclamations; the
removal of or failure to remove any foundations, structures or equipment; violation of
Environmental Laws; and personal injury (including sickness, disease or death) and property damage
arising from the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148;: the Employee Retirement Income Security Act of 1974, as amended from time to
time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA Affiliate</U>&#148;: any trade or business (whether or not incorporated) that, together
with any Group Member, is treated as a single employer under Section&nbsp;414 of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA Event</U>&#148;: (a)&nbsp;any Reportable Event; (b)&nbsp;any failure by any Pension Plan to
satisfy the minimum funding standards (within the meaning of Section&nbsp;412 or 430 of the Code or
Section&nbsp;302 of ERISA) applicable to such Pension Plan; (c)&nbsp;the filing pursuant to Section&nbsp;412 of
the Code or Section&nbsp;303 of ERISA of an application for a waiver of the minimum funding standard
with respect to any Pension Plan, the failure to make by its due date a required payment under
Section 430(j) of the Code with respect to any Pension Plan or the failure by any Group Member or
any ERISA Affiliate to make any required contribution to a Multiemployer Plan; (d)&nbsp;the incurrence
by any Group Member or any ERISA Affiliate of any material liability under Title&nbsp;IV of ERISA with
respect to the termination of any Pension Plan, including but not limited to the imposition of any
material Lien in favor of the PBGC or any Pension Plan; (e)&nbsp;a determination that any Pension Plan
is, or is expected to be, in &#147;at risk&#148; status (within the meaning of Section 430(i) of the Code);
(f)&nbsp;the appointment of a trustee to administer any Pension Plan under Section&nbsp;4042 of ERISA; or (g)
the incurrence by any Group Member or any ERISA Affiliate of any material liability with respect to
the withdrawal or partial withdrawal from any Pension Plan or Multiemployer Plan or a determination
that a Multiemployer Plan is, or is reasonably expected to be, Insolvent, in Reorganization or in
endangered or critical status, within the meaning of Section&nbsp;432 of the Code or Section&nbsp;305 of
ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eurocurrency Reserve Requirements</U>&#148;: for any day as applied to a Eurodollar Loan, the
aggregate (without duplication) of the maximum rates (expressed as a decimal fraction) of reserve
requirements in effect on such day (including basic, supplemental, marginal and emergency reserves)
under any regulations of the Board or other Governmental Authority having jurisdiction with respect
thereto dealing with reserve requirements prescribed for eurocurrency funding (currently referred
to as &#147;Eurocurrency Liabilities&#148; in Regulation&nbsp;D of the Board) maintained by a member bank of the
Federal Reserve System.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eurodollar Base Rate</U>&#148;: with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, the rate per annum determined on the basis of the rate for
deposits in Dollars for a period equal to such Interest Period commencing on the first day of such
Interest Period appearing on the Reuters Screen LIBOR01 Page as of 11:00&nbsp;A.M., London time, two
Business Days prior to the beginning of such Interest Period. In the event that such rate does not
appear on such page (or otherwise on such screen), the &#147;<U>Eurodollar Base Rate</U>&#148; shall be
determined by reference to such other comparable publicly available service for displaying
eurodollar rates as may be selected by the Administrative Agent or, in the absence of such
availability, by reference to the rate at which the Administrative Agent is offered Dollar deposits
at or about 11:00&nbsp;A.M., New York City time, two Business Days prior to the beginning of such
Interest Period in the interbank eurodollar market where its eurodollar and foreign currency and
exchange operations are then being conducted for delivery on the first day of such Interest Period
for the number of days comprised therein. Notwithstanding the foregoing, if the &#147;Eurodollar Base
Rate&#148; as determined in accordance with the immediately preceding sentences is less than 3.25% for
any Interest Period, then for
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">all purposes of this Agreement and the other Loan Documents, in respect of the Tranche B Term
Loans only, the &#147;Eurodollar Base Rate&#148; shall be deemed equal to 3.25% for such Interest Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eurodollar Loans</U>&#148;: Loans the rate of interest applicable to which is based upon the
Eurodollar Rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eurodollar Rate</U>&#148;: with respect to each day during each Interest Period pertaining to
a Eurodollar Loan, a rate per annum determined for such day in accordance with the following
formula:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Eurodollar Base Rate<BR>
<DIV style="margin-top: 1px"><FONT style="border-top: 1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.00 - Eurocurrency Reserve Requirements&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Eurodollar Tranche</U>&#148;: the collective reference to Eurodollar Loans under a particular
Facility the then current Interest Periods with respect to all of which begin on the same date and
end on the same later date (whether or not such Loans shall originally have been made on the same
day).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Event of Default</U>&#148;: any of the events specified in Section&nbsp;9, <U>provided</U> that
any requirement for the giving of notice, the lapse of time, or both, has been satisfied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excess Cash Flow</U>&#148;: for any fiscal year of Holdings, the excess, if any, of (a)&nbsp;the
sum, without duplication, of (i)&nbsp;Consolidated Net Income for such fiscal year, (ii)&nbsp;the amount of
all non-cash charges (including depreciation, depletion and amortization) deducted in arriving at
such Consolidated Net Income, (iii)&nbsp;decreases in Consolidated Working Capital for such fiscal year,
and (iv)&nbsp;the aggregate net amount of non-cash loss on the Disposition of property by Holdings and
its Subsidiaries during such fiscal year (other than sales of inventory in the ordinary course of
business), to the extent deducted in arriving at such Consolidated Net Income <U>over</U> (b)&nbsp;the
sum, without duplication, of (i)&nbsp;the amount of all non-cash credits included in arriving at such
Consolidated Net Income, (ii)&nbsp;the aggregate amount actually paid by Holdings and its Subsidiaries
in cash during such fiscal year on account of Capital Expenditures (excluding the principal amount
of Indebtedness incurred in connection with such expenditures and any such expenditures financed
with the proceeds of any Reinvestment Deferred Amount), (iii)&nbsp;the aggregate amount of all
prepayments of Revolving Loans and Swingline Loans during such fiscal year to the extent
accompanying permanent optional reductions of the Revolving Commitments and all optional
prepayments of the Term Loans during such fiscal year, (iv)&nbsp;the aggregate amount of all regularly
scheduled principal payments of Funded Debt (including the Term Loans) of Holdings and its
Subsidiaries made during such fiscal year (other than in respect of any revolving credit facility
to the extent there is not an equivalent permanent reduction in commitments thereunder), (v)
increases in Consolidated Working Capital for such fiscal year, (vi)&nbsp;in the case of any
Distribution made during any Computation Period for which the Trust Distribution Amount is being
computed pursuant to clause (A)&nbsp;of the definition thereof, without duplication, that portion of
Operating Cash Flow Before Working Capital actually distributed in cash during such Computation
Period as permitted by Section&nbsp;8.6(d) and (vii)&nbsp;the aggregate net amount of non-cash gain on the
Disposition of property by Holdings and its Subsidiaries during such fiscal year (other than sales
of inventory in the ordinary course of business), to the extent included in arriving at such
Consolidated Net Income.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excess Cash Flow Application Date</U>&#148;: as defined in Section&nbsp;2.13(c).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchangeable LP Units</U>&#148;: the limited partnership units of the Precision Drilling
Limited Partnership that are exchangeable into Trust Units pursuant to any voting and exchange
trust agreement or similar agreement.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Rate</U>&#148;: with respect to Dollars or Canadian Dollars on any date, the rate at
which Dollars may be exchanged into Canadian Dollars, or Canadian Dollars may be exchanged into
Dollars, as the case may be, as determined in accordance with the Bank of Canada&#146;s noon spot rate
on such date, and if such date is not a Business Day, on the immediately preceding Business Day.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded Assets</U>&#148;: as defined in Section&nbsp;7.11(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded Subsidiaries</U>&#148;: the Subsidiaries listed on Schedule&nbsp;1.1B except to the
extent any such Subsidiaries become a party to the Security Documents pursuant to Section&nbsp;7.10 or
Section&nbsp;7.11 after the date hereof and any Securitization Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Existing Convertible Securities</U>&#148;: the Target&#146;s (a)&nbsp;Floating Rate Contingent
Convertible Senior Notes Due 2024 and (b)&nbsp;3.75% Contingent Convertible Senior Notes due 2023, in
each case issued prior to the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Expansion Capital Expenditures</U>&#148;: all Capital Expenditures of Holdings and its
Subsidiaries other than Upgrade Capital Expenditures.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Facility</U>&#148;: each of (a)&nbsp;the Tranche A-1 Term Commitments and the Tranche A-1 Term
Loans made thereunder (the &#147;<U>Tranche A-1 Term Facility</U>&#148;), (b)&nbsp;the Tranche A-2 Term
Commitments and the Tranche A-2 Term Loans made thereunder (the &#147;<U>Tranche A-2 Term
Facility</U>&#148;), (c)&nbsp;the Tranche B-1 Term Commitments and the Tranche B-1 Term Loans made thereunder
(the &#147;<U>Tranche B-1 Term Facility</U>&#148;), (d)&nbsp;the Tranche B-2 Term Commitments and the Tranche B-2
Term Loans made thereunder (the &#147;<U>Tranche B-2 Term Facility</U>&#148;), (e)&nbsp;the North American
Revolving Commitments and the extensions of credit made thereunder (the &#147;<U>North American
Revolving Facility</U>&#148;) and (f)&nbsp;the Canadian Revolving Commitments and the extensions of credit
made thereunder (the &#147;<U>Canadian Revolving Facility</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Federal Funds Effective Rate</U>&#148;: for any day, the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of
New&nbsp;York, or, if such rate is not so published for any day that is a Business Day, the average of
the quotations for the day of such transactions received by Royal Bank of Canada from three federal
funds brokers of recognized standing selected by it.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fee Letter</U>&#148;: the Fee Letter, dated as of August&nbsp;24, 2008, by and among the Borrower,
Royal Bank of Canada, Deutsche Bank AG Cayman Islands Branch, Deutsche Bank Securities Inc., HSBC
Bank Canada, HSBC Bank USA, National Association and The Toronto-Dominion Bank, as amended,
supplemented or otherwise modified from time to time. To the extent of any inconsistency between
the terms of the Fee Letter and the terms of the Credit Agreement, the terms of the Fee Letter
shall govern.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fee Payment Date</U>&#148;: (a)&nbsp;the third Business Day following the last day of each March,
June, September and December and (b)&nbsp;the last day of the Revolving Commitment Period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Benefit Arrangement</U>&#148;: any employee benefit arrangement mandated by non-US or
non-Canadian law that is maintained or contributed to by any Group Member or any ERISA Affiliate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Plan</U>&#148;: each employee benefit plan (within the meaning of Section&nbsp;3(3) of
ERISA, whether or not subject to ERISA) that is not subject to US or Canadian law and is maintained
or contributed to by any Group Member or any ERISA Affiliate.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Subsidiary Guarantor</U>&#148;: each Subsidiary Guarantor that is not a North
American Subsidiary Guarantor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Funded Debt</U>&#148;: as to any Person, all Indebtedness of such Person that matures more
than one year from the date of its creation or matures within one year from such date but is
renewable or extendible, at the option of such Person, to a date more than one year from such date
or arises under a revolving credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year from such date, including all current
maturities and current sinking fund payments in respect of such Indebtedness whether or not
required to be paid within one year from the date of its creation and, in the case of the Borrower,
Indebtedness in respect of the Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Funding Office</U>&#148;: the office of the Administrative Agent specified in Section&nbsp;11.2 or
such other office as may be specified from time to time by the Administrative Agent as its funding
office by written notice to the Borrower and the Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148;: generally accepted accounting principles in Canada as in effect from time to
time, except that for purposes of Section&nbsp;8.1 and Section&nbsp;8.7, GAAP shall be determined on the
basis of such principles in effect on the date hereof and consistent with those used in the
preparation of the most recent audited financial statements referred to in Section&nbsp;5.1(b). In the
event that any &#147;Accounting Change&#148; (as defined below) shall occur and such change results in a
change in the method of calculation of financial covenants, standards or terms in this Agreement,
then the Borrower and the Administrative Agent agree to enter into negotiations in order to amend
such provisions of this Agreement so as to reflect equitably such Accounting Changes with the
desired result that the criteria for evaluating the Borrower&#146;s financial condition shall be
substantially the same after such Accounting Changes as if such Accounting Changes had not been
made. Until such time as such an amendment shall have been executed and delivered by the Borrower,
the Administrative Agent and the Required Amendment Lenders, all financial covenants, standards and
terms in this Agreement shall continue to be calculated or construed as if such Accounting Changes
had not occurred. &#147;Accounting Changes&#148; refers to changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Canadian Institute of
Chartered Accountants, and in all events including changes resulting from implementation of the
International Financial Reporting Standards to the extent required by the Canadian Accounting
Standards Board.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental Authority</U>&#148;: any nation or government, any state, provincial,
territorial or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative functions of or pertaining to government, any securities
exchange and any self-regulatory organization (including the National Association of Insurance
Commissioners).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Group Members</U>&#148;: the collective reference to Holdings, the Borrower and their
respective Subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guarantee Obligation</U>&#148;: as to any Person (the &#147;<U>guaranteeing person</U>&#148;), any
obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing
Person that guarantees or in effect guarantees, any Indebtedness, leases, dividends or other
obligations (the &#147;<U>primary obligations</U>&#148;) of any other third Person (the &#147;<U>primary
obligor</U>&#148;) in any manner, whether directly or indirectly, including any obligation of the
guaranteeing person, whether or not contingent, (i)&nbsp;to purchase any such primary obligation or any
property constituting direct or indirect security therefor, (ii)&nbsp;to advance or supply funds (1)&nbsp;for
the purchase or payment of any such primary obligation or (2)&nbsp;to maintain working capital or equity
capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary
obligor, (iii)&nbsp;to purchase property, securities or services primarily for the purpose of
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assuring the owner of any such primary obligation of the ability of the primary obligor to
make payment of such primary obligation or (iv)&nbsp;otherwise to assure or hold harmless the owner of
any such primary obligation against loss in respect thereof; <U>provided</U>, <U>however</U>,
that the term Guarantee Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a)&nbsp;an amount equal to the stated or
determinable amount of the primary obligation in respect of which such Guarantee Obligation is made
and (b)&nbsp;the maximum amount for which such guaranteeing person may be liable pursuant to the terms
of the instrument embodying such Guarantee Obligation, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are not stated or determinable, in
which case the amount of such Guarantee Obligation shall be such guaranteeing person&#146;s maximum
reasonably anticipated liability in respect thereof as determined by the Borrower in good faith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guarantors</U>&#148;: the collective reference to Holdings and the Subsidiary Guarantors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Holdings</U>&#148;: as defined in the preamble hereto and, following a Permitted
Reorganization, Parent. Prior to a Permitted Reorganization, references herein to Precision
Drilling Trust or Holdings include the Trustees in their capacity as trustees of Precision Drilling
Trust.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Increased Amount Date</U>&#148;: as defined in Section&nbsp;2.25(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incremental Loan Commitments</U>&#148;: as defined in Section&nbsp;2.25(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incremental Revolving Commitments</U>&#148;: as defined in Section&nbsp;2.25(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incremental Revolving Lender</U>&#148;: as defined in Section&nbsp;2.25(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incremental Revolving Loan</U>&#148;: as defined in Section&nbsp;2.25(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incremental Term Loan</U>&#148;: as defined in Section&nbsp;2.25(c).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incremental Term Loan Commitments</U>&#148;: as defined in Section&nbsp;2.25(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incremental Term Loan Lender</U>&#148;: as defined in Section&nbsp;2.25(c).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indebtedness</U>&#148;: of any Person at any date, without duplication, (a)&nbsp;all indebtedness
of such Person for borrowed money, (b)&nbsp;all obligations of such Person for the deferred purchase
price of property or services (other than (i)&nbsp;current trade payables incurred in the ordinary
course of such Person&#146;s business and (ii)&nbsp;any earn-out obligation until such obligation becomes a
liability on the balance sheet of such Person in accordance with GAAP and if not paid after
becoming due and payable), (c)&nbsp;all obligations of such Person evidenced by notes, bonds, debentures
or other similar instruments, (d)&nbsp;all indebtedness created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property), (e)&nbsp;all Capital Lease Obligations of such
Person, (f)&nbsp;all obligations of such Person, contingent or otherwise, as an account party or
applicant under or in respect of acceptances, letters of credit, surety bonds or similar
arrangements, (g)&nbsp;the liquidation value of all preferred Capital Stock of such Person which is, or
upon the happening of any event or the passage of time would be, required to be redeemed by such
Person, at the option of the holder thereof, or matures or is mandatorily redeemable, in whole or
in part, on or prior to the date that is six months after the Tranche B-1 Maturity Date and the
Tranche B-2 Maturity Date, (h)&nbsp;all Guarantee Obligations of such Person in respect of obligations
of the kind referred to in clauses (a)&nbsp;through (g)&nbsp;above, (i)&nbsp;all obligations of the kind referred
to in clauses (a)&nbsp;through (h)&nbsp;above secured by (or
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for which the holder of such obligation has an existing right, contingent or otherwise, to be
secured by) any Lien on property (including accounts and contract rights) owned by such Person,
whether or not such Person has assumed or become liable for the payment of such obligation, and (j)
all obligations of such Person in respect of Swap Agreements. The Indebtedness of any Person shall
include the Indebtedness of any other entity (including any partnership in which such Person is a
general partner) to the extent such Person is liable therefor as a result of such Person&#146;s
ownership interest in or other relationship with such entity, except to the extent the terms of
such Indebtedness expressly provide that such Person is not liable therefor. Notwithstanding the
foregoing, solely for purposes of calculating the Consolidated Fixed Charge Coverage Ratio,
Consolidated Interest Coverage Ratio and Consolidated Leverage Ratio, &#147;Indebtedness&#148; shall be
deemed not to include the Existing Convertible Securities to the extent cash in respect of the
conversion and settlement of such Existing Convertible Securities has been deposited with the
trustee thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvency</U>&#148;: with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section&nbsp;4245 of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvency of Holdings</U>&#148;: any of the following with respect to Precision Drilling
Trust:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if Precision Drilling Trust shall be unable, or admits in writing its inability or
failure, to pay its debts generally as they become due or makes a general assignment for the
benefit of its creditors or commits or threatens to commit an act which, if committed by a
corporation, would constitute an act of bankruptcy under the <I>Bankruptcy and Insolvency Act</I>
(Canada) or any statute passed in substitution therefor, as amended from time to time;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any cause, proceeding or other action shall be instituted in any court of
competent jurisdiction against Precision Drilling Trust seeking an adjudication in
bankruptcy, reorganization, dissolution, winding up, liquidation, a composition or
arrangement with or distribution to creditors, a readjustment of debts, the appointment of a
trustee in bankruptcy, receiver, liquidator, or the like of all or any substantial part of
the Trust Fund, or any other like relief in respect of Precision Drilling Trust or the Trust
Fund under any bankruptcy, winding up, reorganization (other than pursuant to a Permitted
Reorganization) or insolvency law and the same shall continue undismissed or unstayed for
any period of 60 consecutive days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Trustees shall: (A)&nbsp;pursuant to winding up, bankruptcy, insolvency,
arrangement or similar laws, apply for or consent to the appointment of a receiver, trustee,
intervenor, custodian, liquidator, interim receiver, receiver-manager, assignee,
sequestrator or similar official of itself or of all or a substantial part of its assets;
(B)&nbsp;file a voluntary petition in bankruptcy; (C)&nbsp;commence any proceeding or file a petition,
answer, consent, proposal or plan, or give any notice of its intention to do so, seeking any
liquidation, winding up or reorganization or seeking any arrangement, compromise,
adjustment, composition, moratorium or other relief whatsoever in respect of its
indebtedness and liabilities to its creditors, or any class or classes thereof, under any
applicable bankruptcy, insolvency, arrangement or similar law or consent to the filing of
any such petition, proposal, plan or proceeding; or (D)&nbsp;file an answer admitting the
material allegations of or consent to or default in answering a petition filed against it in
any winding up, bankruptcy, reorganization or insolvency proceeding, or action shall be
taken by such Person for the purpose of effecting any of the foregoing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if an order, judgment or decree shall be entered by any court of competent
jurisdiction or other competent authority approving the appointment of a receiver,
receiver-manager, interim receiver, trustee in bankruptcy, intervenor, custodian, or
liquidator of Precision Drilling Trust or of any substantial portion of the Trust Fund and
such order, judgment or decree
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">shall not have been vacated, discharged, stayed or bonded pending appeal within 60&nbsp;days
from the entry thereof; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any event (other than pursuant to a Permitted Reorganization) resulting in the
dissolution, termination, winding-up or insolvency of Holdings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvent</U>&#148;: pertaining to a condition of Insolvency.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvent Person</U>&#148;: As of any date of determination a person who resides, carries on
business or has property in Canada and (a)&nbsp;who is for any reason unable to meet his obligations as
they generally become due, (b)&nbsp;who has ceased paying his current obligations in the ordinary course
of business as they generally become due, or (c)&nbsp;the aggregate of whose property is not, at a fair
valuation, sufficient, or, if disposed of at a fairly conducted sale under legal process, would not
be sufficient to enable payment of all his obligations, due and accruing due.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual Property</U>&#148;: the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, Canadian,
multinational or foreign laws or otherwise, including copyrights, copyright licenses, patents,
patent licenses, trademarks, trademark licenses, technology, know-how and processes, and all rights
to sue at law or in equity for any infringement or other impairment thereof, including the right to
receive all proceeds and damages therefrom.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Interest Payment Date</U>&#148;: (a)&nbsp;as to any ABR Loan or Canadian Prime Rate Loan (in each
case, other than any Swingline Loan), the last day of each March, June, September and December (or,
if an Event of Default is in existence, the last day of each calendar month) to occur while such
Loan is outstanding and the final maturity date of such Loan, (b)&nbsp;as to any Eurodollar Loan, the
last day of each Interest Period, (c)&nbsp;as to any Loan (other than any Revolving Loan that is an ABR
Loan or a Canadian Prime Rate Loan and any Swingline Loan), the date of any repayment or prepayment
made in respect thereof and (d)&nbsp;as to any Swingline Loan, the day that such Loan is required to be
repaid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Interest Period</U>&#148;: as to any Eurodollar Loan, (a)&nbsp;initially, the period commencing on
the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and
ending one, two or three months thereafter (or, if available to all Lenders under the applicable
Facility, six, nine or twelve months), as selected by the Borrower in its notice of borrowing or
notice of conversion, as the case may be, given with respect thereto; and (b)&nbsp;thereafter, each
period commencing on the last day of the next preceding Interest Period applicable to such
Eurodollar Loan and ending one, two or three months (or, if available to all Lenders under the
applicable Facility, six, nine or twelve months) thereafter, as selected by the Borrower by
irrevocable notice to the Administrative Agent not later than 12:00 Noon, New York City time, on
the date that is three Business Days prior to the last day of the then current Interest Period with
respect thereto; <U>provided</U> that, all of the foregoing provisions relating to Interest
Periods are subject to the following:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the next succeeding Business Day unless the result
of such extension would be to carry such Interest Period into another calendar month in
which event such Interest Period shall end on the immediately preceding Business Day;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower may not select an Interest Period under a particular Facility that
would extend beyond the Revolving Termination Date or beyond the Tranche A-1 Maturity Date,
Tranche A-2 Maturity Date, Tranche B-1 Maturity Date or Tranche B-2 Maturity Date, as the
case may be;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business Day of a calendar month; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Borrower shall select Interest Periods so as not to require a payment or
prepayment of any Eurodollar Loan during an Interest Period for such Loan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Investments</U>&#148;: as defined in Section&nbsp;8.8.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Issuing Lender</U>&#148;: with respect to North American Letters of Credit, a North American
Issuing Lender, and with respect to Canadian Letters of Credit, a Canadian Issuing Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Issuing Lender Commitment</U>&#148;: (a)&nbsp;with respect to Royal Bank of Canada acting in the
capacity of &#147;Issuing Lender&#148;, $100,000,000, (b)&nbsp;with respect to each of HSBC Bank Canada and The
Toronto-Dominion Bank and/or their respective affiliates acting in the capacity of &#147;Issuing
Lender&#148;, $50,000,000 and (c)&nbsp;with respect to any other Issuing Lender designated hereunder, such
amount as shall be notified to the Borrower and the Administrative Agent in writing at the time of
such Issuing Lender&#146;s designation as such.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Judgment Currency</U>&#148;: as defined in Section&nbsp;11.18.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>L/C Obligations</U>&#148;: the collective reference to the North American L/C Obligations and
the Canadian L/C Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lender Joinder Agreement</U>&#148;: an agreement substantially in the form of Exhibit&nbsp;H.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lenders</U>&#148;: as defined in the preamble hereto; <U>provided</U>, that unless the
context otherwise requires, each reference herein to the Lenders shall be deemed to include any
Conduit Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Letters of Credit</U>&#148;: the collective reference to the North American Letters of Credit
and the Canadian Letters of Credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lien</U>&#148;: any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or any preference,
priority or other security agreement or preferential arrangement of any kind or nature whatsoever
(including any conditional sale or other title retention agreement and any capital lease having
substantially the same economic effect as any of the foregoing but excluding, for certainty, deemed
security interests arising under Section&nbsp;1(1) (tt) (ii)&nbsp;of the <I>Personal Property Security Act</I>
(Alberta) or similar legislation with respect to transfers of accounts, consignments of goods and
leases with a term of more than one year that are not capital leases, in each case that do not
secure performance of a payment or other obligation).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Limited Partnership Agreement</U>&#148;: the Limited Partnership Agreement of Precision
Drilling Limited Partnership, dated as of September&nbsp;28, 2005, among 1194312 Alberta Ltd., Holdings
and the limited partners of Precision Drilling Limited Partnership, as amended, supplemented or
otherwise modified from time to time, as permitted hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan</U>&#148;: any loan made by any Lender pursuant to this Agreement, including any loan
made by way of Bankers&#146; Acceptances; <U>provided</U>, that, in the case of Bankers&#146; Acceptances,
any reference herein to the amount or principal thereof shall be deemed a reference to the face
amount of such Bankers&#146; Acceptances or, as applicable, the principal amount of a BA Equivalent
Loan.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Documents</U>&#148;: this Agreement, the Security Documents, the Notes, the Bankers&#146;
Acceptances, the Letters of Credit, the Applications and the Fee Letter and any amendment, waiver,
supplement or other modification to any of the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Parties</U>&#148;: each Group Member that is a party to a Loan Document.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Majority Facility Lenders</U>&#148;: with respect to any Facility, the holders of more than
50% of the aggregate unpaid principal amount of the Tranche A-1 Term Loans, the Tranche A-2 Term
Loans, the Tranche B-1 Term Loans, the Tranche B-2 Term Loans, the Total North American Revolving
Extensions of Credit or the Total Canadian Revolving Extensions of Credit, as the case may be,
outstanding under such Facility (or, in the case of the North American Revolving Facility or the
Canadian Revolving Facility, prior to any termination of the North American Revolving Commitments
or the Canadian Revolving Commitments, as the case may be, the holders of more than 50% of the
Total North American Revolving Commitments or the Total Canadian Revolving Commitments, as the case
may be).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Market Disruption Eurodollar Rate</U>&#148;: with respect to each day during the relevant
Interest Period pertaining to a Eurodollar Loan, (a)&nbsp;the Eurodollar Rate applicable to such
Interest Period <U>plus</U> (b)&nbsp;if the TED Spread at the time the Eurodollar Rate applicable to
such Interest Period is determined is (i)&nbsp;less than 2.25, a rate per annum equal to 0.00%, (ii)
equal to or greater than 2.25 but less than 2.75, a rate per annum equal to 0.50%, (iii)&nbsp;equal to
or greater than 2.75 but less than or equal to 3.25, a rate per annum equal to 1.00% and (iv)
greater than 3.25, a rate per annum equal to 1.50%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Market Disruption Eurodollar Loans</U>&#148;: Loans the rate of interest applicable to which
is based upon the Market Disruption Eurodollar Rate. Other than in respect of determination of the
Eurodollar Rate, all Market Disruption Eurodollar Loans will be deemed to be Eurodollar Loans for
all other purposes of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Market Disruption Event</U>&#148;: any event, condition or circumstance pursuant to which the
Requisite Disruption Lenders have provided a Market Disruption Notice pursuant to Section&nbsp;2.18(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Market Disruption Notice</U>&#148;: a notice substantially in the form of Exhibit&nbsp;J,
appropriately completed and delivered to the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Adverse Effect</U>&#148;: a material adverse effect on (a)&nbsp;the business, property,
operations or condition (financial or otherwise) of Holdings and its Subsidiaries taken as a whole
except to the extent any such effect results directly and solely from the Contingent Tax
Liabilities becoming due to the relevant taxing authorities or (b)&nbsp;the validity or enforceability
of this Agreement or any of the other Loan Documents or the rights or remedies of the
Administrative Agent or the Lenders hereunder or thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Contract</U>&#148;: any contract listed on Schedule&nbsp;8.17 and any other contract
entered into by Holdings or any of its Subsidiaries that the Administrative Agent or the Required
Lenders designate in writing and with notice to the Borrower as a &#147;Material Contract&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Subsidiary</U>&#148;: as to any Person, any Subsidiary of such Person owning assets
having a fair market value of at least $1,000,000 in the aggregate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Materials of Environmental Concern</U>&#148;: any gasoline or petroleum (including crude oil
or any fraction thereof) or petroleum products or any hazardous or toxic substances, materials or
wastes, defined or regulated as such in or under any Environmental Law, and any other substance,
material or
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">wastes that could reasonably be expected to give rise to an Environmental Liability, including
asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s</U>&#148;: Moody&#146;s Investors Service, Inc. and its successors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Mortgaged Properties</U>&#148;: the real properties as to which the Administrative Agent for
the benefit of the Lenders shall be granted a Lien pursuant to the Mortgages.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Mortgages</U>&#148;: each of the mortgages, deeds of trust or other security documents
granting a Lien on any real property and improvements thereon made by any Loan Party in favor of,
or for the benefit of, the Administrative Agent for the benefit of the Lenders after the Closing
Date, in each case in form and substance reasonably acceptable to the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Multiemployer Plan</U>&#148;: a Plan that is a multiemployer plan as defined in Section
4001(a)(3) of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Net Cash Proceeds</U>&#148;: (a)&nbsp;in connection with any Asset Sale or any Recovery Event, the
proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds received by
way of deferred payment of principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise, but only as and when received), net of attorneys&#146; fees,
accountants&#146; fees, brokerage fees, investment banking fees, amounts required to be applied to the
repayment of Indebtedness secured by a Lien expressly permitted hereunder on any asset that is the
subject of such Asset Sale or Recovery Event (other than any Lien pursuant to a Security Document)
and other customary fees and expenses actually incurred in connection therewith and net of taxes
(including withholding taxes) paid or reasonably estimated to be payable as a result thereof (after
taking into account any available tax credits or deductions and any tax sharing arrangements) and
(b)&nbsp;in connection with any issuance or sale of Capital Stock or any incurrence of Indebtedness, the
cash proceeds received from such issuance or incurrence, net of attorneys&#146; fees, investment banking
fees, accountants&#146; fees, brokerage fees, underwriting discounts and commissions and other customary
fees and expenses actually incurred in connection therewith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>New Borrower</U>&#148;: as defined in the definition of &#147;Permitted Reorganization&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Non-Acceptance Discount Rate</U>&#148;: for any day, the arithmetic average of the Discount
Rate in items (a)&nbsp;and (b)&nbsp;of the definition thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Non-Excluded Taxes</U>&#148;: as defined in Section&nbsp;2.21(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Non-U.S. Lender</U>&#148;: as defined in Section&nbsp;2.21(d).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American Issuing Lender</U>&#148;: each of Royal Bank of Canada, HSBC Bank Canada, The
Toronto-Dominion Bank and any other North American Revolving Lender approved by the Administrative
Agent and the Borrower, each acting reasonably, that has agreed in its sole discretion to act as a
&#147;North American Issuing Lender&#148; hereunder, or any of their respective affiliates, in each case in
its capacity as issuer of any North American Letter of Credit. Each reference herein to &#147;the North
American Issuing Lender&#148; shall be deemed to be a reference to the relevant North American Issuing
Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American L/C Commitment</U>&#148;: $200,000,000.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American L/C Obligations</U>&#148;: at any time, an amount equal to the sum of (a)&nbsp;the
aggregate then undrawn and unexpired amount of the then outstanding North American Letters of
Credit and (b)&nbsp;the aggregate amount of drawings under North American Letters of Credit that have
not then been reimbursed pursuant to Section&nbsp;3.5.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American L/C Participants</U>&#148;: the collective reference to all the North American
Revolving Lenders other than the North American Issuing Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American Letters of Credit</U>&#148;: as defined in Section&nbsp;3.1(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American Reimbursement Obligation</U>&#148;: the obligation of the Borrower to
reimburse the North American Issuing Lender pursuant to Section&nbsp;3.5 for amounts drawn under North
American Letters of Credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American Revolving Commitment</U>&#148;: as to any Lender, the obligation of such
Lender, if any, to make North American Revolving Loans and participate in Swingline Loans and North
American Letters of Credit in an aggregate principal and/or face amount not to exceed the amount
set forth under the heading &#147;North American Revolving Commitment&#148; opposite such Lender&#146;s name on
Schedule&nbsp;1.1A or in the Assignment and Assumption pursuant to which such Lender became a party
hereto, as the same may be changed from time to time pursuant to the terms hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American Revolving Extensions of Credit</U>&#148; shall mean with respect to any North
American Revolving Lender at any time, an amount equal to the sum of (a)&nbsp;the aggregate principal
amount of such Lender&#146;s North American Revolving Loans then outstanding that are denominated in
Dollars, (b)&nbsp;the Dollar Equivalent Amount at such time of the aggregate principal amount of such
Lender&#146;s North American Revolving Loans then outstanding that are denominated in Canadian Dollars,
(c)&nbsp;the Dollar Equivalent Amount at such time of such Lender&#146;s North American Revolving Percentage
of the North American L/C Obligations then outstanding and (d)&nbsp;the Dollar Equivalent Amount at such
time of such Lender&#146;s North American Revolving Percentage of the aggregate principal amount of
Swingline Loans then outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American Revolving Lender</U>&#148;: each Lender that has a North American Revolving
Commitment or that holds North American Revolving Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American Revolving Loan</U>&#148;: as defined in Section&nbsp;2.4(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American Revolving Percentage</U>&#148;: as to any North American Revolving Lender at
any time, the percentage which such Lender&#146;s North American Revolving Commitment then constitutes
of the Total North American Revolving Commitments or, at any time after the North American
Revolving Commitments shall have expired or terminated, the percentage which the aggregate
principal amount of such Lender&#146;s North American Revolving Loans then outstanding constitutes of
the aggregate principal amount of the North American Revolving Loans then outstanding,
<U>provided</U>, that, in the event that the North American Revolving Loans are paid in full prior
to the reduction to zero of the Total North American Revolving Extensions of Credit, the North
American Revolving Percentages shall be determined in a manner designed to ensure that the other
outstanding North American Revolving Extensions of Credit shall be held by the North American
Revolving Lenders on a comparable basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>North American Subsidiary Guarantor</U>&#148;: each Subsidiary Guarantor organized in the
United States or Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notes</U>&#148;: the collective reference to any promissory notes evidencing Loans.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Obligations</U>&#148;: the unpaid principal of and interest on (including interest accruing
after the maturity of the Loans and Reimbursement Obligations and interest accruing after the
filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) the Loans and all other obligations and liabilities of the
Borrower to the Administrative Agent or to any Lender (including, in the case of Specified Swap
Agreements and Specified Cash Management Agreements, any affiliate of any Lender), whether direct
or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred,
which may arise under, out of, or in connection with, this Agreement, any other Loan Document, any
Specified Swap Agreement, any Specified Cash Management Agreement or any other document made,
delivered or given in connection herewith or therewith, whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses (including all fees, charges and
disbursements of counsel to the Administrative Agent or to any Lender that are required to be paid
by the Borrower pursuant hereto) or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>OID</U>&#148;: original issue discount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Old System Lenders</U>&#148;: a Lender which is not able to issue bankers&#146; acceptances as
depository bills under the <I>Depository Bills and Notes Act </I>(Canada).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Operating Cash Flow Before Working Capital</U>&#148;: for any period, (a)&nbsp;Consolidated EBITDA
for such period <U>minus</U> (b)&nbsp;Consolidated Interest Expense for such period <U>minus</U> (c)
net income tax expenses for Holdings and its Subsidiaries paid in cash during such period
(excluding any income tax expenses, penalties and interest related to the Contingent Tax
Liabilities (but not, for certainty, interest related to any Indebtedness incurred to finance the
payment of the Contingent Tax Liabilities) paid during such period in cash, to the extent financed
with the proceeds of Indebtedness (including drawings under letters of credit and reimbursement
obligations in respect thereof), other than under the North American Revolving Facility, the
Canadian Revolving Facility or any Specified Operating Facility).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Other Taxes</U>&#148;: any and all present or future stamp or documentary or other excise or
property taxes, charges or similar taxes or levies arising from any payment made hereunder or from
the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent</U>&#148;: as defined in the definition of &#147;Permitted Reorganization.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Participant</U>&#148;: as defined in Section&nbsp;11.6(c).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PBGC</U>&#148;: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A
of Title IV of ERISA (or any successor).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pension Plan</U>&#148;: any Plan (other than a Multiemployer Plan) subject to the provisions
of Title IV of ERISA or Section&nbsp;412 of the Code or Section&nbsp;302 of ERISA, and in respect of which
any Group Member or any ERISA Affiliate is (or, if such Plan were terminated, would under Section
4069 of ERISA be deemed to be) an &#147;employer&#148; as defined in section 3(5) of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Acquisition</U>&#148;: any acquisition by the Borrower or any other Subsidiary,
whether by purchase, merger or otherwise, of all or substantially all of the assets or Capital
Stock of any Person or of all or substantially all of the assets constituting a business line or
unit or a division of any Person; <U>provided</U>, that (a)&nbsp;at the time of such acquisition and
after giving effect thereto no Default or Event of Default shall have occurred and be continuing
and Holdings and its Subsidiaries shall be in
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">compliance with Section&nbsp;7.11 and the financial covenants set forth in Section&nbsp;8.1 on a pro
forma basis after giving effect to such acquisition as of the last day of the fiscal quarter most
recently ended; (b)&nbsp;such acquisition shall be consummated in all material respects in accordance
with all applicable laws and in conformity with all applicable governmental authorizations; (c)&nbsp;in
the case of the acquisition of Capital Stock of a Person organized in Canada or the United States
or any province or state thereof, (i)&nbsp;all or substantially all of the Capital Stock acquired or
otherwise issued by such Person and/or any newly formed Subsidiary organized in the United States
or Canada and formed in connection with such acquisition shall be directly and beneficially owned
by a Loan Party or, if owned by a non Loan Party, shall be pledged as Collateral pursuant to a
limited recourse guarantee in form and substance reasonably acceptable to the Administrative Agent
and (ii)&nbsp;the Person whose Capital Stock is acquired shall become a Subsidiary and a Guarantor and
shall otherwise comply with the applicable requirements of Section&nbsp;7.10; (d)&nbsp;in the case of any
acquisition of $100,000,000 or more (whether paid in cash, securities, the assumption of debt or
otherwise), the Borrower shall have delivered to Administrative Agent at least five Business Days
prior to such proposed acquisition, a certificate evidencing compliance with the criteria hereof,
together with a reasonably detailed description of such acquisition, including the aggregate
consideration for such acquisition, and any other information reasonably required to demonstrate
such compliance; and (e)&nbsp;such acquisition shall be consensual.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Reorganization</U>&#148;: a reorganization, in a transaction or series of related
transactions, of Holdings and/or the Borrower and/or their respective direct and/or indirect
Subsidiaries for the purposes of avoiding the application of the Canadian &#147;SIFT&#148; Rules and any
related tax or trust, corporate or partnership reorganization including, without limitation, the
contemporaneous or, to the extent entered into in connection with such reorganization, subsequent
termination or winding-up of Holdings (provided that if Precision Drilling Trust remains in
existence, it shall remain a Guarantor); <U>provided</U>, that such reorganization satisfies the
following conditions: (a)&nbsp;if Holdings elects to change the borrower hereunder, one or more Solvent
entities organized under the laws of Canada, the United States, or a province or state thereof
(collectively, the &#147;<U>New Borrower</U>&#148;) shall assume, pursuant to documentation reasonably
acceptable to the Administrative Agent, all of the applicable obligations and liabilities of the
Borrower under this Agreement and the other Loan Documents, and thereafter all references to the
&#147;Borrower&#148; for purposes of this Agreement and the other Loan Documents shall be deemed to include
the New Borrower, (b)&nbsp;the ultimate parent company resulting from such reorganization
(&#147;<U>Parent</U>&#148;), if not the New Borrower, shall assume all of the applicable obligations of
Holdings under this Agreement and the other Loan Documents pursuant to documentation reasonably
acceptable to the Administrative Agent and shall pledge or cause to be pledged all of the Capital
Stock of its Subsidiaries that are not also Subsidiaries of the Borrower and thereafter all
references to &#147;Holdings&#148; for purposes of this Agreement and the other Loan Documents shall be
deemed to be a reference to Parent, and Parent (if not the New Borrower) and the New Borrower (if
applicable) shall comply, and shall cause their respective Subsidiaries to comply, with the
applicable requirements of Section&nbsp;7.10, (c)&nbsp;Parent and the New Borrower (if applicable) shall
deliver legal opinions of Bennett Jones LLP and/or Mayer Brown LLP or other independent legal
counsel reasonably satisfactory to the Administrative Agent, addressed to the Administrative Agent
and the Lenders, that all assumption agreements, guarantees, pledge agreements and security
agreements entered into pursuant to clauses (a)&nbsp;and (b)&nbsp;above are enforceable in accordance with
their terms, including customary opinions as to existence, power and authority (subject in each
case to customary qualifications and assumptions), (d)&nbsp;after giving effect to any steps taken in
accordance with Section&nbsp;11.19, no Default or Event of Default shall have occurred and be continuing
nor will result therefrom, (e)&nbsp;the reorganization shall not result in any adverse tax consequences
related to withholding tax or similar amounts in respect of payments to the Lenders hereunder or
under any other Loan Document (after taking into account the Borrower&#146;s indemnification obligations
under Section&nbsp;2.21), (f)&nbsp;the Collateral (unless previously released in accordance with the terms
hereof and of the Security Documents) shall be substantially the same after the reorganization as
prior thereto and the Liens with respect thereto shall remain continuously attached and perfected
to the same extent as prior thereto, (g)
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the reorganization shall not, by itself, result in any reduction to the corporate credit
rating of Holdings or the Borrower by either S&#038;P or Moody&#146;s from that in effect immediately prior
to the reorganization and (h)&nbsp;the Administrative Agent and the Lenders shall receive the benefit of
such other representations and warranties, assurances, legal opinions (subject to customary
qualifications and assumptions) and other documents with respect to such reorganization as may be
reasonably requested by the Administrative Agent including, without limitation, to preserve as
against the Parent, the New Borrower (if applicable) and other entities resulting from the
reorganization the substance of Section&nbsp;7, Section&nbsp;8 and Section&nbsp;9 hereof and the Parent, the New
Borrower (if applicable), the other entities resulting from the reorganization, the Administrative
Agent and the Lenders, each acting reasonably, shall enter into such amendments and other documents
as requested or required by the Administrative Agent in accordance with the foregoing to give
effect to the terms of this Agreement (including Section&nbsp;11.19) with respect to a Permitted
Reorganization and any consequential amendments required to preserve the substance of Section&nbsp;7,
Section&nbsp;8 and Section&nbsp;9 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148;: an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture entity,
Governmental Authority or other entity of whatever nature.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Plan</U>&#148;: any employee benefit plan as defined in Section&nbsp;3(3) of ERISA, including any
employee welfare benefit plan (as defined in Section&nbsp;3(1) of ERISA), any employee pension benefit
plan (as defined in Section&nbsp;3(2) of ERISA), and any plan which is both an employee welfare benefit
plan and an employee pension benefit plan, and in respect of which any Group Member or any ERISA
Affiliate is an &#147;employer&#148; as defined in Section&nbsp;3(5) of ERISA, excluding Foreign Benefit
Arrangements, Foreign Plans, Canadian Benefit Plans and Canadian Pension Plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pledged Stock</U>&#148;: as defined in the applicable Security Document.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PPSA</U>&#148;: the <I>Personal Property Security Act </I>(Alberta) (or any successor statute)<U>
</U>or similar legislation of any other Canadian jurisdiction, the laws of which are required by
such legislation to be applied in connection with the issue, perfection, enforcement, validity or
effect of security interests.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pro Forma Balance Sheet</U>&#148;: as defined in Section&nbsp;5.1(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pro Forma Financial Statements</U>&#148;: as defined in Section&nbsp;5.1(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pro Forma Statement of Operations</U>&#148;: as defined in Section&nbsp;5.1(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prohibited Transaction</U>&#148;: as defined in Section&nbsp;406 of ERISA and Section&nbsp;4975(f)(3)
of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Projections</U>&#148;: as defined in Section&nbsp;7.2(c).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Properties</U>&#148;: as defined in Section&nbsp;5.18(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Qualified Securitization Financing</U>&#148;: any Securitization Financing that meets the
following conditions: (a)&nbsp;the board of directors of the Borrower shall have determined in good
faith that such Qualified Securitization Financing (including financing terms, covenants,
termination events and other provisions) is in the aggregate economically fair and reasonable to
the Borrower and, if applicable, the Securitization Subsidiary, (b)&nbsp;all sales and/or contributions
of Securitization Assets and related assets are made at fair market value (as determined in good
faith by the Borrower) and (iii)&nbsp;the financing terms, covenants, termination events and other
provisions thereof shall be market terms (as determined in good
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">faith by the Borrower) and may include Standard Securitization Undertakings. The grant of a
security interest in any Securitization Assets of the Borrower or any of its Subsidiaries (other
than a Securitization Subsidiary) to secure Indebtedness under this Agreement prior to engaging in
any Securitization Financing shall not be deemed a Qualified Securitization Financing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Recovery Event</U>&#148;: any settlement of or payment in excess of $5,000,000 in respect of
(i)&nbsp;any property or casualty insurance claim or (ii)&nbsp;any condemnation or expropriation proceeding
relating to any asset of any Group Member.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Redemption Notes</U>&#148;: the notes defined as such in the Trust Declaration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reference Lenders</U>&#148;: if there is only one Lender which is a bank under Schedule&nbsp;II or
Schedule&nbsp;III to the <I>Bank Act </I>(Canada), such Lender and, if there is more than one Lender which is a
bank under Schedule&nbsp;II or Schedule&nbsp;III to the <I>Bank Act </I>(Canada), any two of such Lenders agreed to
by the Borrower and the Administrative Agent from time to time, each acting reasonably.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Refunded Swingline Loans</U>&#148;: as defined in Section&nbsp;2.9(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Refunding Bankers&#146; Acceptance</U>&#148;: as defined in Section&nbsp;2.6(e).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>&#148;: as defined in Section&nbsp;11.6(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Regulation&nbsp;U</U>&#148;: Regulation&nbsp;U of the Board as in effect from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reimbursement Obligation</U>&#148;: with respect to North American Letters of Credit, a North
American Reimbursement Obligation, and with respect to Canadian Letters of Credit, a Canadian
Reimbursement Obligation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Deferred Amount</U>&#148;: with respect to any Reinvestment Event, the aggregate
Net Cash Proceeds received by any Group Member in connection therewith that are not applied to
prepay the Term Loans pursuant to Section&nbsp;2.13(b) as a result of the delivery of a Reinvestment
Notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Event</U>&#148;: any Asset Sale or Recovery Event in respect of which the
Borrower has delivered a Reinvestment Notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Notice</U>&#148;: a written notice executed by a Responsible Officer stating
that no Event of Default has occurred and is continuing and that the Borrower or the Parent
(directly or indirectly through a Subsidiary) intends and expects to use all or a specified portion
of the Net Cash Proceeds of an Asset Sale or Recovery Event to acquire, improve or repair assets
useful in its business including Capital Expenditures and any Permitted Acquisitions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Prepayment Amount</U>&#148;: with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended prior to the relevant
Reinvestment Prepayment Date to acquire or repair assets useful in the Borrower&#146;s business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Prepayment Date</U>&#148;: with respect to any Reinvestment Event, the earlier
of (a)&nbsp;the date occurring 12&nbsp;months after such Reinvestment Event and (b)&nbsp;the date on which the
Borrower shall have determined not to, or shall have otherwise ceased to, acquire or repair assets
useful in the Borrower&#146;s business with all or any portion of the relevant Reinvestment Deferred
Amount.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Release</U>&#148;: any presence, release, spill, emission, leaking, pumping, pouring,
injection, escaping, deposit, disposal, discharge, leaching or migration of any Materials of
Environmental Concern in or into the indoor or outdoor environment (including the abandonment or
disposal of any barrels, tanks, containers or receptacles containing any Materials of Environmental
Concern), or in, into or out of any vessel or facility, including the movement of any Materials of
Environmental Concern through the air, soil, subsoil, surface, water, ground water, rock formation
or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reorganization</U>&#148;: with respect to any Multiemployer Plan, the condition that such
plan is in reorganization within the meaning of Section&nbsp;4241 of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reportable Event</U>&#148;: any of the events set forth in Section 4043(c) of ERISA or the
regulations issued thereunder, other than those events for which the thirty day notice period has
been waived.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Required Amendment Lenders</U>&#148;: at any time, the Majority Facility Lenders in respect
of each Facility; <U>provided</U>, that for purposes of this definition (a)&nbsp;the North American
Revolving Facility, the Canadian Revolving Facility, the Tranche A-1 Term Facility and the Tranche
A-2 Term Facility shall be deemed to collectively constitute a single Facility (and not individual
Facilities) and (b)&nbsp;the Tranche B-1 Term Facility and the Tranche B-2 Term Facility shall be deemed
to constitute a single Facility (and not individual Facilities).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Required Lenders</U>&#148;: at any time, the holders of more than 50% of (a)&nbsp;until the
Closing Date, the Commitments then in effect and (b)&nbsp;thereafter, the sum of (i)&nbsp;the aggregate
unpaid principal amount of the Term Loans then outstanding and (ii)&nbsp;the Total Revolving Commitments
then in effect or, if the Revolving Commitments have been terminated, the Total Revolving
Extensions of Credit then outstanding; <U>provided</U>, that the portion of (x)&nbsp;any Commitments of
any Defaulting Lender, (y)&nbsp;any unpaid Term Loans then held by any Defaulting Lender and (z)&nbsp;the
Revolving Extensions of Credit held by any Defaulting Lender shall be excluded for purposes of
making a determination of Required Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Requirement of Law</U>&#148;: as to any Person, the Certificate of Incorporation and By-Laws,
Articles of Incorporation or Amalgamation or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Requisite Disruption Lenders</U>&#148;: with respect to any Facility, the Lenders
representing more than 35% of each of (a)&nbsp;the number of Lenders in such Facility and (b)&nbsp;the
aggregate unpaid principal amount of the Tranche A-1 Term Loans, the Tranche B-1 Term Loans, the
Tranche B-2 Term Loans or the Total North American Revolving Extensions of Credit, as the case may
be, outstanding under such Facility (or, in the case of the North American Revolving Facility,
prior to any termination of the North American Revolving Commitments, the Lenders representing more
than 35% of each of (i)&nbsp;the number of Lenders in such Facility and (ii)&nbsp;the Total North American
Revolving Commitments); <U>provided</U>, that such Lenders are Lenders who, as a regular part of
their businesses (and not primarily for the purpose of invoking Section&nbsp;2.18), directly or
indirectly fund in the Eurocurrency markets; <U>provided</U>, <U>further</U>, that for purposes
of calculating &#147;Requisite Disruption Lenders&#148; the Tranche B-1 Term Facility and the Tranche B-2
Term Facility shall be deemed to constitute a single Facility (and not individual Facilities).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Responsible Officer</U>&#148;: the chief executive officer, president, chief financial
officer or vice president, finance of the Borrower, but in any event, with respect to financial
matters, the chief financial officer or vice president, finance of the Borrower.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Restricted Payments</U>&#148;: as defined in Section&nbsp;8.6.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Revolving Commitment Period</U>&#148;: the period from and including the Closing Date to the
Revolving Termination Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Revolving Commitments</U>&#148;: the collective reference to the North American Revolving
Commitments and the Canadian Revolving Commitments.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Revolving Extensions of Credit</U>&#148;: the collective reference to the North American
Revolving Extensions of Credit and the Canadian Revolving Extensions of Credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Revolving Lenders</U>&#148;: the collective reference to the North American Revolving Lenders
and the Canadian Revolving Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Revolving Loans</U>&#148;: the collective reference to the North American Revolving Loans and
the Canadian Revolving Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Revolving Termination Date</U>&#148;: December&nbsp;31, 2013.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>S&#038;P</U>&#148;: Standard &#038; Poor&#146;s Ratings Services, a division of The McGraw-Hill Companies,
Inc., and its successors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Sale and Repurchase Agreements</U>&#148;: the Sale and Repurchase Agreement, dated as of
December&nbsp;23, 2008, by and between the Borrower and Precision Lobos Corporation, as in effect on the
Closing Date, and any other sale and repurchase agreements or similar agreements among any of the
Loan Parties entered into after the date hereof; <U>provided</U> that any restrictions on
Restricted Payments, payments of Indebtedness, loans, Investments, transfers&nbsp; and other
transactions contained in such other&nbsp;agreements which&nbsp;are subject to the restrictions in Section
8.15 of this Agreement are in the reasonable judgment of the Administrative Agent&nbsp;no more
restrictive to any Loan Party in all material respects as the&nbsp;analogous restrictions in the Sale
and Repurchase Agreement, dated as of December&nbsp;23, 2008, and&nbsp;the applicable covenants therein are
qualified so as to permit exceptions thereto&nbsp;(i) for the purpose of permitting payment of the
Obligations under this Agreement and the other Loan Documents to the same extent in all material
respects as the qualifications contained in the Sale and Repurchase Agreement, dated as of December
23, 2008, (ii)&nbsp;to permit the Liens under the Loan Documents and (iii)&nbsp;to subordinate any Liens
(including backup Liens) thereunder to the Liens under the Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Schedule&nbsp;I Lender</U>&#148;: any Lender named on Schedule&nbsp;I to the <I>Bank Act </I>(Canada).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Schedule&nbsp;I Reference Banks</U>&#148;: Royal Bank of Canada and The Toronto-Dominion Bank, or
any bank named on Schedule&nbsp;I to the <I>Bank Act </I>(Canada) as otherwise agreed by the Administrative
Agent and the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>SEC</U>&#148;: the United States Securities and Exchange Commission, any successor thereto
and any analogous Governmental Authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securitization Assets</U>&#148;: the accounts receivable and related rights to payment subject
to a Qualified Securitization Financing and the proceeds thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securitization Financing</U>&#148;: any transaction or series of transactions that may be
entered into by the Borrower or any Subsidiary pursuant to which the Borrower or any Subsidiary may
sell, convey or otherwise transfer to a Securitization Subsidiary, or may grant a security interest
in, any
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securitization Assets of the Borrower or any Subsidiary, and any assets related thereto,
including all collateral securing such Securitization Assets, all contracts and all guarantees or
other obligations in respect of such Securitization Assets, proceeds of such Securitization Assets
and other assets that are customarily transferred or in respect of which security interests are
customarily granted in connection with asset securitization transactions involving Securitization
Assets. Notwithstanding the foregoing, &#147;Securitization Financing&#148; shall also include any
receivables factoring or securitization arrangements that deviate from the foregoing (including by
not involving a Securitization Subsidiary) but contain parameters that are customary for such
arrangements in Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securitization Repurchase Obligation</U>&#148;: any obligation of a seller of Securitization
Assets in a Qualified Securitization Financing to repurchase Securitization Assets arising as a
result of a breach of a representation, warranty or covenant or otherwise, including as a result of
a receivable or portion thereof becoming subject to any asserted defense, dispute, off set or
counterclaim of any kind as a result of any action taken by, any failure to take action by or any
other event relating to the seller.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securitization Subsidiary</U>&#148;: a wholly owned Subsidiary of the Borrower (or another
Person formed for the purposes of engaging in a Qualified Securitization Financing in which the
Borrower or any Subsidiary makes an Investment and to which the Borrower or any Subsidiary
transfers Securitization Assets and related assets) that engages in no activities other than in
connection with the financing of Securitization Assets of the Borrower or any Subsidiaries, all
proceeds thereof and all rights (contingent and other), collateral and other assets relating
thereto, and any business or activities incidental or related to such business, and which is
designated by the board of directors of the Borrower or such other Person (as provided below) as a
Securitization Subsidiary and (a)&nbsp;no portion of the Indebtedness or any other obligations
(contingent or otherwise) of which (i)&nbsp;is guaranteed by the Borrower or any Subsidiary, other than
another Securitization Subsidiary (excluding guarantees of obligations (other than the principal
of, and interest on, Indebtedness) pursuant to Standard Securitization Undertakings), (ii)&nbsp;is
recourse to or obligates the Borrower or any Subsidiary, other than another Securitization
Subsidiary, in any way other than pursuant to Standard Securitization Undertakings or
(iii)&nbsp;subjects any property or asset of the Borrower or any Subsidiary, other than another
Securitization Subsidiary, directly or indirectly, contingently or otherwise, to the satisfaction
thereof, other than pursuant to Standard Securitization Undertakings, (b)&nbsp;with which none of the
Borrower or any Subsidiary, other than another Securitization Subsidiary, has any material
contract, agreement, arrangement or understanding other than on terms which the Borrower reasonably
believes to be no less favorable to the Borrower or such Subsidiary than those that might be
obtained at the time from Persons that are not Affiliates of the Borrower and (c)&nbsp;to which none of
the Borrower or any Subsidiary, other than another Securitization Subsidiary, has any obligation to
maintain or preserve such entity&#146;s financial condition or cause such entity to achieve certain
levels of operating results. Any such designation by the board of directors of the Borrower or
such other Person shall be evidenced to the Administrative Agent by delivery to the Administrative
Agent of a certified copy of the resolution of the board of directors of the Borrower or such other
Person giving effect to such designation and a certificate executed by a Responsible Officer
certifying that such designation complied with the foregoing conditions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Security Documents</U>&#148;: the collective reference to the US Guarantee and Collateral
Agreement, the Canadian Collateral Agreement, the Mortgages (if any) and all other security
documents or guarantees hereafter delivered to the Administrative Agent effecting a guarantee or
granting a Lien on any property of any Person to secure the obligations and liabilities of any Loan
Party under any Loan Document, including but not limited to those delivered pursuant to Section
7.11(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Senior Note Indenture</U>&#148;: the Indenture to be entered into in connection with the
refinancing or exchange of the Bridge Loans, among the Borrower and certain Subsidiaries, pursuant
to which the Senior Notes shall be issued, together with any guaranties entered into by the
Borrower or such
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subsidiaries in connection therewith, as amended, supplemented or otherwise modified from time
to time as permitted hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Senior Notes</U>&#148;: senior unsecured notes with a stated maturity no earlier than the
date that is six months after the Tranche B-1 Maturity Date and the Tranche B-2 Maturity Date to be
issued in connection with the refinancing or exchange of the Bridge Loans under the Senior Notes
Indenture or the Bridge Credit Agreement, as applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Solvent</U>&#148;: (a)&nbsp;when used with respect to any Person organized in the United States,
means that, as of any date of determination, (i)&nbsp;the amount of the &#147;present fair saleable value&#148; of
the assets of such Person will, as of such date, exceed the amount of all &#147;liabilities of such
Person, contingent or otherwise&#148;, as of such date, as such quoted terms are determined in
accordance with applicable federal, state and provincial laws governing determinations of the
insolvency of debtors, (ii)&nbsp;the present fair saleable value of the assets of such Person will, as
of such date, be greater than the amount that will be required to pay the liability of such Person
on its debts as such debts become absolute and matured, (iii)&nbsp;such Person will not have, as of such
date, an unreasonably small amount of capital with which to conduct its business, and (iv)&nbsp;such
Person will be able to pay its debts as they mature and (b)&nbsp;when used with respect to any Person
organized in Canada, means that, as of any date of determination, such Person is not an Insolvent
Person. For purposes of this definition, (A) &#147;debt&#148; means liability on a &#147;claim&#148;, and (B) &#147;claim&#148;
means any (x)&nbsp;right to payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable,
secured or unsecured or (y)&nbsp;right to an equitable remedy for breach of performance if such breach
gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Specified Cash Management Agreement</U>&#148;: any agreement providing for treasury,
depositary, purchasing card or cash management services, including in connection with any automated
clearing house transfers of funds or any similar transactions between the Borrower or any Guarantor
and any Lender or affiliate thereof. For the avoidance of doubt, the Centralized Banking Agreement
shall constitute a Specified Cash Management Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Specified Change of Control</U>&#148;: a &#147;Change of Control&#148; (or any other defined term
having a similar purpose substituted in lieu thereof) as defined in the Bridge Credit Agreement or
the Senior Note Indenture.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Specified Operating Facilities</U>&#148;: one or more bilateral operating facilities provided
by Royal Bank of Canada and/or other Lenders or the respective affiliates thereof to the Borrower
and/or any Guarantor providing for borrowings to be made and/or letters of credit to be issued
pursuant thereto in an aggregate amount not to exceed $60,000,000 (or, prior to the date that is 60
days following the Closing Date, $70,000,000), including but not limited to the facilities
described on Schedule&nbsp;1.1C.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Specified Representations</U>&#148;: (a)&nbsp;the representations made by or on behalf of the
Target in the Acquisition Agreement as are material to the interests of the Lenders, but only to
the extent that the Borrower (or Holdings) has the right to terminate its obligations under the
Acquisition Agreement as a result of the breach of such representations in the Acquisition
Agreement and (b)&nbsp;the representations and warranties set forth in Sections&nbsp;5.4, 5.5, 5.11, 5.15,
and 5.17.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Specified Swap Agreement</U>&#148;: any Swap Agreement in respect of interest rates or
currency exchange rates entered into by the Borrower or any Guarantor and any Person that is a
Lender or an affiliate of a Lender at the time such Swap Agreement is entered into.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Standard Securitization Undertakings</U>&#148;: representations, warranties, covenants and
indemnities entered into by the Borrower or any Subsidiary of the Borrower which the Borrower has
determined in good faith to be customary, necessary or advisable in a Securitization Financing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subject Property</U>&#148;: as defined in Section&nbsp;8.3(g).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subsidiary</U>&#148;: as to any Person, a corporation, partnership, limited liability
company, unlimited liability company, trust or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a contingency) to elect a majority
of the board of directors or other managers of such corporation, partnership or other entity are at
the time owned, or the management of which is otherwise controlled, directly or indirectly through
one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to
a &#147;Subsidiary&#148; or to &#147;Subsidiaries&#148; in this Agreement shall refer to a Subsidiary or Subsidiaries
of Holdings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subsidiary Guarantor</U>&#148;: (a)&nbsp;each Material Subsidiary of Holdings (other than the
Borrower) organized in Canada or the United States other than any Excluded Subsidiary, (b)&nbsp;each
other Subsidiary of Holdings party to the US Guarantee and Collateral Agreement and, if organized
in Canada, the Canadian Collateral Agreement and (c)&nbsp;each other Subsidiary of Holdings party to the
applicable Security Documents pursuant to Section&nbsp;7.11(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Swap Agreement</U>&#148;: any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; <U>provided</U> that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of Holdings or any of its Subsidiaries shall
be a &#147;Swap Agreement&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Swingline Commitment</U>&#148;: the obligation of the Swingline Lender to make Swingline
Loans pursuant to Section&nbsp;2.8 in an aggregate principal amount at any one time outstanding not to
exceed $10,000,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Swingline Lender</U>&#148;: Royal Bank of Canada, in its capacity as the lender of Swingline
Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Swingline Loans</U>&#148;: as defined in Section&nbsp;2.8(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Swingline Participation Amount</U>&#148;: as defined in Section&nbsp;2.9(c).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Syndication Agent</U>&#148;: as defined in the preamble hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Target</U>&#148;: Grey Wolf, Inc., a Texas corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Target Material Adverse Effect</U>&#148;: with respect to the Target, a material adverse
effect on the business, results of operations, or condition (financial or otherwise) of the Target
and its Subsidiaries, taken as a whole, except to the extent any such effect results from: (a)
changes in the industry in which the Target or its Subsidiaries operate or in the economy or the
financial, securities or credit markets in the U.S. or elsewhere in the world, including any
regulatory or political conditions or developments, or any outbreak or escalation of hostilities or
declared or undeclared acts of war, terrorism, insurrection or natural disasters, that do not
disproportionately affect the business, results of operations or condition
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(financial or otherwise) of the Target and its Subsidiaries, taken as a whole, relative to
other industry participants, in any material respect (b)&nbsp;the execution or public disclosure of the
Acquisition Agreement or the consummation or the pendency of the transactions contemplated thereby,
(c)&nbsp;fluctuations in the price or trading volume of shares of any trading stock of the Target
(provided, however, that the exception in this clause (c)&nbsp;shall not prevent or otherwise affect a
determination that any fact, circumstance, event, change, effect or occurrence underlying such
fluctuation has resulted in, or contributed to, a Target Material Adverse Effect), (d)&nbsp;changes in
Applicable Law (as defined in the Acquisition Agreement) or in U.S. GAAP (as defined in the
Acquisition Agreement) (or the interpretation thereof) after the date of the Acquisition Agreement
that do not disproportionately affect the business, results of operations or condition (financial
or otherwise) of the Target and its Subsidiaries, taken as a whole, relative to other industry
participants, in any material respect, (e)&nbsp;any legal proceedings made or brought by any of the
current or former holders of Equity Interests (as defined in the Acquisition Agreement) of the
Target (or on their behalf or on behalf of such Persons) arising out of or related to the
Acquisition Agreement or any of the transactions contemplated thereby, or (f)&nbsp;any failure by the
Target to meet any published analyst estimates or expectations regarding the Target&#146;s revenue,
earnings or other financial performance or results of operations for any period or any failure by
the Target to meet its internal budgets, plans or forecasts regarding its revenues, earnings or
other financial performance or results of operations (provided, however, that the exception in this
clause (f)&nbsp;shall not prevent or otherwise affect a determination that any fact, circumstance,
event, change, effect or occurrence underlying such failure has resulted in, or contributed to, a
Target Material Adverse Effect).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>TED Spread</U>&#148;: at any time, the spread between 3-month LIBOR and the 3-month U.S.
Treasury bill rate (rounded upwards, if necessary, to the nearest 1/100 of 1%) as shown on page
&#147;.TEDSP {index} HP go&#148; on the Bloomberg terminal (or on any successor or substitute page of such
service, or any successor to or substitute for such service, providing such a quotation comparable
to that which is currently provided on such page of such service, as determined by the
Administrative Agent from time to time for purposes of providing an equivalent quotation under this
definition) as of such time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Temporary Revolving Borrowings</U>&#148;: as defined in Section&nbsp;5.17.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Term Lenders</U>&#148;: the collective reference to the Tranche A-1 Term Lenders, the Tranche
A-2 Term Lenders, the Tranche B-1 Term Lenders, the Tranche B-2 Term Lenders and the Incremental
Term Loan Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Term Loans</U>&#148;: the collective reference to the Tranche A-1 Term Loans, the Tranche A-2
Term Loans, the Tranche B-1 Term Loans, the Tranche B-2 Term Loans and the Incremental Term Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Total Canadian Revolving Commitments</U>&#148;: at any time, the aggregate amount of the
Canadian Revolving Commitments then in effect. The original amount of the Total Canadian Revolving
Commitments is C$22,500,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Total Canadian Revolving Extensions of Credit</U>&#148;: at any time, the aggregate amount of
the Canadian Revolving Extensions of Credit of the Canadian Revolving Lenders outstanding at such
time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Total North American Revolving Commitments</U>&#148;: at any time, the aggregate amount of
the North American Revolving Commitments then in effect. The original amount of the Total North
American Revolving Commitments is $381,116,240.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Total North American Revolving Extensions of Credit</U>&#148;: at any time, the aggregate
amount of the North American Revolving Extensions of Credit of the North American Revolving Lenders
outstanding at such time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Total Revolving Commitments</U>&#148;: at any time, the aggregate amount of the Revolving
Commitments then in effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Total Revolving Extensions of Credit</U>&#148;: at any time, the aggregate amount of the
Revolving Extensions of Credit of the Revolving Lenders outstanding at such time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A Term Loans</U>&#148;: the collective reference to the Tranche A-1 Term Loans and
the Tranche A-2 Term Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-1 Maturity Date</U>&#148;: December&nbsp;23, 2013.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-1 Term Commitment</U>&#148;: as to any Lender, the obligation of such Lender, if
any, to make a Tranche A-1 Term Loan to the Borrower in a principal amount not to exceed the amount
set forth under the heading &#147;Tranche A-1 Term Commitment&#148; opposite such Lender&#146;s name on Schedule
1.1A. The original aggregate amount of the Tranche A-1 Term Commitments is $381,116,240.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-1 Term Lender</U>&#148;: each Lender that has a Tranche A-1 Term Commitment or that
holds a Tranche A-1 Term Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-1 Term Loan</U>&#148;: as defined in Section&nbsp;2.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-1 Term Percentage</U>&#148;: as to any Tranche A-1 Term Lender at any time, the
percentage which such Lender&#146;s Tranche A-1 Term Commitment then constitutes of the aggregate
Tranche A-1 Term Commitments (or, at any time after the Closing Date, the percentage which the
aggregate principal amount of such Lender&#146;s Tranche A-1 Term Loans then outstanding constitutes of
the aggregate principal amount of the Tranche A-1 Term Loans then outstanding).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-2 Maturity Date</U>&#148;: December&nbsp;23, 2013.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-2 Term Commitment</U>&#148;: as to any Lender, the obligation of such Lender, if
any, to make a Tranche A-2 Term Loan to the Borrower in a principal amount not to exceed the amount
set forth under the heading &#147;Tranche A-2 Term Commitment&#148; opposite such Lender&#146;s name on Schedule
1.1A. The original aggregate amount of the Tranche A-2 Term Commitments is C$22,500,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-2 Term Lender</U>&#148;: each Lender that has a Tranche A-2 Term Commitment or that
holds a Tranche A-2 Term Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-2 Term Loan</U>&#148;: as defined in Section&nbsp;2.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche A-2 Term Percentage</U>&#148;: as to any Tranche A-2 Term Lender at any time, the
percentage which such Lender&#146;s Tranche A-2 Term Commitment then constitutes of the aggregate
Tranche A-2 Term Commitments (or, at any time after the Closing Date, the percentage which the
aggregate principal amount of such Lender&#146;s Tranche A-2 Term Loans then outstanding constitutes of
the aggregate principal amount of the Tranche A-2 Term Loans then outstanding).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B Term Loans</U>&#148;: the collective reference to the Tranche B-1 Term Loans and
the Tranche B-2 Term Loans.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-1 Maturity Date</U>&#148;: September&nbsp;30, 2014.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-1 Term Commitment</U>&#148;: as to any Lender, the obligation of such Lender, if
any, to make a Tranche B-1 Term Loan to the Borrower in a principal amount not to exceed the amount
set forth under the heading &#147;Tranche B-1 Term Commitment&#148; opposite such Lender&#146;s name on Schedule
1.1A. The original aggregate amount of the Tranche B-1 Term Commitments is $325,000,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-1 Term Lender</U>&#148;: each Lender that has a Tranche B-1 Term Commitment or that
holds a Tranche B-1 Term Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-1 Term Loan</U>&#148;: as defined in Section&nbsp;2.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-1 Term Percentage</U>&#148;: as to any Tranche B-1 Term Lender at any time, the
percentage which such Lender&#146;s Tranche B-1 Term Commitment then constitutes of the aggregate
Tranche B-1 Term Commitments (or, at any time after the Closing Date, the percentage which the
aggregate principal amount of such Lender&#146;s Tranche B-1 Term Loans then outstanding constitutes of
the aggregate principal amount of the Tranche B-1 Term Loans then outstanding).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-2 Maturity Date</U>&#148;: September&nbsp;30, 2014.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-2 Term Commitment</U>&#148;: as to any Lender, the obligation of such Lender, if
any, to make a Tranche B-2 Term Loan to the Borrower in a principal amount not to exceed the amount
set forth under the heading &#147;Tranche B-2 Term Commitment&#148; opposite such Lender&#146;s name on Schedule
1.1A. The original aggregate amount of the Tranche B-2 Term Commitments is $75,000,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-2 Term Lender</U>&#148;: each Lender that has a Tranche B-2 Term Commitment or that
holds a Tranche B-2 Term Loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-2 Term Loan</U>&#148;: as defined in Section&nbsp;2.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tranche B-2 Term Percentage</U>&#148;: as to any Tranche B-2 Term Lender at any time, the
percentage which such Lender&#146;s Tranche B-2 Term Commitment then constitutes of the aggregate
Tranche B-2 Term Commitments (or, at any time after the Closing Date, the percentage which the
aggregate principal amount of such Lender&#146;s Tranche B-2 Term Loans then outstanding constitutes of
the aggregate principal amount of the Tranche B-2 Term Loans then outstanding).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transferee</U>&#148;: any Assignee or Participant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trust Conversion Capex</U>&#148;: as defined in Section&nbsp;8.7(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trust Declaration</U>&#148;: the Declaration of Trust of Holdings, dated as of September&nbsp;22,
2005, between the settlor and the Trustees named therein, as amended, supplemented or otherwise
modified from time to time, as permitted hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trust Distribution Amount</U>&#148;: with respect to (A) (i)&nbsp;the Computation Period ending
June&nbsp;30, 2009, (ii)&nbsp;the Computation Period ending September&nbsp;30, 2009, and (iii)&nbsp;any Computation
Period ending thereafter prior to or during which a Permitted Reorganization is completed, in each
case, (x)&nbsp;an amount equal to 20% of the lesser of (1)&nbsp;Operating Cash Flow Before Working Capital
for such period and (2)&nbsp;the Base Case Operating Cash Flow Before Working Capital for such period,
plus (y)&nbsp;an amount equal to 50% of the amount, if any, by which Operating Cash Flow Before Working
Capital for such period exceeds the Base Case Operating Cash Flow for such period and (B)&nbsp;any
Computation Period
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">thereafter, an amount determined by the Parent&#146;s board of directors in compliance with all
Requirements of Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trust Fund</U>&#148;: the &#147;Trust Assets&#148; as defined in the Trust Declaration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trust Units</U>&#148;: the trust units of Holdings representing beneficial ownership
interests therein and created, issued and certified under the Trust Declaration as from time to
time outstanding and entitled to the benefits thereof but excluding any Special Voting Unit as
provided for in the Trust Declaration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trustees</U>&#148;: the trustees of Precision Drilling Trust from time to time and being, on
the date hereof, Robert J.S. Gibson, Patrick M. Murray and Allen Hagerman. Prior to a Permitted
Reorganization, references herein to Precision Drilling Trust or Holdings include the Trustees in
their capacity as trustees of Precision Drilling Trust.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Type</U>&#148;: as to any Loan, its nature as an ABR Loan, a Eurodollar Loan, a Canadian
Prime Rate Loan or a Bankers&#146; Acceptance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>United States</U>&#148;: the United States of America.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Upgrade Capital Expenditures</U>&#148;: all Capital Expenditures of Holdings and its
Subsidiaries made to maintain its and its Subsidiaries&#146; assets and existing service levels,
including betterments and replacements to existing assets, as determined consistent with past
practice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>US GAAP</U>&#148;: generally accepted accounting principles in the United States as in effect
from time to time, except that for purposes of Section&nbsp;8.1, US GAAP shall be determined on the
basis of such principles in effect on the date hereof and consistent with those used in the
preparation of the most recent audited financial statements referred to in Section&nbsp;5.1(b). In the
event that any &#147;Accounting Change&#148; (as defined below) shall occur and such change results in a
change in the method of calculation of financial covenants, standards or terms in this Agreement,
then the Borrower and the Administrative Agent agree to enter into negotiations in order to amend
such provisions of this Agreement so as to reflect equitably such Accounting Changes with the
desired result that the criteria for evaluating the Borrower&#146;s financial condition shall be
substantially the same after such Accounting Changes as if such Accounting Changes had not been
made. Until such time as such an amendment shall have been executed and delivered by the Borrower,
the Administrative Agent and the Required Amendment Lenders, all financial covenants, standards and
terms in this Agreement shall continue to be calculated or construed as if such Accounting Changes
had not occurred. &#147;Accounting Changes&#148; refers to changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting
Standards Board of the American Institute of Certified Public Accountants or, if applicable, the
SEC.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>US Guarantee and Collateral Agreement</U>&#148;: the Guarantee and Collateral Agreement to be
executed and delivered by Holdings, the Borrower and each Subsidiary Guarantor, substantially in
the form of Exhibit&nbsp;A-1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Voting and Exchange Trust Agreement</U>&#148;: the Voting and Exchange Trust Agreement, dated
as of November&nbsp;7, 2005, among Holdings, Precision Drilling Limited Partnership and Computershare
Trust Company of Canada, as amended, supplemented or otherwise modified from time to time, as
permitted hereunder.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Voting Capital Stock</U>&#148;: as to any Person, the Capital Stock of such Person entitling
the holders thereof (whether at all times or only so long as no senior class of capital stock or
other equity interest has voting power by reason of any contingency) to vote in the election of the
board of Trustees or board of directors, as the case may be, of such Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Wholly Owned North American Subsidiary Guarantor</U>&#148;: any North American Subsidiary
Guarantor that is a Wholly Owned Subsidiary of Holdings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Wholly Owned Subsidiary</U>&#148;: as to any Person, any other Person all of the Capital
Stock of which (other than directors&#146; qualifying shares required by law and, in the case of
Precision Drilling Limited Partnership, other than Exchangeable LP Units) is owned by such Person
directly and/or through other Wholly Owned Subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Withdrawal Liability</U>&#148;: any liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Title IV
of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <U>Other Definitional Provisions</U>. (a)&nbsp;Unless otherwise specified therein, all terms defined in this Agreement shall have the
defined meanings when used in the other Loan Documents or any certificate or other document made or
delivered pursuant hereto or thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;As used herein and in the other Loan Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, (i)&nbsp;accounting terms relating to any Group Member not
defined in Section&nbsp;1.1 and accounting terms partly defined in Section&nbsp;1.1, to the extent not
defined, shall have the respective meanings given to them under GAAP, (ii)&nbsp;the words &#147;include&#148;,
&#147;includes&#148; and &#147;including&#148; shall be deemed to be followed by the phrase &#147;without limitation&#148;, (iii)
the word &#147;incur&#148; shall be construed to mean incur, create, issue, assume, become liable in respect
of or suffer to exist (and the words &#147;incurred&#148; and &#147;incurrence&#148; shall have correlative meanings),
(iv)&nbsp;the words &#147;asset&#148; and &#147;property&#148; shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including cash, Capital Stock,
securities, revenues, accounts, leasehold interests and contract rights, and (v)&nbsp;references to
agreements or other Contractual Obligations shall, unless otherwise specified, be deemed to refer
to such agreements or Contractual Obligations as amended, supplemented, restated or otherwise
modified from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The words &#147;hereof&#148;, &#147;herein&#148; and &#147;hereunder&#148; and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <U>Currency</U>. Whenever any amount is to be determined hereunder, including but not limited to purposes of
calculating any amount outstanding under a Facility, except for any such amount which is plainly to
be determined in Canadian Dollars, such amount shall be determined by the Administrative Agent in
Dollars by calculating the Dollar Equivalent Amount of any portion of such amount denominated in
Canadian Dollars and adding such amount to any Dollar-denominated portion of such amount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <U>Concerning the Trustees</U>. The parties hereto acknowledge that Precision Drilling Corporation , solely in its capacity
as administrator of Precision Drilling Trust (in such capacity, the &#147;Administrator&#148;), is entering
into this Agreement in such capacity as agent for and on behalf of Precision
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Drilling Trust and the
obligations of Precision Drilling Trust hereunder shall not be binding upon any of the Trustees in
a personal capacity, but only in their capacity as Trustees, and that any recourse against
Precision Drilling Trust, the Trustees, the Administrator (in such capacity) or any of the holders
of Trust Units or any annuitant under a plan of which a holder of Trust Units is a trustee or
carrier (an &#147;annuitant&#148;) in any manner in respect of any indebtedness, obligation or liability of
Precision Drilling Trust arising hereunder or in connection herewith or from matters to which this
Agreement relates, if any, including without limitation claims based on negligence or otherwise
tortious behaviour, shall be limited to, and satisfied only out of, the Trust Fund.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 2. AMOUNT AND TERMS OF COMMITMENTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Term Commitments</u>. Subject to the terms and conditions hereof, (a)&nbsp;each Tranche A-1 Term Lender severally
agrees to make a term loan in Dollars (a &#147;<U>Tranche A-1 Term Loan</U>&#148;) to the Borrower on the
Closing Date in an amount not to exceed the amount of the Tranche A-1 Term Commitment of such
Lender, (b)&nbsp;each Tranche A-2 Term Lender severally agrees to make a term loan in Canadian Dollars
(a &#147;<U>Tranche A-2 Term Loan</U>&#148;) to the Borrower on the Closing Date in an amount not to exceed
the amount of the Tranche A-2 Term Commitment of such Lender, (c)&nbsp;each Tranche B-1 Term Lender
severally agrees to make a term loan in Dollars (a &#147;<U>Tranche B-1 Term Loan</U>&#148;) to the Borrower
on the Closing Date in an amount not to exceed the amount of the Tranche B-1 Term Commitment of
such Lender and (d)&nbsp;each Tranche B-2 Term Lender severally agrees to make a term loan in Dollars (a
&#147;<U>Tranche B-2 Term Loan</U>&#148;) to the Borrower on the Closing Date in an amount not to exceed the
amount of the Tranche B-2 Term Commitment of such Lender. The Term Loans may from time to time be
(i)&nbsp;in the case of the Tranche A-1 Term Loans and Tranche B Term Loans, Eurodollar Loans or ABR
Loans, and (ii)&nbsp;in the case of the Tranche A-2 Term Loans, Canadian Prime Rate Loans or Bankers&#146;
Acceptances, in each case as determined by the Borrower and notified to the Administrative Agent in
accordance with Sections&nbsp;2.2, 2.6 and&nbsp;2.14.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <U>Procedure for Term Loan Borrowing</U>. The Borrower shall give the Administrative Agent irrevocable notice (which notice must be
received by the Administrative Agent prior to 10:00&nbsp;A.M., New York City time, one Business Day
prior to the anticipated Closing Date) requesting that the Term Lenders make the Term Loans on the
Closing Date and specifying the amount to be borrowed. The Term Loans made on the Closing Date
shall initially be (i)&nbsp;in the case of the Tranche A-1 Term Loans and Tranche B Term Loans, ABR
Loans, and (ii)&nbsp;in the case of Tranche A-2 Term Loans, Canadian Prime Rate Loans. Upon receipt of
such notice the Administrative Agent shall promptly notify each Term Lender thereof. Not later
than 12:00 Noon, New York City time, on the Closing Date each Term Lender shall make available to
the Administrative Agent at the Funding Office an amount in immediately available funds equal to
the Term Loan or Term Loans to be made by such Lender. The Administrative Agent shall credit the
account of the Borrower on the books of such office of the Administrative Agent with the aggregate
of the amounts made available to the Administrative Agent by the Term Lenders in immediately
available funds.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <U>Repayment of Term Loans</U>. (a)&nbsp;The Tranche A-1 Term Loan of each Tranche A-1 Term Lender shall mature in 20
consecutive quarterly installments, each of which shall be repayable in Dollars and shall be in an
amount equal to such Lender&#146;s Tranche A-1 Term Percentage multiplied by the amount set forth below
opposite such installment payment date:
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Installment Payment Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Principal Amount</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,763,953.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,763,953.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,763,953.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,763,953.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,527,906.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,527,906.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,527,906.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,527,906.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,527,906.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,527,906.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,527,906.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,527,906.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,291,859.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,291,859.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,291,859.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,291,859.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,291,859.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,291,859.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,291,859.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;23, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">185,794,167.00</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Tranche A-2 Term Loan of each Tranche A-2 Term Lender shall mature in 20 consecutive
quarterly installments, each of which shall be repayable in Canadian Dollars and shall be in an
amount equal to such Lender&#146;s Tranche A-2 Term Percentage multiplied by the amount set forth below
opposite such installment payment date:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Installment Payment Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Principal Amount</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">281,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">281,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">281,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">281,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">562,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">562,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">562,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">562,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">562,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">562,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">562,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">562,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">843,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">843,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">843,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">843,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">843,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">843,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">843,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;23, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$</TD>
    <TD align="right">10,968,750</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Tranche B-1 Term Loan of each Tranche B-1 Term Lender shall mature in 23 consecutive
quarterly installments, each of which shall be repayable in Dollars and shall be in an amount equal
to such Lender&#146;s Tranche B-1 Term Percentage multiplied by the amount set forth below opposite such
installment payment date:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Installment Payment Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Principal Amount</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,062,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">235,625,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Tranche B-2 Term Loan of each Tranche B-2 Term Lender shall mature in 23 consecutive
quarterly installments, each of which shall be repayable in Dollars and shall be in an amount equal
to such Lender&#146;s Tranche B-2 Term Percentage multiplied by the amount set forth below opposite such
installment payment date:
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Installment Payment Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Principal Amount</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">March&nbsp;31, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;30, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">937,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">September&nbsp;30, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">54,375,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <U>Revolving Commitments</U>. (a)&nbsp;Subject to the terms and conditions hereof, (i)&nbsp;each North American Revolving Lender
severally agrees to make revolving credit loans in Dollars or Canadian Dollars and to extend credit
by way of acceptance of Bankers&#146; Acceptances (such loans and acceptance of Bankers&#146; Acceptances,
the &#147;<U>North American Revolving Loans</U>&#148;) to the Borrower from time to time during the
Revolving Commitment Period in an aggregate principal amount (expressed as a Dollar Equivalent
Amount) at any one time outstanding which, when added to such Lender&#146;s North American Revolving
Percentage of the sum of (A)&nbsp;the North American L/C Obligations then outstanding and (B)&nbsp;the
aggregate principal amount of the Swingline Loans then outstanding, does not exceed the amount of
such Lender&#146;s North American Revolving Commitment and (ii)&nbsp;each Canadian Revolving Lender severally
agrees to make revolving credit loans in Canadian Dollars and to extend credit by way of acceptance
of Bankers&#146; Acceptances (such loans and acceptance of Bankers&#146; Acceptances, the &#147;<U>Canadian
Revolving Loans</U>&#148;) to the Borrower from time to time during the Revolving Commitment Period in
an aggregate principal amount (expressed as a Dollar Equivalent Amount) at any one time outstanding
which, when added to such Lender&#146;s Canadian Revolving Percentage of the Canadian L/C Obligations
then outstanding, does not exceed the amount of such Lender&#146;s Canadian Revolving Commitment.
During the Revolving Commitment Period the Borrower may use the Revolving Commitments by borrowing,
prepaying the Revolving Loans in whole or in part, and reborrowing (including by requesting the
Revolving Lenders to accept and purchase Bankers&#146; Acceptances), all in accordance with the terms
and conditions hereof. The Revolving Loans may from time to time be (i)&nbsp;in the case of North
American Revolving Loans denominated in Dollars, Eurodollar Loans or ABR Loans and (ii)&nbsp;in the case
of North American Revolving Loans denominated in Canadian Dollars and Canadian Revolving Loans,
Canadian Prime Rate
Loans or Bankers&#146; Acceptances, in each case as determined by the Borrower and notified to the
Administrative Agent in accordance with Sections&nbsp;2.5, 2.6 and 2.14.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Borrower shall repay all outstanding Revolving Loans to the applicable Lenders and in
the currency in which they were borrowed on the Revolving Termination Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <U>Procedure for Revolving Loan Borrowing</U>. The Borrower may borrow under the Revolving Commitments during the Revolving Commitment
Period on any Business Day, <U>provided</U> that the Borrower shall give the Administrative Agent
irrevocable notice (which notice must be received by the Administrative Agent prior to 12:00 Noon,
New York City time, (a)&nbsp;three Business Days prior to the requested Borrowing Date, in the case of
Eurodollar Loans, (b)&nbsp;two Business Days prior to the requested Borrowing Date, in the case of
Bankers&#146; Acceptances, or (c)&nbsp;one Business Day prior to the requested Borrowing Date, in the case of
ABR Loans or Canadian Prime Rate Loans) (<U>provided</U> that any such notice of a borrowing of
ABR Loans or Canadian Prime Rate Loans under the North American Revolving Facility to finance
payments required by Section&nbsp;3.5 or Section&nbsp;4.5 may be given not later than 10:00&nbsp;A.M., New York
City time, on the date of the proposed borrowing), specifying (i)&nbsp;the amount and Type of Revolving
Loans to be borrowed and, in the case of North American Revolving Loans, whether such Loans shall
be denominated in Dollars or Canadian Dollars, (ii)&nbsp;the requested Borrowing Date and (iii)&nbsp;in the
case of Eurodollar Loans and Bankers&#146; Acceptances, the respective amounts of each such Type of Loan
and the respective lengths of the initial Interest Period or Contract Period therefor, as the case
may be. Any Revolving Loans made on the Closing Date shall initially be ABR Loans or Canadian
Prime Rate Loans. Each borrowing under the Revolving Commitments shall be in an amount equal to
(w)&nbsp;in the case of ABR Loans, $1,000,000 or a whole multiple thereof (or, if the then aggregate
Available North American Revolving Commitments are less than $1,000,000, such lesser amount), (x)
in the case of Eurodollar Loans, $5,000,000 or a whole multiple of $1,000,000 in excess thereof,
(y)&nbsp;in the case of Canadian Prime Rate Loans, C$1,000,000 or a whole multiple thereof (or, if the
then aggregate Available North American Revolving Commitments or Canadian Revolving Commitments, as
applicable, are less than C$1,000,000, such lesser amount) and (z)&nbsp;in the case of Bankers&#146;
Acceptances, C$1,000,000 or a whole multiple thereof; <U>provided</U>, that the Swingline Lender
may request, on behalf of the Borrower, borrowings under the North American Revolving Commitments
that are ABR Loans or Canadian Prime Rate Loans in other amounts pursuant to Section&nbsp;2.9. Upon
receipt of any such notice from the Borrower, the Administrative Agent shall promptly notify each
North American Revolving Lender or Canadian Revolving Lender, as applicable, thereof. Each
Revolving Lender will make the amount of its <U>pro</U> <U>rata</U> share of each borrowing
available to the Administrative Agent for the account of the Borrower at the Funding Office prior
to 1:00 P.M., New York City time, on the Borrowing Date requested by the Borrower in funds
immediately available to the Administrative Agent. Such borrowing will then be made available to
the Borrower by the Administrative Agent crediting the account of the Borrower on the books of such
office with the aggregate of the amounts made available to the Administrative Agent by the
Revolving Lenders and in like funds as received by the Administrative Agent. Each Revolving Lender
shall make available to the Borrower Bankers&#146; Acceptance borrowings during the Revolving Commitment
Period in accordance with and pursuant to the procedures set forth in Section&nbsp;2.6.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <U>Bankers&#146; Acceptances</U>. (a)&nbsp;The Borrower may issue Bankers&#146; Acceptances denominated in Canadian Dollars for
acceptance and purchase by the Canadian Revolving Lenders, the North American Revolving Lenders and
the Tranche A-2 Term Lenders, as applicable, each in accordance with the provisions of this Section
2.6.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Procedures</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Term</U>. Bankers&#146; Acceptances shall be issued and shall mature on a
Business Day. Each Bankers&#146; Acceptance shall have a term, subject to availability in the
market, of 30, 60, or 90&nbsp;days or such other period as may be agreed by the Canadian
Revolving Lenders, the North American Revolving Lenders or the Tranche A-2 Term Lenders,
as the case may be, shall mature on or before the Revolving Termination Date or the
Tranche A-2 Maturity Date,
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">as applicable, and shall be in form and substance reasonably
satisfactory to each Canadian Revolving Lender, North American Revolving Lender or
Tranche A-2 Term Lender, as applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>Depository Bills and Notes Act</U>. It is the intention of the parties
that, pursuant to the <I>Depository Bills and Notes Act </I>(Canada) (&#147;<U>DBNA</U>&#148;), all
Bankers&#146; Acceptances accepted by the Lenders (other than Old System Lenders) under this
Agreement shall be issued in the form of a &#147;depository bill&#148; (as defined in the DBNA),
deposited with, and made payable to, a &#147;clearing house&#148; (as defined in the DBNA)
including, without limitation, The Canadian Depository for Securities Limited or its
nominee, CDS &#038; Co. (&#147;<U>CDS</U>&#148;). The Administrative Agent, the Canadian Revolving
Lenders, the North American Revolving Lenders and the Tranche A-2 Term Lenders (other
than Old System Lenders) shall, <I>inter alia</I>, effect the following and, subject to the
approval of the Borrower and the Majority Facility Lenders in respect of Canadian
Revolving Loans, North American Revolving Loans and Tranche A-2 Term Loans, establish and
notify the Borrower and such Lenders of any additional procedures, consistent with the
terms of this Agreement and the quarterly requirements of the DBNA, as are reasonably
necessary to accomplish such intention including, without limitation:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each Bankers&#146; Acceptance accepted
by a Lender (other than an Old System Lender) hereunder shall
have marked prominently and legibly on its face a notation to
the effect that it is issued subject to the DBNA;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any reference to authentication
of the Bankers&#146; Acceptance will be removed; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(C)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such Bankers&#146; Acceptance shall
not be marked with any words prohibiting negotiation, transfer
or assignment of it or of any interest in it.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <U>Power of Attorney &#150; Bankers&#146; Acceptances.</U> As a condition precedent
to each Lender&#146;s obligation to accept and purchase Bankers&#146; Acceptances hereunder, and
subject to the DBNA compliance requirements set forth in Section&nbsp;2.6(b)(ii), the Borrower
agrees to the Power of Attorney Terms &#150; Bankers&#146; Acceptances set out in Schedule&nbsp;2.6(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <U>Issuance of Bankers&#146; Acceptances</U>. Promptly following receipt of a
notice of borrowing by way of Bankers&#146; Acceptances, the Administrative Agent shall so
advise the Canadian Revolving Lenders, North American Revolving Lenders or Tranche A-2
Term Lenders, as applicable, and shall advise each such Lender of the face amount of each
Draft to be accepted and purchased by it and the Contract Period thereof (which shall be
identical for all applicable Lenders). The aggregate face amount of Drafts to be
accepted by a Canadian Revolving Lender, North American Revolving Lender or Tranche A-2
Term Lender shall be determined by the Administrative Agent on a ratable basis by
reference to the respective Canadian Revolving Commitments of the Canadian Revolving
Lenders, North American
Revolving Commitments of the North American Revolving Lenders or Tranche A-2 Term
Commitments of the Tranche A-2 Term Lenders, as applicable, except that, if the face
amount of a Draft which would otherwise be accepted by a Lender would not be C$100,000 or
a whole multiple thereof, such face amount shall be increased or reduced by the
Administrative Agent in its sole and unfettered discretion to the nearest whole multiple
of C$100,000.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <U>Acceptance of Bankers&#146; Acceptances</U>. Each Draft to be accepted by a
Canadian Revolving Lender, North American Revolving Lender or Tranche A-2 Term Lender
shall be accepted at such Lender&#146;s Canadian lending office.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <U>Purchase of Bankers&#146; Acceptances</U>. Each Canadian Revolving Lender,
North American Revolving Lender or Tranche A-2 Term Lender, as applicable, shall be
required to purchase from the Borrower on the Borrowing Date, at the applicable Discount
Rate, the Bankers&#146; Acceptances accepted by it on such date and to provide to the
Administrative Agent the Discount Proceeds thereof not later than 12:00 Noon, New York
City time, on such Borrowing Date for the account of the Borrower. The Acceptance Fee
payable by the Borrower to such Lender in respect of each Bankers&#146; Acceptance accepted
and purchased by such Lender from the Borrower shall be set off against the Discount
Proceeds payable by such Lender hereunder. Not later than 2:00 P.M., New York City time,
on such Borrowing Date, the Administrative Agent shall make such Discount Proceeds
available to the Borrower by crediting the account(s) designated by the Borrower with the
aggregate of the amounts made available to the Administrative Agent by the Canadian
Revolving Lenders, North American Revolving Lenders or Tranche A-2 Term Lenders, as
applicable, and in like funds as received by the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <U>Sale of Bankers&#146; Acceptances</U>. Each Canadian Revolving Lender, North
American Revolving Lender and Tranche A-2 Term Lender may at any time and from time to
time hold, sell, rediscount or otherwise dispose of any or all Bankers&#146; Acceptances
accepted and purchased by it.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) <U>Waiver of Presentment and Other Conditions</U>. The Borrower waives
presentment for payment and, except to the extent of the gross negligence or willful
misconduct of any applicable Tranche A-2 Term Lender, Canadian Revolving Lender or North
American Revolving Lender, any other defense to payment of any amounts due to any such
Lender in respect of a Bankers&#146; Acceptance accepted by it pursuant to this Agreement
which might exist solely by reason of such Bankers&#146; Acceptance being held, at the
maturity thereof, by such Lender in its own right and the Borrower agrees not to claim
any days of grace if such Lender as holder sues the Borrower on the Bankers&#146; Acceptance
for payment of the amount payable by the Borrower thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If a Canadian Revolving Lender, North American Revolving Lender or Tranche A-2 Term Lender
is not a chartered bank under the <I>Bank Act </I>(Canada) or if a Canadian Revolving Lender, North
American Revolving Lender or Tranche A-2 Term Lender notifies the Administrative Agent in writing
that it is otherwise unable to accept Bankers&#146; Acceptances, such Lender will, instead of accepting
and purchasing Bankers&#146; Acceptances, make a Loan denominated in Canadian Dollars (a &#147;<U>BA
Equivalent Loan</U>&#148;) to the Borrower. The amount of each BA Equivalent Loan shall be equal to the
Discount Proceeds which would be realized from a hypothetical sale of Bankers&#146; Acceptances and
which, but for this Section&nbsp;2.6(c), such Lender would otherwise have been required to accept and
purchase hereunder. To determine the amount of Discount Proceeds the hypothetical sale shall be
deemed to take place at the Non-Acceptance Discount Rate, and each such Lender will provide to the
Administrative Agent such Discount Proceeds for the account of the Borrower, net of the applicable
Acceptance Fee
payable by the Borrower (it being the intention of the parties that each such BA Equivalent
Loan shall have the same economic consequences for the parties as each Bankers&#146; Acceptance that
each such BA Equivalent Loan replaces). Subject to repayment requirements, on the last day of the
relevant term for such BA Equivalent Loan, the Borrower shall be entitled to convert each such BA
Equivalent Loan into another type of Loan denominated in Canadian Dollars, or to roll over each
such BA Equivalent Loan into another BA Equivalent Loan, all in accordance with the applicable
provisions of this Agreement. Any
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BA Equivalent Loans made by a Lender shall, if requested by such
Lender, be evidenced by promissory notes of the Borrower in form and substance reasonably
satisfactory to such Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Borrower shall reimburse each applicable Canadian Revolving Lender, North American
Revolving Lender and Tranche A-2 Term Loan Lender for, and there shall become due and payable at
4:00 P.M., New York City time, on the maturity date for each Bankers&#146; Acceptance, an amount in
Canadian Dollars in same day funds equal to the face amount of such Bankers&#146; Acceptance. The
Borrower shall make each such reimbursement payment (i)&nbsp;by causing any proceeds of a Refunding
Bankers&#146; Acceptance issued in accordance with Section&nbsp;2.6(e) or conversion of such Bankers&#146;
Acceptance in accordance with Section&nbsp;2.14 to be applied in reduction of such reimbursement
payment; and (ii)&nbsp;by depositing the amount of such reimbursement payment (or any portion thereof
remaining unpaid after application of any proceeds referred to in clause (i)) with the Funding
Office in accordance with Section&nbsp;2.19. The Borrower&#146;s payment in accordance with this paragraph
shall satisfy its obligations under any Bankers&#146; Acceptance to which it relates, and the Lender
which has accepted such Bankers&#146; Acceptance shall thereafter be solely responsible for the payment
of such Bankers&#146; Acceptance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Borrower shall give irrevocable notice to the Administrative Agent at or before 12:00
Noon, New York City time, two Business Days prior to the maturity date of each Bankers&#146; Acceptance
of the Borrower&#146;s intention to issue a Bankers&#146; Acceptance on such maturity date (a &#147;<U>Refunding
Bankers&#146; Acceptance</U>&#148;) to provide for the payment of such maturing Bankers&#146; Acceptance (it being
understood that payments by the Borrower and fundings by the Canadian Revolving Lenders, North
American Revolving Lenders or Tranche A-2 Term Lenders, as applicable, in respect of each maturing
Bankers&#146; Acceptance and the related Refunding Bankers&#146; Acceptance shall be made on a net basis
reflecting the difference between the face amount of such maturing Bankers&#146; Acceptance and the
Discount Proceeds (net of the applicable Acceptance Fee) of such Refunding Bankers&#146; Acceptance).
If the Borrower fails to give such notice or does not have sufficient funds on deposit in the
amount of the reimbursement payment on the maturity date in accordance with Section&nbsp;2.6(d)(ii), the
Borrower shall be deemed to have requested that such maturing Bankers&#146; Acceptances be repaid with
the proceeds of Canadian Prime Rate Loans (without any requirement to give notice with respect
thereto), commencing on the maturity date of such maturing Bankers&#146; Acceptances.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;An Acceptance Fee shall be payable by the Borrower to each Canadian Revolving Lender,
North American Revolving Lender or Tranche A-2 Term Lender, as applicable, in advance upon the
issuance of a Bankers&#146; Acceptance to be accepted by such Lender calculated at the rate per annum
equal to the Applicable Margin for Bankers&#146; Acceptances, such Acceptance Fee to be calculated on
the face amount of such Bankers&#146; Acceptance and to be computed on the basis of the number of days
in the term of such Bankers&#146; Acceptance and a year of 365&nbsp;days or 366&nbsp;days in the case of a leap
year.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Upon the occurrence of any Event of Default which is continuing, the Borrower shall,
forthwith, without any demand or the taking of any action by the Administrative Agent, provide
cover for all outstanding Bankers&#146; Acceptances by paying to the Administrative Agent immediately
available funds in an amount equal to the aggregate face amount of all outstanding Bankers&#146;
Acceptances and all unpaid Acceptance Fees, which funds (except for unpaid Acceptance Fees) shall
be held by the Administrative Agent in an account as collateral security, and in addition to any
other rights or remedies
of any Canadian Revolving Lender, North American Revolving Lender or Tranche A-2 Term Lender,
as applicable, and the Administrative Agent hereunder, any Canadian Revolving Lender, North
American Revolving Lender or Tranche A-2 Term Lender, as applicable, or the Administrative Agent
(or such alternate arrangement as may be agreed upon by the Borrower and such Lender or the
Administrative Agent, as applicable) shall be entitled to deposit and retain in an account to be
maintained by the Administrative Agent (bearing interest at the Administrative Agent&#146;s rates as may
be applicable in respect
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of other deposits of similar amounts for similar terms), for the ratable
benefit of the Canadian Revolving Lenders, North American Revolving Lenders or Tranche A-2 Term
Lenders, as applicable, amounts which are received by such Canadian Revolving Lender, North
American Revolving Lender or Tranche A-2 Term Lender, as applicable, or the Administrative Agent
from the Borrower hereunder or as proceeds of the exercise of any rights or remedies of any
Canadian Revolving Lender, North American Revolving Lender or Tranche A-2 Term Lender, as
applicable, or the Administrative Agent hereunder against the Borrower, to the extent such amounts
may be required to satisfy any contingent or unmatured obligations or liabilities of the Borrower
to the Canadian Revolving Lenders, North American Revolving Lenders or Tranche A-2 Term Lenders, as
applicable, or the Administrative Agent, or any of them hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <U>Circumstances Making Bankers&#146; Acceptances Unavailable</U>. (a)&nbsp;If the Administrative Agent determines in good faith, which determination shall be
conclusive and binding on the Borrower, and notifies the Borrower that, by reason of circumstances
affecting the money market, there is no readily available market for Bankers&#146; Acceptances, then:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the right of the Borrower to request a borrowing by way of Bankers&#146; Acceptance
shall be suspended until the Administrative Agent determines that the circumstances
causing such suspension no longer exist and the Administrative Agent so notifies the
Borrower; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any notice relating to a borrowing by way of Bankers&#146; Acceptance which is
outstanding at such time shall be deemed to be a notice requesting a borrowing by way of
Canadian Prime Rate Loans (all as if it were a notice given pursuant to Section&nbsp;2.2, 2.5,
or 2.14, as applicable).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Administrative Agent shall promptly notify the Borrower and the Canadian Revolving
Lenders, North American Revolving Lenders and Tranche A-2 Term Lenders of the suspension in
accordance with Section&nbsp;2.7(a) of the Borrower&#146;s right to request a borrowing by way of Bankers&#146;
Acceptance and of the termination of such suspension.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <U>Swingline Commitment</U>. (a)&nbsp;Subject to the terms and conditions hereof, the Swingline Lender agrees to make a
portion of the credit otherwise available to the Borrower under the North American Revolving
Commitments from time to time during the Revolving Commitment Period by making swing line loans in
Dollars or Canadian Dollars (&#147;<U>Swingline Loans</U>&#148;) to the Borrower; <U>provided</U> that (i)
the aggregate principal amount of Swingline Loans outstanding at any time shall not exceed the
Swingline Commitment then in effect (notwithstanding that the Swingline Loans outstanding at any
time, when aggregated with the Swingline Lender&#146;s other outstanding North American Revolving Loans,
may exceed the Swingline Commitment then in effect), (ii)&nbsp;the Borrower shall not request, and the
Swingline Lender shall not make, any Swingline Loan if, after giving effect to the making of such
Swingline Loan, the aggregate amount of the Available North American Revolving Commitments would be
less than zero and (iii)&nbsp;a Swingline Lender shall not be required to refinance an outstanding
Swingline Loan. During the Revolving Commitment Period, the Borrower may use the Swingline
Commitment by borrowing, repaying and
reborrowing, all in accordance with the terms and conditions hereof, and loans made to the
Borrower to finance overdrafts that may be caused as a result of the operation of the Centralized
Banking Agreement shall, at the election of the Borrower, be deemed to be Swingline Loans (the
&#147;<U>Centralized Swingline Loans</U>&#148;). Swingline Loans denominated in Dollars shall be ABR Loans
only, and Swingline Loans denominated in Canadian Dollars shall be Canadian Prime Rate Loans only.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Borrower shall repay to the Swingline Lender the then unpaid principal amount of each
Swingline Loan on the earlier of the Revolving Termination Date and the tenth day after
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such
Swingline Loan is made; <U>provided</U> that on each date that a Revolving Loan is borrowed, the
Borrower shall repay all Swingline Loans then outstanding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <U>Procedure for Swingline Borrowing; Refunding of Swingline Loans</U>. (a)&nbsp;With the exception of Centralized Swingline Loans, whenever the Borrower desires that
the Swingline Lender make Swingline Loans it shall give the Swingline Lender irrevocable telephonic
notice confirmed promptly in writing (which telephonic notice must be received by the Swingline
Lender not later than 1:00 P.M., New York City time, on the proposed Borrowing Date), specifying
(i)&nbsp;the amount to be borrowed, (ii)&nbsp;whether such Swingline Loans shall be denominated in Dollars or
Canadian Dollars and (iii)&nbsp;the requested Borrowing Date (which shall be a Business Day during the
Revolving Commitment Period). With the exception of Centralized Swingline Loans, each borrowing
under the Swingline Commitment shall be in an amount equal to $500,000 or a whole multiple of
$100,000 in excess thereof, in the case of Swingline Loans denominated in Dollars, and C$500,000 or
a whole multiple of C$100,000 in excess thereof, in the case of Swingline Loans denominated in
Canadian Dollars. Not later than 3:00 P.M., New York City time, on the Borrowing Date specified in
a notice in respect of Swingline Loans, the Swingline Lender shall make available to the Borrower
an amount in immediately available funds equal to the amount of the Swingline Loan to be made by
the Swingline Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Swingline Lender, at any time and from time to time in its sole and absolute
discretion may, on behalf of the Borrower (which hereby irrevocably directs the Swingline Lender to
act on its behalf), on one Business Day&#146;s notice given by the Swingline Lender to the
Administrative Agent no later than 12:00 Noon, New York City time, request each North American
Revolving Lender to make, and each North American Revolving Lender hereby agrees to make, a North
American Revolving Loan by way of an ABR Loan (in the case of Swingline Loans denominated in
Dollars) and/or a North American Revolving Loan by way of a Canadian Prime Rate Loan (in the case
of Swingline Loans denominated in Canadian Dollars), in an amount equal to such North American
Revolving Lender&#146;s North American Revolving Percentage of the aggregate amount of the Swingline
Loans (the &#147;<U>Refunded Swingline Loans</U>&#148;) outstanding on the date of such notice, to repay the
Swingline Lender. Each North American Revolving Lender shall make the amount of any such North
American Revolving Loan available to the Administrative Agent at the Funding Office in immediately
available funds, not later than 10:00&nbsp;A.M., New York City time, one Business Day after the date of
such notice. The proceeds of such North American Revolving Loans shall be immediately made
available by the Administrative Agent to the Swingline Lender for application by the Swingline
Lender to the repayment of the Refunded Swingline Loans. The Borrower irrevocably authorizes the
Swingline Lender to charge the Borrower&#146;s accounts with the Administrative Agent (up to the amount
available in each such account) in order to immediately pay the amount of such Refunded Swingline
Loans to the extent amounts received from the North American Revolving Lenders are not sufficient
to repay in full such Refunded Swingline Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If prior to the time a North American Revolving Loan would have otherwise been made
pursuant to Section&nbsp;2.9(b), one of the events described in Section 9(f) shall have occurred and be
continuing with respect to the Borrower or if for any other reason, as determined by the Swingline
Lender in its sole discretion, North American Revolving Loans may not be made as contemplated
by Section&nbsp;2.9(b), each North American Revolving Lender shall, on the date such North American
Revolving Loan was to have been made pursuant to the notice referred to in Section&nbsp;2.9(b), purchase
for cash an undivided participating interest in the then outstanding Swingline Loans by paying to
the Swingline Lender an amount (the &#147;<U>Swingline Participation Amount</U>&#148;) equal to (i)&nbsp;such
North American Revolving Lender&#146;s North American Revolving Percentage <U>times</U> (ii)&nbsp;the sum of
the aggregate principal amount of Swingline Loans then outstanding that were to have been repaid
with such North American Revolving Loans.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Whenever, at any time after the Swingline Lender has received from any North American
Revolving Lender such Lender&#146;s Swingline Participation Amount, the Swingline Lender receives any
payment on account of the Swingline Loans, the Swingline Lender will distribute to such Lender its
Swingline Participation Amount (appropriately adjusted, in the case of interest payments, to
reflect the period of time during which such Lender&#146;s participating interest was outstanding and
funded and, in the case of principal and interest payments, to reflect such Lender&#146;s <U>pro</U>
<U>rata</U> portion of such payment if such payment is not sufficient to pay the principal of and
interest on all Swingline Loans then due); <U>provided</U>, <U>however</U>, that in the event
that such payment received by the Swingline Lender is required to be returned, such North American
Revolving Lender will return to the Swingline Lender any portion thereof previously distributed to
it by the Swingline Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Each North American Revolving Lender&#146;s obligation to make the Loans referred to in Section
2.9(b) and to purchase participating interests pursuant to Section&nbsp;2.9(c) shall be absolute and
unconditional and shall not be affected by any circumstance, including (i)&nbsp;any setoff,
counterclaim, recoupment, defense or other right that such North American Revolving Lender or the
Borrower may have against the Swingline Lender, the Borrower or any other Person for any reason
whatsoever, (ii)&nbsp;the occurrence or continuance of a Default or an Event of Default or the failure
to satisfy any of the other conditions specified in Section&nbsp;6, (iii)&nbsp;any adverse change in the
condition (financial or otherwise) of the Borrower, (iv)&nbsp;any breach of this Agreement or any other
Loan Document by the Borrower, any other Loan Party or any other North American Revolving Lender or
(v)&nbsp;any other circumstance, happening or event whatsoever, whether or not similar to any of the
foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <U>Commitment Fees, etc.</U> (a)&nbsp;The Borrower agrees to pay to the Administrative Agent (i)&nbsp;for the account of each North
American Revolving Lender (other than Defaulting Lenders) a commitment fee for the period from and
including the date hereof to the last day of the Revolving Commitment Period, computed at the
Commitment Fee Rate on the average daily amount of the Available North American Revolving
Commitment of such Lender during the period for which payment is made, and (ii)&nbsp;for the account of
each Canadian Revolving Lender (other than Defaulting Lenders) a commitment fee for the period from
and including the date hereof to the last day of the Revolving Commitment Period, computed at the
Commitment Fee Rate on the average daily amount of the Available Canadian Revolving Commitment of
such Lender during the period for which payment is made, in each case payable quarterly in arrears
on each Fee Payment Date, commencing on the first such date to occur after the date hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Borrower agrees to pay to the Administrative Agent the fees in the amounts and on the
dates as set forth in any fee agreements with the Administrative Agent and to perform any other
obligations contained therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <U>Termination or Reduction of Revolving Commitments</U>. The Borrower shall have the right, upon not less than three Business Days&#146; notice to the
Administrative Agent, to terminate the Revolving Commitments or, from time to time, to reduce the
amount of the Revolving Commitments; <U>provided</U> that no such termination or reduction of
Revolving Commitments shall be permitted if, after giving effect thereto and to any prepayments of
the Revolving Loans and Swingline Loans made on the effective date thereof, the Total North
American Revolving Extensions of Credit would exceed the Total North American Revolving Commitments
or the Total Canadian Revolving Extensions of Credit would exceed the Total Canadian Revolving
Commitments. Any such reduction shall be in an amount equal to $1,000,000, or a whole multiple
thereof, and shall reduce permanently the North American Revolving Commitments or the Canadian
Revolving Commitments, as applicable, then in effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <U>Optional Prepayments</U>. The Borrower may at any time and from time to time prepay the Loans, in whole or in part,
without premium or penalty, upon irrevocable notice delivered to
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Administrative Agent no later
than 12:00 Noon, New York City time, three Business Days prior thereto, in the case of Eurodollar
Loans, and no later than 12:00 Noon, New York City time, one Business Day prior thereto, in the
case of ABR Loans and Canadian Prime Rate Loans, which notice shall specify the date and amount of
prepayment and whether the prepayment is of Eurodollar Loans, ABR Loans or Canadian Prime Rate
Loans; <U>provided</U>, that if a Eurodollar Loan is prepaid on any day other than the last day of
the Interest Period applicable thereto, the Borrower shall also pay any amounts owing pursuant to
Section&nbsp;2.22. Upon receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof. If any such notice is given, the amount specified in such notice shall be
due and payable on the date specified therein, together with (except in the case of Revolving Loans
that are ABR Loans or Canadian Prime Rate Loans and Swingline Loans) accrued interest to such date
on the amount prepaid. Partial prepayments of Term Loans and Revolving Loans shall be in an
aggregate principal amount of $1,000,000 or C$1,000,000, as the case may be, or a whole multiple
thereof. Partial prepayments of Swingline Loans shall be in an aggregate principal amount of
$100,000 or C$100,000, as the case may be, or a whole multiple thereof. Notwithstanding anything
to the contrary above, (i)&nbsp;Bankers&#146; Acceptances may not be prepaid prior to the maturity thereof
and (ii)&nbsp;the above notice and minimum amount provisions shall not apply to Centralized Swingline
Loans; <U>provided</U>, that the Borrower may, at its option, exercisable upon not less than two
Business Day&#146;s notice to the Administrative Agent, elect to deposit with the Administrative Agent
Canadian Dollars in same-day funds to be held by the Administrative Agent, pursuant to collateral
arrangements satisfactory to the Administrative Agent, for application to the payment of any
borrowing by way of Bankers&#146; Acceptances designated by the Borrower in such notice. If such
deposit is made, such Bankers&#146; Acceptances shall be deemed no longer outstanding for purposes of
this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <U>Mandatory Prepayments and Commitment Reductions</U>. (a)&nbsp;If any Indebtedness shall be incurred by any Group Member (excluding any Indebtedness
incurred in accordance with Section&nbsp;8.2, other than paragraph 8.2(o) thereof (except to the extent
the proceeds of such Indebtedness incurred in accordance with paragraph 8.2(o) are used to
refinance the Bridge Loans or result in the mandatory reduction of the Delayed Draw Commitments
(under and as defined in the Bridge Loan Agreement as in effect on the date hereof))), an amount
equal to 100% of the Net Cash Proceeds thereof shall be applied within three Business Days of the
date of such issuance or incurrence toward the prepayment of the Term Loans as set forth in Section
2.13(e).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If on any date any Group Member shall receive Net Cash Proceeds from any Asset Sale or
Recovery Event then, unless a Reinvestment Notice shall be delivered in respect thereof within ten
Business Days of such date, an amount equal to such Net Cash Proceeds shall be applied
within three Business Days of receipt of such Net Cash Proceeds toward the prepayment of the
Term Loans as set forth in Section&nbsp;2.13(e); <U>provided</U>, that the Borrower may without penalty
withhold amounts owing pursuant to this Section&nbsp;2.13(b) until such time as the amount of Net Cash
Proceeds received from all such Asset Sales and Recovery Events that would otherwise be required to
be applied toward the prepayment of Term Loans pursuant to this Section&nbsp;2.13(b) shall exceed
$25,000,000 in the aggregate; <U>provided</U>, <U>further</U>, that notwithstanding the
foregoing, on each Reinvestment Prepayment Date, an amount equal to the Reinvestment Prepayment
Amount with respect to the relevant Reinvestment Event shall be applied toward the prepayment of
the Term Loans as set forth in Section&nbsp;2.13(e).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If, for any fiscal year of the Borrower commencing with the fiscal year ending December
31, 2009, there shall be Excess Cash Flow, the Borrower shall, on the relevant Excess Cash Flow
Application Date, apply the ECF Percentage of such Excess Cash Flow toward the prepayment of the
Term Loans as set forth in Section&nbsp;2.13(e). Each such prepayment shall be made on a date (an
&#147;<U>Excess Cash Flow Application Date</U>&#148;) no later than three Business Days after the earlier of
(i)&nbsp;the date on which the financial statements of the Borrower referred to in Section&nbsp;7.1(a), for
the fiscal year with
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">respect to which such prepayment is made, are required to be delivered to the
Lenders and (ii)&nbsp;the date such financial statements are actually delivered.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If on any date the Total North American Revolving Extensions of Credit exceed the Total
North American Revolving Commitments or the Total Canadian Revolving Extensions of Credit exceed
the Total Canadian Revolving Commitments, the Borrower shall, without notice or demand,
<U>first</U>, prepay the North American Revolving Loans or Canadian Revolving Loans, as
applicable, and, <U>second</U>, cash collateralize the North American Letters of Credit or
Canadian Letters of Credit or Bankers&#146; Acceptances, as applicable (in a manner reasonably
satisfactory to the Administrative Agent), in an amount so as to eliminate such excess;
<U>provided</U>, that if the Total North American Revolving Extensions of Credit exceed the Total
North American Revolving Commitments solely as a result of a change in the aggregate Dollar
Equivalent Amount of the North American Revolving Loans denominated in Canadian Dollars, no
prepayment or cash collateralization shall be required unless the Administrative Agent has notified
the Borrower that the Total North American Revolving Extensions of Credit exceed 105% of the Total
North American Revolving Commitments for a period of five consecutive Business Days.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Amounts to be applied in connection with prepayments made pursuant to paragraphs (a), (b)
or (c)&nbsp;of this Section&nbsp;2.13 shall be applied to the prepayment of the Term Loans in accordance with
Section&nbsp;2.19(b). The application of any prepayment pursuant to this Section&nbsp;2.13 shall be made,
<U>first</U>, to ABR Loans or Canadian Prime Rate Loans, as the case may be, <U>second</U>, to
Eurodollar Loans and, <U>third</U>, to Banker&#146;s Acceptances. Each prepayment of the Loans under
this Section&nbsp;2.13 (except in the case of Revolving Loans that are ABR Loans, Canadian Prime Rate
Loans or Bankers&#146; Acceptances and Swingline Loans) shall be accompanied by accrued interest to the
date of such prepayment on the amount prepaid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Notwithstanding anything to the contrary in Section&nbsp;2.13(e) or 2.19, with respect to the
amount of any mandatory prepayment described in Section&nbsp;2.13 that is allocated to Tranche A-1 Term
Loans and Tranche A-2 Term Loans (such amount, the &#147;<U>Tranche A Prepayment Amount</U>&#148;), at any
time when Tranche B Term Loans remain outstanding, the Borrower will, in lieu of applying such
amount to the prepayment of Tranche A-1 Term Loans and Tranche A-2 Term Loans as provided in
paragraph (e)&nbsp;above, on the date specified in Section&nbsp;2.13 for such prepayment, give the
Administrative Agent telephonic notice (promptly confirmed in writing) requesting that the
Administrative Agent prepare and provide to each Tranche A-1 Term Lender and Tranche A-2 Term
Lender a notice (each, a &#147;<U>Prepayment Option Notice</U>&#148;) as described below. As promptly as
practicable after receiving such notice from the Borrower, the Administrative Agent will send to
each Tranche A-1 Term Lender and Tranche A-2 Term Lender a Prepayment Option Notice, which shall be
in the form of Exhibit&nbsp;F, and shall include an offer by
the Borrower to prepay on the date (each a &#147;<U>Mandatory Prepayment Date</U>&#148;) that is 10
Business Days after the date of the Prepayment Option Notice, the relevant Tranche A-1 Term Loans
and/or Tranche A-2 Term Loans of such Lender by an amount equal to the portion of the Tranche A
Prepayment Amount indicated in such Lender&#146;s Prepayment Option Notice as being applicable to such
Lender&#146;s Tranche A-1 Term Loans and/or Tranche A-2 Term Loans. On the Mandatory Prepayment Date,
(i)&nbsp;the Borrower shall pay to the relevant Tranche A-1 Term Lenders and Tranche A-2 Term Lenders
the aggregate amount necessary to prepay that portion of the outstanding relevant Tranche A-1 Term
Loans and/or Tranche A-2 Term Loans in respect of which such Lenders have accepted prepayment as
described above and (ii)&nbsp;the Borrower shall pay to the Tranche B Term Lenders an amount equal to
the portion of the Tranche A Prepayment Amount not accepted by the relevant Lenders, and such
amount shall be applied to the prepayment of the Tranche B Term Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 <U>Conversion and Continuation Options</U>. (a)&nbsp;The Borrower may elect from time to time to convert Eurodollar Loans to ABR Loans by
giving the Administrative Agent prior irrevocable notice of such election no later than 12:00 Noon,
New York City time, on the third Business Day
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">preceding the proposed conversion date,
<U>provided</U> that any such conversion of Eurodollar Loans may only be made on the last day of
an Interest Period with respect thereto. The Borrower may elect from time to time to convert ABR
Loans (other than Swingline Loans) to Eurodollar Loans by giving the Administrative Agent prior
irrevocable notice of such election no later than 12:00 Noon, New York City time, on the third
Business Day preceding the proposed conversion date (which notice shall specify the length of the
initial Interest Period therefor), <U>provided</U> that no ABR Loan under a particular Facility
may be converted into a Eurodollar Loan when any Default or Event of Default has occurred and is
continuing and the Administrative Agent or the Majority Facility Lenders in respect of such
Facility have determined in its or their sole discretion not to permit such conversions. Upon
receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender
thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any Eurodollar Loan may be continued as such upon the expiration of the then current
Interest Period with respect thereto by the Borrower giving irrevocable notice to the
Administrative Agent, in accordance with the applicable provisions of the term &#147;Interest Period&#148;
set forth in Section&nbsp;1.1, of the length of the next Interest Period to be applicable to such Loans,
<U>provided</U> that no Eurodollar Loan under a particular Facility may be continued as such when
any Default or Event of Default has occurred and is continuing and the Administrative Agent has or
the Majority Facility Lenders in respect of such Facility have determined in its or their sole
discretion not to permit such continuations, and <U>provided</U>, <U>further</U>, that if the
Borrower shall fail to give any required notice as described above in this paragraph or if such
continuation is not permitted pursuant to the preceding proviso such Loans shall be automatically
converted to ABR Loans on the last day of such then expiring Interest Period. Upon receipt of any
such notice the Administrative Agent shall promptly notify each relevant Lender thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Borrower may elect from time to time to convert Bankers&#146; Acceptances to Canadian Prime
Rate Loans, by giving the Administrative Agent prior irrevocable notice of such election no later
than 11:00&nbsp;A.M., New York City time, on the second Business Day preceding the proposed conversion
date, or Canadian Prime Rate Loans (other than Swingline Loans) to Bankers&#146; Acceptances by giving
the Administrative Agent prior irrevocable notice of such election no later than 11:00&nbsp;A.M., New
York City time, on the second Business Day preceding the proposed conversion date (which notice
shall specify the length of the Contract Period therefor), <U>provided</U> that:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Canadian Prime Rate Loan may be converted into a Bankers&#146; Acceptance when
any Default or Event of Default has occurred and is continuing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Bankers&#146; Acceptances may be converted only on the maturity date of such
Bankers&#146; Acceptances; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if less than all Bankers&#146; Acceptances are converted, after such conversion
not less than C$1,000,000 shall remain as Bankers&#146; Acceptances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No Loans denominated in Dollars may be converted to Loans denominated in Canadian Dollars,
and no Loans denominated in Canadian Dollars may be converted to Loans denominated in Dollars. For
the avoidance of doubt, North American Revolving Loans made to the Borrower must be repaid in the
currency in which made, but may be reborrowed in either Dollars or Canadian Dollars.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 <U>Limitations on Eurodollar Tranches</U>. Notwithstanding anything to the contrary in this Agreement, all borrowings, conversions and
continuations of Eurodollar Loans and Bankers&#146; Acceptances and all selections of Interest Periods
and Contract Periods shall be in such amounts and be made pursuant to such elections so that, (a)
after giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each
Eurodollar Tranche shall be equal to $5,000,000 or a whole
</DIV>



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</DIV>



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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;55
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">multiple of $1,000,000 in excess thereof
and (b)&nbsp;no more than fifteen Eurodollar Tranches in respect of Eurodollar Loans and fifteen
Contract Periods in respect of Bankers&#146; Acceptances in the aggregate shall be outstanding at any
one time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 <U>Interest Rates and Payment Dates</U>. (a) (i)&nbsp;Each Eurodollar Loan shall bear interest for each day during each Interest Period
with respect thereto at a rate per annum equal to the Eurodollar Rate determined for such day plus
the Applicable Margin and (ii)&nbsp;each Market Disruption Eurodollar Loan shall bear interest for each
day during each Interest Period with respect thereto at a rate per annum equal to the Market
Disruption Eurodollar Rate determined for such day plus the Applicable Margin.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each ABR Loan shall bear interest at a rate per annum equal to the ABR plus the Applicable
Margin.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each Canadian Prime Rate Loan shall bear interest at a rate per annum equal to the
Canadian Prime Rate plus the Applicable Margin.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Acceptance Fees shall be paid in respect of Bankers&#146; Acceptances as set forth in Section
2.6(f).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i)&nbsp;If all or a portion of the principal amount of any Loan or Reimbursement Obligation
shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), all
outstanding Loans and Reimbursement Obligations (whether or not overdue) shall bear interest at a
rate per annum equal to (x)&nbsp;in the case of the Loans, the rate that would otherwise be applicable
thereto pursuant to the foregoing provisions of this Section <U>plus</U> 2% or (y)&nbsp;in the case of
Reimbursement Obligations, the rate applicable to ABR Loans or Canadian Prime Rate Loans, as the
case may be, under the North American Revolving Facility or the Canadian Revolving Facility, as the
case may be, <U>plus</U> 2%, and (ii)&nbsp;if all or a portion of any interest payable on any Loan or
Reimbursement Obligation or of any commitment fee or other amount payable hereunder shall not be
paid when due (whether at the stated maturity, by acceleration or otherwise), such overdue amount
shall bear interest at a rate per annum equal to the rate then applicable to ABR Loans (or, if such
overdue amount is denominated in Canadian Dollars, Canadian Prime Rate Loans) under the relevant
Facility <U>plus</U> 2% (or, in the case of any such other amounts that do not relate to a particular Facility, the rate then applicable to ABR Loans
(or, if such overdue amount is denominated in Canadian Dollars, Canadian Prime Rate Loans) under
the North American Revolving Facility or the Canadian Revolving Facility, as the case may be,
<U>plus</U> 2%), in each case, with respect to clauses (i)&nbsp;and (ii)&nbsp;above, from the date of such
non-payment until such amount is paid in full (as well after as before judgment).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Interest shall be payable in arrears on each Interest Payment Date, <U>provided</U> that
interest accruing pursuant to paragraph (e)&nbsp;of this Section&nbsp;2.16 shall be payable from time to time
on demand. Interest in respect of Loans and Reimbursement Obligations that are denominated in
Dollars (and all other amounts denominated in Dollars) shall be payable in Dollars, and interest in
respect of Loans or Reimbursement Obligations that are denominated in Canadian Dollars (and all
other amounts denominated in Canadian Dollars) shall be payable in Canadian Dollars.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i)&nbsp;If any provision of this Agreement would obligate the Borrower to make any payment of
interest or other amount payable to any Lender in an amount or calculated at a rate which would be
prohibited by law or would result in a receipt by such Lender of &#147;interest&#148; at a &#147;criminal rate&#148;
(as such terms are construed under the <I>Criminal Code </I>(Canada)), then notwithstanding such
provision, such amount or rate shall be deemed to have been adjusted with retroactive effect to the
maximum amount or rate of interest, as the case may be, as would not be so prohibited by law or so
result in a
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">receipt by such Lender of &#147;interest&#148; at a &#147;criminal rate&#148;, such adjustment to be
effected, to the extent necessary, (x)&nbsp;first, by reducing the amount or rates of interest required
to be paid under this Section&nbsp;2.16 and (y)&nbsp;thereafter, by reducing any fees, commissions, premiums
and other amounts which would constitute interest for purposes of Section&nbsp;347 of the <I>Criminal Code</I>
(Canada).
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If, notwithstanding the provisions of clause (i)&nbsp;of this paragraph (g), and
after giving effect to all adjustments contemplated thereby, any Lender shall have
received an amount in excess of the maximum permitted by such clause, then the Borrower
shall be entitled, by notice in writing to such Lender, to obtain reimbursement from such
Lender of an amount equal to such excess, and, pending such reimbursement, such amount
shall be deemed to be an amount payable by such Lender to the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any amount or rate of interest referred to in this paragraph (g)&nbsp;shall be
determined in accordance with generally accepted actuarial practices and principles as an
effective annual rate of interest over the term of any Loan on the assumption that any
charges, fees or expenses that fall within the meaning of &#147;interest&#148; (as defined in the
<I>Criminal Code </I>(Canada)) shall, if they relate to a specific period of time, be prorated
over that period of time and otherwise be prorated over the period from the Closing Date
to the Revolving Termination Date, the Tranche A-1 Maturity Date, the Tranche A-2
Maturity Date, the Tranche B-1 Maturity Date or the Tranche B-2 Maturity Date, as
applicable, and, in the event of dispute, a certificate of a Fellow of the Canadian
Institute of Actuaries appointed by the Administrative Agent shall be conclusive for the
purposes of such determination absent manifest error.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 <U>Computation of Interest and Fees</U>. (a)&nbsp;Interest and fees payable pursuant hereto shall be calculated on the basis of a
360-day year for the actual days elapsed, except that, (i)&nbsp;with respect to ABR Loans and Canadian
Prime Rate Loans the rate of interest on which is calculated on the basis of the ABR or the
Canadian Prime Rate, as applicable, and Letter of Credit fees and commitment fees, the interest and
fees thereon shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for
the actual days elapsed and (ii)&nbsp;Acceptance Fees shall be calculated in accordance with Section
2.6(f) . The Administrative Agent shall as soon as practicable notify the Borrower and the
relevant Lenders of each determination of a Eurodollar
Rate or the Discount Rate. Any change in the interest rate on a Loan resulting from a change
in the ABR, the Canadian Prime Rate or the Eurocurrency Reserve Requirements shall become effective
as of the opening of business on the day on which such change becomes effective. The
Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of
the effective date and the amount of each such change in interest rate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the
absence of manifest error. The Administrative Agent shall, at the request of the Borrower, deliver
to the Borrower a statement showing the quotations used by the Administrative Agent in determining
any interest rate pursuant to Section&nbsp;2.16(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;For the purposes of the <I>Interest Act </I>(Canada), in any case in which an interest rate is
stated in this Agreement to be calculated on the basis of a year of 360&nbsp;days or any other period of
time that is less than a calendar year, the yearly rate of interest to which the rate determined
pursuant to such calculation is equivalent is the rate so determined multiplied by the actual
number of days in the calendar year for which the calculation is made and divided by either 360 or
such other period of time, as the case may be. In addition, the principles of deemed investment of
interest do not apply to any interest calculations under this Agreement and the rates of interest
stipulated in this Agreement are intended to be nominal rates and not effective rates or yields.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 <U>Inability to Determine Interest Rate</U>. (a)&nbsp;If by 2:00 P.M., New York City time, on the Business Day immediately preceding the
first day of any Interest Period selected by the Borrower in its notice of borrowing, notice of
conversion or notice of continuation, as the case may be, in connection therewith the Requisite
Disruption Lenders in respect of a Facility shall have delivered to the Administrative Agent Market
Disruption Notices notifying the Administrative Agent and the Borrower that (i)&nbsp;for any reason
adequate and reasonable means do not exist for determining the Eurodollar Rate for such Interest
Period, (ii)&nbsp;the Eurodollar Rate for such Interest Period does not adequately and fairly reflect
the cost to such Lenders of funding such Loan as determined by such Lender in good faith or (iii)
Dollar deposits are not being offered to banks in the London interbank eurodollar market for the
applicable amount and the Interest Period of such Eurodollar Loan, the Administrative Agent will
promptly so notify the Borrower and each relevant Lender as soon as practicable thereafter. If
such notice is given, subject to the requirements of Section&nbsp;2.22, the Borrower may revoke the
relevant notice of borrowing or change the Interest Period in respect of the requested borrowing or
conversion (but subject to the applicable notice period required in respect of a borrowing of or
conversion to Eurodollar Loans required by the terms of this Agreement) or, if not so revoked or if
the change in Interest Period would not remove the circumstance giving rise to the Market
Disruption Event, (A)&nbsp;any Eurodollar Loans under the relevant Facility requested to be made on the
first day of such Interest Period, (B)&nbsp;any Eurodollar Loans under the relevant Facility that were
to have been converted on the first day of such Interest Period to Eurodollar Loans and (C)&nbsp;any
outstanding Eurodollar Loans under the relevant Facility, on the last day of the then current
Interest Period, shall, in each case, be made, converted or continued, as the case may be, as
either (1)&nbsp;Market Disruption Eurodollar Loans with an Interest Period of one month or (2)&nbsp;ABR Loans
as selected by the majority of the Requisite Disruption Lenders in the respective Market Disruption
Notices. During any period in which a Market Disruption Event is in effect, no further Eurodollar
Loans under the relevant Facility shall be made or continued as such, nor shall the Borrower have
the right to convert Loans under the relevant Facility to Eurodollar Loans. Notwithstanding
anything in this Section&nbsp;2.18(a) to the contrary, no Market Disruption Notice may be delivered
until on or after the date which is 90&nbsp;days following the Closing Date
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each Market Disruption Event shall be deemed to be no longer effective (i)&nbsp;if Market
Disruption Eurodollar Loans are made pursuant to clause (1)&nbsp;of Section&nbsp;2.18(a) above, as of the
last day of the applicable Interest Period or (ii)&nbsp;if ABR Loans are made pursuant to clause (2)&nbsp;of
Section&nbsp;2.18(a) above, as of the date which is 30&nbsp;days after such ABR Loans are made;
<U>provided</U>, that nothing contained in this Section&nbsp;2.18(b) shall in any way affect any
Lender&#146;s right to provide any additional Market Disruption Notices (including for purposes of
extending an existing Market Disruption Notice) as provided for in Section&nbsp;2.18(a) above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 <U>Pro Rata Treatment and Payments</U>. (a)&nbsp;Each borrowing by the Borrower from the Lenders hereunder, each payment by the
Borrower on account of any commitment fee or Acceptance Fee and any reduction of the Commitments of
the Lenders shall be made <U>pro</U> <U>rata</U> according to the respective Tranche A-1 Term
Percentages, Tranche A-2 Term Percentages, Tranche B-1 Term Percentages, Tranche B-2 Term
Percentages, North American Revolving Percentages or Canadian Revolving Percentages, as the case
may be, of the relevant Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each payment (including each prepayment) by the Borrower on account of principal of and
interest on the Term Loans shall be made <U>pro</U> <U>rata</U> according to the respective
outstanding principal amounts of the Term Loans then held by the Term Lenders (except as otherwise
provided in Section&nbsp;2.13(f)). The amount of each optional principal prepayment of the Term Loans
pursuant to Section&nbsp;2.12 shall be applied to reduce the remaining installments of the Tranche A-1
Term Loans, Tranche A-2 Term Loans, Tranche B-1 Term Loans, Tranche B-2 Term Loans and Incremental
Term Loans, as the case may be, as directed by the Borrower. The amount of each mandatory
principal prepayment of the Term Loans pursuant to Section&nbsp;2.13 shall be applied to reduce the then
remaining
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">installments of the Tranche A-1 Term Loans, Tranche A-2 Term Loans, Tranche B-1 Term
Loans, Tranche B-2 Term Loans and Incremental Term Loans, as the case may be, <U>first</U>, to
scheduled installments thereof occurring within the 18&nbsp;months following such prepayment in direct
order of maturity and, <U>second</U>, <U>pro</U> <U>rata</U> to the remaining installments based
upon the respective then remaining principal amounts thereof. Amounts prepaid on account of the
Term Loans may not be reborrowed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each payment (including each prepayment) by the Borrower on account of principal of and
interest on the North American Revolving Loans shall be made <U>pro</U> <U>rata</U> according to
the respective outstanding principal amounts of the North American Revolving Loans then held by the
North American Revolving Lenders, and each payment (including each prepayment) by the Borrower on
account of principal of and interest on the Canadian Revolving Loans shall be made <U>pro</U>
<U>rata</U> according to the respective outstanding principal amounts of the Canadian Revolving
Loans then held by the Canadian Revolving Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;All payments (including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and
shall be made prior to 12:00 Noon, New York City time, on the due date thereof to the
Administrative Agent, for the account of the Lenders, at the Funding Office, in Dollars, in the
case of Tranche A-1 Term Loans, Tranche B Term Loans and Revolving Loans denominated in Dollars, or
in Canadian Dollars, in the case of Tranche A-2 Term Loans and Revolving Loans denominated in
Canadian Dollars, and in each case in immediately available funds. The Administrative Agent shall
distribute such payments to each relevant Lender promptly upon receipt in like funds as received,
net of any amounts owing by such Lender pursuant to Section&nbsp;10.7. If any payment hereunder (other
than payments on the Eurodollar Loans) becomes due and payable on a day other than a Business Day,
such payment shall be extended to the next succeeding Business Day. If any payment on a Eurodollar
Loan becomes due and payable on a day other than a Business Day, the maturity thereof shall be
extended to the next succeeding Business Day unless the result of such extension would be to extend
such payment into another calendar month, in
which event such payment shall be made on the immediately preceding Business Day. In the case
of any extension of any payment of principal pursuant to the preceding two sentences, interest
thereon shall be payable at the then applicable rate during such extension.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Unless the Administrative Agent shall have been notified in writing by any Lender prior to
a borrowing that such Lender will not make the amount that would constitute its share of such
borrowing available to the Administrative Agent, the Administrative Agent may assume that such
Lender is making such amount available to the Administrative Agent, and the Administrative Agent
may, in reliance upon such assumption, make available to the Borrower a corresponding amount. If
such amount is not made available to the Administrative Agent by the required time on the Borrowing
Date therefor, such Lender shall pay to the Administrative Agent, on demand, such amount with
interest thereon, at a rate equal to (i)&nbsp;in the case of any such amount denominated in Dollars, the
greater of (A)&nbsp;the Federal Funds Effective Rate and (B)&nbsp;a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation, or (ii)&nbsp;in the case of
any such amount denominated in Canadian Dollars, the rate determined by the Administrative Agent
(such determination to be conclusive and binding on such Lender) in accordance with the
Administrative Agent&#146;s usual banking practice for similar advances to financial institutions of
like standing to such Lender in each case for the period until such Lender makes such amount
immediately available to the Administrative Agent. A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this paragraph shall be conclusive
in the absence of manifest error. If such Lender&#146;s share of such borrowing is not made available
to the Administrative Agent by such Lender within three Business Days after such Borrowing Date,
the Administrative Agent shall also be entitled to recover such amount with interest thereon at the
rate per annum applicable to ABR Loans or Canadian Prime Rate Loans, as the case may be, under the
relevant Facility, on demand, from the Borrower.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Unless the Administrative Agent shall have been notified in writing by the Borrower prior
to the date of any payment due to be made by the Borrower hereunder that the Borrower will not make
such payment to the Administrative Agent, the Administrative Agent may assume that the Borrower is
making such payment, and the Administrative Agent may, but shall not be required to, in reliance
upon such assumption, make available to the Lenders their respective <U>pro</U> <U>rata</U>
shares of a corresponding amount. If such payment is not made to the Administrative Agent by the
Borrower within three Business Days after such due date, the Administrative Agent shall be entitled
to recover, on demand, from each Lender to which any amount which was made available pursuant to
the preceding sentence, such amount with interest thereon at the rate per annum equal to (i)&nbsp;in the
case of any such amount denominated in Dollars, the daily average Federal Funds Effective Rate, or
(ii)&nbsp;in the case of any such amount denominated in Canadian Dollars, the rate determined by the
Administrative Agent (such determination to be conclusive and binding on such Lender) in accordance
with the Administrative Agent&#146;s usual banking practice for similar advances to financial
institutions of like standing to such Lender. Nothing herein shall be deemed to limit the rights
of the Administrative Agent or any Lender against the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 <U>Requirements of Law</U>. (a)&nbsp;If the adoption of or any change in any Requirement of Law or in the interpretation or
application thereof or compliance by any Lender with any request or directive (whether or not
having the force of law) from any central bank or other Governmental Authority made subsequent to
the date hereof:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Letter of Credit, any Application or any Eurodollar Loan made by it, or
change the basis of taxation of payments to such Lender in respect thereof (except for
Non-Excluded Taxes and taxes imposed on or in respect of the overall net income, gains
or capital of such Lender);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of credit by,
or any other acquisition of funds by, any office of such Lender that is not otherwise
included in the determination of the Eurodollar Rate; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall impose on such Lender any other condition;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and the result of any of the foregoing is to increase the cost to such Lender, by an amount that
such Lender deems to be material, of making, converting into, continuing or maintaining Eurodollar
Loans or issuing or participating in Letters of Credit, or purchasing or accepting Bankers&#146;
Acceptances, or to reduce any amount receivable hereunder in respect thereof, then, in any such
case, the Borrower shall promptly pay such Lender, upon its demand, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount receivable. If any
Lender becomes entitled to claim any additional amounts pursuant to this paragraph, it shall
promptly notify the Borrower (with a copy to the Administrative Agent) of the event by reason of
which it has become so entitled.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If any Lender shall have determined that the adoption of or any change in any Requirement
of Law regarding capital adequacy or in the interpretation or application thereof or compliance by
such Lender or any corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental Authority made
subsequent to the date hereof shall have the effect of reducing the rate of return on such Lender&#146;s
or such corporation&#146;s capital as a consequence of its obligations hereunder or under or in respect
of any Letter of Credit to a level below that which such Lender or such corporation could have
achieved but for
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such adoption, change or compliance (taking into consideration such Lender&#146;s or
such corporation&#146;s policies with respect to capital adequacy) by an amount deemed by such Lender to
be material, then from time to time, after submission by such Lender to the Borrower (with a copy
to the Administrative Agent) of a written request therefor, the Borrower shall pay to such Lender
such additional amount or amounts as will compensate such Lender or such corporation for such
reduction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;A certificate as to any additional amounts payable pursuant to this Section&nbsp;2.20 submitted
by any Lender to the Borrower (with a copy to the Administrative Agent) shall be conclusive in the
absence of manifest error. Notwithstanding anything to the contrary in this Section&nbsp;2.20, the
Borrower shall not be required to compensate a Lender pursuant to this Section&nbsp;2.20 for any amounts
incurred more than six months prior to the date that such Lender notifies the Borrower of such
Lender&#146;s intention to claim compensation therefor; <U>provided</U> that, if the circumstances
giving rise to such claim have a retroactive effect, then such six-month period shall be extended
to include the period of such retroactive effect. The obligations of the Borrower pursuant to this
Section&nbsp;2.20 shall survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 <U>Taxes</U>. (a)&nbsp;All payments and reimbursements made by the Borrower under this Agreement shall be
made free and clear of, and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding taxes imposed on or in respect of overall net income, franchise taxes (imposed
in lieu of net income taxes) and Canadian federal and provincial capital taxes imposed on the
Administrative Agent or
any Lender as a result of a present or former connection between the Administrative Agent or
such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such connection arising solely
from the Administrative Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement or any other Loan Document).
If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings
(&#147;<U>Non-Excluded Taxes</U>&#148;) or Other Taxes are required to be withheld from any amounts payable
to the Administrative Agent or any Lender hereunder, the amounts so payable to the Administrative
Agent or such Lender shall be increased to the extent necessary to yield to the Administrative
Agent or such Lender (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such
other amounts payable hereunder at the rates or in the amounts specified in this Agreement,
<U>provided</U>, <U>however</U>, that the Borrower shall not be required to increase any such
amounts payable to any Lender with respect to any Non-Excluded Taxes (i)&nbsp;that are attributable to
such Lender&#146;s failure to comply with the requirements of paragraph (d)&nbsp;or (e)&nbsp;of this Section&nbsp;2.21
or (ii)&nbsp;that are Canadian or United States withholding taxes imposed on amounts payable to such
Lender at the time such Lender becomes a party to this Agreement, except to the extent that such
Lender&#146;s assignor (if any) was entitled, at the time of assignment, to receive additional amounts
from the Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph or to the
extent such Non-Excluded Taxes are imposed because the Borrower designates an Additional Borrower
pursuant to Section&nbsp;2.26.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as
possible thereafter the Borrower shall send to the Administrative Agent for its own account or for
the account of the relevant Lender, as the case may be, a certified copy of an official receipt
received by the Borrower, if any, showing payment thereof. If the Borrower fails to pay any
Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to
the Administrative Agent the required receipts or other required documentary evidence, the Borrower
shall
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">indemnify the Administrative Agent and the Lenders for any incremental taxes, interest or
penalties that may become payable by the Administrative Agent or any Lender as a result of any such
failure.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;To the extent a Borrower is a &#147;U.S. Person&#148; as defined in Section&nbsp;7701(a)(30) of the Code,
each Lender (or Transferee) that is not a &#147;U.S. Person&#148; as defined in Section&nbsp;7701(a)(30) of the
Code (a &#147;<U>Non-U.S. Lender</U>&#148;) shall deliver to the Borrower and the Administrative Agent (or,
in the case of a Participant, to the Lender from which the related participation shall have been
purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or, in
the case of a Non-U.S. Lender claiming exemption from U.S. federal withholding tax under Section
871(h) or 881(c) of the Code with respect to payments of &#147;portfolio interest&#148;, a statement
substantially in the form of Exhibit&nbsp;G and a Form W-8BEN, or any subsequent versions thereof or
successors thereto, properly completed and duly executed by such Non-U.S. Lender claiming complete
exemption from, or a reduced rate of, U.S. federal withholding tax on all payments by the Borrower
under this Agreement and the other Loan Documents. Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the case of any
Participant, on or before the date such Participant purchases the related participation). In
addition, each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall
promptly notify the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose). Notwithstanding any other provision of
this paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant to this
paragraph that such Non-U.S. Lender is not legally able to deliver.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;A Lender that is entitled to an exemption from or reduction of non-U.S. withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law or reasonably requested by the Borrower, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or at a
reduced rate, <U>provided</U> that such Lender is legally entitled to complete, execute and
deliver such documentation and in such Lender&#146;s judgment such completion, execution or submission
would not materially prejudice the legal position of such Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;If the Administrative Agent or any Lender determines, in its sole discretion, that it has
received a refund of any Non-Excluded Taxes or Other Taxes as to which it has been indemnified by
the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this
Section&nbsp;2.21, it shall pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section&nbsp;2.21 with respect to
the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent or such Lender and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund); <U>provided</U>, that
the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the
amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent or such Lender in the event the
Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This paragraph shall not be construed to require the Administrative Agent or any Lender
to make available its tax returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The agreements in this Section&nbsp;2.21 shall survive the termination of this Agreement and
the payment of the Loans and all other amounts payable hereunder.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 <U>Indemnity</U>. The Borrower agrees to indemnify each Lender for, and to hold each Lender harmless from,
any loss or expense that such Lender may sustain or incur as a consequence of (a)&nbsp;default by the
Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the provisions of this
Agreement, (b)&nbsp;default by the Borrower in making any prepayment of or conversion from Eurodollar
Loans after the Borrower has given a notice thereof in accordance with the provisions of this
Agreement or (c)&nbsp;the making of a prepayment of Eurodollar Loans on a day that is not the last day
of an Interest Period with respect thereto. Such indemnification may include an amount equal to
the excess, if any, of (i)&nbsp;the amount of interest that would have accrued on the amount so prepaid,
or not so borrowed, converted or continued, for the period from the date of such prepayment or of
such failure to borrow, convert or continue to the last day of such Interest Period (or, in the
case of a failure to borrow, convert or continue, the Interest Period that would have commenced on
the date of such failure) in each case at the applicable rate of interest for such Loans provided
for herein (excluding, however, the Applicable Margin included therein, if any) <U>over</U> (ii)
the amount of interest (as reasonably determined by such Lender) that would have accrued to such
Lender on such amount by placing such amount on deposit for a comparable period with leading banks
in the interbank eurodollar market. A certificate as to any amounts payable pursuant to this
Section submitted to the Borrower by any Lender shall be conclusive in the absence of manifest
error. This covenant shall survive the termination of this Agreement and the payment of the Loans
and all other amounts payable hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 <U>Change of Lending Office</U>. Each Lender agrees that, upon the occurrence of any event giving rise to the operation of
Section&nbsp;2.20 or 2.21(a) with respect to such Lender, it will, if requested by the Borrower, use
reasonable efforts (subject to overall policy considerations of such Lender) to designate another
lending office for any Loans affected by such event with the object of avoiding the consequences of
such event; <U>provided</U>, that such designation is made on terms that, in the sole judgment of
such Lender, cause such Lender and its lending office(s) to suffer no economic, legal or regulatory
disadvantage, and <U>provided</U>, <U>further</U>, that nothing in this Section shall affect or
postpone any of the obligations of the Borrower or the rights of any Lender pursuant to Section
2.20 or 2.21(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 <U>Replacement of Lenders</U>. The Borrower shall be permitted to replace any Lender that (a)&nbsp;requests reimbursement for
amounts owing pursuant to Section&nbsp;2.20 or 2.21(a), (b)&nbsp;becomes a Defaulting Lender, or (c)&nbsp;does not
consent to any proposed amendment, supplement, modification, consent or waiver of any provision of
this Agreement or any other Loan Document that requires the consent of each of the Lenders or each
of the Lenders affected thereby (so long as the consent of the Required Lenders (with the
percentage in such definition being deemed to be 75% for this purpose) has been obtained), with a
replacement financial institution; <U>provided</U> that (i)&nbsp;such replacement does not conflict
with any Requirement of Law, (ii)&nbsp;no Event of Default shall have occurred and be continuing at the
time of such replacement, (iii)&nbsp;prior to any such replacement, such Lender shall have taken no
action under Section&nbsp;2.23 so as to eliminate the continued need for payment of amounts owing
pursuant to Section&nbsp;2.20 or 2.21(a), (iv)&nbsp;the replacement financial institution shall purchase, at
par (unless the replacement financial institution and the replaced Lender otherwise agree), all
Loans and other amounts owing to such replaced Lender on or prior to the date of replacement, (v)
the Borrower shall be liable to such replaced Lender under Section&nbsp;2.22 if any Eurodollar Loan
owing to such replaced Lender shall be purchased other than on the last day of the Interest Period
relating thereto, (vi)&nbsp;the replacement financial institution shall be reasonably satisfactory to
the Administrative Agent and, if a Revolving Lender is being replaced, each Issuing Lender, (vii)
the replaced Lender shall be obligated to make such replacement in accordance with the provisions
of Section&nbsp;11.6 (provided that the Borrower shall be obligated to pay the registration and
processing fee referred to therein), (viii)&nbsp;until such time as such replacement shall be
consummated, the Borrower shall pay all additional amounts (if any) required pursuant to Section
2.20 or 2.21(a), as the case may be, (ix)&nbsp;any such replacement shall not be deemed to be a waiver
of any rights that the Borrower, the Administrative Agent or any other Lender shall have against
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the replaced Lender or that the replaced Lender shall have against any other Person and (x)&nbsp;any
replacement of the Swingline Lender shall require a concurrent replacement of such Lender as party
to the Centralized Banking Agreement, or by effecting a termination or replacement of the
Centralized Banking Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 <U>Incremental Facilities</U>. (a)&nbsp;The Borrower may by written notice to the Administrative Agent elect to request the
establishment of one or more (x)&nbsp;additional tranches of term loans denominated in Dollars or
Canadian Dollars (the commitments thereunder, the &#147;<U>Incremental Term Loan Commitments</U>&#148;)
and/or (y)&nbsp;increases in Canadian Revolving Commitments or North American Revolving Commitments (the
&#147;<U>Incremental Revolving Commitments</U>&#148; and, together with the Incremental Term Loan
Commitments, the &#147;<U>Incremental Loan Commitments</U>&#148;), by an aggregate amount not in excess of
$150,000,000 (plus (A)&nbsp;the amount, up to a further $250,000,000, by which the Term Loans are
voluntarily prepaid in accordance with Section&nbsp;2.12 and (B)&nbsp;the amount, up to a further
$75,000,000, by which the Revolving Commitments are permanently reduced in accordance with Section
2.11) in the aggregate and not less than $25,000,000 individually (or such lesser amount as (x)&nbsp;may
be approved by the Administrative Agent, acting reasonably, or (y)&nbsp;shall constitute the difference
between $150,000,000 (plus (A)&nbsp;the amount, up to a further $250,000,000, by which the Term Loans
are voluntarily prepaid in accordance with Section&nbsp;2.12
and (B)&nbsp;the amount, up to a further $75,000,000, by which the Revolving Commitments are
permanently reduced in accordance with Section&nbsp;2.11) and the aggregate amount of all such
Incremental Loan Commitments obtained on or prior to such date). Each such notice shall specify
the date (each, an &#147;<U>Increased Amount Date</U>&#148;) on which the Borrower proposes that the
Incremental Loan Commitments shall be effective, which shall be a date not less than ten Business
Days after the date on which such notice is delivered to the Administrative Agent. The Borrower
may approach any Lender or any Person (other than a natural person, the Borrower or any affiliate
of the Borrower) to provide all or a portion of the Incremental Loan Commitments; <U>provided</U>,
that (i)&nbsp;any Lender offered or approached to provide all or a portion of the Incremental Loan
Commitments may elect or decline, in its sole discretion, to provide an Incremental Loan Commitment
and (ii)&nbsp;any Lender or other Person providing all or a portion of the Incremental Loan Commitments
shall be reasonably acceptable to the Administrative Agent and, if providing Incremental Revolving
Commitments, each Issuing Lender. In each case, such Incremental Loan Commitments shall become
effective as of the applicable Increased Amount Date; <U>provided</U> that (i)&nbsp;no Default or Event
of Default shall exist on such Increased Amount Date before or after giving effect to such
Incremental Loan Commitments; (ii)&nbsp;each of the representations and warranties made by any Loan
Party in or pursuant to the Loan Documents shall be true and correct in all material respects on
and as of such Increased Amount Date as if made on and as of such date; (iii)&nbsp;both before and after
giving effect to the making of any Incremental Term Loans or Incremental Revolving Loans, each of
the conditions set forth in Section&nbsp;6.2 shall be satisfied; (iv)&nbsp;Holdings and its Subsidiaries
shall be in compliance with the financial covenants set forth in Section&nbsp;8.1 on a pro forma basis
after giving effect to such Incremental Loan Commitments and the borrowings thereunder; (v)&nbsp;the
Incremental Loan Commitments shall be effected pursuant to one or more Lender Joinder Agreements
executed and delivered by the Borrower, the Administrative Agent and the Persons providing such
Incremental Loan Commitments; and (vi)&nbsp;the Borrower shall deliver or cause to be delivered any
legal opinions (subject to customary qualifications and exclusions) or other documents reasonably
requested by Administrative Agent in connection with any such transaction. Any Incremental Term
Loans made on an Increased Amount Date shall be designated a separate tranche of Incremental Term
Loans for all purposes of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;On any Increased Amount Date on which Incremental Revolving Commitments are effected,
subject to the satisfaction of the foregoing terms and conditions, (a)&nbsp;each of the Lenders with
North American Revolving Commitments or Canadian Revolving Commitments, as applicable, shall assign
to each Lender with an Incremental Revolving Commitment (each, an &#147;<U>Incremental Revolving
Lender</U>&#148;) and each of the Incremental Revolving Lenders shall purchase from each of the Lenders
with
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">North American Revolving Commitments or Canadian Revolving Commitments, as applicable, at the
principal amount thereof, such interests in the North American Revolving Loans or Canadian
Revolving Loans, as applicable, outstanding on such Increased Amount Date as shall be necessary in
order that, after giving effect to all such assignments and purchases, the North American Revolving
Loans or Canadian Revolving Loans, as applicable, will be held by existing North American Revolving
Lenders or Canadian Revolving Lenders and Incremental Revolving Lenders ratably in accordance with
their North American Revolving Commitments or Canadian Revolving Commitments, as applicable, after
giving effect to the addition of such Incremental Revolving Commitments to the North American
Revolving Commitments or Canadian Revolving Commitments, as applicable, (b)&nbsp;each Incremental
Revolving Commitment shall be deemed for all purposes a North American Revolving Commitment or
Canadian Revolving Commitment, as specified in the relevant Lender Joinder Agreement, and each Loan
made thereunder (an &#147;<U>Incremental Revolving Loan</U>&#148;) shall be deemed, for all purposes, a
North American Revolving Loan or a Canadian Revolving Loan, as applicable, and (c)&nbsp;each Incremental
Revolving Lender shall become a Lender with respect to the Incremental Revolving Commitment and all
matters relating thereto. Notwithstanding the foregoing, if any Bankers&#146; Acceptances accepted by
an assigning Lender remain outstanding on the date of assignment of the applicable North American
Revolving Commitment or Canadian Revolving Commitment to an Incremental Revolving Lender, such
Bankers&#146; Acceptances shall remain the liability and obligation of the assignor Lender and the
assignor Lender shall be entitled to all of the rights, titles
and benefits arising out of this Agreement and the other Loan Documents with respect to such
Bankers&#146; Acceptances (including reimbursement rights); and the Incremental Revolving Lender shall
indemnify the assignor Lender and hold the assignor Lender harmless from and against any losses and
costs paid or incurred by the assignor Lender in connection with such Bankers&#146; Acceptances (other
than losses or costs which arise out of the negligence or willful misconduct of the assignor
Lender) to the extent of the assignee Incremental Revolving Lender&#146;s North American Revolving
Commitment or Canadian Revolving Commitment, as the case may be, provided for herein, and shall be
entitled to that percentage (as agreed to between such assignee and the assignor) of a
proportionate amount of the fees paid in respect of such Bankers&#146; Acceptances based upon the
relative proportions of the North American Revolving Commitments or Canadian Revolving Commitments,
as the case may be, of the assignor and assignee and the number of days remaining in the term of
any such Bankers&#146; Acceptances.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;On any Increased Amount Date on which any Incremental Term Loan Commitments are effective,
subject to the satisfaction of the foregoing terms and conditions, (i)&nbsp;each Lender with an
Incremental Term Loan Commitment (each, an &#147;<U>Incremental Term Loan Lender</U>&#148;) shall make a
Loan to the Borrower (an &#147;<U>Incremental Term Loan</U>&#148;) in an amount equal to its Incremental
Term Loan Commitment, and (ii)&nbsp;each Incremental Term Loan Lender shall become a Lender hereunder
with respect to the Incremental Term Loan Commitment and the Incremental Term Loans made pursuant
thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The terms and provisions of the applicable Incremental Term Loans and Incremental Term
Loan Commitments shall be the same in all material respects as the terms and provisions of the
Tranche A-1 Term Loans (if denominated in Dollars) or the Tranche A-2 Term Loans (if denominated in
Canadian Dollars) (to the extent such Incremental Term Loans are an increase in the Tranche A-1
Term Facility or the Tranche A-2 Term Facility or have material amortization) or the Tranche B-1
Term Loans or the Tranche B-2 Term Loans (to the extent such Incremental Term Loans are an increase
in the Tranche B-1 Term Facility or the Tranche B-2 Term Facility or have nominal amortization), as
the case may be, except that (i)&nbsp;the maturity date and amortization applicable to such Incremental
Term Loans shall be as agreed by the Borrower and the applicable Incremental Term Loan Lenders;
<U>provided</U>, that the applicable Incremental Term Loan maturity date shall be no earlier than
the Tranche A-1 Maturity Date or the Tranche A-2 Maturity Date, or the Tranche B-1 Maturity Date or
the Tranche B-2 Maturity Date, as the case may be, and the weighted average life to maturity of
such Incremental Term Loans shall be no shorter than the weighted average life to maturity of the
Tranche A-1
</DIV>


</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Term Loans or the Tranche A-2 Term Loans, or the Tranche B-1 Term Loans or the Tranche
B-2 Term Loans, as the case may be; and (ii)&nbsp;the interest rate margin in respect of such
Incremental Term Loans shall be as agreed by the Borrower and such Incremental Term Loan Lenders;
<U>provided</U>, that such interest rate margin (taking into account any OID or upfront fees in
connection therewith) may not exceed the Applicable Margin for the Tranche A-1 Term Loans or the
Tranche A-2 Term Loans, or the Tranche B-1 Term Loans or the Tranche B-2 Term Loans, as the case
may be (it being understood that a portion of any interest margin may take the form of OID or
upfront fees (which shall be deemed to constitute like amounts of OID), with OID being equated to
the interest rates in a manner determined by the Administrative Agent based on an assumed four-year
life to maturity), by more than 0.25%, or if it does so exceed such Applicable Margin by more than
0.25%, such Applicable Margin for the Tranche A-1 Term Loans, the Tranche A-2 Term Loans, the
Tranche B-1 Term Loans or the Tranche B-2 Term Loans, as the case may be, shall be increased so
that the interest rate margin in respect of such Incremental Term Loan (giving effect to any OID or
upfront fees issued in connection with such Incremental Term Loan) is 0.25% greater than the
Applicable Rate for the Tranche A-1 Term Loans, the Tranche A-2 Term Loans, the Tranche B-1 Term
Loans or the Tranche B-2 Term Loans, as the case may be (giving effect to any OID issued in
connection with the Tranche A-1 Term Loans, the Tranche A-2 Term Loans, the Tranche B-1 Term Loans
or the Tranche B-2 Term Loans, as the case may be). The terms and provisions of the Incremental
Revolving Loans and Incremental Revolving Commitments shall be identical to the North
American Revolving Loans and the North American Revolving Commitments or the Canadian
Revolving Loans and the Canadian Revolving Commitments, as the case may be, other than with respect
to upfront fees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Each Lender Joinder Agreement may, without the consent of any other Lenders, effect such
amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in
the reasonable opinion of the Administrative Agent, to effect the provisions of this Section&nbsp;2.25,
subject to the proviso in Section&nbsp;11.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 <U>Additional Borrowers</U>. The Borrower may at any time and from time to time designate any Wholly Owned
Subsidiary of the Borrower or Holdings as an additional Borrower hereunder for all or any portion
of any of the Facilities in addition to the original Borrower (an &#147;<U>Additional Borrower</U>&#148;),
in each case by delivery to the Administrative Agent of a Borrower Joinder Agreement executed by
such Additional Borrower which will provide that such Additional Borrower will be liable for the
Loans made to it (and the Borrower&#146;s only liability for the Loans made to the Additional Borrower
will be as guarantor thereof); <U>provided</U>, that (a)&nbsp;the Administrative Agent, on behalf of
itself and the Lenders, shall have received such representations and warranties, assurances, legal
opinions (subject to customary qualifications and assumptions) and other documents as may be
reasonably requested by the Administrative Agent, including but not limited to those relating to
the formation, existence and good standing of such Additional Borrower and the authorization and
legality of the delivery and performance of the Loan Documents to which it is a party and the
extensions of credit to be made to it hereunder; (b)&nbsp;such Additional Borrower shall have become
party to the US Guarantee and Collateral Agreement or the Canadian Collateral Agreement, as the
case may be, to the extent not already a party thereto, and shall have otherwise complied and
caused its Subsidiaries to comply with the requirements of Section&nbsp;7.10; (c)&nbsp;the Administrative
Agent and the Lenders shall have received, at least five Business Days prior to the effectiveness
of the designation of such Additional Borrower, all documentation and other information relating to
such Additional Borrower requested by them for purposes of ensuring compliance with applicable
&#147;know your customer&#148; and anti-money laundering rules and regulations, including the PATRIOT Act (as
defined in Section&nbsp;11.17); (d)&nbsp;such Additional Borrower shall be Solvent and organized under the
laws of Canada, the United States, or a province or state thereof; (e)&nbsp;no Default or Event of
Default shall have occurred and be continuing nor will result therefrom; and (f)&nbsp;the designation of
such Additional Borrower as a Borrower hereunder shall not result in any adverse tax consequences
related to withholding tax or similar amounts on payments to the Lenders (after taking into account
the
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower&#146;s indemnification obligations under Section&nbsp;2.21). Notwithstanding the foregoing, no
Borrower Joinder Agreement shall become effective with respect to any Additional Borrower if it
shall be unlawful for such Additional Borrower to become a Borrower hereunder or for any Lender to
make Loans to such Additional Borrower as provided herein. As soon as practicable upon receipt of
a Borrower Joinder Agreement and the satisfaction of the conditions set forth herein with respect
to the Additional Borrower to which it relates, the Administrative Agent shall send a copy thereof
to each Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27 <U>Defaulting Lenders</U>. Notwithstanding any other provision in this Agreement to the contrary, if at any time a
Lender becomes a Defaulting Lender, then the following provisions shall apply so long as any Lender
is a Defaulting Lender:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i)&nbsp;If any Swingline Loans exist at any time a Lender is a Defaulting Lender, upon three
Business Days&#146; notice by the Swingline Lender, the Borrower shall prepay such outstanding Swingline
Loans or, if agreed by the Swingline Lender, cash collateralize the amount of such Defaulting
Lender&#146;s North American Revolving Percentage of such Swingline Loans in accordance with
paragraph (b)&nbsp;below and (ii)&nbsp;if any L/C Obligation is outstanding at any time a Lender is a
Defaulting Lender, upon three Business Days&#146; notice by the relevant Issuing Lender, the Borrower
shall cash collateralize the amount of such Defaulting Lender&#146;s North American Revolving Percentage
and/or Canadian Revolving Percentage, as applicable, of such L/C Obligations in accordance with
paragraph (b)&nbsp;below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;At any time a Lender becomes a Defaulting Lender and the Administrative Agent, any Issuing
Lender or the Swingline Lender, as applicable, requires the Borrower to cash collateralize the
amount of such Defaulting Lender&#146;s North American Revolving Percentage and/or Canadian Revolving
Percentage, as applicable, of such L/C Obligations or Swingline Loans pursuant to paragraph (a)
above, the Borrower shall cash collateralize such amounts by 1:00 P.M., New York City time, on the
date which is three Business Days following notice by the Administrative Agent, such Issuing Lender
or the Swingline Lender, as the case may be (or, if such notice is given after 12:00 Noon, New York
City time, by 1:00 P.M., New York City time, on the date which is four Business Days following such
notice). Upon the drawing of any Letter of Credit for which funds are on deposit as cash
collateral, such funds shall be applied, to the extent permitted under applicable law, to reimburse
the relevant Issuing Lender. If the Administrative Agent, the relevant Issuing Lender or the
Swingline Lender, as applicable, determines that a Defaulting Lender is no longer a Defaulting
Lender, the appropriate amount of any cash collateral shall be refunded to the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Swingline Lender shall not be required to fund any Swingline Loan, and no Issuing
Lenders shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied
that cash collateral has been and/or will be provided by the Borrower in accordance with paragraphs
(a)&nbsp;and (b)&nbsp;above. The Borrower shall be entitled to interest (at prevailing rates offered by the
Administrative Agent for deposits of similar sizes in similar accounts or instruments) earned on
the cash collateral posted pursuant to Section&nbsp;2.27(a) or 2.27(b), such interest to be paid to the
Borrower when such cash collateral is released. Such cash collateral shall be released to the
Borrower when and to the extent that the obligations of the relevant Defaulting Lender have been
satisfied with respect to all outstanding Letters of Credit and Swingline Loans, as applicable, or
to the extent such Letters of Credit cease to be outstanding.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 3. NORTH AMERICAN LETTERS OF CREDIT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>North American L/C Commitment</u>. (a)&nbsp;Subject to the terms and conditions hereof, each North American Issuing Lender, in
reliance on the agreements of the other North American Revolving Lenders set forth in Section
3.4(a), agrees to issue letters of credit (&#147;<U>North American Letters of Credit</U>&#148;) for the
account of the Borrower on any Business Day during the Revolving Commitment Period in such form as
may be approved from time to time by the North American Issuing Lender; <U>provided</U> that
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">no
North American Issuing Lender shall have any obligation to issue any North American Letter of
Credit if, after giving effect to such issuance, (i)&nbsp;the Dollar Equivalent Amount of the North
American L/C Obligations would exceed the North American L/C Commitment or (ii)&nbsp;the aggregate
amount of the Available North American Revolving Commitments would be less than zero;
<U>provided</U> <U>further</U> that no North American Issuing Lender shall have any obligation to
issue any North American Letter of Credit if, after giving effect to such issuance, the Dollar
Equivalent Amount of the aggregate amount of outstanding North American Letters of Credit and
Canadian Letters of Credit issued by such Issuing Lender would exceed its Issuing Lender
Commitment. Each North American Letter of Credit shall (i)&nbsp;be denominated in Dollars or Canadian
Dollars and (ii)&nbsp;expire no later than the earlier of (x)&nbsp;the first anniversary of its date of
issuance and (y)&nbsp;the date that is five Business Days prior to the Revolving Termination Date,
<U>provided</U> that any North American Letter of Credit with a one-year term may provide for the
renewal thereof for additional one-year periods (which shall in no event extend beyond the date
referred to in clause (y)&nbsp;above).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No North American Issuing Lender shall at any time be obligated to issue any North
American Letter of Credit if such issuance would conflict with, or cause the North American Issuing
Lender or any North American L/C Participant to exceed any limits imposed by, any applicable
Requirement of Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <U>Procedure for Issuance of North American Letter of Credit</U>. The Borrower may from time to time request that a North American Issuing Lender issue a
North American Letter of Credit by delivering to such North American Issuing Lender (with a copy to
the Administrative Agent) at its address for notices specified herein an Application therefor,
completed to the reasonable satisfaction of such North American Issuing Lender, and such other
certificates, documents and other papers and information as such North American Issuing Lender may
reasonably request. Upon receipt of any Application, such North American Issuing Lender will
process such Application and the certificates, documents and other papers and information delivered
to it in connection therewith in accordance with its customary procedures and shall promptly issue
the North American Letter of Credit requested thereby (but in no event shall a North American
Issuing Lender be required to issue any North American Letter of Credit earlier than two Business
Days after its receipt of the Application therefor and all such other certificates, documents and
other papers and information relating thereto) by issuing the original of such North American
Letter of Credit to the beneficiary thereof or as otherwise may be agreed to by such North American
Issuing Lender and the Borrower. A North American Issuing Lender shall furnish a copy of each
North American Letter of Credit to the Borrower promptly following the issuance thereof. A North
American Issuing Lender shall promptly furnish to the Administrative Agent, which shall in turn
promptly furnish to the Lenders, notice of the issuance of each North American Letter of Credit
(including the amount thereof).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <U>Fees and Other Charges</U>. (a)&nbsp;The Borrower will pay a fee on all outstanding North American Letters of Credit at a
per annum rate equal to the Applicable Margin (or, in the case of non-financial letters of credit
(as determined by the relevant North American Issuing Lender in its sole discretion), two-thirds of
the Applicable Margin) then in effect with respect to (i)&nbsp;Eurodollar Loans under the North American
Revolving Facility, in the case of North American Letters of Credit denominated in Dollars, or (ii)
Bankers&#146; Acceptances under the North American Revolving Facility, in the case of North American
Letters of Credit denominated in Canadian Dollars, in each case shared ratably among the North
American Revolving Lenders and payable quarterly in arrears on each Fee Payment Date after the
issuance date. In addition, the Borrower shall pay to each North American Issuing Lender for its
own account a fronting fee for each North American Letter of Credit issued by such North American
Issuing Lender in an amount equal to the greater of (i) $500 per annum and (ii)&nbsp;0.20% per annum on
the undrawn and unexpired amount of each such North American Letter of Credit, in each case payable
quarterly in
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">arrears on each Fee Payment Date after the issuance date and on the date that such
North American Letter of Credit expires or is cancelled in full and returned.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition to the foregoing fees, the Borrower shall pay or reimburse each North American
Issuing Lender for such normal and customary costs and expenses as are incurred or charged by the
North American Issuing Lender in issuing, negotiating, effecting payment under, amending or
otherwise administering any North American Letter of Credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <U>North American L/C Participations</U>. (a)&nbsp;Each North American Issuing Lender irrevocably agrees to grant and hereby grants to
each North American L/C Participant, and, to induce such North American Issuing Lender to issue
North American Letters of Credit, each North American L/C Participant irrevocably agrees to
accept and purchase and hereby accepts and purchases from such North American Issuing Lender in the
currency in which the North American Letter of Credit is denominated, on the terms and conditions
set forth below, for such North American L/C Participant&#146;s own account and risk an undivided
interest equal to such North American L/C Participant&#146;s North American Revolving Percentage in the
North American Issuing Lender&#146;s obligations and rights under and in respect of each North American
Letter of Credit and the amount of each draft paid by the North American Issuing Lender thereunder.
Each North American L/C Participant agrees with each North American Issuing Lender that, if a
draft is paid under any North American Letter of Credit for which such North American Issuing
Lender is not reimbursed in full by the Borrower in accordance with the terms of this Agreement,
such North American L/C Participant shall pay to such North American Issuing Lender upon demand at
such North American Issuing Lender&#146;s address for notices specified herein an amount equal to such
North American L/C Participant&#146;s North American Revolving Percentage of the amount of such draft,
or any part thereof, that is not so reimbursed. Each North American L/C Participant&#146;s obligation
to pay such amount shall be absolute and unconditional and shall not be affected by any
circumstance, including (i)&nbsp;any setoff, counterclaim, recoupment, defense or other right that such
North American L/C Participant may have against any North American Issuing Lender, the Borrower or
any other Person for any reason whatsoever, (ii)&nbsp;the occurrence or continuance of a Default or an
Event of Default or the failure to satisfy any of the other conditions specified in Section&nbsp;6,
(iii)&nbsp;any adverse change in the condition (financial or otherwise) of the Borrower, (iv)&nbsp;any breach
of this Agreement or any other Loan Document by the Borrower, any other Loan Party or any other
North American L/C Participant or (v)&nbsp;any other circumstance, happening or event whatsoever,
whether or not similar to any of the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If any amount required to be paid by any North American L/C Participant to a North
American Issuing Lender pursuant to Section&nbsp;3.4(a) in respect of any unreimbursed portion of any
payment made by such North American Issuing Lender under any North American Letter of Credit is
paid to such North American Issuing Lender within three Business Days after the date such payment
is due, such North American L/C Participant shall pay to such North American Issuing Lender on
demand an amount equal to the product of (i)&nbsp;such amount, <U>times</U> (ii) (A)&nbsp;in the case of
amounts due in Dollars, the daily average Federal Funds Effective Rate or (B)&nbsp;in the case of
amounts due in Canadian Dollars, the daily average Canadian Prime Rate, in each case during the
period from and including the date such payment is required to the date on which such payment is
immediately available to such North American Issuing Lender, <U>times</U> (iii)&nbsp;a fraction the
numerator of which is the number of days that elapse during such period and the denominator of
which is 365. If any such amount required to be paid by any North American L/C Participant
pursuant to Section&nbsp;3.4(a) is not made available to the applicable North American Issuing Lender by
such North American L/C Participant within three Business Days after the date such payment is due,
such North American Issuing Lender shall be entitled to recover from such North American L/C
Participant, on demand, such amount with interest thereon calculated from such due date at the rate
per annum applicable to (i)&nbsp;in the case of amounts due in Dollars, ABR Loans under the North
American Revolving Facility, and (ii)&nbsp;in the case of amounts due in Canadian Dollars, Canadian
Prime Rate Loans under the North American Revolving Facility. A certificate of a North American
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Issuing Lender submitted to any North American L/C Participant with respect to any amounts owing
under this Section shall be conclusive in the absence of manifest error.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Whenever, at any time after a North American Issuing Lender has made payment under any
North American Letter of Credit and has received from any North American L/C Participant its
<U>pro</U> <U>rata</U> share of such payment in accordance with Section&nbsp;3.4(a), such North
American Issuing Lender receives any payment related to such North American Letter of Credit
(whether directly from the Borrower or otherwise, including proceeds of collateral applied thereto
by such North American Issuing Lender), or any payment of interest on account thereof, the North
American Issuing Lender will distribute to such North American L/C Participant its <U>pro</U>
<U>rata</U> share thereof; <U>provided</U>, <U>however</U>, that in the event
that any such payment received by such North American Issuing Lender shall be required to be
returned by such North American Issuing Lender, such North American L/C Participant shall return to
such North American Issuing Lender the portion thereof previously distributed by such North
American Issuing Lender to it.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <U>Reimbursement Obligation of the Borrower</U>. If any draft is paid under any North American Letter of Credit, the Borrower shall
reimburse the relevant North American Issuing Lender in the currency in which such draft is paid
for the amount of (a)&nbsp;the draft so paid and (b)&nbsp;any fees, charges or other costs or expenses
incurred by such North American Issuing Lender in connection with such payment, not later than
12:00 Noon, New York City time, on (i)&nbsp;the Business Day that the Borrower receives notice of such
draft, if such notice is received on such day prior to 10:00&nbsp;A.M., New York City time, or (ii)&nbsp;if
clause (i)&nbsp;above does not apply, the Business Day immediately following the day that the Borrower
receives such notice. Each such payment shall be made to such North American Issuing Lender at its
address for notices referred to herein in Dollars or Canadian Dollars, as the case may be, and in
immediately available funds. Interest shall be payable on any such amounts from the date on which
the relevant draft is paid until payment in full at the rate set forth in (x)&nbsp;until the Business
Day next succeeding the date of the relevant notice, Section&nbsp;2.16(b) or Section&nbsp;2.16(c), as
applicable, and (y)&nbsp;thereafter, Section&nbsp;2.16(e). Notwithstanding the foregoing, whether or not the
conditions in Section&nbsp;6.2 are satisfied or a Default or Event of Default exists (other than under
Section&nbsp;9(f)), each of the Administrative Agent and the Borrower shall have the absolute and
unconditional right to require that such payment be financed with a North American Revolving Loan,
which may be an ABR Loan, a Canadian Prime Rate Loan, or a Swingline Loan. If the Borrower does
not make such payment by the time specified, the Administrative Agent shall so notify each North
American Revolving Lender of such failure, the payment then due from the Borrower in respect
thereof and such Lender&#146;s North American Revolving Percentage thereof. Promptly following receipt
of such notice, each North American Revolving Lender shall pay to the Administrative Agent its
North American Revolving Percentage of the payment then due from the Borrower, in the same manner
as provided in Section&nbsp;2.5 with respect to North American Revolving Loans made by such Lender (and
Section&nbsp;2.5 shall apply, <U>mutatis</U> <U>mutandis</U>, to the payment obligations of the North
American Revolving Lenders) and the Administrative Agent shall promptly pay to the relevant North
American Issuing Lender the amounts so received by it from the North American Revolving Lenders.
Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to
this paragraph, the Administrative Agent shall distribute such payment to such North American
Issuing Lender or, to the extent that North American Revolving Lenders have made payments pursuant
to this paragraph to reimburse such North American Issuing Lender, then to such Lenders and such
North American Issuing Lender as their interests may appear. Any payment made by a North American
Revolving Lender pursuant to this paragraph to reimburse such North American Issuing Lender for any
amounts due by the Borrower pursuant to this paragraph (other than the funding of North American
Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall
not relieve the Borrower of its obligation to reimburse such amounts.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <U>Obligations Absolute</U>. The Borrower&#146;s obligations under this Section&nbsp;3 shall be absolute and unconditional under
any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that
the Borrower may have or have had against the relevant North American Issuing Lender, any
beneficiary of a North American Letter of Credit or any other Person. The Borrower also agrees
with each North American Issuing Lender that the North American Issuing Lender shall not be
responsible for, and the Borrower&#146;s North American Reimbursement Obligations under Section&nbsp;3.5
shall not be affected by, among other things, the validity or genuineness of documents or of any
endorsements thereon, even
though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute
between or among the Borrower and any beneficiary of any North American Letter of Credit or any
other party to which such North American Letter of Credit may be transferred or any claims
whatsoever of the Borrower against any beneficiary of such North American Letter of Credit or any
such transferee. A North American Issuing Lender shall not be liable for any error, omission,
interruption or delay in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any North American Letter of Credit, except for errors or omissions
found by a final and nonappealable decision of a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of such North American Issuing Lender. The
Borrower agrees that any action taken or omitted by a North American Issuing Lender under or in
connection with any North American Letter of Credit or the related drafts or documents, if done in
the absence of gross negligence or willful misconduct, shall be binding on the Borrower and shall
not result in any liability of such North American Issuing Lender to the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <U>Letter of Credit Payments</U>. If any draft shall be presented for payment under any North American Letter of Credit, the
relevant North American Issuing Lender shall promptly notify the Borrower and the Administrative
Agent of the date and amount thereof. The responsibility of such North American Issuing Lender to
the Borrower in connection with any draft presented for payment under any North American Letter of
Credit shall, in addition to any payment obligation expressly provided for in such North American
Letter of Credit, be limited to determining that the documents (including each draft) delivered
under such North American Letter of Credit in connection with such presentment are on their face
substantially in conformity with such North American Letter of Credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <U>Cash Collateralization of North American Letters of Credit</U>. In addition to any obligation of the Borrower to prepay Loans and cash collateralize
Letters of Credit pursuant to Section&nbsp;2.13(d), if on any date the Dollar Equivalent Amount of the
North American L/C Obligations exceeds the amount of the North American L/C Commitment, the
Borrower shall cash collateralize the North American Letters of Credit (in a manner reasonably
satisfactory to the Administrative Agent), in an amount so as to eliminate such excess;
<U>provided</U>, that if the North American L/C Obligations exceed the North American L/C
Commitment solely as a result of a change in the aggregate Dollar Equivalent Amount of the North
American Letters of Credit denominated in Canadian Dollars, no cash collateralization shall be made
unless the Administrative Agent notifies the Borrower that the North American L/C Obligations have
exceeded 105% of the North American L/C Commitment for five consecutive Business Days.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <U>Applications</U>. To the extent that any provision of any Application related to any North American Letter of
Credit is inconsistent with the provisions of this Section&nbsp;3, the provisions of this Section&nbsp;3
shall apply.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 4. CANADIAN LETTERS OF CREDIT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Canadian L/C Commitment</u>. (a)&nbsp;Subject to the terms and conditions hereof, each Canadian Issuing Lender, in reliance
on the agreements of the other Canadian Revolving Lenders set forth in Section&nbsp;4.4(a), agrees to
issue letters of credit (&#147;<U>Canadian Letters of Credit</U>&#148;) for the account of the
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower on
any Business Day
during the Revolving Commitment Period in such form as may be approved from time to time by
the Canadian Issuing Lender; <U>provided</U> that no Canadian Issuing Lender shall have any
obligation to issue any Canadian Letter of Credit if, after giving effect to such issuance, (i)&nbsp;the
Dollar Equivalent Amount of the Canadian L/C Obligations would exceed the Canadian L/C Commitment
or (ii)&nbsp;the aggregate amount of the Available Canadian Revolving Commitments would be less than
zero; <U>provided</U> <U>further</U> that no Canadian Issuing Lender shall have any obligation to
issue any Canadian Letter of Credit if, after giving effect to such issuance, the Dollar Equivalent
of the aggregate amount of outstanding Canadian Letters of Credit and North American Letters of
Credit issued by such Issuing Lender would exceed its Issuing Lender Commitment. Each Canadian
Letter of Credit shall (i)&nbsp;be denominated in Canadian Dollars and (ii)&nbsp;expire no later than the
earlier of (x)&nbsp;the first anniversary of its date of issuance and (y)&nbsp;the date that is five Business
Days prior to the Revolving Termination Date, <U>provided</U> that any Canadian Letter of Credit
with a one-year term may provide for the renewal thereof for additional one-year periods (which
shall in no event extend beyond the date referred to in clause (y)&nbsp;above).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No Canadian Issuing Lender shall at any time be obligated to issue any Canadian Letter of
Credit if such issuance would conflict with, or cause the Canadian Issuing Lender or any Canadian
L/C Participant to exceed any limits imposed by, any applicable Requirement of Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <U>Procedure for Issuance of Canadian Letter of Credit</U>. The Borrower may from time to time request that a Canadian Issuing Lender issue a Canadian
Letter of Credit by delivering to such Canadian Issuing Lender (with a copy to the Administrative
Agent) at its address for notices specified herein an Application therefor, completed to the
reasonable satisfaction of such Canadian Issuing Lender, and such other certificates, documents and
other papers and information as such Canadian Issuing Lender may reasonably request. Upon receipt
of any Application, such Canadian Issuing Lender will process such Application and the
certificates, documents and other papers and information delivered to it in connection therewith in
accordance with its customary procedures and shall promptly issue the Canadian Letter of Credit
requested thereby (but in no event shall a Canadian Issuing Lender be required to issue any
Canadian Letter of Credit earlier than two Business Days after its receipt of the Application
therefor and all such other certificates, documents and other papers and information relating
thereto) by issuing the original of such Canadian Letter of Credit to the beneficiary thereof or as
otherwise may be agreed to by such Canadian Issuing Lender and the Borrower. A Canadian Issuing
Lender shall furnish a copy of each Canadian Letter of Credit to the Borrower promptly following
the issuance thereof. A Canadian Issuing Lender shall promptly furnish to the Administrative
Agent, which shall in turn promptly furnish to the Lenders, notice of the issuance of each Canadian
Letter of Credit (including the amount thereof).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <U>Fees and Other Charges</U>. (a)&nbsp;The Borrower will pay a fee on all outstanding Canadian Letters of Credit at a per
annum rate equal to the Applicable Margin (or, in the case of non-financial letters of credit (as
determined by the relevant Canadian Issuing Lender in its sole discretion), two-thirds of the
Applicable Margin) then in effect with respect to Bankers&#146; Acceptances under the Canadian Revolving
Facility, in each case shared ratably among the Canadian Revolving Lenders and payable quarterly in
arrears on each Fee Payment Date after the issuance date. In addition, the Borrower shall pay to
each Canadian Issuing Lender for its own account a fronting fee for each Canadian Letter of Credit
issued by such Canadian Issuing Lender in an amount equal to the greater of (i) $500 per annum and
(ii)&nbsp;0.20% per annum on the undrawn and unexpired amount of each such Canadian Letter of Credit, in
each case payable quarterly in arrears on each Fee Payment Date after the issuance date and on the
date that such Canadian Letter of Credit expires or is cancelled in full and returned.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition to the foregoing fees, the Borrower shall pay or reimburse each Canadian
Issuing Lender for such normal and customary costs and expenses as are incurred or charged by
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the
Canadian Issuing Lender in issuing, negotiating, effecting payment under, amending or otherwise
administering any Canadian Letter of Credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <U>Canadian L/C Participations</U>. (a)&nbsp;Each Canadian Issuing Lender irrevocably agrees to grant and hereby grants to each
Canadian L/C Participant, and, to induce such Canadian Issuing Lender to issue Canadian Letters of
Credit, each Canadian L/C Participant irrevocably agrees to accept and purchase and hereby accepts
and purchases from such Canadian Issuing Lender in the currency in which the Canadian Letter of
Credit is denominated, on the terms and conditions set forth below, for such Canadian L/C
Participant&#146;s own account and risk an undivided interest equal to such Canadian L/C Participant&#146;s
Canadian Revolving Percentage in the Canadian Issuing Lender&#146;s obligations and rights under and in
respect of each Canadian Letter of Credit and the amount of each draft paid by the Canadian Issuing
Lender thereunder. Each Canadian L/C Participant agrees with each Canadian Issuing Lender that, if
a draft is paid under any Canadian Letter of Credit for which such Canadian Issuing Lender is not
reimbursed in full by the Borrower in accordance with the terms of this Agreement, such Canadian
L/C Participant shall pay to such Canadian Issuing Lender upon demand at such Canadian Issuing
Lender&#146;s address for notices specified herein an amount equal to such Canadian L/C Participant&#146;s
Canadian Revolving Percentage of the amount of such draft, or any part thereof, that is not so
reimbursed. Each Canadian L/C Participant&#146;s obligation to pay such amount shall be absolute and
unconditional and shall not be affected by any circumstance, including (i)&nbsp;any setoff,
counterclaim, recoupment, defense or other right that such Canadian L/C Participant may have
against any Canadian Issuing Lender, the Borrower or any other Person for any reason whatsoever,
(ii)&nbsp;the occurrence or continuance of a Default or an Event of Default or the failure to satisfy
any of the other conditions specified in Section&nbsp;6, (iii)&nbsp;any adverse change in the condition
(financial or otherwise) of the Borrower, (iv)&nbsp;any breach of this Agreement or any other Loan
Document by the Borrower, any other Loan Party or any other Canadian L/C Participant or (v)&nbsp;any
other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If any amount required to be paid by any Canadian L/C Participant to a Canadian Issuing
Lender pursuant to Section&nbsp;4.4(a) in respect of any unreimbursed portion of any payment made by
such Canadian Issuing Lender under any Canadian Letter of Credit is paid to such Canadian Issuing
Lender within three Business Days after the date such payment is due, such Canadian L/C Participant
shall pay to such Canadian Issuing Lender on demand an amount equal to the product of (i)&nbsp;such
amount, <U>times</U> (ii)&nbsp;the daily average Canadian Prime Rate during the period from and
including the date such payment is required to the date on which such payment is immediately
available to such Canadian Issuing Lender, <U>times</U> (iii)&nbsp;a fraction the numerator of which is
the number of days that elapse during such period and the denominator of which is 365. If any such
amount required to be paid by any Canadian L/C Participant pursuant to Section&nbsp;4.4(a) is not made
available to the applicable Canadian Issuing Lender by such Canadian L/C Participant within three
Business Days after the date such payment is due, such Canadian Issuing Lender shall be entitled to
recover from such Canadian L/C Participant, on demand, such amount with interest thereon calculated
from such due date at the rate per annum applicable to Canadian Prime Rate Loans under the Canadian
Revolving Facility. A certificate of a Canadian Issuing Lender submitted to any Canadian L/C
Participant with respect to any amounts owing under this Section shall be conclusive in the absence
of manifest error.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Whenever, at any time after a Canadian Issuing Lender has made payment under any Canadian
Letter of Credit and has received from any Canadian L/C Participant its <U>pro</U> <U>rata</U>
share of such payment in accordance with Section&nbsp;4.4(a), such Canadian Issuing Lender receives any
payment related to such Canadian Letter of Credit (whether directly from the Borrower or otherwise,
including
proceeds of collateral applied thereto by such Canadian Issuing Lender), or any payment of
interest on account thereof, the Canadian Issuing Lender will distribute to such Canadian L/C
Participant its <U>pro</U> <U>rata</U> share thereof; <U>provided</U>, <U>however</U>, that in
the event that any such payment received by such Canadian Issuing Lender shall be required to be
returned by such Canadian Issuing Lender, such Canadian L/C
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Participant shall return to such
Canadian Issuing Lender the portion thereof previously distributed by such Canadian Issuing Lender
to it.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <U>Reimbursement Obligation of the Borrower</U>. If any draft is paid under any Canadian Letter of Credit, the Borrower shall reimburse the
relevant Canadian Issuing Lender in the currency in which such draft is paid for the amount of (a)
the draft so paid and (b)&nbsp;any fees, charges or other costs or expenses incurred by such Canadian
Issuing Lender in connection with such payment, not later than 12:00 Noon, New York City time, on
(i)&nbsp;the Business Day that the Borrower receives notice of such draft, if such notice is received on
such day prior to 10:00&nbsp;A.M., New York City time, or (ii)&nbsp;if clause (i)&nbsp;above does not apply, the
Business Day immediately following the day that the Borrower receives such notice. Each such
payment shall be made to such Canadian Issuing Lender at its address for notices referred to herein
in Canadian Dollars and in immediately available funds. Interest shall be payable on any such
amounts from the date on which the relevant draft is paid until payment in full at the rate set
forth in (x)&nbsp;until the Business Day next succeeding the date of the relevant notice, Section
2.16(b) and (y)&nbsp;thereafter, Section&nbsp;2.16(e). Notwithstanding the foregoing, whether or not the
conditions in Section&nbsp;6.2 are satisfied or a Default or Event of Default exists (other than under
Section&nbsp;9(f)), each of the Administrative Agent and the Borrower shall have the absolute and
unconditional right to require that such payment be financed with a Canadian Prime Rate Loan. If
the Borrower does not make such payment by the time specified, the Administrative Agent shall
notify each Canadian Revolving Lender of such failure, the payment then due from the Borrower in
respect thereof and such Lender&#146;s Canadian Revolving Percentage thereof. Promptly following
receipt of such notice, each Canadian Revolving Lender shall pay to the Administrative Agent its
Canadian Revolving Percentage of the payment then due from the Borrower, in the same manner as
provided in Section&nbsp;2.5 with respect to Canadian Revolving Loans made by such Lender (and Section
2.5 shall apply, <U>mutatis</U> <U>mutandis</U>, to the payment obligations of the Canadian
Revolving Lenders) and the Administrative Agent shall promptly pay to the relevant Canadian Issuing
Lender the amounts so received by it from the Canadian Revolving Lenders. Promptly following
receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph,
the Administrative Agent shall distribute such payment to such Canadian Issuing Lender or, to the
extent that Canadian Revolving Lenders have made payments pursuant to this paragraph to reimburse
such Canadian Issuing Lender, then to such Lenders and such Canadian Issuing Lender as their
interests may appear. Any payment made by a Canadian Revolving Lender pursuant to this paragraph
to reimburse such Canadian Issuing Lender for any amounts due by the Borrower pursuant to this
paragraph (other than the funding of Canadian Revolving Loans as contemplated above) shall not
constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such amounts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <U>Obligations Absolute</U>. The Borrower&#146;s obligations under this Section&nbsp;4 shall be absolute and unconditional under
any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that
the Borrower may have or have had against the relevant Canadian Issuing Lender, any beneficiary of
a Canadian Letter of Credit or any other Person. The Borrower also agrees with each Canadian
Issuing Lender that the Canadian Issuing Lender shall not be responsible for, and the Borrower&#146;s
Canadian Reimbursement Obligations under Section&nbsp;4.5 shall not be affected by, among other things,
the validity or genuineness of documents or of any endorsements thereon, even though such documents
shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the
Borrower and any
beneficiary of any Canadian Letter of Credit or any other party to which such Canadian Letter
of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of
such Canadian Letter of Credit or any such transferee. A Canadian Issuing Lender shall not be
liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any
message or advice, however transmitted, in connection with any Canadian Letter of Credit, except
for errors or omissions found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of such Canadian
Issuing Lender. The Borrower agrees that any action taken or omitted by a Canadian Issuing Lender
under or in connection with any Canadian Letter of
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Credit or the related drafts or documents, if
done in the absence of gross negligence or willful misconduct, shall be binding on the Borrower and
shall not result in any liability of such Canadian Issuing Lender to the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <U>Letter of Credit Payments</U>. If any draft shall be presented for payment under any Canadian Letter of Credit, the
relevant Canadian Issuing Lender shall promptly notify the Borrower and the Administrative Agent of
the date and amount thereof. The responsibility of such Canadian Issuing Lender to the Borrower in
connection with any draft presented for payment under any Canadian Letter of Credit shall, in
addition to any payment obligation expressly provided for in such Canadian Letter of Credit, be
limited to determining that the documents (including each draft) delivered under such Canadian
Letter of Credit in connection with such presentment are on their face substantially in conformity
with such Canadian Letter of Credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <U>Cash Collateralization of Canadian Letters of Credit</U>. In addition to any obligation of the Borrower to prepay Loans and cash collateralize
Letters of Credit pursuant to Section&nbsp;2.13(d), if on any date the amount of the Canadian L/C
Obligations exceeds the amount of the Canadian L/C Commitment, the Borrower shall cash
collateralize the Canadian Letters of Credit (in a manner reasonably satisfactory to the
Administrative Agent), in an amount so as to eliminate such excess.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <U>Applications</U>. To the extent that any provision of any Application related to any Canadian Letter of
Credit is inconsistent with the provisions of this Section&nbsp;4, the provisions of this Section&nbsp;4
shall apply.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 5. REPRESENTATIONS AND WARRANTIES
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To induce the Administrative Agent and the Lenders to enter into this Agreement and to make
the Loans and issue or participate in the Letters of Credit, Holdings and the Borrower hereby
jointly and severally represent and warrant to the Administrative Agent and each Lender that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U>Financial Condition</U>. (a)&nbsp;The unaudited <U>pro</U> <U>forma</U> consolidated balance sheet of Holdings and its
consolidated Subsidiaries as at September&nbsp;30, 2008 (including the notes thereto) (the &#147;<U>Pro
Forma Balance Sheet</U>&#148;) and the unaudited <U>pro</U> <U>forma</U> consolidated statements of
income and cash flows of Holdings and its consolidated Subsidiaries for the nine-month period ended
September&nbsp;30, 2008 (including the notes thereto) (the &#147;<U>Pro Forma Statement of Operations</U>&#148;,
and collectively with the Pro Forma Balance Sheet, the &#147;<U>Pro Forma Financial Statements</U>&#148;),
copies of which have heretofore been furnished to each Lender, have been prepared giving effect (as
if such events had occurred, with respect to the Pro Forma Balance
Sheet, on such date and, with respect to the Pro Forma Statements of Operations, on the first
day of the period set forth above) to (i)&nbsp;the consummation of the Acquisition, (ii)&nbsp;the Loans and
the Bridge Loans to be made on the Closing Date and the use of proceeds thereof and (iii)&nbsp;the
payment of fees and expenses in connection with the foregoing. The Pro Forma Financial Statements
have been prepared based on the best information available to Holdings and the Borrower as of the
date of delivery thereof, and present fairly on a <U>pro</U> <U>forma</U> basis the estimated
financial position of Holdings and its consolidated Subsidiaries as at, and the results of
operations of Holdings and its consolidated Subsidiaries for the twelve-month period ended,
September&nbsp;30, 2008, assuming that the events specified in the preceding sentence had actually
occurred at such date or on the first day of such period, as the case may be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The audited consolidated balance sheets of Holdings and its consolidated Subsidiaries as
at December&nbsp;31, 2006 and December&nbsp;31, 2007, and the related consolidated statements of income and
of cash flows for the fiscal years ended on such dates, reported on by and accompanied by an
unqualified report from KPMG LLP, present fairly the consolidated financial condition of Holdings
and
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">its consolidated Subsidiaries as at such date, and the consolidated results of its operations
and its consolidated cash flows for the respective fiscal years then ended. The unaudited
consolidated balance sheets of Holdings and its consolidated Subsidiaries as at March&nbsp;31, 2008,
June&nbsp;30, 2008 and September&nbsp;30, 2008, and the related unaudited consolidated statements of income
and cash flows for the three-month, six-month and nine-month periods respectively ended on such
dates, present fairly the consolidated financial condition of Holdings and its consolidated
Subsidiaries as at such respective dates, and the consolidated results of its operations and its
consolidated cash flows for the three-month, six-month and nine-month periods respectively then
ended (subject to normal year-end audit adjustments). All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP applied
consistently throughout the periods involved (except as approved by the aforementioned firm of
accountants and disclosed therein).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The audited consolidated balance sheets of the Target and its consolidated Subsidiaries as
at December&nbsp;31, 2005, December&nbsp;31, 2006 and December&nbsp;31, 2007, and the related consolidated
statements of income and of cash flows for the fiscal years ended on such dates, reported on by and
accompanied by an unqualified report from KPMG LLP, present fairly the consolidated financial
condition of the Target and its consolidated Subsidiaries as at such date, and the consolidated
results of its operations and its consolidated cash flows for the respective fiscal years then
ended. The unaudited consolidated balance sheets of the Target and its consolidated Subsidiaries
as at March&nbsp;31, 2008, June&nbsp;30, 2008 and September&nbsp;30, 2008, and the related unaudited consolidated
statements of income and cash flows for the three-month, six-month and nine-month periods
respectively ended on such dates, present fairly the consolidated financial condition of the Target
and its consolidated Subsidiaries as at such respective dates, and the consolidated results of its
operations and its consolidated cash flows for the three-month, six-month and nine-month periods
respectively then ended (subject to normal year-end audit adjustments). All such financial
statements, including the related schedules and notes thereto, have been prepared in accordance
with US GAAP applied consistently throughout the periods involved (except as approved by the
aforementioned firm of accountants and disclosed therein).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No Group Member has any material Guarantee Obligations, material contingent liabilities
and liabilities for taxes, or any Capital Lease Obligations or unusual forward or long-term
commitments, including any interest rate or foreign currency swap or exchange transaction or other
obligation in respect of derivatives, that are not reflected in the most recent financial
statements (including the related schedules and notes thereto) referred to in paragraphs (b)&nbsp;and
(c)&nbsp;above. During the period from December&nbsp;31, 2007 to and including the date hereof there has
been no Disposition by any Group Member of any material part of its business or property (other
than to another Group Member that is a Wholly Owned North American Subsidiary Guarantor).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <U>No Change</U>. Since December&nbsp;31, 2007, there has been no development or event that has had or would
reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <U>Existence; Compliance with Law</U>. Each Group Member (a)&nbsp;is duly organized, formed or settled, validly existing and in good
standing (to the extent applicable in the relevant jurisdiction) under the laws of the jurisdiction
of its organization, formation or settlement, (b)&nbsp;has the power and authority, and the legal right,
to own and operate its property, to lease the property it operates as lessee and to conduct the
business in which it is currently engaged, (c)&nbsp;is duly qualified as a foreign corporation or other
organization and in good standing (to the extent applicable in the relevant jurisdiction) under the
laws of each jurisdiction where its ownership, lease or operation of material property or the
conduct of material business requires such qualification and (d)&nbsp;is in compliance with all
Requirements of Law except to the extent that the failure to comply therewith could not, in the
aggregate, reasonably be expected to have a Material Adverse Effect. Nothing in this Section&nbsp;5.3
shall restrict any transaction permitted pursuant to Section&nbsp;8.4.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <U>Power; Authorization; Enforceable Obligations</U>. Each Loan Party has the power and authority, and the legal right, to make, deliver and
perform the Loan Documents to which it is a party and, in the case of the Borrower, to obtain
extensions of credit hereunder. Each Loan Party has taken all necessary action to authorize the
execution, delivery and performance of the Loan Documents to which it is a party and, in the case
of the Borrower, to authorize the extensions of credit on the terms and conditions of this
Agreement. No consent or authorization of, filing with, notice to or other act by or in respect
of, any Governmental Authority or any other Person is required in connection with the completion of
the Acquisition and the extensions of credit hereunder or with the execution, delivery,
performance, validity or enforceability of this Agreement or any of the Loan Documents, except (i)
consents, authorizations, filings and notices described in Schedule&nbsp;5.4, which consents,
authorizations, filings and notices have been obtained or made and are in full force and effect,
(ii)&nbsp;the filings referred to in Section&nbsp;5.20, and (iii)&nbsp;other immaterial consents, authorizations,
filings and notices in connection with the Acquisition. Each Loan Document has been duly executed
and delivered on behalf of each Loan Party party thereto. This Agreement constitutes, and each
other Loan Document upon execution will constitute, a legal, valid and binding obligation of each
Loan Party party thereto, enforceable against each such Loan Party in accordance with its terms,
except as enforceability may be limited by applicable Debtor Relief Laws and equitable principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <U>No Legal Bar</U>. The execution, delivery and performance of this Agreement and the other Loan Documents, the
issuance of Letters of Credit, the borrowings hereunder and the use of the proceeds thereof will
not violate any Requirement of Law or any Contractual Obligation of any Group Member and will not
result in, or require, the creation or imposition of any Lien on any of their respective properties
or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the
Liens created by the Security Documents).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <U>Litigation</U>. No litigation, investigation or proceeding of or before any arbitrator or Governmental
Authority is pending or, to the knowledge of Holdings or the Borrower, threatened by or against any
Group Member or against any of their respective properties or revenues (a)&nbsp;with respect to any of
the
Loan Documents or any of the transactions contemplated hereby or thereby except as described
in Schedule&nbsp;5.6, or (b)&nbsp;that would reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <U>No Default</U>. No Group Member is in default under or with respect to any of its Contractual Obligations
in any respect that could reasonably be expected to have a Material Adverse Effect. No Default or
Event of Default has occurred and is continuing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <U>Ownership of Property; Liens</U>. Each Group Member has title in fee simple to, or a valid leasehold interest in, all its
real property, and good title to, or a valid leasehold interest in, all its other property, and
none of such property is subject to any Lien except as permitted by Section&nbsp;8.3 and except for
minor defects in title that do not materially interfere with such Group Member&#146;s ability to conduct
its business or to utilize such assets for their intended purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <U>Intellectual Property</U>. Each Group Member owns, or is licensed to use, all Intellectual Property reasonably
necessary for the conduct of its business as currently conducted. No material claim has been
asserted and is pending by any Person challenging or questioning the use of any material
Intellectual Property by any Group Member or the validity or effectiveness of any Group Member&#146;s
rights in any material Intellectual Property, nor, except as set forth on Schedule&nbsp;5.9, does
Holdings or the Borrower know of any valid basis for any such claim. The use of Intellectual
Property by each Loan Party does not infringe on the rights of any Person in any material respect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <U>Taxes</U>. Each Group Member has filed or caused to be filed all Federal, state, provincial and other
material tax returns that are required to be filed and has paid all taxes shown to be
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">due and
payable on said returns or on any assessments made against it or any of its property and all other
taxes, fees or other charges imposed on it or any of its property by any Governmental Authority
(other than any such taxes, fees or other charges the amount or validity of which are currently
being contested in good faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP (or US GAAP in the case of the Target prior to the Closing Date) have been
provided on the books of the relevant Group Member) and other than taxes which in the aggregate do
not exceed $2,500,000; to the knowledge of Holdings and the Borrower, no claim is being asserted
with respect to any such tax, fee or other charge, except as previously disclosed in writing to the
Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <U>Federal Regulations</U>. No part of the proceeds of any Loans, and no other extensions of credit hereunder, will be
used (a)&nbsp;for &#147;buying&#148; or &#147;carrying&#148; any &#147;margin stock&#148; within the respective meanings of each of
the quoted terms under Regulation&nbsp;U as now and from time to time hereafter in effect for any
purpose that violates the provisions of the Regulations of the Board or (b)&nbsp;for any purpose that
violates the provisions of the Regulations of the Board. If requested by any Lender or the
Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a
statement to the foregoing effect in conformity with the requirements of FR Form&nbsp;G-3 or FR Form
U-1, as applicable, referred to in Regulation&nbsp;U.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <U>Labor Matters</U>. Except as, in the aggregate, could not reasonably be expected to have a Material Adverse
Effect: (a)&nbsp;there are no strikes or other labor disputes against any Group Member pending or, to
the knowledge of Holdings or the Borrower, threatened; (b)&nbsp;hours worked by and payment made to
employees of each Group Member have not been in violation of the Fair Labor Standards Act or any
other applicable Requirement of Law dealing with such matters; and (c)&nbsp;all payments due from any
Group Member on account of employee health and welfare insurance have been paid or accrued as a
liability on the books of the relevant Group Member.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <U>ERISA</U>. (a)&nbsp;Except as could not reasonably be expected, individually or in the aggregate, to have
a Material Adverse Effect: (i)&nbsp;each Group Member and each of their respective ERISA Affiliates is
in compliance with the applicable provisions of ERISA and the provisions of the Code relating to
Plans and the regulations and published interpretations thereunder; (ii)&nbsp;no ERISA Event has
occurred or is reasonably expected to occur; and (iii)&nbsp;all amounts required by applicable law with
respect to, or by the terms of, any retiree welfare benefit arrangement maintained by any Group
Member or any ERISA Affiliate or to which any Group Member or any ERISA Affiliate has an obligation
to contribute have been accrued in accordance with Statement of Financial Accounting Standards No.
106.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as, in the aggregate, could not reasonably be expected to have a Material Adverse
Effect, (i)&nbsp;all employer and employee contributions required by applicable law or by the terms of
any Foreign Benefit Arrangement or Foreign Plan have been made, or, if applicable, accrued in
accordance with normal accounting practices; (ii)&nbsp;the accrued benefit obligations of each Foreign
Plan (based on those assumptions used to fund such Foreign Plan) with respect to all current and
former participants do not exceed the assets of such Foreign Plan; (iii)&nbsp;each Foreign Plan that is
required to be registered has been registered and has been maintained in good standing with
applicable regulatory authorities; and (iv)&nbsp;each such Foreign Benefit Arrangement and Foreign Plan
is in compliance (A)&nbsp;with all material provisions of applicable law and all material applicable
regulations and published interpretations thereunder with respect to such Foreign Benefit
Arrangement or Foreign Plan and (B)&nbsp;with the terms of such plan or arrangement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 <U>Canadian Pension and Benefit Plans</U>. (a)&nbsp;All obligations of Holdings and its Subsidiaries under each Canadian Pension Plan and
Canadian Benefit Plan have been performed in accordance with the terms thereof and any Requirement
of Law (including, without limitation, the <I>Income Tax Act </I>(Canada)), except where the failure to so
perform could not reasonably be expected to result in a
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Material Adverse Effect. No Canadian
Pension Plan has any unfunded liabilities which could reasonably be expected to have a Material
Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as could not reasonably be expected to have a Material Adverse Effect, the present
value of all accumulated benefit obligations under each Canadian Pension Plan and Foreign Pension
Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards
No.&nbsp;87) did not, as of the date of the most recent financial statements reflecting such amounts,
exceed the fair market value of the assets of such Pension Plan allocable to such accrued benefits,
and the present value of all accumulated benefit obligations of all underfunded Pension Plans
(based on the assumptions used for purposes of Statement of Financial Accounting Standards No.&nbsp;87)
did not, as of the date of the most recent financial statements reflecting such amounts, exceed by
more than a material amount the fair market value of the assets of all such underfunded Pension
Plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 <U>Investment Company Act; Other Regulations</U>. No Loan Party is an &#147;investment company&#148;, or a company &#147;controlled&#148; by an &#147;investment
company&#148;, within the meaning of the Investment Company Act of 1940, as amended. No Loan Party is
subject to regulation under any Requirement of Law (other than Regulation&nbsp;X of the Board) that
limits its ability to incur Indebtedness.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16 <U>Subsidiaries</U>. Except as disclosed to the Administrative Agent by the Borrower in writing from time to
time after the Closing Date, (a)&nbsp;Schedule&nbsp;5.16 sets forth the name and jurisdiction of
incorporation of each Subsidiary and, as to each such Subsidiary, the percentage of each class of
Capital Stock owned by any Loan Party and (b)&nbsp;there are no outstanding subscriptions, options,
warrants, calls, rights or other agreements or commitments (other than stock or unit options
granted to employees or directors and directors&#146; qualifying shares) of any nature relating to any
Capital Stock of the Borrower or any Subsidiary, except as created by the Loan Documents and any
Existing Convertible Securities remaining outstanding on the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17 <U>Use of Proceeds</U>. The proceeds of the Term Loans shall be used to finance a portion of the Acquisition and to
refinance, in whole or in part, the Existing Convertible Securities and, in each case, to pay
related fees and expenses; <U>provided</U>, that the proceeds of any Incremental Term Loans shall
be used for general corporate purposes. The proceeds of the Revolving Loans and the Swingline
Loans, and the Letters of Credit, shall be used to finance working capital requirements and for
general corporate purposes of the Borrower, Holdings and their respective Subsidiaries;
<U>provided</U>, that the proceeds of Revolving Loans made on the Closing Date may be used to
finance a portion of the Acquisition, to refinance existing indebtedness of the Borrower or the
Target or their respective Subsidiaries on or about the Closing Date and to pay related fees and
expenses (provided that the Borrower shall repay a portion (such portion, the &#147;<U>Temporary
Revolving Borrowings</U>&#148;) of such Revolving Loans by no later than 11:00&nbsp;A.M., New York City time,
on the Business Day immediately following the Closing Date so that not more than $100,000,000
(exclusive of any Letters of Credit issued on the Closing Date to replace any existing letters of
credit of the Target), plus any additional amounts necessary to finance any OID in respect of the
Term Loans, of such Revolving Loans used for such purposes remain outstanding).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18 <U>Environmental Matters</U>. Except as set forth in Schedule&nbsp;5.18 or as, in the aggregate, could not reasonably be
expected to have a Material Adverse Effect:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the facilities and properties owned, leased or operated by any Group Member (the
&#147;<U>Properties</U>&#148;) do not contain, and have not previously contained, any Materials of
Environmental Concern in amounts or concentrations or under circumstances that constitute or
constituted a violation of, or could give rise to liability under, any Environmental Law;
</DIV>



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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;no Group Member has received or is aware of any notice of violation, alleged violation,
non-compliance, liability or potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Properties or the business operated by any Group
Member (the &#147;<U>Business</U>&#148;), nor does Holdings or the Borrower have knowledge or reason to
believe that any such notice will be received or is being threatened;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Materials of Environmental Concern have not been transported to or disposed of at, on or
under any property in violation of, or in a manner or to a location that could reasonably be
expected to give rise to liability under, any Environmental Law, nor have any Materials of
Environmental Concern been generated, treated, stored or disposed of at, on or under any of the
Properties in violation of, or in a manner that could reasonably be expected to give rise to
liability under, any applicable Environmental Law;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;no judicial proceeding or governmental or administrative action is pending or, to the
knowledge of Holdings and the Borrower, threatened, under any Environmental Law to which any Group
Member is or could reasonably be expected to be named as a party with respect to the Properties or
the Business, nor are there any consent decrees or other decrees, consent orders, administrative
orders or other orders, or other administrative or judicial judgments remaining in effect under any
Environmental Law with respect to the Properties or the Business;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;there has been no Release or threat of Release of Materials of Environmental Concern at,
on, under or from the Properties, or arising from or related to the operations of any Group Member
in connection with the Properties or otherwise in connection with the Business, in violation of or
in amounts or in a manner that could give rise to liability under Environmental Laws;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;the Business, the Properties and all operations at the Properties are in compliance, and
have in the last five years been in compliance, with all applicable Environmental Laws; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;no Group Member has assumed any liability of any other Person under Environmental Laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19 <U>Accuracy of Information, etc</U>. No statement or information contained in this Agreement, any other Loan Document, the
Confidential Information Memorandum (as updated by the Borrower from time to time prior to the
Closing Date) or any other material document, certificate or statement furnished by or on behalf of
any Loan Party to the Administrative Agent or the Lenders, or any of them, for use in connection
with the transactions contemplated by this Agreement or the other Loan Documents, contained as of
the date such statement, information, document or certificate was so furnished (or, in the case of
the Confidential Information Memorandum (as updated on or prior to the date hereof), as of the date
of this Agreement), any untrue statement of a material fact or omitted to state a material fact
necessary to make the statements contained herein or therein not materially misleading in light of
the circumstances under which such statement was made. The projections and <U>pro</U>
<U>forma</U> financial information contained in the materials referenced above are based upon good
faith estimates and assumptions believed by management of the Borrower to be reasonable at the time
made, it being recognized by the Lenders that such financial information as it relates to future
events is not to be viewed as fact and that actual results during the period or periods covered by
such financial information may differ from the projected results set forth therein by a material
amount. There is no fact known to any Loan Party that could reasonably be expected to have a
Material Adverse Effect that has not been expressly disclosed herein, in the other Loan
Documents, in the Confidential Information Memorandum or in any other documents, certificates
and statements furnished to the Administrative Agent and the Lenders for use in connection with the
transactions contemplated hereby and by the other Loan
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Documents. No representation is made with
respect to information of a general economic or general industry nature.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20 <U>Security Documents</U>. (a)The US Guarantee and Collateral Agreement is effective to create in favor of the
Administrative Agent, for the benefit of the Lenders, a legal, valid and enforceable security
interest in the Collateral described therein and the proceeds thereof. In the case of the Pledged
Stock as defined and described in the US Guarantee and Collateral Agreement, when stock
certificates (in the case of Pledged Stock which is certificated) representing such Pledged Stock
are delivered to the Administrative Agent, and in the case of the other Collateral described in the
US Guarantee and Collateral Agreement, when financing statements and other filings specified on
Schedule&nbsp;5.20(a) in appropriate form are filed in the offices specified on Schedule&nbsp;5.20(a), the US
Guarantee and Collateral Agreement shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in such Collateral and the proceeds
thereof (except to the extent the same may not be perfected by such delivery or filing), as
security for the Obligations (as defined in the US Guarantee and Collateral Agreement), in each
case prior and superior in right to any other Person (except, in the case of Collateral other than
Pledged Stock, Liens permitted by Section&nbsp;8.3).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of the Mortgages, if any, is effective to create in favor of the Administrative
Agent, for the benefit of the Lenders, a legal, valid and enforceable Lien on the Mortgaged
Properties described therein and proceeds thereof, and when the Mortgages, if any, are filed in the
proper real estate filing offices, each such Mortgage shall constitute a fully perfected Lien on,
and security interest in, all right, title and interest of the Loan Parties in the Mortgaged
Properties and the proceeds thereof, as security for the Obligations (as defined in the relevant
Mortgage), in each case prior and superior in right to any other Person (other than as permitted by
the relevant Mortgage). Schedule&nbsp;5.20(b) lists, as of the Closing Date, each parcel of owned real
property and each leasehold interest in real property located in the United States or Canada and
held by any Group Member having a fair market value (together with improvements thereof) of at
least $10,000,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Canadian Collateral Agreement is, effective to create in favor of the Administrative
Agent, for the benefit of the Lenders, a legal, valid and enforceable security interest (or
<I>hypothec</I>, if applicable) in the Collateral described therein and the proceeds thereof. In the case
of the Pledged Stock as defined and described in the Canadian Collateral Agreement, when stock
certificates (in the case of Pledged Stock which is certificated) representing such Pledged Stock
are delivered to the Administrative Agent, and in the case of the other Collateral described in the
Canadian Collateral Agreement, when financing statements and other filings specified on Schedule
5.20(c) in appropriate form are filed in the offices specified on Schedule&nbsp;5.20(c), the
Administrative Agent shall have a fully perfected Lien on, and security interest in, all right,
title and interest of the Loan Parties in such Collateral and the proceeds thereof (except to the
extent the same may not be perfected by such delivery or filing), as security for the Obligations
(as defined in the Canadian Collateral Agreement), in each case prior and superior in right to any
other Person (except, in the case of Collateral other than Pledged Stock, Liens permitted by
Section&nbsp;8.3).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.21 <U>Insurance</U>. The Loan Parties maintain insurance in compliance with Section&nbsp;7.5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.22 <U>Solvency</U>. Each of Holdings and the Borrower on a consolidated basis is, and after giving effect to
the Acquisition and the incurrence of all Indebtedness and obligations being incurred in connection
herewith and therewith will be, Solvent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.23 <U>Certain Documents</U>. The Borrower has delivered to the Administrative Agent a complete and correct copy of the
Acquisition Documentation, the Bridge Credit Agreement and each
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Material Contract, including any
material amendments, supplements or modifications with respect to any of the foregoing.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 6. CONDITIONS PRECEDENT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Conditions to Initial Extension of Credit</u>. The agreement of each Lender to make the initial extension of credit requested to be made
by it is subject to the satisfaction, prior to or concurrently with the making of such extension of
credit on the Closing Date, of the following conditions precedent:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Credit Agreement; Other Loan Documents</U>. The Administrative Agent shall
have received (i)&nbsp;this Agreement, executed and delivered by the Administrative Agent,
Holdings, the Borrower and each Person listed on Schedule&nbsp;1.1A, (ii)&nbsp;the US Guarantee and
Collateral Agreement, executed and delivered by Holdings, the Borrower and each Subsidiary
Guarantor, (iii)&nbsp;an Acknowledgement and Consent in the form attached to the US Guarantee and
Collateral Agreement, executed and delivered by each Issuer (as defined therein), if any,
that is not a Loan Party, (iv)&nbsp;the Canadian Collateral Agreement, executed and delivered by
Holdings, the Borrower and each Subsidiary Guarantor organized under the laws of Canada or
any province thereof and (v)&nbsp;an Acknowledgement and Consent in the form attached to the
Canadian Collateral Agreement, executed and delivered by each Issuer (as defined therein),
if any, that is not a Loan Party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Acquisition, etc</U>. The following transactions shall have been consummated
substantially simultaneously therewith:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Target shall be merged with and into Precision Lobos Corporation, with
Precision Lobos Corporation surviving such merger (the &#147;<U>Acquisition</U>&#148;) in
accordance with the Acquisition Agreement, and no provision of the Acquisition
Agreement shall have been waived, amended, supplemented or otherwise modified in a
manner material and adverse to the Lenders without the written consent of the
Arrangers (which consent shall not be unreasonably withheld or delayed);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower shall have received at least $400,000,000 (less the
aggregate amount of Existing Convertible Securities that the Borrower has determined
will not be converted or redeemed on the Closing Date) in gross cash proceeds from
the borrowing of the Bridge Loans;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Administrative Agent shall have received reasonably satisfactory
evidence that the fees and expenses (including on account of any OID) to be incurred
in connection with the Acquisition and the financing thereof shall not exceed
<B>&#091;Redacted pursuant to Section&nbsp;12.2 of national instrument 51-102&#093;</B>; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent shall have received reasonably satisfactory
evidence that (i)&nbsp;substantially all of the Indebtedness (including commitments in
respect thereof) of the Target (excluding those Existing Convertible Securities not
converted or redeemed on or prior to the Closing Date) existing prior to the Closing
Date and (ii)&nbsp;all obligations under the Extendible Revolving Term Credit Agreement,
dated November&nbsp;2, 2005, as amended from time to time, between the Borrower, the
financial institutions from time to time parties thereto and Royal Bank of Canada,
as agent, shall have been repaid (or cancelled) on terms reasonably satisfactory to
the Administrative Agent and all related security interests released or arrangements
shall have been made which are
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">reasonably satisfactory to the Administrative Agent
for the repayment thereof and release of all related security interests.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Pro Forma Financial Statements; Financial Statements</U>. The Lenders shall
have received the Pro Forma Financial Statements and the other financial statements of
Holdings and the Target described in Section&nbsp;5.1 and all other financial statements for
completed or pending acquisitions that may be required under Regulation&nbsp;S-X of the
Securities Act of 1933, as amended (&#147;<U>Regulation&nbsp;S-X</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Projections</U>. The Lenders shall have received satisfactory projections of
Holdings (giving effect to the Acquisition) through 2014 (and receipt of such projections
are hereby acknowledged).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Approvals</U>. All governmental and third party approvals required under
Section&nbsp;6.1 of the Acquisition Agreement shall have been obtained and be in full force and
effect on terms reasonably satisfactory to the Arrangers. No Governmental Authority (as
defined in the Acquisition Agreement) of competent jurisdiction shall have issued,
promulgated, enforced or entered any Order (as defined in the Acquisition Agreement),
temporary restraining order, preliminary or permanent injunction, or other legal restraint
or prohibition that is continuing and which prevents the consummation of the Acquisition.
There shall not be any pending suit, action or proceeding asserted by any Governmental
Authority (as defined in the Acquisition Agreement) challenging or seeking to restrain or
prohibit the consummation of the Acquisition or the transactions contemplated under the
Acquisition Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Target Material Adverse Effect</U>. Except as described in the Grey Wolf
Reports (as defined in the Acquisition Agreement), no Target Material Adverse Effect shall
have occurred since December&nbsp;31, 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Consolidated Leverage Ratio</U>. The Consolidated Leverage Ratio (calculated
on a pro forma basis after giving effect to the Acquisition and the making of the initial
extensions of credit hereunder and with Consolidated EBITDA being calculated for the
twelve-month period ended on the date of the most recent financial statements delivered
pursuant to Section&nbsp;5.1, but excluding for this purpose only the Temporary Revolving
Borrowings) shall not exceed 2.00 to 1.00.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Lien Searches</U>. The Administrative Agent shall have received the results of
a recent lien search in each of the jurisdictions where the Loan Parties are organized or
their respective chief executive offices are located or where material Collateral is
located, and such search shall reveal no liens on any of the assets of the Loan Parties
except for liens permitted by Section&nbsp;8.3 or discharged on or prior to the Closing Date or
to be discharged promptly after the Closing Date pursuant to documentation satisfactory to
the Administrative Agent acting
reasonably, or arrangements shall have been made which are reasonably satisfactory to
the Administrative Agent for the release of such liens.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Fees</U>. The Lenders, the Administrative Agent and the Arrangers shall have
received all fees required to be paid, and all expenses for which invoices have been
presented (including the reasonable fees and expenses of legal counsel), on or before the
Closing Date. All such amounts will be paid with proceeds of Loans made on the Closing Date
and will be reflected in the funding instructions given by the Borrower to the
Administrative Agent on or before the Closing Date.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Closing Certificate; Certified Articles of Incorporation; Good Standing
Certificates</U>. The Administrative Agent shall have received (i)&nbsp;a certificate of each
Loan Party, dated the Closing Date, substantially in the form of Exhibit&nbsp;C, with appropriate
insertions and attachments, including the certificate or articles of incorporation of each
Loan Party that is a corporation and certificate of limited partnership for each Loan Party
that is a limited partnership, certified by the relevant authority of the jurisdiction of
organization of such Loan Party (if such Loan Party is organized in the United States, and
otherwise by the secretary or assistant secretary of such Loan Party) and (ii)&nbsp;a long form
good standing certificate, certificate of status or certificate of limited partnership, as
applicable (in each case, if available in such jurisdiction), for each Loan Party from its
jurisdiction of organization.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>Legal Opinions</U>. The Administrative Agent shall have received the following
executed legal opinions addressed to the Administrative Agent and the Lenders:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the legal opinion of Bennett Jones LLP, Canadian counsel to Holdings and
its Subsidiaries, substantially in the form of Exhibit&nbsp;E-1;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the legal opinion of Mayer Brown LLP, New York counsel to Holdings and
its Subsidiaries, substantially in the form of Exhibit&nbsp;E-2;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the legal opinion of Joanne Alexander, general counsel of Holdings,
substantially in the form of Exhibit&nbsp;E-3; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the legal opinion of local counsel in each of Nevada and Louisiana and of
such other special and local counsel as may be required by the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Each such legal opinion shall cover such other matters incident to the transactions
contemplated by this Agreement as the Administrative Agent may reasonably require.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <U>Pledged Stock; Stock Powers; Pledged Notes</U>. The Administrative Agent shall
have received (i)&nbsp;the certificates representing the shares or units of Capital Stock (to the
extent certificated) pledged pursuant to the US Guarantee and Collateral Agreement or the
Canadian Collateral Agreement, together with an undated stock power or transfer form for
each such certificate executed in blank by a duly authorized officer of the pledgor thereof
and (ii)&nbsp;each promissory note (if any) pledged to the Administrative Agent pursuant to the
US Guarantee and Collateral Agreement endorsed (without recourse) in blank (or accompanied
by an executed transfer form in blank) by the pledgor thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <U>Filings, Registrations and Recordings</U>. Each document (including any
Uniform Commercial Code financing statement or PPSA filing)&nbsp;required by the Security
Documents or under law or reasonably requested by the Administrative Agent to be filed,
registered or recorded
in order to create in favor of the Administrative Agent, for the benefit of the
Lenders, a perfected Lien on the Collateral described therein, prior and superior in right
to any other Person (other than with respect to Liens expressly permitted by Section&nbsp;8.3),
shall be in proper form for filing, registration or recordation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <U>Solvency Certificate</U>. The Administrative Agent shall have received a
certificate from the chief financial officer or vice president, finance of Holdings and the
Borrower attesting to the Solvency of Holdings and the Borrower on a consolidated basis
after giving effect to the Acquisition and the incurrence of all Indebtedness and
obligations being incurred in connection herewith and therewith.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <U>Insurance</U>. The Administrative Agent shall have received insurance
certificates satisfying the requirements of Section&nbsp;5.3(b) of the US Guarantee and
Collateral Agreement and Section&nbsp;4.3(b) of the Canadian Collateral Agreement, as applicable.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the purpose of determining compliance with the conditions specified in this Section&nbsp;6.1, each
Lender that has signed this Agreement shall be deemed to have accepted, and to be satisfied with,
each document or other matter required under this Section&nbsp;6.1 unless the Administrative Agent shall
have received written notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <U>Conditions to Each Extension of Credit</U>. The agreement of each Lender to make any extension of credit requested to be made by it on
any date (including its initial extension of credit) is subject to the satisfaction of the
following conditions precedent:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Representations and Warranties</U>. Each of the representations and warranties
made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all
material respects on and as of such date as if made on and as of such date;
<U>provided</U>, that, solely for purposes of the initial extensions of credit to be made
on the Closing Date, the only representations and warranties relating to the Target and its
Subsidiaries and their respective businesses the making of which shall be a condition to
such initial extensions of credit shall be the Specified Representations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>No Default</U>. No Default or Event of Default shall have occurred and be
continuing on such date or after giving effect to the extensions of credit requested to be
made on such date.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each borrowing by and issuance of a Letter of Credit on behalf of the Borrower hereunder shall
constitute a representation and warranty by the Borrower as of the date of such extension of credit
that the conditions contained in this Section&nbsp;6.2 have been satisfied.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 7. AFFIRMATIVE COVENANTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holdings and the Borrower hereby jointly and severally agree that, so long as the Commitments
remain in effect, any Letter of Credit remains outstanding or any Loan or other amount is owing to
any Lender or the Administrative Agent hereunder, each of Holdings and the Borrower shall and shall
cause each of its Subsidiaries to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <U>Financial Statements</U>. Furnish to the Administrative Agent and each Lender:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as available, but in any event within 90&nbsp;days after the end of each fiscal
year of Holdings, a copy of the audited consolidated balance sheet of Holdings and its
consolidated Subsidiaries as at the end of such year and the related audited consolidated
statements of income and of cash flows for such year, setting forth in each case in
comparative form the figures for the previous year, reported on without a &#147;going concern&#148; or
like qualification or exception, or qualification arising out of the scope of the audit, by
KPMG LLP or other independent certified public accountants of nationally recognized
standing; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as available, but in any event not later than 45&nbsp;days after the end of each
of the first three quarterly periods of each fiscal year of Holdings, the unaudited
consolidated balance sheet of Holdings and its consolidated Subsidiaries as at the end of
such quarter and the related unaudited consolidated statements of income and of cash flows
for such quarter and the portion of the fiscal year through the end of such quarter, setting
forth in each
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">case in comparative form the figures for the previous year, certified by a
Responsible Officer as being fairly stated in all material respects (subject to normal
year-end audit adjustments and absence of footnotes).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All such financial statements shall be complete and correct in all material respects and shall be
prepared in reasonable detail and in accordance with GAAP applied (except as approved by such
accountants or officer, as the case may be, and disclosed in reasonable detail therein)
consistently throughout the periods reflected therein and with prior periods. Delivery of the
financial statements referred to above shall be deemed to have been made upon delivery of notice to
the Administrative Agent that such statements are available via EDGAR or SEDAR, as the case may be,
on the Internet.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <U>Certificates; Other Information</U>. Furnish to the Administrative Agent and each Lender (or, in the case of clause (h), to the
relevant Lender):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) concurrently with the delivery of the financial statements referred to in Section
7.1(a), a certificate of the independent certified public accountants reporting on such
financial statements stating that in making the examination necessary therefor no knowledge
was obtained of any Default or Event of Default with respect to Section&nbsp;8.1 hereof, except
as specified in such certificate; provided, however, that such certificate shall not be
required to the extent such independent certified public accountants advise the Borrower
that they do not customarily provide such certificates for similar clients;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) concurrently with the delivery of any financial statements pursuant to Section&nbsp;7.1,
(i)&nbsp;a certificate of a Responsible Officer stating that, to the best of such Responsible
Officer&#146;s knowledge, each Loan Party during such period has observed or performed all of its
covenants and obligations contained in this Agreement and the other Loan Documents to which
it is a party to be observed, performed or satisfied by it, and that such Responsible
Officer has obtained no knowledge of any Default or Event of Default except as specified in
such certificate (with respect to the covenants set forth in Section&nbsp;8.1, such certificate
shall only be required to speak to compliance therewith as of the end of the period covered
thereby) and (ii)&nbsp;in the case of quarterly or annual financial statements, (x)&nbsp;a Compliance
Certificate containing all information and calculations reasonably necessary for determining
compliance by each Group Member with the provisions of this Agreement referred to therein as
of the last day of the fiscal quarter or fiscal year of Holdings, as the case may be, and
(y)&nbsp;to the extent not previously disclosed to the
Administrative Agent, (1)&nbsp;a description of any change in the jurisdiction of
organization or name of any Loan Party, (2)&nbsp;a list of any registered Intellectual Property
acquired by any Loan Party and (3)&nbsp;a description of any Person that has become a Group
Member, in each case since the date of the most recent report delivered pursuant to this
clause (y) (or, in the case of the first such report so delivered, since the Closing Date);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as soon as available, and in any event no later than 45&nbsp;days after the end of each
fiscal year of Holdings, a detailed consolidated budget for the following fiscal year
(including a projected consolidated balance sheet of Holdings and its Subsidiaries as of the
end of the following fiscal year, the related consolidated statements of projected cash flow
and projected income and a description of the underlying assumptions applicable thereto),
and, as soon as available, significant revisions, if any, of such budget and projections
with respect to such fiscal year (collectively, the &#147;<U>Projections</U>&#148;), which
Projections shall in each case be accompanied by a certificate of a Responsible Officer
stating that such Projections are based on reasonable estimates, information and assumptions
and that such Responsible Officer has no reason to believe that such Projections are
incorrect or misleading in any material respect;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) within 45&nbsp;days after the end of each fiscal quarter of Holdings, a narrative
discussion and analysis of the financial condition and results of operations of Holdings and
its Subsidiaries for such fiscal quarter and for the period from the beginning of the then
current fiscal year to the end of such fiscal quarter, as compared to the portion of the
Projections covering such periods and to the comparable periods of the previous year;
<U>provided</U>, that such delivery shall be deemed to have been made upon delivery of
notice to the Administrative Agent that such narrative discussion and analysis is available
via EDGAR or SEDAR, as the case may be, on the Internet;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no later than five Business Days prior to the effectiveness thereof, copies of
substantially final drafts of any proposed amendment, supplement, waiver or other
modification with respect to the Bridge Credit Agreement or the Senior Note Indenture;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) within five days after the same are sent, copies of all financial statements and
reports that Holdings or the Borrower sends to the holders of any class of its debt
securities or public equity securities and, within five days after the same are filed,
copies of all financial statements and reports that Holdings or the Borrower may make to, or
file with, the SEC or pursuant to other applicable securities laws; <U>provided</U>, that
such delivery shall be deemed to have been made upon delivery of notice to the
Administrative Agent that such statements or reports are available via EDGAR or SEDAR, as
the case may be, on the Internet;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) promptly following receipt thereof, copies of (i)&nbsp;any documents described in
Section 101(k) of ERISA that any Group Member or any ERISA Affiliate may request with
respect to any Multiemployer Plan and (ii)&nbsp;any notices described in Section 101(l) of ERISA
that any Group Member or any ERISA Affiliate may request with respect to any Multiemployer
Plan; <U>provided</U>, that if the Group Member or any ERISA Affiliate has not requested
such documents or notices from the administrator or sponsor of the applicable Multiemployer
Plan, then, upon reasonable request of the Administrative Agent, the Group Member and/or the
ERISA Affiliates shall promptly make a request for such documents or notices from such
administrator or sponsor and the Borrower shall provide copies of such documents and notices
promptly after receipt thereof; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) promptly, such additional financial and other information as the Administrative
Agent may from time to time reasonably request on behalf of itself or any Lender.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <U>Payment of Obligations</U>. Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent,
as the case may be, all its material obligations of whatever nature (including but not limited to
tax liabilities), except where the amount or validity thereof is currently being contested in good
faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have
been provided on the books of the relevant Group Member.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <U>Maintenance of Existence; Compliance</U>. (a) (i)&nbsp;Preserve, renew and keep in full force and effect the organizational existence of
each Loan Party and Material Subsidiary and (ii)&nbsp;take all reasonable action to maintain its
qualification to carry on business in each jurisdiction in which it carries on business, except, in
each case, as otherwise permitted by Section&nbsp;8.4 or Section&nbsp;11.19 or as may otherwise occur in
connection with a Permitted Reorganization and except, in the case of clause (ii)&nbsp;above, to the
extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;
and (b)&nbsp;comply with all Contractual Obligations and Requirements of Law except to the extent that
failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material
Adverse Effect.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <U>Maintenance of Property; Insurance</U>. (a)&nbsp; Maintain, use and operate assets in a proper and businesslike manner and in accordance
with good business and industry practice and (b)&nbsp;maintain with financially sound and reputable
insurance companies insurance on all its property in such amounts and against such risks as are
usually insured against in the same general area by companies engaged in the same or a similar
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <U>Inspection of Property; Books and Records; Discussions</U>. (a)&nbsp;Keep proper books of account in accordance with GAAP, (b)&nbsp;upon reasonable notice and
during normal business hours, permit representatives of the Administrative Agent to (i)&nbsp;visit and
inspect any of its properties to the extent it is within such Person&#146;s control to permit such
inspection (and shall use commercially reasonable efforts to cause such inspection to be permitted
to the extent it is not within such Person&#146;s control to permit such inspection) (provided that such
visits shall be limited to no more than three visits per calendar year in the aggregate, except
during the continuance of an Event of Default) and (ii)&nbsp;discuss the business, operations,
properties and financial and other condition of the Group Members with the Group Members&#146;
independent certified public accountants (provided that such discussions shall be limited to no
more than three discussions per calendar year in the aggregate, except during the continuance of an
Event of Default) and (c)&nbsp;upon reasonable notice and during normal business hours, permit
representatives of the Administrative Agent or any Lender to discuss the business, operations,
properties and financial and other condition of the Group Members with officers and employees of
the Group Members (provided that such discussions shall be coordinated by the Administrative Agent
and shall be limited to no more than three discussions per calendar year in the aggregate, in each
case except during the continuance of an Event of Default).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <U>Notices</U>. Promptly give notice to the Administrative Agent and each Lender of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of any Default or Event of Default;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any (i)&nbsp;default or event of default under any Contractual Obligation of any Group
Member or (ii)&nbsp;litigation, investigation or proceeding that may exist at any time between
any Group Member and any Governmental Authority, that in either case, if not cured or if
adversely determined, as the case may be, could reasonably be expected to have a Material
Adverse Effect;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any litigation or proceeding affecting any Group Member (i)&nbsp;in which the amount
involved is $25,000,000 or more and not covered by insurance, (ii)&nbsp;in which injunctive or
similar relief of a material nature is sought or (iii)&nbsp;which relates to any Loan Document;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i)&nbsp;an ERISA Event, (ii)&nbsp;the receipt by any Group Member or any ERISA Affiliate
from the PBGC or a plan administrator of any notice relating to an intention to terminate
any Pension Plan or to appoint a trustee to administer any Pension Plan under Section&nbsp;4042
of ERISA or (iii)&nbsp;the receipt by any Group Member or any ERISA Affiliate of any notice, or
the receipt by any Multiemployer Plan from a Group Member or any ERISA Affiliate of any
notice, concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, Insolvent, in Reorganization or in endangered
or critical status, within the meaning of Section&nbsp;432 of the Code or Section&nbsp;305 or Title&nbsp;IV
of ERISA, in each case as soon as possible and in any event within 10&nbsp;days after a
Responsible Officer of Holdings or the Borrower knows or has reason to know thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any change to the location of the chief executive office of any Loan Party that at
the time of such change has its chief executive office in Canada, or becomes located in
Canada as a result of such change; and
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any development or event that has had or would reasonably be expected to have a
Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <U>Environmental Laws</U>. (a)&nbsp;Comply and take all reasonable efforts to ensure compliance by all tenants and
subtenants, if any, with, all applicable Environmental Laws, and obtain and comply with and
maintain, and take all reasonable efforts to ensure that all tenants and subtenants obtain and
comply with and maintain, any and all licenses, approvals, notifications, registrations or permits
required by applicable Environmental Laws. For purposes of this Section&nbsp;7.8(a), noncompliance by
any Group Member with any such Environmental Law or any such licenses, approvals, notifications,
registrations or permits shall be deemed not to constitute a breach of this covenant provided that,
upon learning of any actual or suspected noncompliance, such Group Member shall promptly undertake
all reasonable efforts to achieve compliance, and provided further that, in any case, such
non-compliance, and any other noncompliance with Environmental Law, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Conduct and complete all investigations, studies, sampling and testing, and all remedial,
removal and other actions required under Environmental Laws and promptly comply in all material
respects with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws except those that are being timely and properly contested in good faith and
provided that the pendency of any and all such contests or appeals could not reasonably be expected
to have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <U>Interest Rate Protection</U>. In the case of the Borrower, except to the extent (and only for so long as) interest rate
protection arrangements are not in the reasonable judgment of the Administrative Agent generally
available in the market or are not available on commercially reasonable terms, within 180&nbsp;days
after the Closing Date, enter into Swap Agreements to the extent necessary to provide that at least
50% of the aggregate principal amount of the Bridge Loans, the Senior Notes and the Term Loans is
subject to either a fixed interest rate or interest rate protection for a period of not less than
three years from the Closing Date, which Swap Agreements shall have terms and conditions reasonably
satisfactory to the Administrative Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 <U>Additional Collateral, etc</U>. (a)&nbsp;With respect to any property located in the United States or Canada acquired after the
Closing Date by any Loan Party (other than (w)&nbsp;any property described in paragraph (b)&nbsp;or (c)
below, (x)&nbsp;in the case of property located in the United States, any motor vehicles or bank
accounts (unless otherwise provided in the US Guarantee and Collateral Agreement), (y)&nbsp;any property
subject to a Lien expressly permitted by Section&nbsp;8.3(g), (l)&nbsp;or (p)&nbsp;or, for so long as the
relevant Indebtedness is outstanding and restricts Liens in favor of the Administrative Agent for
the benefit of the Lenders, Section&nbsp;8.3(k) and (z)&nbsp;those assets as to which the Administrative
Agent shall determine in its reasonable discretion that the cost of obtaining a perfected Lien
thereon are excessive in relation to the value to be afforded thereby) as to which the
Administrative Agent, for the benefit of the Lenders, does not have a perfected Lien, promptly (i)
execute and deliver to the Administrative Agent such amendments to the US Guarantee and Collateral
Agreement, Canadian Collateral Agreement or such other documents as the Administrative Agent
reasonably deems necessary or advisable to grant to the Administrative Agent, for the benefit of
the Lenders, a security interest in such property and (ii)&nbsp;take all actions reasonably necessary or
advisable to grant to the Administrative Agent, for the benefit of the Lenders, a perfected
security interest (with the priority required by Section&nbsp;5.20) in such property, including the
filing of Uniform Commercial Code or PPSA financing statements in such jurisdictions as may be
required by the US Guarantee and Collateral Agreement or the Canadian Collateral Agreement or by
law or as may be reasonably requested by the Administrative Agent.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;With respect to any fee interest in any real property located in the United States or, to
the extent required by the Canadian Collateral Agreement, Canada having a fair market value
(together with improvements thereof) of at least $10,000,000 acquired after the Closing Date (which
shall include any existing real property the fair market value of which was previously less than
such threshold to the extent its fair market value rises above such threshold) by any Loan Party
(other than any such real property subject to a Lien expressly permitted by Section&nbsp;8.3(g) or, for
so long as the relevant Indebtedness is outstanding and restricts Liens in favor of the
Administrative Agent for the benefit of the Lenders, Section&nbsp;8.3(k)), promptly (i)&nbsp;execute and
deliver a first priority Mortgage (subject to Liens permitted by the relevant Mortgage), in favor
of the Administrative Agent, for the benefit of the Lenders, covering such real property, (ii)&nbsp;if
reasonably requested by the Administrative Agent, provide the Lenders with, (x)&nbsp;in the case of real
property located in the United States, title and extended coverage insurance covering such real
property in an amount at least equal to the purchase price of such real property (or such other
amount as shall be reasonably specified by the Administrative Agent), (y)&nbsp;a current survey of such
real property, together with a surveyor&#146;s certificate and (z)&nbsp;any consents or estoppels reasonably
deemed necessary or advisable by the Administrative Agent in connection with such Mortgage, each of
the foregoing in form and substance reasonably satisfactory to the Administrative Agent and (iii)
if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions (with
customary exceptions and qualifications) relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative
Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;With respect to any new Material Subsidiary (which shall include any existing Subsidiary
that was previously not a Material Subsidiary that becomes a Material Subsidiary) organized in the
United States or Canada created or acquired after the Closing Date by any Loan Party, promptly
(i)&nbsp;execute and deliver to the Administrative Agent such amendments to the US Guarantee and
Collateral Agreement or the Canadian Collateral Agreement, as the case may be, as the
Administrative Agent reasonably deems necessary or advisable to grant to the Administrative Agent,
for the benefit of the Lenders, a perfected first priority security interest in the Capital Stock
of such new Material Subsidiary that is owned by any Loan Party, (ii)&nbsp;deliver to the Administrative
Agent the certificates representing such Capital Stock (to the extent certificated), together with
undated stock powers or transfer forms, in blank, executed and delivered by a duly authorized
officer of the relevant Loan Party, (iii)&nbsp;cause such new Material Subsidiary (A)&nbsp;to become a party
to the US Guarantee and Collateral Agreement, if such new Material Subsidiary is organized in the
United States or Canada, and the Canadian Collateral Agreement, if such new Material Subsidiary is
organized in Canada, (B)&nbsp;to take such actions reasonably necessary or advisable to grant to the
Administrative Agent for the benefit of the Lenders a perfected security interest (with the
priority required by Section&nbsp;5.20) in the Collateral described in the US Guarantee and Collateral
Agreement or the Canadian Collateral Agreement, as the case may be, with respect to such new
Material Subsidiary, including the filing of Uniform Commercial Code or PPSA financing statements
in such jurisdictions as may be required by the US Guarantee and Collateral Agreement or the
Canadian Collateral Agreement or by law or as may be requested by the Administrative Agent and (C)
to deliver to the Administrative Agent a certificate of such new Material Subsidiary, substantially
in the form of Exhibit&nbsp;C, with appropriate insertions and attachments, and (iv)&nbsp;if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions (with customary exceptions
and qualifications) relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If required for the Borrower to comply with Section&nbsp;7.11, with respect to any property
located outside of the United States and Canada acquired after the Closing Date by any Loan Party
organized outside of the United States and Canada (other than any property subject to a Lien
expressly permitted by Section&nbsp;8.3(g)) as to which the Administrative Agent, for the benefit of the
Lenders, does not have a perfected Lien, promptly (i)&nbsp;execute and deliver to the Administrative
Agent such amendments to the applicable Security Documents or such other documents as the
Administrative
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Agent reasonably deems necessary or advisable to grant to the Administrative Agent,
for the benefit of the Lenders, a security interest (or equivalent to the extent available under
local law) in such property and a pledge of the Capital Stock of such Loan Party, if not previously
pledged to the Administrative Agent and (ii)&nbsp;take all actions necessary or advisable to grant to
the Administrative Agent, for the benefit of the Lenders, a perfected first priority security
interest (or equivalent to the extent available under local law) in such property and Capital
Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 <U>Guarantors; Ownership of Assets by Loan Parties</U>. (a)&nbsp;Ensure that at all times the Loan Parties directly account for no less than 85% of
Consolidated EBITDA; <U>provided</U>, that any portion of Consolidated EBITDA attributable to
Excluded Assets shall not be included in the determination of whether such threshold is satisfied.
Any Subsidiary organized outside of the United States and Canada may become a Subsidiary Guarantor
by (i)&nbsp;executing and delivering to the Administrative Agent such Security Documents as the
Administrative Agent reasonably deems necessary or advisable to grant to the Administrative Agent,
for the benefit of the Lenders, a perfected first priority security interest (or equivalent to the
extent available under local law) in the assets of such Subsidiary, (ii)&nbsp;delivering to the
Administrative Agent a certificate of such Subsidiary, substantially in the form of Exhibit&nbsp;C, with
appropriate insertions and attachments and (iii)&nbsp;if requested by the Administrative Agent,
delivering to the Administrative Agent legal opinions (with customary
exceptions and qualifications) relating to the matters described above, which opinions shall
be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Ensure that at all times the Consolidated EBITDA attributable to assets of the Loan
Parties located outside of the United States and Canada as to which the Administrative Agent, for
the benefit of the Lenders, does not have a perfected first priority Lien (or equivalent to the
extent available under local law) (&#147;<U>Excluded Assets</U>&#148;) does not exceed 15% of Consolidated
EBITDA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Administrative Agent may, in its reasonable discretion, grant Holdings and its
Subsidiaries up to 30&nbsp;days to comply with paragraphs (a)&nbsp;and (b)&nbsp;above (in addition to any grace
period provided under Section&nbsp;9).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 <U>Maintenance of Credit Ratings</U>. For so long as any Tranche B Term Loans are outstanding, use commercially reasonable
efforts to maintain ratings on the Facilities from each of Moody&#146;s and S&#038;P for so long as rating
agents are in the business of rating loans and securities of a type similar to the Facilities (it
being acknowledged and agreed that the Group Members shall not be required to maintain any minimum
credit rating).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 8. NEGATIVE COVENANTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holdings and the Borrower hereby jointly and severally agree that, so long as the Commitments
remain in effect, any Letter of Credit remains outstanding or any Loan or other amount is owing to
any Lender or the Administrative Agent hereunder, each of Holdings and the Borrower shall not, and
shall not permit any of its Subsidiaries to, directly or indirectly:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <U>Financial Condition Covenants</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Consolidated Leverage Ratio</U>. Permit the Consolidated Leverage Ratio as at the
last day of any period of four consecutive fiscal quarters of Holdings beginning March&nbsp;31, 2009 to
exceed 3.00 to 1.00.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Consolidated Interest Coverage Ratio</U>. Permit the Consolidated Interest Coverage
Ratio for any period of four consecutive fiscal quarters of Holdings beginning March&nbsp;31, 2009 to be
less than 3.00 to 1.00.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Consolidated Fixed Charge Coverage Ratio</U>. Permit the Consolidated Fixed Charge
Coverage Ratio for any period of four consecutive fiscal quarters of Holdings beginning March&nbsp;31,
2009 to be less than (i)&nbsp;for any such period ending on or prior to December&nbsp;31, 2010, 1.00 to 1.00
and (ii)&nbsp;for any such period ending after December&nbsp;31, 2010, 1.05 to 1.00.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <U>Indebtedness</U>. Create, issue, incur, assume, become liable in respect of or suffer to exist any
Indebtedness, except:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indebtedness of any Loan Party pursuant to any Loan Document (including, for the
avoidance of doubt, in respect of any Incremental Term Loan and Incremental Revolving Loan);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Indebtedness (i)&nbsp;of the Borrower to any Subsidiary or Holdings, (ii)&nbsp;of any Wholly
Owned North American Subsidiary Guarantor to Holdings, the Borrower or any other Subsidiary,
(iii)&nbsp;of any Subsidiary that is not a Loan Party to any other Subsidiary that is not a Loan
Party, (iv)&nbsp;of any Foreign Subsidiary Guarantor to any other Foreign Subsidiary Guarantor
and (v)&nbsp;of any Subsidiary other than any Wholly Owned North American Subsidiary Guarantor to
Holdings, the Borrower or any other Subsidiary in an aggregate principal amount at any one
time outstanding under this clause (v)&nbsp;not to exceed the sum of (x)&nbsp;the amount of the
Investments permitted pursuant to Section&nbsp;8.8(i) and outstanding at such time that are made
in the form of intercompany loans and (y) $125,000,000 (less the amount of any Investments
(other than the advance, loan or extension constituting such Indebtedness itself) made
pursuant to Section&nbsp;8.8(p));
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Guarantee Obligations incurred in the ordinary course of business by the Borrower,
the Parent or any Subsidiaries of Indebtedness or other obligations of (i)&nbsp;any Wholly Owned
North American Subsidiary Guarantor or the Borrower and (ii)&nbsp;any other Subsidiary, in an
aggregate principal amount under this clause (ii)&nbsp;not to exceed $50,000,000 at any one time
outstanding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indebtedness outstanding on the date hereof and listed on Schedule&nbsp;8.2(d) and any
refinancings, refundings, renewals or extensions thereof (without increasing, or shortening
the maturity of, the principal amount thereof);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Indebtedness (including, without limitation, Capital Lease Obligations) secured by
Liens permitted by Section&nbsp;8.3(g) in an aggregate principal amount not to exceed $50,000,000
at any one time outstanding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i)&nbsp;Indebtedness of the Borrower in respect of the Bridge Loans and/or the Senior
Notes in an aggregate principal amount at any one time outstanding not to exceed the sum of
$400,000,000, <U>minus</U> the aggregate principal amount of Indebtedness outstanding
permitted by Section&nbsp;8.2(g), <U>plus</U> in the event of any refinancing of any Bridge
Loans with Senior Notes, the aggregate amount, up to $100,000,000, of fees, underwriting
discounts, premiums and other costs and expenses incurred in connection with such
refinancing and (ii)&nbsp;Guarantee Obligations of Holdings and any Subsidiary Guarantor in
respect of such Indebtedness;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i)&nbsp;Indebtedness of the Target (or, following the Acquisition, Precision Lobos
Corporation) in respect of the Existing Convertible Securities in an aggregate principal
amount not to exceed the lesser of (A) $275,000,000 and (B)&nbsp;the aggregate principal amount
of such Existing Convertible Securities as of the Closing Date and (ii)&nbsp;Guarantee
Obligations of any Subsidiary Guarantor in respect of such Indebtedness;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Indebtedness assumed in connection with any Permitted Acquisition;
<U>provided</U>, that (i)&nbsp;such Indebtedness was not incurred in contemplation of such
Permitted Acquisition, (ii)&nbsp;is unsecured or is secured only by the assets acquired in the
applicable Permitted Acquisition, (iii)&nbsp;the only obligors with respect to such Indebtedness
are those Persons who were obligors of such Indebtedness prior to such Permitted Acquisition
and their permitted successors, (iv)&nbsp;no Default or Event of Default shall have occurred and
be continuing at the time such Indebtedness is incurred nor will result therefrom and (v)
the aggregate principal amount of Indebtedness
permitted by this Section&nbsp;8.2(h), together with the aggregate principal amount of
Indebtedness permitted by Section&nbsp;8.2(i), shall not exceed $100,000,000 at any time
outstanding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Indebtedness incurred to finance any Permitted Acquisition in an aggregate
principal amount, together with the aggregate principal amount of Indebtedness permitted by
Section&nbsp;8.2(h), not to exceed $100,000,000 at any time outstanding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Indebtedness incurred by the Borrower, the Parent or any Subsidiaries in connection
with any Permitted Acquisition or Disposition permitted by Section&nbsp;8.5 to the extent
constituting indemnification obligations or obligations in respect of purchase price
(including earn-outs) or other similar adjustments, in each case in the ordinary course of
business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Indebtedness in respect of Swap Agreements designed to hedge against interest
rates, foreign exchange rates or commodity prices incurred in the ordinary course of
business and not for speculative purposes;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Indebtedness in respect of Specified Cash Management Agreements entered into in the
ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Indebtedness in respect of any Centralized Banking Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Indebtedness in respect of workers&#146; compensation claims, bank guarantees, warehouse
receipt or similar facilities, property, casualty or liability insurance, take-or-pay
obligations in supply arrangements, self-insurance obligations, performance, bid
performance, appeal and surety bonds and completion guaranties, in each case in the ordinary
course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Convertible Debentures of Holdings in an aggregate principal amount not to exceed
$500,000,000 at any one time outstanding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Indebtedness incurred to finance the Contingent Tax Liabilities in an aggregate
principal amount not to exceed $175,000,000 at any one time outstanding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Indebtedness of the Borrower or any Subsidiaries in respect of the Specified
Operating Facilities (and Guarantee Obligations of Holdings in respect of Specified
Operating Facilities) and other local lines of credit, letters of credit, bank guarantees
and similar extensions of credit in the ordinary course of business in an aggregate
principal amount not to exceed $100,000,000 at any one time outstanding;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Indebtedness representing deferred compensation to directors, officers, trustees,
members of management or employees (in their capacities as such) of the Borrower, Holdings,
or any Subsidiaries and incurred in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Cash management obligations and other Indebtedness in respect of netting services,
overdraft protections and similar arrangements in each case in connection with cash
management and deposit accounts in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Indebtedness arising in connection with endorsement of instruments for deposit in
the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) subject to the requirements of Section&nbsp;8.18, Indebtedness represented by Redemption
Notes incurred to satisfy Holdings&#146; obligation to repurchase Trust Units at the option of
the holders thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Indebtedness incurred by a Securitization Subsidiary in a Qualified Securitization
Financing that is non recourse (except for Standard Securitization Undertakings) to the
Borrower or any of its Subsidiaries (other than such Securitization Subsidiary);
<U>provided</U>, that the aggregate principal amount of any such Indebtedness, when
combined with the aggregate face amount of accounts receivable (or the portion thereof sold)
of Holdings and the Subsidiaries that at such time are subject to receivables sale or
factoring arrangements, shall not exceed $100,000,000 at any one time outstanding; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) additional Indebtedness of the Borrower, Holdings (after a Permitted
Reorganization) or any Subsidiaries in an aggregate principal amount (for the Borrower,
Holdings and all Subsidiaries) not to exceed $125,000,000 at any one time outstanding.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding any other provision of this Section&nbsp;8.2, the maximum amount of Indebtedness that
may be incurred pursuant to the clauses above shall not be deemed to be exceeded solely as a result
of fluctuations in the exchange rate of currencies. Notwithstanding any other provision of this
Section&nbsp;8.2 or Section&nbsp;8.3, no Indebtedness of Holdings or any Subsidiary secured by any Lien on
any of their respective assets may be incurred to refinance all or any portion of the Bridge Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <U>Liens</U>. Create, incur, assume or suffer to exist any Lien upon any of its property, whether now
owned or hereafter acquired, except:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens for taxes not yet due or that are being contested in good faith by
appropriate proceedings, <U>provided</U> that adequate reserves with respect thereto are
maintained on the books of Holdings or its Subsidiaries, as the case may be, in conformity
with GAAP;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) carriers&#146;, warehousemen&#146;s, mechanics&#146;, builders&#146;, materialmen&#146;s, repairmen&#146;s or
other like Liens arising in the ordinary course of business that are not overdue for a
period of more than 45&nbsp;days or that are being contested in good faith by appropriate
proceedings or that relate to amounts less than $5,000,000 in the aggregate;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) pledges or deposits in connection with workers&#146; compensation, unemployment
insurance, road transportation and social security regulations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) deposits to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) easements, rights-of-way, restrictions and other similar encumbrances incurred in
the ordinary course of business that, in the aggregate, do not in any case materially
detract from the value of the property subject thereto or materially interfere with the
ordinary conduct of the business of the Borrower or any Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Liens in existence on the date hereof listed on Schedule&nbsp;8.3(f), securing
Indebtedness permitted by Section&nbsp;8.2(d), <U>provided</U> that no such Lien is spread to
cover any
additional property after the Closing Date and that the amount of Indebtedness secured
thereby is not increased;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens securing Indebtedness of the Parent, the Borrower or any Subsidiary incurred
pursuant to Section&nbsp;8.2(e) to finance the acquisition, construction, installation or
improvement of fixed or capital assets, <U>provided</U> that (i)&nbsp;such Liens shall be
created within 90&nbsp;days of the acquisition of such fixed or capital assets, (ii)&nbsp;such Liens
do not at any time encumber any property other than the property (the &#147;<U>Subject
Property</U>&#148;) financed by such Indebtedness and any fixed or capital assets subject at such
time to financing provided by the same party (or one of its Affiliates) that financed the
Subject Property and any proceeds of the sale thereof and (iii)&nbsp;the amount of Indebtedness
secured thereby is not increased;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Liens created pursuant to the Security Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any interest or title of a lessor under any lease entered into by the Parent, the
Borrower or any Subsidiary in the ordinary course of its business and covering only the
assets so leased;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) customary Liens on cash, Cash Equivalents and other assets that are not Collateral
securing Indebtedness incurred pursuant to Section&nbsp;8.2(n) to the extent granted in the
ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Liens securing Indebtedness of the Parent, the Borrower or any Subsidiary incurred
pursuant to Section&nbsp;8.2(h), <U>provided</U> that such Liens exist at the time of the
relevant Permitted Acquisition and are not created in contemplation of or in connection with
such Permitted Acquisition;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) (i)&nbsp;Liens placed upon the Capital Stock of any Subsidiary acquired pursuant to a
Permitted Acquisition to secure Indebtedness of the Parent, the Borrower or any other
Subsidiary incurred pursuant to Section&nbsp;8.2(i) in connection with such Permitted Acquisition
and (ii)&nbsp;Liens placed upon the assets of such Subsidiary to secure a guarantee by such
Subsidiary of any such Indebtedness of the Parent, the Borrower or such other Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Liens securing Indebtedness of the Borrower or any Subsidiary (and Guarantee
Obligations of Holdings in respect of Specified Operating Facilities) incurred pursuant to
Section&nbsp;8.2(q), <U>provided</U> that such Liens (except in the case of Specified Operating
Facilities) do not at any time encumber any property of Holdings, the Borrower or any
Subsidiary Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the filing of UCC financing statements solely as a precautionary measure in
connection with operating leases or consignments of goods or the filing of PPSA financing
statements in connection with operating leases, consignments of goods or transfers of
accounts, in each case to the extent not securing performance of a payment or other
obligation;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Liens not otherwise permitted by this Section so long as the aggregate outstanding
principal amount of the obligations secured thereby does not exceed (as to the Parent, the
Borrower and all Subsidiaries) $125,000,000 at any one time;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Liens on the Securitization Assets in connection with a Qualified Securitization
Financing; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Liens on the &#147;Preference Shares&#148; (as defined in any Sale and Repurchase Agreement)
in the nature of a &#147;backup security interest&#148; granted in favor of the Borrower pursuant to
such Sale and Repurchase Agreement to the extent such Liens are expressly subordinated to
the Liens created by the Security Documents.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding any other provision of this Section&nbsp;8.3, the maximum amount of Liens that may be
incurred pursuant to the clauses above shall not be deemed to be exceeded solely as a result of
fluctuations in the exchange rate of currencies.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <U>Fundamental Changes</U>. Enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution), or Dispose of all or substantially all of its
property or business, except that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Subsidiary may be merged, amalgamated or consolidated with or into the Borrower
or the Parent (<U>provided</U> that the Borrower or the Parent, as the case may be, shall
be the continuing or surviving corporation or, in the case of an amalgamation or similar
transaction governed by the laws of Canada or a province or territory thereof, the successor
corporation shall by operation of law or otherwise continue to be liable for the obligations
of the Borrower or the Parent, as the case may be, under the Loan Documents) or with or into
any Wholly Owned North American Subsidiary Guarantor (<U>provided</U> that the Wholly Owned
North American Subsidiary Guarantor shall be the continuing or surviving corporation or in
the case of an amalgamation or similar transaction governed by the laws of Canada or a
province or territory thereof, the successor shall by operation of law or otherwise continue
to be liable for the obligations of such Wholly Owned North American Subsidiary Guarantor
under the Loan Documents);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Holdings, the Borrower and any Subsidiary may Dispose of any or all of its assets
(i)&nbsp;to the Parent, the Borrower or any Wholly Owned North American Subsidiary Guarantor
(upon voluntary liquidation, dissolution or winding up or otherwise) or (ii)&nbsp;pursuant to a
Disposition permitted by Section&nbsp;8.5 (<U>provided</U> that in no case may Holdings Dispose
of the Capital Stock of the Borrower except to a Wholly Owned North American Subsidiary
Guarantor which has pledged the stock of the Borrower to the Administrative Agent for the
benefit of the Lenders pursuant to a Security Document and except in connection with a
Permitted Reorganization);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i)&nbsp;any Subsidiary that is not a Loan Party may be merged, amalgamated or
consolidated with or into, or may Dispose of any or all of its assets to (upon voluntary
liquidation, dissolution or winding up or otherwise), any Foreign Subsidiary Guarantor or
any other Subsidiary that is not a Loan Party and (ii)&nbsp;any Foreign Subsidiary Guarantor may
be merged, amalgamated or consolidated with or into, or may Dispose of any or all of its
assets to, any other Foreign Subsidiary Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Holdings and/or the Borrower and/or their respective direct and/or indirect
Subsidiaries, as the case may be, may enter into a Permitted Reorganization notwithstanding
any
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">other provision contained in this Agreement but subject to the requirements of the
definition thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Investment expressly permitted by Section&nbsp;8.8 may be structured as a merger,
consolidation or amalgamation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Precision Drilling Trust may be terminated or wound-up in connection with or
following a Permitted Reorganization where there is a new Parent; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) following a Permitted Reorganization where there is a new Parent, the Borrower may
be merged, amalgamated or consolidated with or into the new Parent; <U>provided</U>, that
(i)&nbsp;the successor corporation resulting from such merger or amalgamation shall be a
corporation organized under the laws of Canada, the United States, or a province, territory
(in the case of Canada) or state thereof; (ii)&nbsp;such successor corporation shall by operation
of law continue to be liable for or otherwise assume all liability for the obligations of
the Borrower under the Loan Documents and (iii)&nbsp;the new Parent and or the Borrower shall
deliver or cause to be delivered any legal opinions (subject to customary qualifications and
exclusions) or other documents reasonably requested by Administrative Agent in connection
with any such transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <U>Disposition of Property</U>. Dispose of any of its property, whether now owned or hereafter acquired, or, in the case of
any Subsidiary, issue or sell any shares of such Subsidiary&#146;s Capital Stock to any Person, except:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Disposition of obsolete or worn out property in the ordinary course of
business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sale of inventory in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Dispositions permitted by Section&nbsp;8.4;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i)&nbsp;the sale or issuance of any Subsidiary&#146;s Capital Stock to Holdings, the Parent,
the Borrower or any Wholly Owned North American Subsidiary Guarantor or (ii)&nbsp;the sale or
issuance of the Capital Stock of a non Loan Party to Holdings or any Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Dispositions of property not otherwise permitted under this Section&nbsp;8.5;
<U>provided</U>, that to the extent any individual Disposition or series of related
Dispositions involve property with a fair market value in excess of $3,000,000 (i)&nbsp;such
Dispositions are made for fair market value and for at least 80% cash consideration and (ii)
the Net Cash Proceeds of such Dispositions are applied pursuant to Section&nbsp;2.13(b) (subject
to the Borrower&#146;s and the Parent&#146;s reinvestment rights pursuant thereto);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Dispositions of property and issuances of the Capital Stock of Subsidiaries not
otherwise permitted under this Section&nbsp;8.5 to the extent (i)&nbsp;the fair market value of such
Dispositions and issuances does not exceed $10,000,000 in the aggregate during any fiscal
year and (ii)&nbsp;the Net Cash Proceeds of such Dispositions are applied pursuant to Section
2.13(b) (subject to the Borrower&#146;s and the Parent&#146;s reinvestment rights pursuant thereto);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i)&nbsp;any Disposition of Securitization Assets to a Securitization Subsidiary in
connection with a Qualified Securitization Financing and (ii)&nbsp;the factoring of accounts
receivable in the ordinary course of business; <U>provided</U>, that the aggregate face
amount of accounts
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">receivable (or the portion thereof sold) that at any one time may be
subject to the arrangements set forth in clauses (i)&nbsp;and (ii)&nbsp;above shall not exceed
$100,000,000;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Dispositions of cash or Cash Equivalents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) transfers of property subject to casualty events upon receipt of the proceeds of
such casualty events; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispositions constituting Investments permitted pursuant to Section&nbsp;8.8(i).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <U>Restricted Payments</U>. Declare or pay any dividend (excluding dividends or distributions payable solely in
additional Trust Units (or following a Permitted Reorganization, Parent&#146;s Capital Stock)) on, or
make any payment on account of, or set apart assets for a sinking or other analogous fund for, the
purchase, redemption, defeasance, retirement or other acquisition of, any Capital Stock of any
Group Member, whether now or hereafter outstanding, or make any other distribution in respect
thereof, either directly or indirectly, whether in cash or property or in obligations of any Group
Member (collectively, &#147;<U>Restricted Payments</U>&#148;), except that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Subsidiary may make Restricted Payments to Holdings, the Borrower or any Wholly
Owned North American Subsidiary Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i)&nbsp;any Subsidiary that is not a Loan Party may make Restricted Payments to any
other Subsidiary that is not a Loan Party or to a Loan Party and (ii)&nbsp;any Foreign Subsidiary
Guarantor may make Restricted Payments to any other Foreign Subsidiary Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) so long as no Default or Event of Default shall have occurred and be continuing,
the Borrower may pay dividends or other distributions to Holdings to permit Holdings to
purchase Holdings&#146; Trust Units (or, following a Permitted Reorganization, Parent&#146;s Capital
Stock) or options thereon from present or former directors, officers or employees of any
Group Member upon the death, disability or termination of employment of such director,
officer or employee or pursuant to any stock option agreement or other agreement with such
directors, officers or employees, <U>provided</U>, that the aggregate amount of payments
under this clause (c)&nbsp;after the date hereof (net of any proceeds received by Holdings and
contributed to the Borrower after the date hereof in connection with resales of any Trust
Units or Capital Stock or options thereon so purchased) shall not exceed $10,000,000;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) so long as no Default or Event of Default shall have occurred and be continuing nor
would result therefrom, during any Computation Period, (i)&nbsp;Holdings may make cash
distributions and other cash payments in respect of such holders&#146; Trust Units and distribute
Redemption Notes to the holders of the Trust Units (and the Parent may make cash
distributions or pay dividends or other amounts to the holders of its Capital Stock
following a Permitted Reorganization) (in each case including, but not limited to, in
accordance with a distribution reinvestment plan or dividend reinvestment plan under which
such payments are applied to open market purchases of Trust Units or Capital Stock, as the
case may be) and (ii)&nbsp;Precision Drilling Limited Partnership may make cash distributions or
payments in the form of loans to holders of Exchangeable LP Units or as forming part of the
&#147;Exchangeable LP Unit Price&#148; (as defined in the Limited Partnership Agreement) and may make
a distribution or payment in respect of each Exchangeable LP Unit equal to the amount of
such loans, which distributions or payments shall be set off against the obligations of the
holders of Exchangeable LP Units to repay such loans, and may make other cash payments to
the holders of Exchangeable LP Units in respect of such holders&#146; Exchangeable LP Units (all
such distributions and payments referred to in clauses (i)&nbsp;and
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(ii)&nbsp;above other than
distributions of Redemption Notes themselves, collectively, &#147;<U>Distributions</U>&#148;), in an
aggregate amount for all such Distributions not to exceed the Trust Distribution Amount for
such Computation Period; <U>provided</U>, that (i)&nbsp;in the case of any Distribution made
during any
Computation Period for which the Trust Distribution Amount is being computed pursuant
to clause (A)&nbsp;of the definition thereof, such Distribution, when combined with all other
Distributions made during the relevant Computation Period, shall not exceed the amount equal
to 30% of Operating Cash Flow Before Working Capital for such Computation Period, (ii)&nbsp;such
Distribution, when combined with all other Distributions made during the relevant
Computation Period, shall not exceed the amount equal to 100% of Distributable Cash Flow for
such Computation Period and (iii)&nbsp;prior to the completion of a Permitted Reorganization,
distributions announced in December of any fiscal year and paid in January of the following
fiscal year in a manner consistent with past practices shall be deemed made in the month
announced for purposes of this Section&nbsp;8.6(d);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower or other Subsidiaries may pay dividends or other distributions to
Holdings to permit Holdings to (i)&nbsp;pay corporate overhead expenses incurred in the ordinary
course of business and out-of-pocket expenses relating to the Acquisition, (ii)&nbsp;pay any
taxes that are due and payable by Holdings and the Borrower as part of a consolidated group
and (iii)&nbsp;redeem Trust Units for cash when required to do so pursuant to, and in the amounts
required by, the Trust Declaration; <U>provided</U>, that the aggregate amount of payments
made pursuant to clause (iii)&nbsp;shall not exceed $1,000,000 in any calendar year;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Precision Drilling Limited Partnership may make cash payments to holders of
Exchangeable LP Units in order to satisfy the cash portion of consideration payable to such
holders upon any redemption of Exchangeable LP Units when required to do so pursuant to the
Limited Partnership Agreement and Holdings may make cash payments to holders of Exchangeable
LP Units in order to satisfy the cash portion of consideration payable to such holders upon
exercise of any of their exchange rights when required to do so pursuant to the Voting and
Exchange Trust Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Holdings may make cash distributions to the holders of the Trust Units (and the
Parent may make cash distributions or pay dividends or other amounts to the holders of its
Capital Stock following a Permitted Reorganization) in accordance with a distribution
reinvestment plan or dividend reinvestment plan to the extent such payments are applied to
the purchase of Trust Units directly from Holdings or Capital Stock directly from the
Parent, as the case may be; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Parent and Holdings may pay any dividend or distribution within 45&nbsp;days after the
date of declaration thereof, if at the date of declaration such payment would have complied
with the provisions of this Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding anything to the contrary herein, Holdings will not, and will not permit any
Subsidiary to, directly or indirectly, make any Restricted Payment consisting of any proceeds from
a Qualified Securitization Financing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <U>Capital Expenditures</U>. Make or commit to make any Capital Expenditure, except:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Capital Expenditures of the Borrower, the Parent or any Subsidiary in the ordinary course
of business in an aggregate amount during any fiscal year not exceeding the corresponding amount
(the &#147;<U>Scheduled Amount</U>&#148;) set forth below opposite such fiscal year in the column labeled
&#147;Total Capital Expenditures&#148; (provided that the portion of the Scheduled Amount used for Expansion
Capital Expenditures during any fiscal year shall not exceed the corresponding portion of the
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Scheduled Amount set forth opposite such fiscal year in the column labeled &#147;Maximum Expansion
Capital Expenditures&#148;):
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Maximum Expansion</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Fiscal Year Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Total Capital Expenditures</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Capital Expenditures</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>C$404,171,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>C$233,440,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$368,011,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$177,265,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$416,572,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$246,561,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$411,210,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$239,769,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$412,574,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$235,167,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$418,677,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$235,167,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>provided</U>, that the amount of Capital Expenditures permitted during any fiscal year shall be
increased (with the full amount of such increase being available for Upgrade Capital Expenditures
or Expansion Capital Expenditures) by (i)&nbsp;the Net Cash Proceeds of any issuance of Trust Units,
Capital Stock or Convertible Debentures by Holdings during such fiscal year (except to the extent
any such issuance increased the amount of Capital Expenditures permitted in any prior fiscal year)
or on or prior to the date that is the earlier of (A)&nbsp;90&nbsp;days after the end of such fiscal year and
(B)&nbsp;the date on which audited financial statements are delivered for such year pursuant to Section
7.1(a) and (ii)&nbsp;an amount equal to 50% (or in the event the Consolidated Leverage Ratio as of the
end of the immediately preceding fiscal year is less than 1.10 to 1.00, 75%) of the amount by which
Consolidated EBITDA for such preceding fiscal year exceeds the amount set forth below opposite such
preceding fiscal year:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Fiscal Year Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Consolidated EBITDA</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$&nbsp;&nbsp;&nbsp;935,551,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$&nbsp;&nbsp;&nbsp;997,232,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$&nbsp;&nbsp;&nbsp;963,942,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">C$&nbsp;&nbsp;&nbsp;980,204,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap>C$1,022,789,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>provided</U>, <U>further</U>, that (i)&nbsp;any Scheduled Amount of Capital Expenditures permitted
during any fiscal year pursuant to this Section&nbsp;8.7(a) and any Trust Conversion Capex permitted for
a particular fiscal year pursuant to Section&nbsp;8.7(b), if not so expended in the fiscal year for
which it is permitted, may be carried over for expenditure in the next two succeeding fiscal years
and (ii)&nbsp;Capital Expenditures made pursuant to this Section&nbsp;8.7(a) during any fiscal year shall be
deemed made, <U>first</U>, in respect of amounts permitted for such fiscal year as provided above
and, <U>second</U>, in respect of amounts carried over from the prior fiscal year pursuant to
clause (i)&nbsp;above; <U>provided</U>, <U>further</U>, that the Borrower, the Parent or any
Subsidiary may make additional Capital Expenditures during the fiscal year ending December&nbsp;31, 2009
in an aggregate amount of up to $75,000,000 of the Capital Expenditures permitted to be made during
the fiscal year ending December&nbsp;31, 2010 (the &#147;<U>Capex Carryback</U>&#148;), with the full amount of
such increase being available for Upgrade Capital Expenditures or Expansion Capital Expenditures
and with (A)&nbsp;the total amount of Capital Expenditures permitted to be made during the fiscal year
ending December&nbsp;31, 2010 in turn being reduced by the Capex Carryback and (B)&nbsp;to the extent the
amount of Expansion Capital Expenditures made during the fiscal year ending December&nbsp;31, 2009
exceeds the amount permitted pursuant to this Section&nbsp;8.7(a), the amount of Expansion Capital
Expenditures permitted to be made during the fiscal year ending December&nbsp;31, 2010 in turn being
reduced by such excess.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition to the Capital Expenditures permitted pursuant to paragraph (a)&nbsp;above, to the
extent Holdings undertakes a Permitted Reorganization during or prior to such fiscal years, the
Borrower, the Parent or any Subsidiary may make additional Capital Expenditures (&#147;<U>Trust
Conversion </U>
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Capex</U>&#148;) (with the full amount of such Trust Conversion Capex being available for
Upgrade Capital Expenditures or Expansion Capital Expenditures) during either of the fiscal years
ending December&nbsp;31, 2009 and December&nbsp;31, 2010 in an amount for either such fiscal year equal to
100% of the difference between (x)&nbsp;the amount of Operating Cash Flow Before Working Capital for
such fiscal year that would have been distributed pursuant to Section&nbsp;8.6(d) had no such Permitted
Reorganization taken place and (y)&nbsp;the amount of Operating Cash Flow Before Working Capital for
such fiscal year that is actually distributed pursuant to Section&nbsp;8.6(d) after giving effect to
such Permitted Reorganization.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <U>Investments</U>. Make any advance, loan, extension of credit (by way of guaranty or otherwise) or capital
contribution to, or purchase any Capital Stock, bonds, notes, debentures or other debt securities
of, or any assets constituting a business unit of, or make any other investment in, any Person (all
of the foregoing, &#147;<U>Investments</U>&#148;), except:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) extensions of trade credit in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) investments in Cash Equivalents, <U>provided</U> that any Investment which when
made complies with the requirements of the definition of the term &#147;Cash Equivalents&#148; may
continue to be held notwithstanding that such Investment if made thereafter would not comply
with such requirements;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i)&nbsp;Guarantee Obligations permitted by Section&nbsp;8.2 and (ii)&nbsp;performance guarantees
by the Parent, the Borrower or any Subsidiary of any trade or non-financial operating
contract (other than any such contract that itself constitutes Indebtedness) of any Wholly
Owned Subsidiary in the ordinary course of business; <U>provided</U>, that, to the extent
the Parent, the Borrower or any Wholly Owned North American Subsidiary Guarantor shall be
required to perform under any such performance guarantee under this clause (ii)&nbsp;in respect
of any trade or non-financial operating contract of any Subsidiary that is not a Wholly
Owned North American Subsidiary Guarantor, the amount of cash or other property expended or
utilized to complete such performance shall be deemed to be an Investment under Section
8.8(p) (in the case of the utilization of any such other property, the amount of any such
Investment being deemed to be the fair market value of the property permanently deployed to
consummate such performance and/or the fair market value of the services performed by any
property temporarily deployed to consummate such performance);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) loans and advances to directors, officers and employees of any Group Member in the
ordinary course of business (including for payroll, travel, entertainment and relocation
expenses) in an aggregate amount for all Group Members not to exceed $25,000,000 at any one
time outstanding;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Acquisition;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments in assets (including Capital Stock) useful in the business of the
Parent, the Borrower and any Subsidiaries made by the Parent, the Borrower or any
Subsidiaries with the proceeds of any Reinvestment Deferred Amount;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) intercompany Investments by any Group Member in the Parent, the Borrower or any
Person that, prior to such investment, is a Wholly Owned North American Subsidiary
Guarantor;
</DIV>


<P align="right" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;101
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;(i)&nbsp;Investments by any Subsidiary that is not a Loan Party in any other Subsidiary
that is not a Loan Party and (ii)&nbsp;Investments by any Foreign Subsidiary Guarantor in any
other Foreign Subsidiary Guarantor;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Investments in the ordinary course of business by any Loan Party in any Wholly
Owned Subsidiary that is not a Loan Party of any drilling rigs, service rigs or other
related equipment owned by such Loan Party, and which at the time of any such Investment are
in the reasonable judgment of the Borrower able to be more optimally utilized by such Wholly
Owned Subsidiary that is not a Loan Party than by any Loan Party; <U>provided</U>, that (i)
the Borrower remains in compliance with Section&nbsp;7.11 after giving effect to any such
Investment and (ii)&nbsp;any such Investment shall, to the extent permitted by applicable law and
to the extent not, in the reasonable judgment of the Borrower, resulting in any material tax
disadvantage to Holdings and its Subsidiaries, as a whole, be in the form of an intercompany
lease or loan evidenced by a written instrument (including a sale of such rigs or equipment
with the purchase price thereof evidenced by a promissory note or other similar instrument)
pledged in favor of the Administrative Agent for the benefit of the Lenders to the extent
not already pledged pursuant to the Security Documents;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;(i)&nbsp;Investments in a Securitization Subsidiary in connection with a Qualified
Securitization Financing; <U>provided</U>, <U>however</U>, that any such Investment in a
Securitization Subsidiary is in the form of a contribution of additional Securitization
Assets or as nominal equity, and (ii)&nbsp;purchases of Securitization Assets pursuant to a
Securitization Repurchase Obligation in connection with a Qualified Securitization
Financing;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Permitted Acquisitions;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;Investments existing on the Closing Date and identified in Schedule&nbsp;8.8(l) and any
modifications, replacements, renewals or extensions thereof; provided, that the amount of
the original Investment is not increased except as required by the terms of such Investment
as in existence on the Closing Date or as otherwise permitted by this Section&nbsp;8.8;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;Investments received in connection with the bankruptcy or reorganization of, or
settlement of delinquent accounts and disputes with, customers and suppliers, in each case
in the ordinary course of business;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Investments consisting of any deferred portion of the sales price received by the
Parent, the Borrower or any Subsidiary in connection with any Disposition permitted under
Section&nbsp;8.5;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;Investments to the extent the consideration paid therefor consists solely of
Capital Stock or Trust Units of Holdings or to the extent made with the proceeds of the sale
of Capital Stock or Trust Units of Holdings;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;in addition to Investments otherwise expressly permitted by this Section&nbsp;8.8,
Investments by the Parent, the Borrower or any Subsidiary in an aggregate amount (valued at
cost net of return of Investments) not to exceed $125,000,000 during the term of this
Agreement; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;Precision Drilling Limited Partnership may make cash distributions in the form of
loans as permitted by Section&nbsp;8.6(d).
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 <U>Optional Payments and Modifications of Certain Debt Instruments</U>.&nbsp; (a)&nbsp;Make or
offer to make any optional or voluntary payment, prepayment, repurchase or redemption of or
otherwise optionally or voluntarily defease or segregate funds with respect to the Bridge Loans,
the Senior Notes, any subordinated Indebtedness or any Convertible Debentures (excluding, for the
avoidance of doubt, the Existing Convertible Securities); <U>provided</U>, that so long as no
Default or Event of Default shall have occurred and be continuing or would result therefrom (i)
during the term of this Agreement up to $140,000,000 of Net Cash Proceeds from the sale of Capital
Stock or Trust Units of Holdings or the Parent may be utilized for such purposes in respect of the
Senior Notes, any subordinated Indebtedness or any Convertible Debentures and (ii)&nbsp;the Bridge Loans
may be refinanced with Net Cash Proceeds from the sale of Capital Stock or Trust Units of Holdings
or the Parent or the issuance of Senior Notes or Convertible Debentures permitted to be issued
hereunder; or (b)&nbsp;amend, modify, waive or otherwise change, or consent or agree to any amendment,
modification, waiver or other change to, any of the terms of the Bridge Loans or the Senior Notes,
any subordinated Indebtedness or any Convertible Debentures in any manner that would be materially
adverse to the Lenders (other than, in each case, any such amendment, modification, waiver or other
change that would extend the maturity or reduce the amount of any payment of principal thereof or
reduce the rate or extend any date for payment of interest thereon).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 <U>Transactions with Affiliates</U>. Enter into any transaction, including any
purchase, sale, lease or exchange of property, the rendering of any service or the payment of any
management, advisory or similar fees, with any Affiliate (other than Holdings, the Borrower or any
Wholly Owned North American Subsidiary Guarantor), except:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Restricted Payments permitted by Section&nbsp;8.6;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investments permitted by Sections&nbsp;8.8(d), (g), (h), (i)&nbsp;and (p) (in respect of
intercompany Investments);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reasonable and customary director, trustee, officer and employee compensation
(including bonuses and severance) and other benefits (including retirement, health, stock
option and other benefit plans) in the ordinary course of business and in good faith or to
the extent approved in good faith by the board of directors or trustees;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) employment and severance arrangements between the Borrower, Holdings and any
Subsidiaries and their directors, officers, trustees, employees and members of management in
the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Acquisition and the transactions contemplated by the Acquisition Documents in
connection therewith; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Disposition of Securitization Assets or related assets in connection with any
Qualified Securitization Financing.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">unless such transaction is (i)&nbsp;otherwise permitted under this Agreement, (ii)&nbsp;in the ordinary
course of business of the relevant Group Member, and (iii)&nbsp;upon fair and reasonable terms no less
favorable to the relevant Group Member than it would obtain in a comparable arm&#146;s length
transaction with a Person that is not an Affiliate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11 <U>Sales and Leasebacks</U>. Enter into any arrangement with any Person providing for
the leasing by any Group Member of real or personal property that has been or is to be sold or
transferred by such Group Member to such Person or to any other Person to whom funds have been or
are to be
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">advanced by such Person on the security of such property or rental obligations of such Group
Member, except to the extent otherwise permitted by Sections&nbsp;8.2(e) and 8.3(g).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12 <U>Swap Agreements</U>.&nbsp; Enter into any Swap Agreement, except (a)&nbsp;Swap Agreements
entered into to hedge or mitigate risks to which the Parent, the Borrower or any Subsidiary has
actual exposure (other than those in respect of Capital Stock) and (b)&nbsp;Swap Agreements entered into
in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from
one floating rate to another floating rate or otherwise) with respect to any interest-bearing
liability or investment of the Parent, the Borrower or any Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13 <U>Changes in Fiscal Periods</U>. Permit the fiscal year of Holdings to end on a day
other than December&nbsp;31 or change Holdings&#146; method of determining fiscal quarters, except as may be
required pursuant to a Permitted Reorganization.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14 <U>Negative Pledge Clauses</U>. Enter into or suffer to exist or become effective any
agreement that prohibits or limits the ability of any Group Member to create, incur, assume or
suffer to exist any Lien in favor of the Secured Parties (as defined in the US Guarantee and
Collateral Agreement and Canadian Collateral Agreement) upon any of its property or revenues,
whether now owned or hereafter acquired, other than (a)&nbsp;this Agreement and the other Loan
Documents, (b)&nbsp;the Bridge Credit Agreement and the Senior Notes Indenture (provided that such
prohibitions and limitations in the Senior Notes Indenture shall not differ from those in the
Bridge Credit Agreement in a manner material and adverse to the Lenders), (c)&nbsp;any agreements
governing any purchase money Liens or Capital Lease Obligations or operating leases otherwise
permitted hereby (in which case, any prohibition or limitation shall only be effective against the
assets financed thereby), (d)&nbsp;any agreements governing Indebtedness assumed under Section&nbsp;8.2(h)
(in which case, any prohibition or limitation shall only be effective against the assets acquired
in the relevant Permitted Acquisition) and (e)&nbsp;any agreements governing Indebtedness incurred under
Section&nbsp;8.2(q) (in which case, any prohibition or limitation shall only be effective against assets
located outside of the United States and Canada that do not constitute Collateral).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15 <U>Clauses Restricting Subsidiary Distributions</U>. Enter into or suffer to exist or
become effective any consensual encumbrance or restriction on the ability of any Loan Party to (a)
make Restricted Payments in respect of any Capital Stock of such Loan Party held by, or pay any
Indebtedness owed to, the Borrower or any other Subsidiary, (b)&nbsp;make loans or advances to, or other
Investments in, the Borrower or any other Subsidiary or (c)&nbsp;transfer any of its assets (except
under any financings described in Sections&nbsp;8.14(c), (d)&nbsp;and (e), in respect of the assets financed
thereby or that do not constitute Collateral, as the case may be) to the Borrower or any other
Subsidiary, except for such encumbrances or restrictions existing under or by reason of (i)&nbsp;any
restrictions existing under this Agreement, the other Loan Documents, the Bridge Credit Agreement
or the Senior Notes (provided such restrictions in the Senior Notes are not&nbsp;more restrictive in any
material respect&nbsp;on Holdings and the Subsidiaries than those contained in the Bridge Credit
Agreement), (ii)&nbsp;any restrictions with respect to a Subsidiary imposed pursuant to an agreement
that has been entered into in connection with the Disposition of all or substantially all of the
Capital Stock or assets of such Subsidiary, (iii)&nbsp;any restrictions with respect to Indebtedness
owed to the Borrower or any Subsidiary which is required to be subordinated in connection with
Indebtedness permitted by Section&nbsp;8.2, (iv)&nbsp;encumbrances or restrictions existing under agreements
existing on the date hereof and listed on <U>Schedule&nbsp;8.15</U>, (v)&nbsp;any agreement or other
instrument of a Person acquired by Holdings, the Borrower or any Subsidiary in existence at the
time of such acquisition (but not created in contemplation thereof), which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any Person, other than
the Person and its Subsidiaries, or the property or assets of the Person and its Subsidiaries, so
acquired at the time of such acquisition, (vi)&nbsp;customary non-assignment provisions of any contract
or any lease entered into in the ordinary course of business, (vii)&nbsp;solely with respect to joint
ventures and similar arrangements otherwise permitted to be entered into by the terms of
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">this Agreement, customary provisions in partnership agreements, limited liability company
organizational governance documents, shareholders agreements, joint venture agreements, and other
similar agreements entered into in the ordinary course of business in connection with such joint
ventures and similar arrangements that restrict the disposition of ownership interests in or assets
of such partnership, limited liability company, corporation, joint venture or similar Person and
(viii)&nbsp;any restrictions contained in any Sale and Repurchase Agreement so long as such restrictions
are qualified so as to permit exceptions thereto for the purpose of permitting payment of the
Obligations under this Agreement and the other Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.16 <U>Material Change in Business</U>. Change its primary business from the oil and gas
energy services business (including any business currently carried on by the Borrower, the Target
or any Subsidiaries or referred to in the Confidential Information Memorandum) and other businesses
that are reasonably related thereto or reasonable extensions thereof (other than, in each case,
material exploration or production businesses).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.17 <U>Amendments to Acquisition Documents and other Material Contracts</U>. (a)&nbsp;Amend,
supplement or otherwise modify (pursuant to a waiver or otherwise) the terms and conditions of the
indemnities and licenses furnished to Holdings or any of its Subsidiaries pursuant to the
Acquisition Documentation except for such amendments, supplements or modifications that are not
materially adverse to the Lenders, (b)&nbsp;otherwise amend, supplement or otherwise modify the terms
and conditions of the Acquisition Documentation except for any such amendment, supplement or
modification that (i)&nbsp;is not materially adverse to the Lenders or (ii)(A) becomes effective after
the Closing Date and (B)&nbsp;could not reasonably be expected to have a Material Adverse Effect, (c)
amend, supplement or otherwise modify (pursuant to a waiver or otherwise) the terms and conditions
of any Sale and Repurchase Agreement or any Material Contract (including but not limited to any
amendment or waiver of the restriction on cash payments on required redemptions of Trust Units, any
amendment of the subordination or payment provisions of any Redemption Notes or any amendment or
waiver which alters the payment provisions under the Exchangeable LP Units) except for any such
amendment, supplement or modification that is not materially adverse to the Lenders or (d)&nbsp;commence
any action, institute any proceeding or make any application pursuant to the <I>Trustee Act </I>(Alberta)
or any similar law of any other jurisdiction to alter or vary the terms of Holdings (as a trust) or
the Trust Declaration except for any such modification that is not materially adverse to the
Lenders or is in connection with a Permitted Reorganization or is otherwise permitted under Section
8.4.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.18 <U>Redemption Notes</U>. Enter into any trust indenture, note indenture or other
agreement or instrument pursuant to which any Redemption Notes are or could be issued unless (a)
the same are subordinated and postponed, in form and substance satisfactory to the Administrative
Agent, acting reasonably, to the Obligations and (b)&nbsp;the terms and conditions of any such
Redemption Notes and such instruments are in form and substance satisfactory to the Administrative
Agent, acting reasonably.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 9. EVENTS OF DEFAULT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the following events shall occur and be continuing:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower shall fail to pay any principal of any Loan or Reimbursement
Obligation when due in accordance with the terms hereof; or the Borrower shall fail to pay
any interest on any Loan or Reimbursement Obligation, or any other amount payable hereunder
or under any other Loan Document, within five days after any such interest or other amount
becomes due in accordance with the terms hereof; or
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any representation or warranty made or deemed made by any Loan Party herein or in
any other Loan Document or that is contained in any certificate, document or financial or
other statement furnished by it at any time under or in connection with this Agreement or
any such other Loan Document shall prove to have been inaccurate in any material respect on
or as of the date made or deemed made; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Loan Party shall default in the observance or performance of any agreement
contained in clause (i)&nbsp;or (ii)&nbsp;of Section&nbsp;7.4(a) (with respect to Holdings and the Borrower
only), Section&nbsp;7.7(a) or Section&nbsp;8 of this Agreement or Sections&nbsp;5.5 and 5.7(b) of the US
Guarantee and Collateral Agreement or Sections&nbsp;4.5 and 4.7(b) of the Canadian Collateral
Agreement; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Loan Party shall default in the observance or performance of any other
agreement contained in this Agreement or any other Loan Document (other than as provided in
paragraphs (a)&nbsp;through (c)&nbsp;of this Section), and such default shall continue unremedied for
a period of 30&nbsp;days (or, in the case of Section&nbsp;7.11, 60&nbsp;days) after notice to the Borrower
from the Administrative Agent or the Required Lenders; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Group Member shall (i)&nbsp;default in making any payment of any principal of any
Indebtedness (including any Guarantee Obligation, but excluding the Loans) on the scheduled
or original due date with respect thereto; or (ii)&nbsp;default in making any payment of any
interest on any such Indebtedness beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created; or (iii)&nbsp;default in the
observance or performance of any other agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which default or
other event or condition is to cause, or to permit the holder or beneficiary of such
Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to cause, with
the lapse of time or the giving of notice if required, such Indebtedness to become due prior
to its stated maturity or (in the case of any such Indebtedness constituting a Guarantee
Obligation or which is payable on demand) to become payable; <U>provided</U>, that a
default, event or condition described in clause (i), (ii)&nbsp;or (iii)&nbsp;of this paragraph (e)
shall not at any time constitute an Event of Default unless, at such time, one or more
defaults, events or conditions of the type described in clauses (i), (ii)&nbsp;and (iii)&nbsp;of this
paragraph (e)&nbsp;shall have occurred and be continuing with respect to Indebtedness the
outstanding principal amount of which exceeds in the aggregate $25,000,000; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i)&nbsp;any Loan Party (other than Precision Drilling Trust) shall commence any case,
proceeding or other action (A)&nbsp;under any Debtor Relief Laws seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
composition or other relief with respect to it or its debts, or (B)&nbsp;seeking appointment of a
receiver, trustee, custodian, conservator or other similar official for it or for all or any
substantial part of its assets; or (ii)&nbsp;there shall be commenced against any Loan Party
(other than Precision Drilling Trust) any case, proceeding or other action of a nature
referred to in clause (i)&nbsp;above that (A)&nbsp;results in the entry of an order for relief or any
such adjudication or appointment that, solely in the case of any such appointment, remains
undismissed or unstayed for a period of 10&nbsp;days or (B)&nbsp;remains undismissed or undischarged
for a period of 60&nbsp;days; or (iii)&nbsp;there shall be commenced against any Loan Party (other
than Precision Drilling Trust) any case, proceeding or other action seeking issuance of a
warrant of attachment, execution, distraint or similar process against all or any
substantial part of its assets that results in the entry of an order for any such relief
that shall not have been vacated, discharged, or stayed or bonded pending appeal within 60
days from the entry thereof; or (iv)&nbsp;any Loan Party (other than Precision Drilling Trust)
shall take any action in
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">furtherance of, or indicating its consent to, approval of, or acquiescence in, any of
the acts set forth in clause (i), (ii), or (iii)&nbsp;above; or (v)&nbsp;any Loan Party (other than
Precision Drilling Trust) shall generally not, or shall be unable to, or shall admit in
writing its inability to, pay its debts as they become due; or (vi)&nbsp;or any Loan Party (other
than Precision Drilling Trust) shall make a general assignment for the benefit of its
creditors; or (vii)&nbsp;any Insolvency of Holdings shall occur or Holdings shall take any action
in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the
acts specified in the definition thereof; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i)&nbsp;an ERISA Event shall have occurred or (ii)&nbsp;any Loan Party or any of their
respective ERISA Affiliates shall have been notified by the sponsor of a Multiemployer Plan
that it has incurred or will be assessed Withdrawal Liability to such Multiemployer Plan and
such entity does not have reasonable grounds for contesting such Withdrawal Liability or is
not contesting such Withdrawal Liability in a timely and appropriate manner; and in each
case in clauses (i)&nbsp;and (ii)&nbsp;above, such event or condition, together with all other such
events or conditions, if any, would reasonably be expected to result in a Material Adverse
Effect; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) one or more judgments or decrees shall be entered against any Loan Party involving
in the aggregate a liability (not paid or fully covered by insurance as to which the
relevant insurance company has acknowledged coverage) of $25,000,000 or more, and all such
judgments or decrees shall not have been vacated, discharged, stayed or bonded pending
appeal within 60&nbsp;days from the entry thereof; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any of the Security Documents shall cease, for any reason, to be in full force and
effect in all material respects, or any Loan Party shall so assert, or any Lien created by
any of the Security Documents shall cease to be enforceable in all material respects and of
the same effect and priority purported to be created thereby (other than pursuant to
transactions permitted under Section&nbsp;8.4 or 8.5) and, solely in the case of any such event
relating to Collateral with a fair market value of less than $2,500,000, such event shall
continue unremedied for a period of 30&nbsp;days; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the guarantee contained in Section&nbsp;2 of the US Guarantee and Collateral Agreement
or the corresponding guarantee section of any other Security Document shall cease, for any
reason, to be in full force and effect in all material respects or any Loan Party party
thereto shall so assert; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a Change of Control shall occur; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) prior to a Permitted Reorganization and except to the extent necessary in
connection with a Permitted Reorganization, Holdings shall (i)&nbsp;conduct, transact or
otherwise engage in, or commit to conduct, transact or otherwise engage in, any material
business or operations other than those incidental to its ownership of the Capital Stock of
its Subsidiaries and necessary or advisable in connection with the performance of its
obligations under the Trust Declaration and the other Material Contracts to which it is
party, (ii)&nbsp;incur, create, assume or suffer to exist any Indebtedness or other material
liabilities or financial obligations, except (w)&nbsp;the Indebtedness in respect of the
Convertible Debentures, Redemption Notes, the Bridge Loans, the Senior Notes and other
Indebtedness otherwise permitted to be incurred by it hereunder, (x)&nbsp;nonconsensual
obligations imposed by operation of law, (y)&nbsp;obligations pursuant to the Loan Documents to
which it is a party and (z)&nbsp;obligations with respect to its Trust Units, or (iii)&nbsp;own,
lease, manage or otherwise operate any properties or assets (including cash (other than cash
received in connection with distributions or other payments made by its Subsidiaries in
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">accordance with Section&nbsp;8.6 pending application in the manner contemplated by said
Section) and cash equivalents) other than the ownership of shares of Capital Stock of its
Subsidiaries; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any subordinated Indebtedness or the guarantees thereof shall cease, for any
reason, to be validly subordinated to the Obligations or the obligations of the Subsidiary
Guarantors under the US Guarantee and Collateral Agreement, the Canadian Collateral
Agreement and any other applicable Security Document, as the case may be, or any Loan Party,
the trustee in respect of any subordinated Indebtedness or the holders of at least 25% in
aggregate principal amount of any such subordinated Indebtedness shall so assert;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">then, and in any such event, (A)&nbsp;if such event is an Event of Default specified in clause (i)&nbsp;or
(ii)&nbsp;of paragraph (f)&nbsp;above with respect to the Borrower, automatically the Commitments shall
immediately terminate and the Loans (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents (including all amounts of L/C Obligations,
whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the
documents required thereunder) shall immediately become due and payable, and (B)&nbsp;if such event is
any other Event of Default, either or both of the following actions may be taken: (i)&nbsp;with the
consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required
Lenders, the Administrative Agent shall, by notice to the Borrower declare the Revolving
Commitments to be terminated forthwith, whereupon the Revolving Commitments shall immediately
terminate; and (ii)&nbsp;with the consent of the Required Lenders, the Administrative Agent may, or upon
the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower,
declare the Loans (with accrued interest thereon) and all other amounts owing under this Agreement
and the other Loan Documents (including all amounts of L/C Obligations, whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented the documents required
thereunder) to be due and payable forthwith, whereupon the same shall immediately become due and
payable. With respect to all Letters of Credit with respect to which presentment for honor shall
not have occurred at the time of an acceleration pursuant to this paragraph, the Borrower shall at
such time deposit in a cash collateral account opened by the Administrative Agent an amount equal
to the aggregate then undrawn and unexpired amount of such Letters of Credit. Amounts held in such
cash collateral account shall be applied by the Administrative Agent to the payment of drafts drawn
under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay other obligations of the
Borrower hereunder and under the other Loan Documents. After all such Letters of Credit shall have
expired or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all
other obligations of the Borrower hereunder and under the other Loan Documents shall have been paid
in full, the balance, if any, in such cash collateral account shall be returned to the Borrower (or
such other Person as may be lawfully entitled thereto). Except as expressly provided above in this
Section&nbsp;9, presentment, demand, protest and all other notices of any kind are hereby expressly
waived by the Borrower.
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">SECTION 10. THE AGENTS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <U>Appointment</U>. Each Lender hereby irrevocably designates and appoints the
Administrative Agent as the agent of such Lender under this Agreement and the other Loan Documents,
and each such Lender irrevocably authorizes the Administrative Agent, in such capacity, to take
such action on its behalf under the provisions of this Agreement and the other Loan Documents and
to exercise such powers and perform such duties as are expressly delegated to the Administrative
Agent by the terms of this Agreement and the other Loan Documents, together with such other powers
as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in
this Agreement, the Administrative Agent shall not have any duties or responsibilities, except
those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities,
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">duties, obligations or liabilities shall be read into this Agreement or any other Loan
Document or otherwise exist against the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <U>Delegation of Duties</U>. The Administrative Agent may execute any of its duties
under this Agreement and the other Loan Documents by or through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <U>Exculpatory Provisions</U>. Neither any Agent nor any of their respective officers,
directors, employees, agents, advisors, attorneys-in-fact or affiliates shall be (i)&nbsp;liable for any
action lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a
final and nonappealable decision of a court of competent jurisdiction to have resulted from its or
such Person&#146;s own gross negligence or willful misconduct) or (ii)&nbsp;responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made by any Loan Party
or any officer thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for in, or received by the
Agents under or in connection with, this Agreement or any other Loan Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other
Loan Document or for any failure of any Loan Party a party thereto to perform its obligations
hereunder or thereunder. The Agents shall not be under any obligation to any Lender to ascertain
or to inquire as to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or
records of any Loan Party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <U>Reliance by Administrative Agent</U>. The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy or email message, statement, order or other
document or conversation believed by it to be genuine and correct and to have been signed, sent or
made by the proper Person or Persons and upon advice and statements of legal counsel (including
counsel to Holdings or the Borrower), independent accountants and other experts selected by the
Administrative Agent. The Administrative Agent may deem and treat the payee of any Note as the
owner thereof for all purposes unless a written notice of assignment, negotiation or transfer
thereof shall have been filed with the Administrative Agent. The Administrative Agent shall be
fully justified in failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the Required Lenders (or, if
so specified by this Agreement, the Required Amendment Lenders, the relevant Majority Facility
Lenders or all Lenders, as the case may be) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and expense that may
be incurred by it by reason of taking or continuing to take any such action. The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if
so specified by this Agreement, the Required Amendment Lenders, the relevant Majority Facility
Lenders or all Lenders, as the case may be), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders and all future holders of the Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <U>Notice of Default</U>. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default unless the Administrative
Agent has received written notice from a Lender, Holdings or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such notice is a &#147;notice of
default&#148;. In the event that the Administrative Agent receives such a notice, the Administrative
Agent shall give notice thereof to the Lenders and, unless such notice shall have been received
from the Borrower or Holdings, to
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->109<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Borrower and Holdings; <U>provided</U>, that failure to give any such notice to the
Borrower or Holdings shall not affect the validity or existence of such Default or Event of
Default. The Administrative Agent shall take such action with respect to such Default or Event of
Default as shall be reasonably directed by the Required Lenders (or, if so specified by this
Agreement, the Required Amendment Lenders, the relevant Majority Facility Lenders or all Lenders,
as the case may be); <U>provided</U> that unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <U>Non-Reliance on Agents and Other Lenders</U>. Each Lender expressly acknowledges
that neither the Agents nor any of their respective officers, directors, employees, agents,
advisors, attorneys-in-fact or affiliates have made any representations or warranties to it and
that no act by any Agent hereafter taken, including any review of the affairs of a Loan Party or
any affiliate of a Loan Party, shall be deemed to constitute any representation or warranty by any
Agent to any Lender. Each Lender represents to the Agents that it has, independently and without
reliance upon any Agent or any other Lender, and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the business, operations,
property, financial and other condition and creditworthiness of the Loan Parties and their
affiliates and made its own decision to make its Loans hereunder and enter into this Agreement.
Each Lender also represents that it will, independently and without reliance upon any Agent or any
other Lender, and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial and other condition
and creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and
other documents expressly required to be furnished to the Lenders by the Administrative Agent
hereunder, the Administrative Agent shall not have any duty or responsibility to provide any Lender
with any credit or other information concerning the business, operations, property, condition
(financial or otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a
Loan Party that may come into the possession of the Administrative Agent or any of its officers,
directors, employees, agents, advisors, attorneys-in-fact or affiliates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <U>Indemnification</U>. The Lenders agree to indemnify each Agent and its officers,
directors, employees, affiliates, agents, advisors and controlling persons (each, an &#147;<U>Agent
Indemnitee</U>&#148;) (to the extent not reimbursed by Holdings or the Borrower and without limiting the
obligation of Holdings or the Borrower to do so), ratably according to their respective Aggregate
Exposure Percentages in effect on the date on which indemnification is sought under this Section
10.7 (or, if indemnification is sought after the date upon which the Commitments shall have
terminated and the Loans shall have been paid in full, ratably in accordance with such Aggregate
Exposure Percentages immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever that may at any time (whether before or after the payment of
the Loans) be imposed on, incurred by or asserted against such Agent Indemnitee in any way relating
to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or any
documents contemplated by or referred to herein or therein or the transactions contemplated hereby
or thereby or any action taken or omitted by such Agent Indemnitee under or in connection with any
of the foregoing; <U>provided</U> that no Lender shall be liable for the payment of any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements that are found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted from such Agent Indemnitee&#146;s gross negligence or willful
misconduct. Notwithstanding any other provision of this Agreement or any other Loan Document, no
Agent Indemnitee shall be liable for any special, indirect, consequential or punitive damages in
connection with its activities related to this Agreement or any other Loan Document or any of the
transactions in
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->110<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">connection herewith or therewith. The agreements in this Section shall survive the payment of
the Loans and all other amounts payable hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <U>Withholding Tax</U>. To the extent required by any applicable law, the
Administrative Agent may withhold from any interest payment to any Lender an amount equivalent to
any applicable withholding tax. If the Internal Revenue Service or any authority of the United
States or other jurisdiction asserts a claim that the Administrative Agent did not properly
withhold tax from amounts paid to or for the account of any Lender (because the appropriate form
was not delivered, was not properly executed, or because such Lender failed to notify the
Administrative Agent of a change in circumstances that rendered the exemption from, or reduction
of, withholding tax ineffective, or for any other reason), such Lender shall indemnify the
Administrative Agent (to the extent that the Administrative Agent has not already been reimbursed
by the Borrower and without limiting the obligation of the Borrower to do so) fully for all amounts
paid, directly or indirectly, by the Administrative Agent as tax or otherwise, including penalties
and interest, together with all expenses incurred, including legal expenses, allocated staff costs
and any out of pocket expenses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <U>Agent in Its Individual Capacity</U>. Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any Loan Party as though
such Agent were not an Agent. With respect to its Loans made or renewed by it and with respect to
any Letter of Credit issued or participated in by it, each Agent shall have the same rights and
powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as
though it were not an Agent, and the terms &#147;Lender&#148; and &#147;Lenders&#148; shall include each Agent in its
individual capacity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <U>Successor Administrative Agent</U>. The Administrative Agent may resign as
Administrative Agent upon 10&nbsp;days&#146; notice to the Lenders and the Borrower. If the Administrative
Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which
successor agent shall (unless an Event of Default under Section 9(a) or Section 9(f) with respect
to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower
(which approval shall not be unreasonably withheld or delayed), whereupon such successor agent
shall succeed to the rights, powers and duties of the Administrative Agent, and the term
&#147;Administrative Agent&#148; shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent&#146;s rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of such former
Administrative Agent or any of the parties to this Agreement or any holders of the Loans. If no
successor agent has accepted appointment as Administrative Agent by the date that is 20&nbsp;days
following a retiring Administrative Agent&#146;s notice of resignation, the retiring Administrative
Agent&#146;s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and
perform all of the duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for above. After any retiring
Administrative Agent&#146;s resignation as Administrative Agent, the provisions of this Section&nbsp;10 and
of Section&nbsp;11.5 shall continue to inure to its benefit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <U>Qu&#233;bec</U>. (a)&nbsp;For greater certainty, and without limiting the powers of the
Administrative Agent or any other Person acting as an agent, attorney-in-fact or mandatary for the
Administrative Agent under this Agreement or under any of the other Loan Documents, each Lender,
hereby (a)&nbsp;irrevocably constitutes, to the extent necessary, the Administrative Agent as the holder
of an irrevocable power of attorney (<I>fond&#233; de pouvoir </I>within<U> </U>the meaning of Article&nbsp;2692 of
the Civil Code of Qu&#233;bec) for the purposes of holding any Liens, including hypothecs, granted or to
be granted by any Loan Party on movable or immovable property pursuant to the laws of the Province
of Qu&#233;bec to secure obligations of any Loan Party under any bond issued by any Loan Party;
(b)&nbsp;appoints and agrees that the Administrative Agent, acting as agent for the Lenders, may act as
the bondholder and mandatary with
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">respect to any bond that may be issued and pledged from time to time for the benefit of the
Lenders; and (c)&nbsp;ratifies and confirms all acts performed prior to the execution of this agreement
by the Administrative Agent in such capacities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The said constitution of the <I>fond&#233; de pouvoir </I>(within the meaning of Article&nbsp;2692 of the
Civil Code of Qu&#233;bec) as the holder of such irrevocable power of attorney and of the Administrative
Agent as bondholder and mandatary with respect to any bond that may be issued and pledged from time
to time for the benefit of the Lenders shall be deemed to have been ratified and confirmed by any
Assignee by the execution of an Assignment and Assumption.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Notwithstanding the provisions of Section&nbsp;32 of <I>An Act respecting the special powers of
legal persons </I>(Qu&#233;bec), the Administrative Agent may purchase, acquire and be the holder of any
bond issued by any Loan Party. Each Loan Party hereby acknowledges that any such bond shall
constitute a title of indebtedness, as such term is used in Article&nbsp;2692 of the <I>Civil Code </I>of
Qu&#233;bec.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Administrative Agent herein appointed as <I>fond&#233; de pouvoir </I>shall have the same rights,
powers and immunities as the Agents as stipulated in this Section&nbsp;10, which shall apply
<U>mutatis</U> <U>mutandis</U>. Without limitation, the provisions of Section&nbsp;10.10 of this
Agreement shall apply <U>mutatis</U> <U>mutandis</U> to the resignation and appointment of a
successor to the Administrative Agent acting as <I>fond&#233; de pouvoir</I>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <U>Co-Documentation Agents and Syndication Agent</U>. None of the Co-Documentation
Agents or the Syndication Agent shall have any duties or responsibilities hereunder in its capacity
as such.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 11. MISCELLANEOUS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <U>Amendments and Waivers</U>. Neither this Agreement, any other Loan Document, nor any
terms hereof or thereof may be amended, supplemented or modified except in accordance with the
provisions of this Section&nbsp;11.1 (except the Fee Letter or any amendment or supplement thereto,
which may only be amended, supplemented or otherwise modified in accordance with the provisions
thereof; and the provisions of this Section&nbsp;11.1 shall not apply with respect to the Fee Letter or
any amendment or supplement thereto) or as otherwise expressly permitted hereunder in connection
with a Permitted Reorganization. The Required Amendment Lenders and each Loan Party party to the
relevant Loan Document may, or, with the written consent of the Required Amendment Lenders, the
Administrative Agent and each Loan Party party to the relevant Loan Document may, from time to
time, (a)&nbsp;enter into written amendments, supplements or modifications hereto and to the other Loan
Documents for the purpose of adding any provisions to this Agreement or the other Loan Documents or
changing in any manner the rights of the Lenders or of the Loan Parties hereunder or thereunder or
(b)&nbsp;waive, on such terms and conditions as the Required Amendment Lenders or the Administrative
Agent, as the case may be, may specify in such instrument, any of the requirements of this
Agreement or the other Loan Documents or any Default or Event of Default and its consequences;
<U>provided</U>, <U>however</U>, that no such waiver and no such amendment, supplement or
modification shall (i)&nbsp;forgive the principal amount or extend the final scheduled date of maturity
of any Loan, extend the scheduled date of any amortization payment in respect of any Term Loan,
reduce the stated rate of any interest or fee payable hereunder (except (x)&nbsp;in connection with the
waiver of applicability of any post-default increase in interest rates (which waiver shall be
effective with the consent of the Majority Facility Lenders of each adversely affected Facility)
and (y)&nbsp;that any amendment or modification of defined terms used in the financial covenants in this
Agreement shall not constitute a reduction in the rate of interest or fees for purposes of this
clause (i)) or extend the scheduled date of any payment thereof, or increase the amount or extend
the expiration date of any Lender&#146;s Revolving Commitment, in each case without the written consent
of each
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->112<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Lender directly affected thereby; (ii)&nbsp;eliminate or reduce the voting rights of any Lender
under this Section&nbsp;11.1 without the written consent of such Lender; (iii)&nbsp;reduce any percentage
specified in the definition of Required Lenders or Required Amendment Lenders, consent to the
assignment or transfer by the Borrower of any of its rights and obligations under this Agreement
and the other Loan Documents (except in connection with a Permitted Reorganization) or, except as
otherwise provided by Section&nbsp;11.14, release all or substantially all of the Collateral or release
all or substantially all of the Subsidiary Guarantors from their obligations under the US Guarantee
and Collateral Agreement or the Canadian Collateral Agreement, in each case without the written
consent of all Lenders; (iv)&nbsp;amend, modify or waive any provision of Section&nbsp;2.19 without the
written consent of the Majority Facility Lenders in respect of each Facility adversely affected
thereby; (v)&nbsp;reduce the percentage specified in the definition of Majority Facility Lenders with
respect to any Facility without the written consent of all Lenders under such Facility; (vi)&nbsp;amend,
modify or waive any provision of Section&nbsp;10 or any other provision of any Loan Document that
affects the Administrative Agent without the written consent of the Administrative Agent; (vii)
amend, modify or waive any provision of Section&nbsp;2.8 or 2.9 without the written consent of the
Swingline Lender; (viii)&nbsp;amend, modify or waive any provision of Section&nbsp;3 without the written
consent of each North American Issuing Lender; or (ix)&nbsp;amend, modify or waive any provision of
Section&nbsp;4 without the written consent of each Canadian Issuing Lender; <U>provided</U>,
<U>further</U>, that notwithstanding anything to the contrary in this Section&nbsp;11.1, the
Administrative Agent and each Loan Party party hereto may enter into written amendments,
supplements or modifications hereto for the purpose of increasing the stated rate of any interest
or fees payable hereunder (including through the use of original issue discount) or implementing
any other change permitted to be made to the terms of any Loan Document pursuant to the Fee Letter.
Any such waiver and any such amendment, supplement or modification shall apply equally to each of
the Lenders and shall be binding upon the Loan Parties, the Lenders, the Administrative Agent and
all future holders of the Loans. In the case of any waiver, the Loan Parties, the Lenders and the
Administrative Agent shall be restored to their former position and rights hereunder and under the
other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and
not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <U>Notices</U>. All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered, or, in the case of
telecopy notice, when received, addressed as follows in the case of Holdings, the Borrower and the
Administrative Agent, and as set forth in an administrative questionnaire delivered to the
Administrative Agent in the case of the Lenders, or to such other address as may be hereafter
notified by the respective parties hereto:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holdings:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Precision Drilling Trust</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">150 6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue SW</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suite&nbsp;4200</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calgary, AB T2P 3Y7</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canada</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Chief Financial Officer
(with a copy to General Counsel)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopy: (403)&nbsp;264-0251</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (403)&nbsp;716-4500</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->113<!-- /Folio -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Precision Drilling Corporation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">150 6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue SW</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suite&nbsp;4200</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calgary, AB T2P 3Y7</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canada</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Chief Financial Officer
(with a copy to General Counsel)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopy: (403)&nbsp;264-0251</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (403)&nbsp;716-4500</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative Agent:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"> Royal Bank of Canada</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agency Services Group</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Royal Bank Plaza</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">P.O. Box 50, 200 Bay Street</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor, South Tower</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Toronto, Ontario M5J 2W7</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Manager</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopy: (416)&nbsp;842-4023</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (416)&nbsp;842-3913</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>provided</U> that any notice, request or demand to or upon the Administrative Agent or the
Lenders shall not be effective until received.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices and other communications from the Administrative Agent to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures approved by the
Administrative Agent; <U>provided</U> that the foregoing shall not apply to service of process or
to notices pursuant to Section&nbsp;2 unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to
accept notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it; <U>provided</U> that approval of such procedures may be limited to
particular notices or communications.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 <U>No Waiver; Cumulative Remedies</U>. No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or
privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 <U>Survival of Representations and Warranties</U>. All representations and warranties
made hereunder, in the other Loan Documents and in any document, certificate or statement delivered
pursuant hereto or in connection herewith shall survive the execution and delivery of this
Agreement and the making of the Loans and other extensions of credit hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 <U>Payment of Expenses and Taxes</U>. The Borrower agrees (a)&nbsp;to pay or reimburse the
Administrative Agent for all its reasonable out-of-pocket costs and expenses incurred in connection
with the development, preparation and execution of, and any amendment, supplement or modification
to, this Agreement and the other Loan Documents and any other documents prepared in connection
herewith or therewith, and the consummation and administration of the transactions contemplated
hereby and thereby, including the reasonable fees and disbursements of one US counsel, one Canadian
counsel and one local counsel in each relevant jurisdiction to the Administrative Agent and filing
and recording fees
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and expenses, with statements with respect to the foregoing to be submitted to the Borrower
prior to the Closing Date (in the case of amounts to be paid on the Closing Date) and from time to
time thereafter on a quarterly basis or such other periodic basis as the Administrative Agent shall
deem appropriate, (b)&nbsp;to pay or reimburse each Lender and the Administrative Agent for all its
out-of-pocket costs and expenses incurred in connection with the enforcement, preservation of any
rights under, or the restructuring or workout of, this Agreement, the other Loan Documents and any
such other documents, including the fees and disbursements of counsel to each Lender and of counsel
to the Administrative Agent, (c)&nbsp;to pay, indemnify, and hold each Lender and the Administrative
Agent harmless from, any and all recording and filing fees and any and all liabilities with respect
to, or resulting from any delay in paying, stamp, excise and other taxes, if any, that may be
payable or determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the
other Loan Documents and any such other documents, and (d)&nbsp;to pay, indemnify, and hold each Lender
and the Administrative Agent and their respective officers, directors, employees, affiliates,
agents, advisors and controlling persons (each, an &#147;<U>Indemnitee</U>&#148;) harmless from and against
any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution,
delivery, enforcement, performance and administration of this Agreement, the other Loan Documents
and any such other documents, including any of the foregoing relating to the use of proceeds of the
Loans or arising out of, or in respect of (i)&nbsp;any actual, alleged or threatened Release in respect
of any Properties, whether now owned or hereafter acquired; (ii)&nbsp;any remedial action required to be
taken under any Environmental Laws by an Indemnitee in respect of any Release or in respect of the
environmental condition of any of the Properties; (iii)&nbsp;any non-compliance by any Group Member or
any predecessor in title to any Group Member under any Environmental Laws, in respect of actions of
any Governmental Authority under any Environmental Laws or in respect of the environmental
condition of any of the Properties; or (iv)&nbsp;any Environmental Liability arising directly or
indirectly from the provision by any Lender of credit to any Group Member, making any Loan, or
entering into any transaction as a result of which a contingent Environmental Liability may arise,
taking or being granted any Lien or any realization of, against or upon any Group Member or any of
the Properties and the reasonable fees and expenses of legal counsel in connection with claims,
actions or proceedings by any Indemnitee against any Loan Party under any Loan Document (all the
foregoing in this clause (d), collectively, the &#147;<U>Indemnified Liabilities</U>&#148;),
<U>provided</U>, that the Borrower shall have no obligation hereunder to any Indemnitee with
respect to Indemnified Liabilities to the extent such Indemnified Liabilities are found by a final
and nonappealable decision of a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnitee or from a Release of Materials of Environmental
Concern at, on, under or from a Property that is unrelated to any Group Member and that occurs
entirely following an Indemnitee&#146;s taking possession of such Property by foreclosure, deed in lieu
of foreclosure or similar transfer, other than any such Release concerning Materials of
Environmental Concern that existed at such Property prior to such Indemnitee&#146;s possession thereof.
Notwithstanding any other provision of this Agreement or any other Loan Document, no Indemnitee
shall be liable for any special, indirect, consequential or punitive damages in connection with its
activities related to this Agreement or any other Loan Document or any of the transactions in
connection herewith or therewith. Without limiting the foregoing, and to the extent permitted by
applicable law, each of Holdings and the Borrower agrees not to assert and to cause its
Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries to waive, all
rights for contribution or any other rights of recovery with respect to all claims, demands,
penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature,
under or related to Environmental Laws, that any of them might have by statute or otherwise against
any Indemnitee except in the case of gross negligence or willful misconduct of such Indemnitees.
All amounts due under this Section&nbsp;11.5 shall be payable not later than 10&nbsp;days after written
demand therefor. The agreements in this Section&nbsp;11.5 shall survive repayment of the Loans and all
other amounts payable hereunder.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 <U>Successors and Assigns; Participations and Assignments</U>. (a)&nbsp;The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby (including any affiliate of an Issuing Lender that issues
any Letter of Credit), except that (i)&nbsp;the Borrower may not assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrower without such consent shall be null and void) and (ii)&nbsp;no
Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance
with this Section; <U>provided</U>, that, notwithstanding the foregoing and any other provision of
this Agreement to the contrary, the Borrower may assign its rights and obligations hereunder
without the consent of the Lenders to (A)&nbsp;the New Borrower resulting from a Permitted
Reorganization or (B)&nbsp;an Additional Borrower designated pursuant to Section&nbsp;2.26, in each case so
long as such New Borrower assumes all obligations of the Borrower under this Agreement and any
other applicable Loan Documents pursuant to documentation reasonably acceptable to the
Administrative Agent (which documentation shall provide that the original Borrower is released to
the extent such New Borrower has assumed its obligations) and complies with all other obligations
under this Agreement in respect thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i)&nbsp;Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees, which may not be the Borrower, Holdings or any Subsidiary or
affiliate of the Borrower or Holdings (each, an &#147;<U>Assignee</U>&#148;) all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitments and the Loans
and Letter of Credit participations at the time owing to it) with the prior written consent of:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Borrower (such consent not to be unreasonably withheld or delayed),
<U>provided</U> that no consent of the Borrower shall be required for an assignment to a
Lender that is not a Defaulting Lender, an affiliate of a Lender that is not a Defaulting
Lender, an Approved Fund (as defined below) or, if an Event of Default has occurred and is
continuing, any other Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Administrative Agent, <U>provided</U> that no consent of the Administrative
Agent shall be required for an assignment of all or any portion of a Term Loan to a Lender,
an affiliate of a Lender or an Approved Fund;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) each Canadian Issuing Lender, <U>provided</U> that no consent of a Canadian
Issuing Lender shall be required for an assignment of all or any portion of a Term Loan or
North American Revolving Commitment; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) each North American Issuing Lender, <U>provided</U> that no consent of a North
American Issuing Lender shall be required for an assignment of all or any portion of a Term
Loan or Canadian Revolving Commitment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Assignments shall be subject to the following additional conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) except in the case of an assignment to a Lender, an affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning Lender&#146;s
Commitments or Loans under any Facility, the amount of the Commitments or Loans of the
assigning Lender subject to each such assignment (determined as of the date the Assignment
and Assumption with respect to such assignment is delivered to the Administrative Agent)
shall not be less than $5,000,000 (or, in the case of the Tranche A-1 Term Facility, Tranche
A-2 Term Facility, Tranche B-1 Term Facility or Tranche B-2 Term Facility, $1,000,000)
unless each of the Borrower and the Administrative Agent otherwise consent, <U>provided</U>
that (1)&nbsp;no such consent of the Borrower shall be required if an Event of Default has
occurred and is continuing and (2)&nbsp;such
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">amounts shall be aggregated in respect of each Lender and its affiliates or Approved
Funds, if any;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) (1)&nbsp;the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500
and (2)&nbsp;the assigning Lender shall have paid in full any amounts owing by it to the
Administrative Agent; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an administrative questionnaire in which the Assignee designates one or more credit
contacts to whom all syndicate-level information (which may contain material non-public
information about the Borrower and its Affiliates and their related parties or their
respective securities) will be made available and who may receive such information in
accordance with the assignee&#146;s compliance procedures and applicable laws, including Federal
and state securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Section&nbsp;11.6, &#147;<U>Approved Fund</U>&#148; means any Person (other than a
natural person) that is engaged in making, purchasing, holding or investing in bank loans and
similar extensions of credit in the ordinary course of its business and that is administered or
managed by (a)&nbsp;a Lender, (b)&nbsp;an affiliate of a Lender or (c)&nbsp;an entity or an affiliate of an entity
that administers or manages a Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Subject to acceptance and recording thereof pursuant to paragraph&nbsp;(b)(iv) below, from
and after the effective date specified in each Assignment and Assumption the Assignee thereunder
shall be a party hereto as a Lender with respect to the interest assigned and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender
under this Agreement in addition to any rights theretofore held by it as a Lender, and the
assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender&#146;s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections&nbsp;2.6(c), 2.20, 2.21, 2.22 and 11.5). Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section&nbsp;11.6 shall not be
effective as an assignment hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the Commitments of, and
principal amount of the Loans and L/C Obligations owing to, each Lender pursuant to the terms
hereof from time to time (the &#147;<U>Register</U>&#148;). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, each Issuing Lender and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an Assignee, the Assignee&#146;s completed administrative questionnaire (unless the Assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in
paragraph&nbsp;(b) of this Section and any written consent to such assignment required by paragraph (b)
of this Section, the Administrative Agent shall accept such Assignment and Assumption and record
the information contained therein in the Register. No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in this paragraph.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i)&nbsp;Any Lender may, without the consent of the Borrower or the Administrative Agent, sell
participations to one or more banks or other entities, which may not be the Borrower, Holdings or
any Subsidiary or affiliate of the Borrower or Holdings (a &#147;<U>Participant</U>&#148;) in all or a
portion of such Lender&#146;s rights and obligations under this Agreement (including all or a portion of
its Commitments and the Loans owing to it); <U>provided</U> that (A)&nbsp;such Lender&#146;s obligations
under this Agreement shall remain unchanged, (B)&nbsp;such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (C)&nbsp;the Borrower, the
Administrative Agent, each Issuing Lender and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender&#146;s rights and obligations under this
Agreement. Any agreement pursuant to which a Lender sells such a participation shall provide that
such Lender shall retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; <U>provided</U> that such agreement may
provide that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver that (1)&nbsp;requires the consent of each Lender directly affected thereby
pursuant to the proviso to the second sentence of Section&nbsp;11.1 and (2)&nbsp;directly affects such
Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections&nbsp;2.6(c), 2.20, 2.21 and 2.22 to the same
extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b)
of this Section. To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section&nbsp;11.7(b) as though it were a Lender, provided such Participant shall be subject
to Section&nbsp;11.7(a) as though it were a Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;A Participant shall not be entitled to receive any greater payment under Section&nbsp;2.20,
2.21 or 2.22 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower&#146;s prior written consent. Any Participant that is a Non-U.S. Lender shall
not be entitled to the benefits of Section&nbsp;2.21 unless such Participant complies with Section
2.21(d).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement and its Notes, if any, to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this
Section shall not apply to any such pledge or assignment of a security interest; <U>provided</U>
that no such pledge or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or Assignee for such Lender as a party hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Borrower, upon receipt of written notice from the relevant Lender, agrees to issue
Notes to any Lender requiring Notes to facilitate transactions of the type described in paragraph
(d)&nbsp;above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Notwithstanding the foregoing, any Conduit Lender may assign any or all of the Loans it
may have funded hereunder to its designating Lender without the consent of the Borrower or the
Administrative Agent and without regard to the limitations set forth in Section&nbsp;11.6(b). Each of
Holdings, the Borrower, each Lender and the Administrative Agent hereby confirms that it will not
institute against a Conduit Lender or join any other Person in instituting against a Conduit Lender
any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under any state
bankruptcy or similar law, for one year and one day after the payment in full of the latest
maturing commercial paper note issued by such Conduit Lender; <U>provided</U>, however, that each
Lender designating any Conduit Lender hereby agrees to indemnify, save and hold harmless each other
party hereto for any loss, cost, damage or expense arising out of its inability to institute such a
proceeding against such Conduit Lender during such period of forbearance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 <U>Adjustments; Set-off</U>. (a)&nbsp;Except to the extent that this Agreement, any other
Loan Document or a court order expressly provides for payments to be allocated to a particular
Lender or
</DIV>


</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to the Lenders under a particular Facility, if any Lender (a &#147;<U>Benefitted Lender</U>&#148;)
shall receive any payment of all or part of the Obligations owing to it (other than in connection
with an assignment made pursuant to Section&nbsp;11.6), or receive any collateral in respect thereof
(whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section&nbsp;9(f), or otherwise), in a greater proportion than any such payment to or
collateral received by any other Lender, if any, in respect of the Obligations owing to such other
Lender, such Benefitted Lender shall purchase for cash from the other Lenders a participating
interest in such portion of the Obligations owing to each such other Lender, or shall provide such
other Lenders with the benefits of any such collateral, as shall be necessary to cause such
Benefitted Lender to share the excess payment or benefits of such collateral ratably with each of
the Lenders; <U>provided</U>, <U>however</U>, that if all or any portion of such excess payment
or benefits is thereafter recovered from such Benefitted Lender, such purchase shall be rescinded,
and the purchase price and benefits returned, to the extent of such recovery, but without interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition to any rights and remedies of the Lenders provided by law, each Lender shall
have the right, if an Event of Default has occurred and is continuing, without notice to the
Borrower, any such notice being expressly waived by the Borrower to the extent permitted by
applicable law, upon any Obligations becoming due and payable by the Borrower (whether at the
stated maturity, by acceleration or otherwise), to apply to the payment of such Obligations, by
setoff or otherwise, any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender, any affiliate thereof or any of their respective branches or agencies to or
for the credit or the account of the Borrower. Each Lender agrees promptly to notify the Borrower
and the Administrative Agent after any such application made by such Lender, <U>provided</U> that
the failure to give such notice shall not affect the validity of such application.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Swingline Lender shall, in its capacity as the lender party to the Centralized Banking
Agreement, be entitled to exercise its rights of set-off thereunder from time to time and at any
time, both before and after an Event of Default or the Loans becoming due hereunder. At any time
an Event of Default has occurred and is continuing, the Swingline Lender agrees to notify the
Borrower and the Administrative Agent after any such set-off made by the Swingline Lender,
<U>provided</U> that the failure to give such notice shall not affect the validity of such
application.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 <U>Counterparts</U>. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. Delivery of an executed signature page
of this Agreement by email transmission of a PDF copy thereof or facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof for purposes of Section&nbsp;6.1(a) and
the occurrence of the Closing Date; provided, however, that original manually signed counterparts
and originals of all documents hereunder shall be promptly delivered thereafter. A set of
originals of this Agreement signed by all the parties shall be lodged with the Borrower and the
Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 <U>Severability</U>. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 <U>Integration</U>. This Agreement and the other Loan Documents represent the entire
agreement of Holdings, the Borrower, the Administrative Agent and the Lenders with respect to the
subject matter hereof and thereof, and there are no promises, undertakings, representations or
warranties
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->119<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">by the Administrative Agent or any Lender relative to the subject matter hereof not expressly
set forth or referred to herein or in the other Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 <U><B>GOVERNING LAW</B></U><B>. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12 <U>Submission To Jurisdiction; Waivers</U>. Each party hereby irrevocably and
unconditionally:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) submits for itself and its property in any legal action or proceeding relating to
this Agreement and the other Loan Documents (other than Loan Documents governed by the Laws
of Canada or a province thereof) to which it is a party, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts
of the State of New York, the courts of the United States for the Southern District of
New&nbsp;York, and appellate courts from any thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to Holdings or the Borrower, as the case may be at its address set
forth in Section&nbsp;11.2 or at such other address of which the Administrative Agent shall have
been notified pursuant thereto;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section any special,
exemplary, punitive or consequential damages.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13 <U>Acknowledgements</U>. Each of Holdings and the Borrower hereby acknowledges that:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) neither the Administrative Agent nor any Lender has any fiduciary relationship with
or duty to Holdings or the Borrower arising out of or in connection with this Agreement or
any of the other Loan Documents, and the relationship between Administrative Agent and
Lenders, on one hand, and Holdings and the Borrower, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or among
Holdings, the Borrower and the Lenders.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->120<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.14 <U>Releases of Guarantees and Liens</U>. (a)&nbsp;Notwithstanding anything to the contrary
contained herein or in any other Loan Document, the Administrative Agent is hereby irrevocably
authorized by each Lender (without requirement of notice to or consent of any Lender except as
expressly required by Section&nbsp;11.1) to take any action requested by the Borrower having the effect
of releasing any Collateral or guarantee obligations (i)&nbsp;to the extent necessary to permit
consummation of any transaction not prohibited by any Loan Document (including, without limitation,
any release of Collateral in connection with a transfer of assets or Capital Stock permitted by
Sections&nbsp;8.4 and 8.5) or that has been consented to in accordance with Section&nbsp;11.1, including any
transfer of assets or Capital Stock as part of a Permitted Reorganization provided the requirements
thereof have been satisfied or the release of any guarantee obligations of any Person that will be
wound up or cease to exist in connection with such Permitted Reorganization or (ii)&nbsp;under the
circumstances described in paragraph (b)&nbsp;or (c)&nbsp;below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Collateral shall be released from the Liens created by the Security Documents at the
Borrower&#146;s request upon the satisfaction of the following conditions: (i)&nbsp;the Borrower shall have
received and at that time shall maintain corporate family ratings of at least BBB- (with a stable
outlook or better) from S&#038;P and at least Baa3 (with a stable outlook or better) from Moody&#146;s and
(ii)&nbsp;the Tranche B Term Loans shall have been repaid in full (the date of such release, the
&#147;<U>Release Date</U>&#148;). If, following the Release Date, the Borrower&#146;s corporate family ratings
shall cease to be at least BBB- (with a stable outlook or better) by S&#038;P and at least Baa3 (with a
stable outlook or better) by Moody&#146;s, the Loan Parties shall promptly, and in any event within 60
days, enter into documentation reasonably requested by the Administrative Agent so as to cause the
Obligations to be secured on the same basis as the Obligations were secured prior to the Release
Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;At such time as the Loans, the Reimbursement Obligations and the other obligations under
the Loan Documents (other than obligations under or in respect of Specified Swap Agreements or
Specified Cash Management Agreements) shall have been paid in full, the Commitments have been
terminated and no Letters of Credit shall be outstanding, the Collateral shall be released from the
Liens created by the Security Documents, and the Security Documents and all obligations (other than
those expressly stated to survive such termination) of the Administrative Agent and each Loan Party
under the Security Documents shall terminate, all without delivery of any instrument or performance
of any act by any Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.15 <U>Confidentiality</U>. Each of the Administrative Agent and each Lender agrees to keep
confidential all non-public information provided to it by any Loan Party, the Administrative Agent
or any Lender pursuant to or in connection with this Agreement that is designated by the provider
thereof as confidential; <U>provided</U> that nothing herein shall prevent the Administrative
Agent or any Lender from disclosing any such information (a)&nbsp;to the Administrative Agent, any other
Lender or any affiliate thereof, (b)&nbsp;subject to an agreement to comply with the provisions of this
Section, to any actual or prospective Transferee or any direct or indirect counterparty to any Swap
Agreement (or any professional advisor to such counterparty), (c)&nbsp;to its employees, directors,
agents, attorneys, accountants and other professional advisors or those of any of its affiliates,
(d)&nbsp;upon the request or demand of any Governmental Authority, (e)&nbsp;in response to any order of any
court or other Governmental Authority or as may otherwise be required pursuant to any Requirement
of Law, (f)&nbsp;if required to do so in connection with any litigation or similar proceeding, (g)&nbsp;that
has been publicly disclosed, (h)&nbsp;to the National Association of Insurance Commissioners or any
similar organization or any nationally recognized rating agency that requires access to information
about a Lender&#146;s investment portfolio in connection with ratings issued with respect to such
Lender, or (i)&nbsp;in connection with the exercise of any remedy hereunder or under any other Loan
Document, or (j)&nbsp;if agreed by the Borrower in its sole discretion, to any other Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Lender acknowledges that information furnished to it pursuant to this Agreement or the
other Loan Documents may include material non-public information concerning the Borrower and its
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->121<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Affiliates and their related parties or their respective securities, and confirms that it has
developed compliance procedures regarding the use of material non-public information and that it
will handle such material non-public information in accordance with those procedures and applicable
law, including Federal, provincial and state securities laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All information, including requests for waivers and amendments, furnished by the Borrower or
the Administrative Agent pursuant to, or in the course of administering, this Agreement or the
other Loan Documents will be syndicate-level information, which may contain material non-public
information about the Borrower and its Affiliates and their related parties or their respective
securities. Accordingly, each Lender represents to the Borrower and the Administrative Agent that
it has identified in its administrative questionnaire a credit contact who may receive information
that may contain material non-public information in accordance with its compliance procedures and
applicable law, including Federal, provincial and state securities laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.16 <U><B>WAIVERS OF JURY TRIAL</B></U><B>. HOLDINGS, THE BORROWER, THE ADMINISTRATIVE AGENT AND THE
LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.17 <U>USA PATRIOT Act</U>. Each Lender hereby notifies the Borrower that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October&nbsp;26,
2001)) (the &#147;PATRIOT Act&#148;), it is required to obtain, verify and record information that identifies
the Borrower, which information includes the name and address of the Borrower and other information
that will allow such Lender to identify the Borrower in accordance with the PATRIOT Act. The
Borrower agrees to provide such information to each Lender on request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.18 <U>Judgment Currency</U>. If for the purpose of obtaining judgment in any court it is
necessary to convert any amount owing or payable to the Administrative Agent or the Lenders under
this Agreement from the currency in which it is due (the &#147;<U>Agreed Currency</U>&#148;) into a
particular currency (the &#147;<U>Judgment Currency</U>&#148;), the rate of exchange applied in that
conversion shall be that at which the Administrative Agent, in accordance with its normal
procedures, could purchase the Agreed Currency with the Judgment Currency at or about noon on the
Business Day immediately preceding the date on which judgment is given. The obligation of the
Borrower in respect of any amount owing or payable under this Agreement to the Administrative Agent
or the Lenders in the Agreed Currency shall, notwithstanding any judgment and payment in the
Judgment Currency, be satisfied only to the extent that the Administrative Agent, in accordance
with its normal procedures, could purchase the Agreed Currency with the amount of the Judgment
Currency so paid at or about noon on the next Business Day following that payment; and if the
amount of the Agreed Currency which the Administrative Agent could so purchase is less than the
amount originally due in the Agreed Currency, the Borrower shall, as a separate obligation and
notwithstanding the judgment or payment, indemnify the Administrative Agent and the Lenders against
any loss.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.19 <U>Permitted Reorganization</U>. The parties acknowledge that the business structure
of Holdings may be converted from an income trust pursuant to a Permitted Reorganization entered
into and completed in accordance with the requirements of the definition of &#147;Permitted
Reorganization&#148; in Section&nbsp;1.1 and that, notwithstanding any other provision hereof (other than
such definition), Holdings and/or the Borrower and/or their respective direct or indirect
Subsidiaries, as the case may be, may at any time enter into and complete such a Permitted
Reorganization. It is further acknowledged that:
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->122<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any and all steps taken, actions made and proceedings instituted in connection with
entering into and timely completing such Permitted Reorganization shall be conclusively deemed not
to contravene or breach any of the covenants or other provisions contained herein and shall be
conclusively deemed not to constitute a Default or Event of Default hereunder so long as such
steps, actions and proceedings are taken, made or instituted in compliance with the definition of
&#147;Permitted Reorganization&#148;, with such deviations therefrom reasonably acceptable to the
Administrative Agent that are not in the reasonable judgment of the Administrative Agent materially
detrimental to the interests of the Lenders; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;following the completion of such Permitted Reorganization in the manner prescribed above,
all representations and warranties herein, all conditions to extensions of credit hereunder and all
other provisions hereof shall be construed and interpreted in a manner which gives full force and
effect to such Permitted Reorganization having been entered into and completed as a permitted
transaction or permitted transactions hereunder to the extent entered into and completed in the
manner prescribed above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Parent, the New Borrower (if applicable), the other entities resulting from the Permitted
Reorganization and the Administrative Agent on behalf of the Lenders, each acting reasonably, shall
enter into such amendments and other documents as may be required to give effect to the terms of
this Agreement with respect to a Permitted Reorganization and any consequential amendments required
to preserve the substance of the terms of this Agreement and the other Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.20 <U>Reallocation</U>. Notwithstanding anything to the contrary herein or in the other
Loan Documents, up to $100,000,000 of any increase in the Tranche B Term Loans (and corresponding
reduction in Tranche A Term Loans) made by the Lenders party to the Fee Letter (or their
affiliates) (collectively, the &#147;<U>Underwriters</U>&#148;) on or prior to the date that is 120&nbsp;days
following the Closing Date as a result of the exercise of their reallocation rights under the Fee
Letter, shall be applied to the Tranche A Term Loans of the Underwriters only, to the extent that
the Tranche A Term Loans held by the Underwriters immediately prior to any such application exceed
$150,000,000. Any such application shall be made ratably to the Tranche A Term Loans held by the
Underwriters based on the then outstanding principal amounts thereof immediately prior to any such
application.
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers or representatives as of the day and year
first above written.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PRECISION DRILLING TRUST, by its Administrator,<BR>
PRECISION DRILLING CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>&#147;Signed by Authorized Signatory&#148;</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PRECISION DRILLING CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>&#147;Signed by Authorized Signatory&#148;</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">ROYAL BANK OF CANADA, as Administrative Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>&#147;Signed by Authorized Signatory&#148;</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">ROYAL BANK OF CANADA, as a Lender<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>&#147;Signed by Authorized Signatory&#148;</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                                              <I>&#147;Signed by Authorized Signatory&#148;</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">DEUTSCHE BANK SECURITIES INC., as Syndication Agent<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>&#147;Signed by Authorized Signatory&#148;</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                                              <I>&#147;Signed by Authorized Signatory&#148;</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>h65518exv99w2.htm
<DESCRIPTION>EX-99.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">$400,000,000
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">BRIDGE CREDIT AGREEMENT

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">among

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">PRECISION DRILLING TRUST,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as a Guarantor,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">PRECISION DRILLING CORPORATION,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Borrower,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">The Several Lenders from Time to Time Parties Hereto,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">HSBC BANK USA, NATIONAL ASSOCIATION,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Documentation Agent,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">ROYAL BANK OF CANADA,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Syndication Agent,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Administrative Agent

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Dated as of December&nbsp;23, 2008

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">RBC CAPITAL MARKETS<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-family: Symbol">&#042;</FONT></SUP> and DEUTSCHE BANK SECURITIES INC.,

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as Joint Lead Arrangers and Joint Bookrunners

</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>RBC Capital Markets is the global brand name for the
corporate and investment banking businesses of Royal Bank of Canada and its
affiliates.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->





<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>TABLE OF CONTENTS</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1. DEFINITIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.1 Defined Terms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.2 Other Definitional Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">1.3 Concerning the Trustees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;2. AMOUNT AND TERMS OF COMMITMENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.1 Commitments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.2 Procedure for Borrowing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.3 Repayment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.4 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.5 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.6 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.7 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.8 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.9 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.10 Commitment Fees, etc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.11 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.12 Optional Prepayments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.13 Mandatory Prepayments and Commitment Reductions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.14 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.15 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.16 Interest Rates and Payment Dates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.17 Computation of Interest and Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.18 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.19 Pro Rata Treatment and Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.20 Requirements of Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.21 Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.22 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.23 Change of Lending Office</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2.24 Replacement of Lenders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;3. &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;4. &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;5. REPRESENTATIONS AND WARRANTIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.1 Financial Condition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.2 No Change</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.3 Existence; Compliance with Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.4 Power; Authorization; Enforceable Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.5 No Legal Bar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.6 Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.7 No Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.8 Ownership of Property; Liens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.9 Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.10 Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.11 Federal Regulations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.12 Labor Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.13 ERISA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.14 Canadian Pension and Benefit Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.15 Investment Company Act; Other Regulations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.16 Subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.17 Use of Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.18 Environmental Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.19 Accuracy of Information, etc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.20 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.21 Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.22 Solvency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">5.23 Certain Documents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;6. CONDITIONS PRECEDENT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">6.1 Conditions to Initial Extension of Credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">6.2 Conditions to Each Extension of Credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;7. AFFIRMATIVE COVENANTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.1 Provision of Financial Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.2 Certificates; Other Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.3 Payment of Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.4 Maintenance of Existence; Compliance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.5 Maintenance of Property; Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.6 Inspection of Property; Books and Records; Discussions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.7 Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.8 Environmental Laws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.9 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.10 Additional Guarantees, etc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.11 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.12 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.13 Exchange Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.14 Designation of Unrestricted Subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">7.15 Merger Certificate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;8. NEGATIVE COVENANTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.1 Limitation on Restricted Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.2 Limitation on Dividends and Other Payment Restrictions Affecting Subsidiaries
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.3 Limitation on Additional Indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.4 Limitation on Asset Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.5 Limitation on Transactions with Affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.6 Limitation on Liens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.7 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.8 Material Change in Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->ii<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.9 Consolidation, Merger, Conveyance, Transfer or Lease</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">8.10 Amendments to Sale and Repurchase Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;9. EVENTS OF DEFAULT</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;10. THE AGENTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.1 Appointment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">76</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.2 Delegation of Duties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.3 Exculpatory Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.4 Reliance by Administrative Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.5 Notice of Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.6 Non-Reliance on Agents and Other Lenders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.7 Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.8 Withholding Tax</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.9 Agent in Its Individual Capacity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.10 Successor Administrative Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.11 &#091;Reserved&#093;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">10.12 Documentation Agent and Syndication Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;11. MISCELLANEOUS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.1 Amendments and Waivers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.2 Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.3 No Waiver; Cumulative Remedies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.4 Survival of Representations and Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.5 Payment of Expenses and Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.6 Successors and Assigns; Participations and Assignments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.7 Adjustments; Set-off</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">85</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.8 Counterparts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.9 Severability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.10 Integration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.11 <B>GOVERNING LAW</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.12 Submission To Jurisdiction; Waivers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.13 Acknowledgements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.14 Releases of Guarantees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.15 Confidentiality</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.16 <B>WAIVERS OF JURY TRIAL</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.17 USA PATRIOT Act</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.18 Judgment Currency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">11.19 Permitted Reorganization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->iii<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><U>SCHEDULES</U>:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Commitments</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consents, Authorizations, Filings and Notices</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.16
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiaries</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.18
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Environmental Matters</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Existing Payment Restrictions</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Existing Affiliate Transactions</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><U>EXHIBITS</U>:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Guarantee</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">B-1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description of Exchange Notes</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">B-2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Exchange and Registration Rights Agreement</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">C
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Compliance Certificate</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">D
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Closing Certificate</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">E
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Assignment and Assumption</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Legal Opinion of Bennett Jones LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Legal Opinion of Mayer Brown LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">F-3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Legal Opinion of General Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">G
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Exemption Certificate</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BRIDGE CREDIT AGREEMENT (this &#147;<U>Agreement</U>&#148;), dated as of December&nbsp;23, 2008, among
PRECISION DRILLING TRUST, an Alberta unincorporated open-ended investment trust
(&#147;<U>Holdings</U>&#148;), PRECISION DRILLING CORPORATION, a corporation amalgamated under the laws of
the Province of Alberta (the &#147;<U>Borrower</U>&#148;), the several banks and other financial
institutions or entities from time to time parties to this Agreement (the &#147;<U>Lenders</U>&#148;), HSBC
BANK USA, NATIONAL ASSOCIATION, as documentation agent (in such capacity, the &#147;<U>Documentation
Agent</U>&#148;), ROYAL BANK OF CANADA, as syndication agent (in such capacity, the &#147;<U>Syndication
Agent</U>&#148;), and DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH, as administrative agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto hereby agree as follows:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 1. DEFINITIONS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <U>Defined Terms</U>. As used in this Agreement, the terms listed in this Section&nbsp;1.1 shall have
the respective meanings set forth in this Section&nbsp;1.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquired Indebtedness</U>&#148;:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any Person that becomes a Restricted Subsidiary after the Closing
Date, Indebtedness of such Person and its Subsidiaries (including, for the avoidance of
doubt, Indebtedness incurred in the ordinary course of such Person&#146;s business to acquire
assets used or useful in its business) existing at the time such Person becomes a Restricted
Subsidiary that was not incurred in connection with, or in contemplation of, such Person
becoming a Restricted Subsidiary; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to Holdings or any Restricted Subsidiary, any Indebtedness of a Person
(including, for the avoidance of doubt, Indebtedness incurred in the ordinary course of such
Person&#146;s business to acquire assets used or useful in its business), other than Holdings or
a Restricted Subsidiary, existing at the time such Person is merged with or into Holdings or
a Restricted Subsidiary, or Indebtedness expressly assumed by Holdings or any Restricted
Subsidiary in connection with the acquisition of an asset or assets from another Person,
which Indebtedness was not, in any case, incurred by such other Person in connection with,
or in contemplation of, such merger or acquisition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquisition</U>&#148;: as defined in Section&nbsp;6.1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquisition Agreement</U>&#148;: the Agreement and Plan of Merger, dated as of August&nbsp;24,
2008, by and among Holdings, the Borrower, Precision Lobos Corporation and the Target, as amended
by the amendment thereto dated as of December&nbsp;2, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquisition Documentation</U>&#148;: collectively, the Acquisition Agreement and all
schedules, exhibits and annexes thereto and any material agreements among Holdings, the Borrower,
Precision Lobos Corporation, the Target and/or any of their respective Subsidiaries affecting the
terms thereof or entered into in connection therewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Administrative Agent</U>&#148;: Deutsche Bank AG Cayman Islands Branch, as the administrative
agent for the Lenders under this Agreement and the other Loan Documents, together with any of its
successors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148;: for any Person, any other Person which directly or indirectly controls or
is controlled by, or is under direct or indirect common control with, the referent Person. For
purposes of
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;8.5, &#147;Affiliates&#148; shall be deemed to include, with respect to any Person, any other
Person (A)&nbsp;which beneficially owns or holds, directly or indirectly, 10.0% or more of any class of
the Voting Stock of the referenced Person, (B)&nbsp;of which 10.0% or more of the Voting Stock is
beneficially owned or held, directly or indirectly, by the referenced Person or (C)&nbsp;with respect to
an individual, any immediate family member of such Person. For purposes of this definition,
&#147;control&#148; of a Person shall mean the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate Transaction</U>&#148;: as defined in Section&nbsp;8.5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agent Indemnitee</U>&#148;: as defined in Section&nbsp;10.7.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agents</U>&#148;: the collective reference to the Syndication Agent, the Documentation Agent
and the Administrative Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aggregate Exposure</U>&#148;: with respect to any Lender at any time, an amount equal to the
sum of the aggregate amount of such Lender&#146;s Commitments at such time and the aggregate then unpaid
principal amount of such Lender&#146;s Loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aggregate Exposure Percentage</U>&#148;: with respect to any Lender at any time, the ratio
(expressed as a percentage) of such Lender&#146;s Aggregate Exposure at such time to the Aggregate
Exposure of all Lenders at such time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreed Currency</U>&#148;: as defined in Section&nbsp;11.18.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148;: as defined in the preamble hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Approved Fund</U>&#148;: as defined in Section&nbsp;11.6(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Arrangers</U>&#148;: Royal Bank of Canada and Deutsche Bank Securities Inc., in their
capacities as Joint Lead Arrangers and Joint Bookrunners.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Acquisition</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) an Investment by Holdings or any Restricted Subsidiary of Holdings in any other
Person if, as a result of such Investment, such Person shall become a Restricted Subsidiary
of Holdings, or shall be merged with or into Holdings or any Restricted Subsidiary of
Holdings, or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the acquisition by Holdings or any Restricted Subsidiary of Holdings of all or
substantially all of the assets of any other Person (other than a Restricted Subsidiary of
Holdings) or any division or line of business of any such other Person (other than in the
ordinary course of business).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Sale</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any sale, conveyance, transfer, lease, assignment or other disposition by Holdings
or any Restricted Subsidiary to any Person other than Holdings or any Restricted Subsidiary
(including by means of a sale and leaseback transaction or a merger or consolidation), in
one transaction or a series of related transactions, of any assets of Holdings or any of its
Restricted Subsidiaries other than in the ordinary course of business; or
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any issuance of Equity Interests of a Restricted Subsidiary (other than Preferred
Stock of Restricted Subsidiaries issued in compliance with Section&nbsp;8.3) to any Person other
than Holdings or any Restricted Subsidiary in one transaction or a series of related
transactions (the actions described in these clauses (1)&nbsp;and (2), collectively, for purposes
of this definition, a &#147;transfer&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this definition, the term &#147;Asset Sale&#148; shall not include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transfers of cash or Cash Equivalents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) transfers of assets (including Equity Interests) that are governed by, and made in
accordance with, Section&nbsp;8.9 or Section&nbsp;2.13(c);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Permitted Investments and Restricted Payments permitted under Section&nbsp;8.1;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the creation of or realization on any Permitted Lien and any disposition of assets
resulting from the enforcement or foreclosure of any such Permitted Lien;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) transfers of damaged, worn-out or obsolete equipment or assets that, in the
Borrower&#146;s reasonable judgment, are no longer used or useful in the business of Holdings or
its Restricted Subsidiaries;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) sales or grants of licenses or sublicenses to use the patents, trade secrets,
know-how and other Intellectual Property, and licenses, leases or subleases of other assets,
of Holdings or any Restricted Subsidiary to the extent not materially interfering with the
business of Holdings and the Restricted Subsidiaries;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any sale, lease, conveyance or other disposition of any assets or any sale or
issuance of Equity Interests in each case, made pursuant to a Permitted Joint Venture
Investment;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a disposition of inventory in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a disposition of receivables in connection with the compromise, settlement or
collection thereof in the ordinary course of business or in bankruptcy or similar
proceedings and exclusive of factoring and similar arrangements;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the trade or exchange by Holdings or any Restricted Subsidiary of any asset for any
other asset or assets that are used in a Permitted Business; <U>provided</U>, that the Fair
Market Value of the asset or assets received by Holdings or any Restricted Subsidiary in
such trade or exchange (including any cash or Cash Equivalents) is at least equal to the
Fair Market Value (as determined in good faith by the Board of Directors or an executive
officer of the Borrower or of such Restricted Subsidiary with responsibility for such
transaction, which determination shall be conclusive evidence of compliance with this
provision) of the asset or assets disposed of by Holdings or any Restricted Subsidiary
pursuant to such trade or exchange; and, provided, further, that if any cash or Cash
Equivalents are used in such trade or exchange to achieve an exchange of equivalent value,
that the amount of such cash and/or Cash Equivalents received shall be deemed proceeds of an
&#147;Asset Sale,&#148; subject to the following clause (k); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any transfer or series of related transfers that, but for this clause, would be
Asset Sales, if after giving effect to such transfers, the aggregate Fair Market Value of
the assets
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">transferred in such transaction or any such series of related transactions does not
exceed U.S.$5.0&nbsp;million per occurrence or U.S.$20.0&nbsp;million in any fiscal year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assignee</U>&#148;: as defined in Section&nbsp;11.6(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assignment and Assumption</U>&#148;: an Assignment and Assumption, substantially in the form
of Exhibit&nbsp;E.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Benefitted Lender</U>&#148;: as defined in Section&nbsp;11.7(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Board</U>&#148;: the Board of Governors of the Federal Reserve System of the United States
(or any successor).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Board of Directors</U>&#148; means, with respect to any Person, (i)&nbsp;in the case of any
corporation, the board of directors of such Person and (ii)&nbsp;in any other case, the functional
equivalent of the foregoing or, in each case, other than for purposes of the definition of &#147;Change
of Control,&#148; any duly authorized committee of such body.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrower</U>&#148;: as defined in the preamble hereto; <U>provided</U>, that such term shall
also include, following a Permitted Reorganization, the New Borrower (if applicable).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bridge Loans</U>&#148;: as defined in 2.1(a)(ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business</U>&#148;: as defined in Section&nbsp;5.18(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148;: a day other than a Saturday, Sunday or other day on which commercial
banks in New York City, Calgary or Toronto are authorized or required by law to close.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Benefit Plans</U>&#148;: all material employee benefit plans or arrangements subject
to Canadian law or regulation maintained or contributed to by Holdings or any of its Subsidiaries
that are not Canadian Pension Plans, including all profit sharing, savings, supplemental
retirement, retiring allowance, severance, pension, deferred compensation, welfare, bonus,
incentive compensation, phantom stock and all life, health, dental and disability plans and
arrangements in which the employees or former employees of Holdings or any of its Subsidiaries
participate or are eligible to participate but excluding all stock option or stock purchase plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian Pension Plans</U>&#148;: all plans or arrangements which are considered to be
pension plans for the purposes of any applicable pension benefits standards statute or regulation
in Canada established, maintained or contributed to by Holdings or any of its Subsidiaries for
their employees or former employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Canadian &#147;SIFT&#148; Rules</U>&#148;: the rules provided for by the <I>Income Tax Act </I>(Canada)
concerning &#147;Specified Investment Flow-Through&#148; or &#147;SIFT&#148; entities, which generally serve to levy a
tax at corporate income tax rates on income distributions from such entities after December&nbsp;31,
2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Capitalized Lease</U>&#148;: a lease required to be capitalized for financial reporting
purposes in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Capitalized Lease Obligations</U>&#148;: for any Person, the obligations of such Person to pay
rent or other amounts under a Capitalized Lease, and the amount of such obligation shall be the
capitalized amount thereof determined in accordance with GAAP.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Cash Equivalents</U>&#148;: (a)&nbsp;marketable direct obligations issued by, or unconditionally
guaranteed by, the United States or Canadian government or issued by any agency thereof and backed
by the full faith and credit of the United States or Canada, as applicable, in each case maturing
within one year from the date of acquisition; (b)&nbsp;certificates of deposit, time deposits,
eurodollar time deposits, bankers&#146; acceptances or overnight bank deposits having maturities of six
months or less from the date of acquisition issued by any Lender or by any commercial bank
organized under the laws of the United States or Canada or any state or province thereof having
combined capital and surplus of not less than $15,000,000,000; and (c)&nbsp;securities with maturities
of one year or less from the date of acquisition issued or fully guaranteed by any state, province,
commonwealth or territory of the United States or Canada, by any political subdivision or taxing
authority of any such state, commonwealth or territory or by any foreign government, the securities
of which state, province, commonwealth, territory, political subdivision, taxing authority or
foreign government (as the case may be) are rated at least A by S&#038;P or A by Moody&#146;s, or the
equivalent thereof by DBRS, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Change of Control</U>&#148;: the occurrence of any of the following events:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets of Holdings and its Restricted Subsidiaries,
taken as a whole, to any &#147;person&#148; (as that term is used in Section&nbsp;13(d)(3) of the Exchange
Act);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any &#147;person&#148; or &#147;group&#148; (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) is or becomes the beneficial owner of (as defined in Rules&nbsp;13d-3 and 13d-5
under the Exchange Act, except that for purposes of this clause that person or group shall
be deemed to have &#147;beneficial ownership&#148; of all securities that any such person or group has
the right to acquire, whether such right is exercisable immediately or only after the
passage of time), or controls, directly or indirectly, Voting Stock representing 50.0% or
more of the voting power of the total outstanding Voting Stock of Holdings on a fully
diluted basis, provided that for purposes of this definition, the term &#147;control&#148; as applied
to any Trust Units means the possession, directly or indirectly, of the power to cause the
voting of voting rights associated with any Trust Unit or with any Exchangeable LP Units or
any other securities convertible into Trust Units or Exchangeable LP Units, whether through
the ownership of voting securities, by contract or otherwise;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) during any period of two consecutive years, individuals who at the beginning of
such period constituted the Board of Directors of the Borrower (together with any new
directors whose election to such Board of Directors or whose nomination for election by the
stockholders of the Borrower was approved by a vote of a majority of the directors of the
Borrower or the directors or trustees of Holdings then still in office who were either
directors or trustees, as the case may be, at the beginning of such period or whose election
or nomination for election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors of the Borrower;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) during any period of two consecutive years, individuals who on the Closing Date
constituted the Board of Directors of Holdings (together with any new trustees or directors,
as the case may be, whose election to such Board of Directors or whose nomination for
election by the holders of Voting Stock of Holdings was approved by a vote of a majority of
the trustees or directors, as the case may be, of Holdings then still in office who were
either trustees at the beginning of such period or whose election or nomination for election
was previously so approved) cease for any reason to constitute a majority of the Board of
Directors of Holdings;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Borrower ceases to be a Wholly-Owned Subsidiary of Holdings; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the adoption by the stockholders of Holdings or the Borrower of a Plan of
Liquidation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this definition, a Person shall not be deemed to have beneficial ownership of
securities subject to a stock purchase agreement, merger agreement or similar agreement until the
consummation of the transactions contemplated by such agreement. Notwithstanding the foregoing, any
transaction conducted in compliance with the definition of &#147;Permitted Reorganization&#148; and Section
11.19 shall not constitute a Change of Control for purposes of this definition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Change of Control Offer</U>&#148;: an Offer to Purchase required to be made by the Borrower
pursuant to Section&nbsp;2.13(c) to all Lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Change of Control Payment Date</U>&#148;: as defined in Section&nbsp;2.13(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Change of Control Purchase Price</U>&#148;: as defined in Section&nbsp;2.13(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Date</U>&#148;: the date on which the conditions precedent set forth in Section&nbsp;6.1
shall have been satisfied, which date is December&nbsp;23, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Date Commitment</U>&#148;: as to any Lender, the portion of such Lender&#146;s Commitment
set forth opposite such Lender&#146;s name under the heading &#147;Closing Date Commitment&#148; on Schedule&nbsp;1.1.
The original aggregate amount of the Closing Date Commitments is $137,475,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Code</U>&#148;: the Internal Revenue Code of 1986, as amended from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commitment</U>&#148;: as to any Lender, the obligation of such Lender, if any, to make a Loan
to the Borrower in a principal amount not to exceed the amount set forth opposite such Lender&#146;s
name on Schedule&nbsp;1.1. The original aggregate amount of the Commitments is $400,000,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commitment Fee Rate</U>&#148;: 0.60% per annum.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Common Stock</U>&#148;: with respect to any Person, any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting or non voting) of
such Person&#146;s common stock whether or not outstanding on the Closing Date, and includes, without
limitation, all series and classes of such common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Compliance Certificate</U>&#148;: a certificate duly executed by an Officer substantially in
the form of Exhibit&nbsp;C.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Conduit Lender</U>&#148;: any special purpose corporation organized and administered by any
Lender for the purpose of making Loans otherwise required to be made by such Lender and designated
by such Lender in a written instrument; <U>provided</U>, that the designation by any Lender of a
Conduit Lender shall not relieve the designating Lender of any of its obligations to fund a Loan
under this Agreement if, for any reason, its Conduit Lender fails to fund any such Loan, and the
designating Lender (and not the Conduit Lender) shall have the sole right and responsibility to
deliver all consents and waivers required or requested under this Agreement with respect to its
Conduit Lender, and <U>provided</U>, <U>further</U>, that no Conduit Lender shall (a)&nbsp;be entitled
to receive any greater amount pursuant to Sections&nbsp;2.20, 2.21 or 11.5 than the designating Lender
would have been entitled to receive in respect of the extensions of credit made by such Conduit
Lender or (b)&nbsp;be deemed to have any Commitment.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Confidential Information Memorandum</U>&#148;: the Confidential Information Memorandum dated
September&nbsp;2008, as supplemented prior to the Closing Date, and furnished to certain Lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Amortization Expense</U>&#148;: for any period, the amortization expense of
Holdings and the Restricted Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Cash Flow</U>&#148;: for any period, with respect to any specified Person,
without duplication, the sum of the amounts for such period of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consolidated Net Income, plus
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in each case only to the extent (and in the same proportion) deducted in
determining Consolidated Net Income and with respect to the portion of Consolidated Net
Income attributable to any Restricted Subsidiary only if a corresponding amount would be
permitted at the date of determination to be distributed to such specified Person by such
Restricted Subsidiary without prior approval (that has not been obtained), pursuant to the
terms of its charter and all agreements, instruments, judgments, decrees, orders, statutes,
rules and governmental regulations applicable to such Restricted Subsidiary or its
stockholders,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Consolidated Income Tax Expense,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Consolidated Amortization Expense (but only to the extent not included in
Consolidated Interest Expense),
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Consolidated Depreciation Expense,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Consolidated Interest Expense,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) all other non-cash items reducing the Consolidated Net Income (excluding
any non-cash charge that results in an accrual of a reserve for cash charges in any
future period) for such period, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) for purposes of any determination of Consolidated Cash Flow for any four
fiscal quarter period ending on or prior to December&nbsp;31, 2010 (other than for
purposes of calculating the Restricted Payments Basket), to the extent deducted in
determining Consolidated Net Income, the amount of any documented non-recurring
restructuring and integration costs (including severance costs, costs of closing
offices, moving costs, terminations of leases and other agreements, new accounting
systems, new office space and travel costs) associated with the Acquisition and
incurred during any such period, to the extent reasonable back-up is provided to
support such costs upon request by the Administrative Agent; <U>provided</U>, that
the aggregate amount of such costs that may be added to Consolidated Cash Flow
pursuant to this clause (F)&nbsp;shall not exceed $50.0&nbsp;million,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">in each case determined on a consolidated basis in accordance with GAAP, minus
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the aggregate amount of all non-cash items, determined on a consolidated basis, to
the extent such items increased Consolidated Net Income for such period (excluding any
non-cash items to the extent they represent the reversal of an accrual of a reserve for a
potential cash item that reduced Consolidated Cash Flow in any prior period).
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Cash Flow from Operations</U>&#148;: for any period, with respect to any
specified Person, without duplication, Consolidated Cash Flow, minus Consolidated Interest Expense
plus any non-cash component of the definition of &#147;Consolidated Interest Expense.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Depreciation Expense</U>&#148;: for any period, the depreciation and depletion
expense of Holdings and its Restricted Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Income Tax Expense</U>&#148;: for any period, the provision for taxes of Holdings
and its Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Interest Coverage Ratio</U>&#148;: on any date of determination, with respect to
any Person, the ratio of (x)&nbsp;Consolidated Cash Flow during the most recent four consecutive full
fiscal quarters for which financial statements prepared on a consolidated basis in accordance with
GAAP are available (the &#147;<U>Four-Quarter Period</U>&#148;) ending on or prior to the date of the
transaction giving rise to the need to calculate the Consolidated Interest Coverage Ratio (the
&#147;<U>Transaction Date</U>&#148;) to (y)&nbsp;Consolidated Interest Expense for the Four-Quarter Period. For
purposes of this definition, Consolidated Cash Flow and Consolidated Interest Expense shall be
calculated after giving effect on a pro forma basis for the period of such calculation to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the incurrence of any Indebtedness or the issuance of any Preferred Stock of
Holdings or any Restricted Subsidiary (and the application of the proceeds thereof) and any
repayment, repurchase or redemption of other Indebtedness or other Preferred Stock (and the
application of the proceeds therefrom) (other than the incurrence or repayment of
Indebtedness in the ordinary course of business for working capital purposes pursuant to any
revolving credit arrangement) occurring during the Four-Quarter Period or at any time
subsequent to the last day of the Four-Quarter Period and on or prior to the Transaction
Date, as if such incurrence, repayment, repurchase, issuance or redemption, as the case may
be (and the application of the proceeds thereof), occurred on the first day of the
Four-Quarter Period; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any Asset Sale or Asset Acquisition (including, without limitation, any Asset
Acquisition giving rise to the need to make such calculation as a result of Holdings or any
Restricted Subsidiary (including any Person who becomes a Restricted Subsidiary as a result
of such Asset Acquisition) incurring Acquired Indebtedness and also including any
Consolidated Cash Flow (including any pro forma expense and cost reductions calculated in
accordance with Regulation&nbsp;S-X under the Securities Act) occurring during the Four-Quarter
Period or at any time subsequent to the last day of the Four-Quarter Period and on or prior
to the Transaction Date), as if such Asset Sale or Asset Acquisition (including the
incurrence of, or assumption or liability for, any such Indebtedness or Acquired
Indebtedness) occurred on the first day of the Four-Quarter Period; <U>provided</U>, that
such pro forma calculations shall be determined in good faith by a responsible financial or
accounting Officer of the Borrower and shall be set forth in an Officers&#146; Certificate signed
by such Officer which states (a)&nbsp;the amount of such adjustment or adjustments, (b)&nbsp;that such
adjustment or adjustments are based on the reasonable good faith belief of the Borrower at
the time of such execution, (c)&nbsp;that the steps necessary for the realization of such
adjustments have been or are reasonably expected to be taken within 12&nbsp;months following such
transaction and (d)&nbsp;such adjustments are in accordance with Regulation&nbsp;S-X under the
Securities Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In calculating Consolidated Interest Expense for purposes of determining the
denominator (but not the numerator) of this Consolidated Interest Coverage Ratio:
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) interest on outstanding Indebtedness determined on a fluctuating basis as
of the Transaction Date and which will continue to be so determined thereafter shall
be deemed to have accrued at a fixed rate per annum equal to the rate of interest on
such Indebtedness in effect on the Transaction Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if interest on any Indebtedness actually incurred on the Transaction Date
may optionally be determined at an interest rate based upon a factor of a prime or
similar rate, a eurocurrency interbank offered rate, or other rates, then the
interest rate in effect on the Transaction Date will be deemed to have been in
effect during the Four-Quarter Period; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) notwithstanding clause (A)&nbsp;or (B)&nbsp;above, interest on Indebtedness
determined on a fluctuating basis, to the extent such interest is covered by
agreements relating to Hedging Obligations, shall be deemed to accrue at the rate
per annum resulting after giving effect to the operation of such agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Interest Expense</U>&#148;: for any period, the sum, without duplication, of the
total interest expense of Holdings and the Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP, including, without duplication:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) imputed interest on Capitalized Lease Obligations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) commissions, discounts and other fees and charges owed with respect to letters of
credit securing financial obligations, bankers&#146; acceptance financing and receivables
financings;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the net costs associated with Hedging Obligations related to interest rates;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) amortization of debt issuance costs, debt discount or premium and other financing
fees and expenses (other than the amortization of any such costs, discounts, premium, fees
or expenses incurred under or in connection with Indebtedness outstanding or available under
the Senior Secured Credit Agreement as of the Closing Date, the Bridge Loans or any
Refinancing Indebtedness in respect of the Bridge Loans (including the Exchange Notes));
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the interest portion of any deferred payment obligations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) all other non-cash interest expense;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) capitalized interest;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) all dividend payments on any series of Disqualified Equity Interests of Holdings or
any of its Restricted Subsidiaries or any Preferred Stock of any Restricted Subsidiary
(other than dividends on Equity Interests payable solely in Qualified Equity Interests of
Holdings or to Holdings or a Restricted Subsidiary of Holdings);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) all interest payable with respect to discontinued operations; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) all interest on any Indebtedness described in clause (7)&nbsp;or (8)&nbsp;of the definition
of &#147;Indebtedness.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Leverage Ratio</U>&#148;: as of any date of determination, the ratio of (x)
Indebtedness of Holdings and its Restricted Subsidiaries as of the end of the most recent fiscal
quarter for
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">which internal financial statements are available, determined on a consolidated basis in
accordance with GAAP to (y)&nbsp;Consolidated Cash Flow during the Four-Quarter Period ending on or
prior to the Transaction Date determined on a pro forma basis as described under the definition of
&#147;Consolidated Interest Coverage Ratio.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Net Income</U>&#148;: for any period, the net income (or loss) of such Person and
its Restricted Subsidiaries, in each case for such period determined on a consolidated basis in
accordance with GAAP; <U>provided</U> that there shall be excluded from such net income (to the
extent otherwise included therein), without duplication:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the net income (or loss) of any Person (other than a Restricted Subsidiary) in
which any Person other than Holdings and the Restricted Subsidiaries has an ownership
interest, except to the extent that cash in an amount equal to any such income has actually
been received by Holdings or any of its Restricted Subsidiaries during such period;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) except to the extent includible in the net income (or loss) of Holdings pursuant to
the foregoing clause (1), the net income (or loss) of any Person that accrued prior to the
date that (a)&nbsp;such Person becomes a Restricted Subsidiary or is merged into or consolidated
with Holdings or any Restricted Subsidiary or (b)&nbsp;the assets of such Person are acquired by
Holdings or any Restricted Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the net income of any Restricted Subsidiary during such period to the extent that
the declaration or payment of dividends or similar distributions by such Restricted
Subsidiary of that income is not permitted by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation
applicable to that Subsidiary during such period, except that Holdings&#146; equity in a net loss
of any such Restricted Subsidiary for such period shall be included in determining
Consolidated Net Income;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) for the purposes of calculating the Restricted Payments Basket only, in the case of
a successor to Holdings by merger, amalgamation, consolidation or transfer of its assets,
any income (or loss) of the successor prior to such merger, amalgamation, consolidation or
transfer of assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) other than for purposes of calculating the Restricted Payments Basket, any gain (or
loss), together with any related provisions for taxes on any such gain (or the tax effect of
any such loss), realized during such period by Holdings or any Restricted Subsidiary upon
(a)&nbsp;the acquisition of any securities, or the extinguishment of any Indebtedness, of
Holdings or any Restricted Subsidiary or (b)&nbsp;any Asset Sale by Holdings or any Restricted
Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) gains and losses due solely to fluctuations in currency values and the related tax
effects according to GAAP;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) unrealized gains and losses with respect to Hedging Obligations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) the cumulative effect of any change in accounting principles or policies; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) other than for purposes of calculating the Restricted Payments Basket, any
extraordinary or nonrecurring gain or income (or extraordinary or nonrecurring loss or
expense), together with any related provision for taxes on any such extraordinary or
nonrecurring gain or income (or the tax effect of any such extraordinary or nonrecurring
loss or expense), realized by Holdings or any Restricted Subsidiary during such period.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, any return of capital with respect to an Investment that increased the Restricted
Payments Basket pursuant to Section&nbsp;8.1(a)(iii)(D) or decreased the amount of Investments
outstanding pursuant to clause (18)&nbsp;of the definition of &#147;Permitted Investments&#148; shall be excluded
from Consolidated Net Income for purposes of calculating the Restricted Payments Basket.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this definition of &#147;Consolidated Net Income,&#148; &#147;nonrecurring&#148; means any gain or
loss as of any date that is not reasonably likely to recur within the two years following such
date; provided that if there was a gain or loss similar to such gain or loss within the two years
preceding such date, such gain or loss shall not be deemed nonrecurring.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consolidated Tangible Assets</U>&#148;: with respect to any Person as of any date, the amount
which, in accordance with GAAP, would be set forth under the caption &#147;Total Assets&#148; (or any like
caption) on a consolidated balance sheet of such Person and its Restricted Subsidiaries, less all
goodwill, patents, tradenames, trademarks, copyrights, franchises, experimental expenses,
organization expenses and any other amounts classified as intangible assets in accordance with
GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contingent Tax Liabilities</U>&#148;: the contingent tax liabilities disclosed in Note 9 to
the financial statements of Holdings as of and for the nine months ended September&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contractual Obligation</U>&#148;: as to any Person, any provision of any security issued by
such Person or of any agreement, instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Coverage Ratio Exception</U>&#148;: as defined in Section&nbsp;8.3(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Credit Facilities</U>&#148;: one or more debt facilities or indentures (which may be
outstanding at the same time and including, without limitation, the Senior Secured Credit
Agreement) providing for revolving credit loans, debt securities, term loans, receivables financing
or letters of credit and, in each case, as such agreements may be amended, refinanced or otherwise
restructured, in whole or in part from time to time (including increasing the amount of available
borrowings thereunder or adding Subsidiaries of Holdings as additional borrowers or subsidiary
guarantors thereunder) with respect to all or any portion of the Indebtedness under such agreement
or agreements or any successor or replacement agreement or agreements and whether by the same or
any other agent, lender or group of lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Debtor Relief Laws</U>&#148;: any of Title 11 of the United States Code entitled
&#147;Bankruptcy,&#148; the <I>Bankruptcy and Insolvency Act </I>(Canada), the <I>Companies&#146; Creditors Arrangement Act</I>
(Canada) and the <I>Winding Up and Restructuring Act </I>(Canada), each as now and hereafter in effect,
any successors to such statutes and any other applicable liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization or other similar debtor relief law of Canada, the United States or any other
applicable jurisdiction from time to time in effect and affecting the rights of creditors
generally.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Default</U>&#148;: any of the events specified in Section&nbsp;9, whether or not any requirement
for the giving of notice, the lapse of time, or both, has been satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Defaulting Lender</U>&#148;: any Lender that (i)&nbsp;has failed to fund any portion of any Loan
required to be funded by it hereunder within one Business Day of the date required to be funded by
it hereunder, unless the subject of a good faith dispute (or a good faith dispute that is
subsequently cured), (ii)&nbsp;has notified the Borrower or the Administrative Agent that it does not
intend to comply with its funding obligations under this Agreement or has made a public statement
to the effect that it does not intend to comply with its funding obligations under this Agreement
or under other existing agreements
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">under which it has an obligation to extend credit, (iii)&nbsp;has failed, within one Business Day
after request by the Administrative Agent, to provide written confirmation that it will comply with
the terms of this Agreement relating to its obligations to fund prospective Loans, (iv)&nbsp;has
otherwise failed to pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute (or a good faith dispute that is subsequently cured) or (v)&nbsp;has
been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Delayed Draw Availability Period</U>&#148;: as defined in Section&nbsp;2.1(a)(ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Delayed Draw Commitment</U>&#148;: as to any Lender, the portion of such Lender&#146;s Commitment
set forth opposite such Lender&#146;s name under the heading &#147;Delayed Draw Commitment&#148; on Schedule&nbsp;1.1.
The original aggregate amount of the Delayed Draw Commitments is $262,525,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Delayed Draw Loan</U>&#148;: as defined in Section&nbsp;2.1(a)(ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Delayed Draw Loan Date</U>&#148;: as defined in Section&nbsp;2.1(a)(ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Designation</U>&#148;: as defined in Section&nbsp;7.14.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Designation Amount</U>&#148;: as defined in Section&nbsp;7.14(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Disposition</U>&#148;: with respect to any property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof. The terms &#147;<U>Dispose</U>&#148; and
&#147;<U>Disposed of</U>&#148; shall have correlative meanings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Disqualified Equity Interests</U>&#148;: of any Person, any class of Equity Interests of such
Person that, by its terms, or by the terms of any related agreement or of any security into which
it is convertible, puttable or exchangeable (in each case, at the option of the holder thereof),
is, or upon the happening of any event or the passage of time would be, required to be redeemed by
such Person, at the option of the holder thereof, or matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, in whole or in part, on or prior to the date which is 91
days after the Final Maturity Date; <U>provided</U>, <U>however</U>, that any class of Equity
Interests of such Person that, by its terms, authorizes such Person to satisfy in full its
obligations with respect to the payment of dividends or upon maturity, redemption (pursuant to a
sinking fund or otherwise) or repurchase thereof or otherwise by the delivery of Equity Interests
that are not Disqualified Equity Interests, and that is not convertible, puttable or exchangeable
for Disqualified Equity Interests or Indebtedness, will not be deemed to be Disqualified Equity
Interests so long as such Person satisfies its obligations with respect thereto solely by the
delivery of Equity Interests that are not Disqualified Equity Interests; <U>provided</U>,
<U>further</U>, <U>however</U>, that (1)&nbsp;any Equity Interests that would not constitute
Disqualified Equity Interests but for provisions thereof giving holders thereof (or the holders of
any security into or for which such Equity Interests are convertible, exchangeable or exercisable)
the right to require Holdings to repurchase or redeem such Equity Interests upon the occurrence of
a change in control or an Asset Sale occurring prior to the 91st day after the Final Maturity Date
shall not constitute Disqualified Equity Interests if the asset sale or change of control
provisions applicable to such Equity Interests are no more favorable to such holders than the
provisions of Sections&nbsp;2.13(b), 8.4 and 2.13(c) and such Equity Interests specifically provide that
Holdings will not repurchase or redeem any such Equity Interests pursuant to such provisions prior
to the Borrower&#146;s repayment of the Loans as required pursuant to the provisions of Sections&nbsp;2.13(b)
and 2.13(c), respectively, and (2)&nbsp;the Trust Units and Exchangeable LP Units shall not be deemed
Disqualified Equity Interests by virtue of the redemption obligations in effect on the Closing Date
or amended redemption obligations that are no more adverse to Holdings than those in effect on the
Closing Date.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Documentation Agent</U>&#148;: as defined in the preamble hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Dollars</U>&#148; &#147;<U>U.S.$</U>&#148; and &#147;<U>$</U>&#148;: dollars in lawful currency of the United
States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Laws</U>&#148;: any and all foreign, federal, state, provincial, local or
municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements of
any Governmental Authority or other Requirements of Law (including common law) regulating, relating
to or imposing liability or standards of conduct concerning protection of human health or the
environment, as now or may at any time hereafter be in effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Liabilities</U>&#148;: any and all liabilities for any Release, any
environmental damage, any costs (including any response costs) or natural resource damages caused
or alleged to have been caused to any Person, property or the environment as a result of any
Release or the condition of any property or asset, related in any way to the operations of the
Borrower or any Subsidiaries, whether or not caused by a breach of Environmental Laws, including,
without limitation, all such liabilities arising from or related to: any surface, underground,
air, ground water or surface water contamination; the abandonment or plugging of any well;
restorations and reclamations; the removal of or failure to remove any foundations, structures or
equipment; violation of Environmental Laws; and personal injury (including sickness, disease or
death) and property damage arising from the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Equity Interests</U>&#148;: for any Person, (1)&nbsp;any and all shares or other equity interests
(including Common Stock, Preferred Stock, limited liability company interests, trust units and
partnership interests) in such Person and (2)&nbsp;all rights to purchase, warrants or options (whether
or not currently exercisable), participations or other equivalents of or interests in (however
designated) such shares or other interests in such Person, but excluding from all of the foregoing
any debt securities convertible into Equity Interests, regardless of whether such debt securities
include any right of participation with Equity Interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148;: the Employee Retirement Income Security Act of 1974, as amended from time to
time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA Affiliate</U>&#148;: any trade or business (whether or not incorporated) that, together
with any Group Member, is treated as a single employer under Section&nbsp;414 of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA Event</U>&#148;: (a)&nbsp;any Reportable Event; (b)&nbsp;any failure by any Pension Plan to
satisfy the minimum funding standards (within the meaning of Section&nbsp;412 or 430 of the Code or
Section&nbsp;302 of ERISA) applicable to such Pension Plan; (c)&nbsp;the filing pursuant to Section&nbsp;412 of
the Code or Section&nbsp;303 of ERISA of an application for a waiver of the minimum funding standard
with respect to any Pension Plan, the failure to make by its due date a required payment under
Section 430(j) of the Code with respect to any Pension Plan or the failure by any Group Member or
any ERISA Affiliate to make any required contribution to a Multiemployer Plan; (d)&nbsp;the incurrence
by any Group Member or any ERISA Affiliate of any material liability under Title&nbsp;IV of ERISA with
respect to the termination of any Pension Plan, including but not limited to the imposition of any
material Lien in favor of the PBGC or any Pension Plan; (e)&nbsp;a determination that any Pension Plan
is, or is expected to be, in &#147;at risk&#148; status (within the meaning of Section 430(i) of the Code);
(f)&nbsp;the appointment of a trustee to administer any Pension Plan under Section&nbsp;4042 of ERISA; or (g)
the incurrence by any Group Member or any ERISA Affiliate of any material liability with respect to
the withdrawal or partial withdrawal from any Pension Plan or Multiemployer Plan or a determination
that a Multiemployer Plan is, or is reasonably expected to be, Insolvent, in Reorganization or in
endangered or critical status, within the meaning of Section&nbsp;432 of the Code or Section&nbsp;305 of
ERISA.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Event of Default</U>&#148;: any of the events specified in Section&nbsp;9, <U>provided</U> that
any requirement for the giving of notice, the lapse of time, or both, has been satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchangeable LP Units</U>&#148;: the limited partnership units of the Precision Drilling
Limited Partnership that are exchangeable into Trust Units pursuant to any voting and exchange
trust agreement or similar agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Act</U>&#148;: the U.S. Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange and Registration Rights Agreement</U>&#148; means an Exchange and Registration Rights
Agreement relating to the Exchange Notes, substantially in the form of Exhibit&nbsp;B-2 hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Documents</U>&#148; means the Exchange Notes Indenture and the Exchange Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Note Holders</U>&#148; means registered holders of the Exchange Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Notes</U>&#148; means the securities issued under the Exchange Notes Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Note Trustee</U>&#148; means the trustee under the Exchange Notes Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Notes Indenture</U>&#148; means the indenture to be entered into relating to the
Exchange Notes, having terms and conditions substantially as set forth in the Description of
Exchange Notes attached hereto as Exhibit&nbsp;B-1 (with such changes to cure any ambiguity, omission,
defect or inconsistency as the Arrangers and the Borrower shall approve, each acting reasonably),
as the same may be amended, modified, supplemented or otherwise modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Request</U>&#148; has the meaning specified in Section&nbsp;7.13(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Existing Convertible Securities</U>&#148;: the Target&#146;s (a)&nbsp;Floating Rate Contingent
Convertible Senior Notes Due 2024 and (b)&nbsp;3.75% Contingent Convertible Senior Notes due 2023, in
each case issued prior to the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fair Market Value</U>&#148;: with respect to any asset, the price (after taking into account
any liabilities relating to such asset) that would be negotiated in an arm&#146;s-length transaction for
cash between a willing seller and a willing and able buyer, neither of which is under any
compulsion to complete the transaction as such price is determined in good faith by (a)&nbsp;in the case
of an asset whose price would be greater than U.S.$25.0&nbsp;million, the Boards of Directors of the
Borrower and Holdings or duly authorized committees thereof, as evidenced by a resolution of such
Boards of Directors or committees and (b)&nbsp;in all other cases, management of the Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Federal Funds Effective Rate</U>&#148;: for any day, the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System arranged by federal
funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New
York, or, if such rate is not so published for any day that is a Business Day, the average of the
quotations for the day of such transactions received by Deutsche Bank AG Cayman Islands Branch from
three federal funds brokers of recognized standing selected by it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Final Maturity Date</U>&#148;: the eighth anniversary of the Closing Date.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Benefit Arrangement</U>&#148;: any employee benefit arrangement mandated by non-U.S.
or non-Canadian law that is maintained or contributed to by any Group Member or any ERISA
Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Plan</U>&#148;: each employee benefit plan (within the meaning of Section&nbsp;3(3) of
ERISA, whether or not subject to ERISA) that is not subject to U.S. or Canadian law and is
maintained or contributed to by any Group Member or any ERISA Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Restricted Subsidiary</U>&#148;: any Restricted Subsidiary not organized or existing
under the laws of the United States, any state thereof, the District of Columbia or Canada or any
province or territory thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Funding Office</U>&#148;: the office of the Administrative Agent specified in Section&nbsp;11.2 or
such other office as may be specified from time to time by the Administrative Agent as its funding
office by written notice to the Borrower and the Lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148;: generally accepted accounting principles in Canada as in effect on the
Closing Date. All ratios and computations based on GAAP contained in this Agreement will be
computed in conformity with GAAP.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental Authority</U>&#148;: any nation or government, any state, provincial,
territorial or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative functions of or pertaining to government, any securities
exchange and any self-regulatory organization (including the National Association of Insurance
Commissioners).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Group Members</U>&#148;: the collective reference to Holdings, the Borrower and their
respective Subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guarantee</U>&#148;: the Guarantee entered into on the date hereof (as amended, waived,
supplemented or otherwise modified from time to time) among Holdings, the Borrower, the Subsidiary
Guarantors and the Administrative Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guarantee Obligation</U>&#148; or &#147;<U>guarantee</U>&#148;: as to any Person (the
&#147;<U>guaranteeing person</U>&#148;), any obligation, including a reimbursement, counterindemnity or
similar obligation, of the guaranteeing Person that guarantees or in effect guarantees, any
Indebtedness, leases, dividends or other obligations (the &#147;<U>primary obligations</U>&#148;) of any
other third Person (the &#147;<U>primary obligor</U>&#148;) in any manner, whether directly or indirectly,
including any obligation of the guaranteeing person, whether or not contingent, (i)&nbsp;to purchase any
such primary obligation or any property constituting direct or indirect security therefor, (ii)&nbsp;to
advance or supply funds (1)&nbsp;for the purchase or payment of any such primary obligation or (2)&nbsp;to
maintain working capital or equity capital of the primary obligor or otherwise to maintain the net
worth or solvency of the primary obligor, (iii)&nbsp;to purchase property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation of the ability of
the primary obligor to make payment of such primary obligation or (iv)&nbsp;otherwise to assure or hold
harmless the owner of any such primary obligation against loss in respect thereof;
<U>provided</U>, <U>however</U>, that the term &#147;Guarantee Obligation&#148; shall not include
endorsements of instruments for deposit or collection in the ordinary course of business. The
amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of
(a)&nbsp;an amount equal to the stated or determinable amount of the primary obligation in respect of
which such Guarantee Obligation is made and (b)&nbsp;the maximum amount for which such guaranteeing
person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation,
unless such primary obligation and the maximum amount for which such guaranteeing person may be
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">liable are not stated or determinable, in which case the amount of such Guarantee Obligation
shall be such guaranteeing person&#146;s maximum reasonably anticipated liability in respect thereof as
determined by the Borrower in good faith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guarantors</U>&#148;: the collective reference to Holdings and the Subsidiary Guarantors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hedging Obligations</U>&#148;: for any Person, the obligations of such Person under swap, cap,
collar, forward purchase or similar agreements or arrangements dealing with interest rates or
currency exchange rates or commodity prices (including, without limitation, for purposes of this
definition, rates for electrical power used in the ordinary course of business), either generally
or under specific contingencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Holdings</U>&#148;: as defined in the preamble hereto and, following a Permitted
Reorganization, Parent. Prior to a Permitted Reorganization, references herein to Precision
Drilling Trust or Holdings include the Trustees in their capacity as trustees of Precision Drilling
Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>incur</U>&#148;: with respect to any Indebtedness or Obligation, incur, create, issue, assume,
guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with
respect to such Indebtedness or Obligation; provided that (1)&nbsp;the Indebtedness of a Person existing
at the time such Person became a Restricted Subsidiary of Holdings shall be deemed to have been
incurred by such Restricted Subsidiary at the time it becomes a Restricted Subsidiary of Holdings
and (2)&nbsp;neither the accrual of interest nor the accretion of original issue discount or the
accretion or accumulation of dividends on any Equity Interests shall be deemed to be an incurrence
of Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indebtedness</U>&#148;: of any Person at any date, without duplication:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) all liabilities, contingent or otherwise, of such Person for borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such Person or
only to a portion thereof);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all obligations of such Person evidenced by bonds, debentures, banker&#146;s
acceptances, notes or other similar instruments;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) all reimbursement obligations of such Person in respect of letters of credit,
letters of guaranty and similar credit transactions;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) all obligations of such Person to pay the deferred and unpaid purchase price of
property or services, except deferred compensation, trade payables and accrued expenses
incurred by such Person in the ordinary course of business in connection with obtaining
goods, materials or services and not overdue by more than 180&nbsp;days unless subject to a bona
fide dispute;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the maximum fixed redemption or repurchase price of all Disqualified Equity
Interests of such Person or, with respect to any Subsidiary that is not a Subsidiary
Guarantor, any Preferred Stock;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) all Capitalized Lease Obligations of such Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) all Indebtedness of others secured by a Lien on any asset of such Person, whether
or not such Indebtedness is assumed by such Person;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) all Indebtedness of others guaranteed by such Person to the extent of such
guarantee; provided that Indebtedness of Holdings or its Subsidiaries that is guaranteed by
Holdings or Holdings&#146; Subsidiaries shall only be counted once in the calculation of the
amount of Indebtedness of Holdings and its Subsidiaries on a consolidated basis;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) to the extent not otherwise included in this definition, Hedging Obligations of
such Person; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) all obligations of such Person under conditional sale or other title retention
agreements relating to assets purchased by such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of any Indebtedness which is incurred at a discount to the principal amount at
maturity thereof as of any date shall be deemed to have been incurred at the accreted value thereof
as of such date. The amount of Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described above, the maximum liability of
such Person for any such contingent obligations at such date and, in the case of clause (7), the
lesser of (a)&nbsp;the Fair Market Value of any asset subject to a Lien securing the Indebtedness of
others on the date that the Lien attaches and (b)&nbsp;the amount of the Indebtedness secured. For
purposes of clause (5), the &#147;maximum fixed redemption or repurchase price&#148; of any Disqualified
Equity Interests that do not have a fixed redemption or repurchase price shall be calculated in
accordance with the terms of such Disqualified Equity Interests as if such Disqualified Equity
Interests were redeemed or repurchased on any date on which an amount of Indebtedness outstanding
shall be required to be determined pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnified Liabilities</U>: as defined in Section&nbsp;11.5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnitee</U>&#148;: as defined in Section&nbsp;11.5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Independent Director</U>&#148;: a director of the Borrower who:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) is independent with respect to the transaction at issue;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) does not have any material financial interest in Holdings or any of its Affiliates
(other than as a result of holding securities of Holdings or the Borrower); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) has not, and whose Affiliates or affiliated firm have not, at any time during the
twelve months prior to the taking of any action hereunder, directly or indirectly, received,
or entered into any understanding or agreement to receive, any compensation, payment or
other benefit, of any type or form, from Holdings, the Borrower or any of their respective
Affiliates, other than customary directors&#146; fees for serving on the Board of Directors of
the Borrower or the Board of Directors of Holdings or any Affiliate and reimbursement of
out-of-pocket expenses for attendance at the Borrower&#146;s, Holdings&#146; or any of their
respective Affiliates&#146; board and board committee meetings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Initial Lenders</U>&#148;: Royal Bank of Canada, Deutsche Bank AG Cayman Islands Branch and
HSBC Bank USA, National Association.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Initial Loans</U>&#148;: as defined in Section&nbsp;2.1(a)(i).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Initial Maturity Date</U>&#148;: the first anniversary of the Closing Date.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvency</U>&#148;: with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section&nbsp;4245 of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvency of Holdings</U>&#148;: any of the following with respect to Precision Drilling
Trust:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if Precision Drilling Trust shall be unable, or admits in writing its inability or
failure, to pay its debts generally as they become due or makes a general assignment for the
benefit of its creditors or commits or threatens to commit an act which, if committed by a
corporation, would constitute an act of bankruptcy under the <I>Bankruptcy and Insolvency Act</I>
(Canada) or any statute passed in substitution therefor, as amended from time to time;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if any cause, proceeding or other action shall be instituted in any court of
competent jurisdiction against Precision Drilling Trust seeking an adjudication in
bankruptcy, reorganization, dissolution, winding up, liquidation, a composition or
arrangement with or distribution to creditors, a readjustment of debts, the appointment of a
trustee in bankruptcy, receiver, liquidator, or the like of all or any substantial part of
the Trust Fund, or any other like relief in respect of Precision Drilling Trust or the Trust
Fund under any bankruptcy, winding up, reorganization (other than pursuant to a Permitted
Reorganization) or insolvency law and the same shall continue undismissed or unstayed for
any period of 60 consecutive days;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if the Trustees shall: (A)&nbsp;pursuant to winding up, bankruptcy, insolvency,
arrangement or similar laws, apply for or consent to the appointment of a receiver, trustee,
intervenor, custodian, liquidator, interim receiver, receiver-manager, assignee,
sequestrator or similar official of itself or of all or a substantial part of its assets;
(B)&nbsp;file a voluntary petition in bankruptcy; (C)&nbsp;commence any proceeding or file a petition,
answer, consent, proposal or plan, or give any notice of its intention to do so, seeking any
liquidation, winding up or reorganization or seeking any arrangement, compromise,
adjustment, composition, moratorium or other relief whatsoever in respect of its
indebtedness and liabilities to its creditors, or any class or classes thereof, under any
applicable bankruptcy, insolvency, arrangement or similar law or consent to the filing of
any such petition, proposal, plan or proceeding; or (D)&nbsp;file an answer admitting the
material allegations of or consent to or default in answering a petition filed against it in
any winding up, bankruptcy, reorganization or insolvency proceeding, or action shall be
taken by such Person for the purpose of effecting any of the foregoing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) if an order, judgment or decree shall be entered by any court of competent
jurisdiction or other competent authority approving the appointment of a receiver,
receiver-manager, interim receiver, trustee in bankruptcy, intervenor, custodian, or
liquidator of Precision Drilling Trust or of any substantial portion of the Trust Fund and
such order, judgment or decree shall not have been vacated, discharged, stayed or bonded
pending appeal within 60&nbsp;days from the entry thereof; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) any event (other than pursuant to a Permitted Reorganization) resulting in the
dissolution, termination, winding-up or insolvency of Holdings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvent</U>&#148;: pertaining to a condition of Insolvency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insolvent Person</U>&#148;: as of any date of determination, a Person who resides, carries on
business or has property in Canada and (a)&nbsp;who is for any reason unable to meet his obligations as
they generally become due, (b)&nbsp;who has ceased paying his current obligations in the ordinary course
of business as they generally become due, or (c)&nbsp;the aggregate of whose property is not, at a fair
valuation,
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">sufficient, or, if disposed of at a fairly conducted sale under legal process, would not be
sufficient to enable payment of all his obligations, due and accruing due.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual Property</U>&#148;: all patents, patent applications, trademarks, trade names,
service marks, copyrights, technology, trade secrets, proprietary information, domain names,
know-how and processes necessary for the conduct of Holdings&#146; or any Restricted Subsidiary&#146;s
business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Interest Payment Date</U>&#148;: (a)&nbsp;for Bridge Loans, the last day of each March, June,
September and December (or, if an Event of Default is in existence, the last day of each calendar
month) to occur while any Bridge Loan is outstanding and the Initial Maturity Date, (b)&nbsp;for Term
Loans, the last day of each March, June, September and December (or, if an Event of Default is in
existence, the last day of each calendar month) to occur while any Term Loan is outstanding and the
Final Maturity Date and (c)&nbsp;the date of any repayment or prepayment made in respect thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Interest Rate Cap</U>&#148;: the greater of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) 12.00%, or, if either the corporate family rating for the Borrower is less than
BB- (with a stable outlook) from S&#038;P or less than Ba3 (with a stable outlook) from Moody&#146;s
or either the rating for the Loans or the Exchange Notes, as the case may be, is less than
B&#043; (with a stable outlook) from S&#038;P or less than B1 (with a stable outlook) from Moody&#146;s,
13.00%, plus the number of basis points per annum, if any, by which the all-in yield of the
5-year HYCDX index (assuming the spread and OID equivalent applicable to such index) has
increased as measured by the greatest of: (1)&nbsp;the change in the all-in yield of the 5-year
HYCDX-10 since August&nbsp;24, 2008, (2)&nbsp;the sum of (x)&nbsp;the change in the all-in yield of the
5-year HYCDX-10 from August&nbsp;24, 2008 to the roll-over date between the 5-year HYCDX-10 and
5-year HYCDX-11 (the &#147;HYCDX-11 Rollover Date&#148;) plus (y)&nbsp;the change in the all-in yield of
the 5-year HYCDX-11 since the HYCDX-11 Rollover Date or (3)&nbsp;the sum of (x)&nbsp;the change in the
all-in yield of the 5-year HYCDX-10 from August&nbsp;24, 2008 to the HYCDX-11 Rollover Date plus
(y)&nbsp;the change in the all-in yield of the 5-year HYCDX-11 from the HYCDX-11 Rollover Date to
the roll-over date between the 5-year HYCDX-11 and 5-year HYCDX-12 (the &#147;HYCDX-12 Rollover
Date&#148;) plus (z)&nbsp;the change in the all-in yield of the 5-year HYCDX-12 since the HYCDX-12
Rollover Date (it being understood that the relevant 5-year HYCDX index will be measured by
the opening bid for the relevant index on the applicable date, or, if such date is not a
Business Day, the closing bid level on the immediately preceding Business Day); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) 16.66%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Investments</U>&#148;: for any Person:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) all direct or indirect investments by such Person in any other Person (including
Affiliates) in the form of loans, advances or capital contributions or other credit
extensions constituting Indebtedness of such other Person, and any guarantee of Indebtedness
of any other Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all purchases (or other acquisitions for consideration) by such Person of
Indebtedness, Equity Interests or other securities of any other Person (other than any such
purchase that constitutes a Restricted Payment of the type described in clause (2)&nbsp;of the
definition thereof);
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) all other items that would be classified as investments on a balance sheet of such
Person prepared in accordance with GAAP (including, if required by GAAP, purchases of assets
outside the ordinary course of business); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Designation of any Subsidiary as an Unrestricted Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise expressly specified in this definition, the amount of any Investment
(other than an Investment made in cash) shall be the Fair Market Value thereof on the date such
Investment is made. The amount of an Investment pursuant to clause (4)&nbsp;shall be the Designation
Amount determined in accordance with Section&nbsp;7.14. If Holdings or any Restricted Subsidiary sells
or otherwise disposes of any Equity Interests of any Restricted Subsidiary, or any Restricted
Subsidiary issues any Equity Interests, in either case, such that, after giving effect to any such
sale or disposition, such Person is no longer a Subsidiary, Holdings shall be deemed to have made
an Investment on the date of any such sale or other disposition equal to the Fair Market Value of
the Equity Interests of and all other Investments in such Restricted Subsidiary retained.
Notwithstanding the foregoing, purchases or redemptions of Equity Interests of Holdings shall be
deemed not to be Investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Judgment Currency</U>&#148;: as defined in Section&nbsp;11.18.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lenders</U>&#148;: as defined in the preamble hereto; <U>provided</U>, that unless the
context otherwise requires, each reference herein to the Lenders shall be deemed to include any
Conduit Lender.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lien</U>&#148;: with respect to any asset, any mortgage, deed of trust, lien (statutory or
other), pledge, lease, easement, restriction, covenant, charge, security interest or other
encumbrance of any kind or nature in respect of such asset, whether or not filed, recorded or
otherwise perfected under applicable law, including any conditional sale or other title retention
agreement, but excluding, for certainty, deemed security interests arising under Section&nbsp;1(1) (tt)
(ii)&nbsp;of the Personal Property Security Act (Alberta) or similar legislation with respect to
transfers of accounts, consignments of goods and leases with a term of more than one year that are
not capital leases and do not secure performance of a payment or other obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Limited Partnership Agreement</U>&#148;: the Limited Partnership Agreement of Precision
Drilling Limited Partnership, dated as of September&nbsp;28, 2005, among 1194312 Alberta Ltd., Holdings
and the limited partners of Precision Drilling Limited Partnership, as amended, supplemented or
otherwise modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan</U>&#148;: an Initial Loan, a Delayed Draw Loan or Term Loan, as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Documents</U>&#148;: this Agreement, the Notes and the Guarantee, the Marketing Side
Letter and any amendment, waiver, supplement or other modification to any of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loan Parties</U>&#148;: each Group Member that is a party to a Loan Document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Marketing Side Letter</U>&#148;: the Marketing Side Letter, dated as of the date hereof,
among the Borrower, Royal Bank of Canada, Deutsche Bank AG Cayman Islands Branch, Deutsche Bank
Securities Inc., HSBC Bank Canada, HSBC Bank USA, National Association, and The Toronto-Dominion
Bank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Adverse Effect</U>&#148;: a material adverse effect on (a)&nbsp;the business, property,
operations or condition (financial or otherwise) of Holdings and its Subsidiaries taken as a whole
except to the extent any such effect results directly and solely from the Contingent Tax
Liabilities becoming due
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to the relevant taxing authorities or (b)&nbsp;the validity or enforceability of this Agreement or
any of the other Loan Documents or the rights or remedies of the Administrative Agent or the
Lenders hereunder or thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Materials of Environmental Concern</U>&#148;: any gasoline or petroleum (including crude oil
or any fraction thereof) or petroleum products or any hazardous or toxic substances, materials or
wastes, defined or regulated as such in or under any Environmental Law, and any other substance,
material or wastes that could reasonably be expected to give rise to an Environmental Liability,
including asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Moody&#146;s</U>&#148;: Moody&#146;s Investors Service, Inc. and its successors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Multiemployer Plan</U>&#148;: a Plan that is a multiemployer plan as defined in Section
4001(a)(3) of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Multijurisdictional Disclosure System</U>&#148;: the Canada-U.S. Multijurisdictional
Disclosure System adopted by the SEC and the Canadian Securities Administrators, as in effect from
time to time, and any successor statutes, rules or regulations thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Net Cash Proceeds</U>&#148;: (a)&nbsp;in connection with any Asset Sale or any Recovery Event, the
proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds received by
way of deferred payment of principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise, but only as and when received), net of attorneys&#146; fees,
accountants&#146; fees, brokerage fees, investment banking fees, amounts required to be applied to the
repayment of Indebtedness secured by a Lien expressly permitted hereunder on any asset that is the
subject of such Asset Sale or Recovery Event (other than any Lien pursuant to a Senior Secured
Security Document) and other customary fees and expenses actually incurred in connection therewith
and net of taxes (including withholding taxes) paid or reasonably estimated to be payable as a
result thereof (after taking into account any available tax credits or deductions and any tax
sharing arrangements) and (b)&nbsp;in connection with any issuance or sale of Equity Interests or any
incurrence of Indebtedness, the cash proceeds received from such issuance or incurrence, net of
attorneys&#146; fees, investment banking fees, accountants&#146; fees, brokerage fees, underwriting discounts
and commissions and other customary fees and expenses actually incurred in connection therewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>New Borrower</U>&#148;: as defined in the definition of &#147;Permitted Reorganization&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Non-Excluded Taxes</U>&#148;: as defined in Section&nbsp;2.21(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Non-Recourse Debt</U>&#148;: Indebtedness of an Unrestricted Subsidiary
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) as to which neither Holdings nor any Restricted Subsidiary (a)&nbsp;provides credit
support of any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness), (b)&nbsp;is directly or indirectly liable as a guarantor or otherwise,
or (c)&nbsp;constitutes the lender; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) no default with respect to which (including any rights that the holders thereof may
have to take enforcement action against an Unrestricted Subsidiary) would permit upon
notice, lapse of time or both any holder of any other Indebtedness of Holdings or any
Restricted Subsidiary to declare a default on the other Indebtedness or cause the payment
thereof to be accelerated or payable prior to its Stated Maturity.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Non-U.S. Lender</U>&#148;: as defined in Section&nbsp;2.21(d).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notes</U>&#148;: the collective reference to any promissory notes evidencing Loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Obligations</U>&#148;: the unpaid principal of and interest on (including interest accruing
after the maturity of the Loans and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding) the Loans and all other obligations and liabilities of the Borrower to the
Administrative Agent or to any Lender, whether direct or indirect, absolute or contingent, due or
to become due, or now existing or hereafter incurred, which may arise under, out of, or in
connection with, this Agreement, any other Loan Document or any other document made, delivered or
given in connection herewith or therewith, whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses (including all fees, charges and disbursements of
counsel to the Administrative Agent or to any Lender that are required to be paid by the Borrower
pursuant hereto) or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Officers&#146; Certificate</U>&#148;: a certificate signed by two Officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Officer</U>&#148;: any of the following of Holdings or the Borrower, as the case may be: the
Chairman of the Board of Directors, the Chief Executive Officer, the Chief Financial Officer, the
President, any Vice President, any Trustee, the Treasurer or the Secretary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>OID</U>&#148;: original issue discount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>&#147;</I><U>Opinion of Counsel</U>&#148;: an opinion from legal counsel who is reasonably acceptable to
Administrative Agent. The counsel may be an employee of or counsel to the Borrower or the
Administrative Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Other Taxes</U>&#148;: any and all present or future stamp or documentary or other excise or
property taxes, charges or similar taxes or levies arising from any payment made hereunder or from
the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Loan Document.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent</U>&#148;: as defined in the definition of &#147;Permitted Reorganization.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Participant</U>&#148;: as defined in Section&nbsp;11.6(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PBGC</U>&#148;: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A
of Title IV of ERISA (or any successor).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pension Plan</U>&#148;: any Plan (other than a Multiemployer Plan) subject to the provisions
of Title IV of ERISA or Section&nbsp;412 of the Code or Section&nbsp;302 of ERISA, and in respect of which
any Group Member or any ERISA Affiliate is (or, if such Plan were terminated, would under Section
4069 of ERISA be deemed to be) an &#147;employer&#148; as defined in Section&nbsp;3(5) of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Business</U>&#148;: the businesses engaged in by Holdings and its Subsidiaries
(after giving pro forma effect to the Acquisition) on the Closing Date as described in the
Confidential Information Memorandum and businesses that are reasonably related thereto or
reasonable extensions thereof (other than, in each case, material exploration or production
businesses).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Indebtedness</U>&#148;: as defined in Section&nbsp;8.3(b).
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Investments</U>&#148;:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Investments by Holdings or any Restricted Subsidiary in (a)&nbsp;any Restricted
Subsidiary or (b)&nbsp;any Person that will become immediately after such Investment a Restricted
Subsidiary or that will merge or consolidate into Holdings or any Restricted Subsidiary;
provided the surviving or continuing Person of such merger or consolidation is either
Holdings or a Restricted Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Investments in Holdings by any Restricted Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) loans and advances to directors, employees and officers of Holdings and the
Restricted Subsidiaries (i)&nbsp;in the ordinary course of business (including payroll, travel
and entertainment related advances) (other than any loans or advances to any director or
executive officer (or equivalent thereof) that would be in violation of Section&nbsp;402 of the
Sarbanes Oxley Act) and (ii)&nbsp;to purchase Equity Interests of Holdings not in excess of
U.S.$2.5&nbsp;million individually and U.S.$5.0&nbsp;million in the aggregate outstanding at any one
time;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Hedging Obligations entered into in the ordinary course of business for bona fide
hedging purposes of Holdings or any Restricted Subsidiary not for the purpose of
speculation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Investments in cash and Cash Equivalents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) receivables owing to Holdings or any Restricted Subsidiary if created or acquired
in the ordinary course of business and payable or dischargeable in accordance with customary
trade terms; provided, however, that such trade terms may include such concessionary trade
terms as Holdings or any such Restricted Subsidiary deems reasonable under the
circumstances;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Investments in securities of trade creditors or customers received pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers or received in compromise or resolution of litigation,
arbitration or other disputes with such parties;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Investments made by Holdings or any Restricted Subsidiary as a result of
consideration received in connection with an Asset Sale made in compliance with Section&nbsp;8.4
and the Net Cash Proceeds of which are applied in compliance with Section&nbsp;2.13(b);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) lease, utility and other similar deposits in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) stock, obligations or securities received in settlement of debts created in the
ordinary course of business and owing to Holdings or any Restricted Subsidiary or in
satisfaction of judgments;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Permitted Joint Venture Investments made by Holdings or any of its Restricted
Subsidiaries, in an aggregate amount (measured on the date each such Investment was made and
without giving effect to subsequent changes in value), when taken together with all other
Investments made pursuant to this clause (11), that does not exceed U.S.$25.0&nbsp;million;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) guarantees permitted in accordance with Section&nbsp;8.3;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) repurchases of, or other Investments in, the Loans or the Exchange Notes;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) advances or extensions of credit in the nature of accounts receivable arising from
the sale or lease of goods or services, the leasing of equipment or the licensing of
property in the ordinary course of business and payable or dischargeable in accordance with
customary trade terms; provided that such trade terms may include such concessionary trade
terms as the Borrower, Holdings or the applicable Restricted Subsidiary deems reasonable
under the circumstances;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Investments existing on the Closing Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) the Acquisition;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) Investments the payment for which consists of Equity Interests (exclusive of
Disqualified Equity Interests) of the Borrower or Holdings; <U>provided</U>,
<U>however</U>, that such Equity Interests will not increase the amount available for
Restricted Payments under the Restricted Payments Basket; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) other Investments in any Person having an aggregate Fair Market Value (measured on
the date each such Investment was made and without giving effect to subsequent changes in
value) that, when taken together with all other Investments made pursuant to this clause
(18)&nbsp;since the Closing Date, do not exceed the greater of (a)&nbsp;U.S. $100.0&nbsp;million or (b)
5.0% of Holdings&#146; Consolidated Tangible Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In determining whether any Investment is a Permitted Investment, Holdings may allocate or
reallocate all or any portion of an Investment among the clauses of this definition and any of the
provisions of Section&nbsp;8.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Joint Venture Investment</U>&#148;: with respect to an Investment by any specified
Person, an Investment by such specified Person in any other Person engaged in a Permitted Business
(a)&nbsp;over which the specified Person is responsible (either directly or through a services
agreement) for day-to-day operations or otherwise has operational and managerial control of such
other Person, or veto power over significant management decisions affecting such other Person and
(b)&nbsp;of which at least 30.0% of the outstanding Equity Interests of such other Person is at the time
owned directly or indirectly by the specified Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Liens</U>&#148;: the following types of Liens:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) inchoate Liens for taxes, assessments or governmental charges or levies which (a)
are not yet due and payable or delinquent or (b)&nbsp;are being contested in good faith by
appropriate proceedings and as to which Holdings or the Restricted Subsidiaries shall have
set aside on its books such reserves as may be required pursuant to Canadian generally
accepted accounting principles;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Liens in respect of property of Holdings or any Restricted Subsidiary imposed by
law or contract, which were not incurred or created to secure Indebtedness for borrowed
money, such as carriers&#146;, warehousemen&#146;s, materialmen&#146;s, landlords&#146;, workmen&#146;s, suppliers&#146;,
repairmen&#146;s and mechanics&#146; Liens and other similar Liens arising in the ordinary course of
business, and which do not in the aggregate materially detract from the value of the
property of Holdings or its Restricted Subsidiaries, taken as a whole, and do not materially
impair the use thereof in the operation of the business of Holdings and its Restricted
Subsidiaries, taken as a whole;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Liens (i)&nbsp;imposed by law or deposits made in connection therewith in the ordinary
course of business in connection with workers&#146; compensation, unemployment insurance and
other types of social security, (ii)&nbsp;incurred in the ordinary course of business to secure
the performance of tenders, statutory obligations (other than excise taxes), surety, stay,
customs and appeal bonds, statutory bonds, bids, leases, government contracts, trade
contracts, performance and return of money bonds and other similar obligations (exclusive of
obligations for the payment of borrowed money) or (iii)&nbsp;arising by virtue of deposits made
in the ordinary course of business to secure liability for premiums to insurance carriers;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Liens upon specific items of inventory or other goods and proceeds of any Person
securing such Person&#146;s obligations in respect of bankers&#146; acceptances issued or created for
the account of such Person to facilitate the purchase, shipment or storage of such inventory
or other goods;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Liens arising out of judgments or awards not resulting in a Default or an Event of
Default so long as such Lien is adequately bonded and any appropriate legal proceedings
which may have been duly initiated for the review of such judgment have not been finally
terminated or the period within which such proceedings may be initiated has not expired;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) easements, rights of way, restrictions (including zoning restrictions), covenants,
encroachments, protrusions and other similar charges or encumbrances, and minor title
deficiencies on or with respect to any Real Property, in each case whether now or hereafter
in existence, not (i)&nbsp;securing Indebtedness and (ii)&nbsp;in the aggregate materially interfering
with the conduct of the business of Holdings and its Restricted Subsidiaries and not
materially impairing the use of such Real Property in such business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Liens securing reimbursement obligations with respect to commercial letters of
credit which encumber documents and other assets relating to such letters of credit and
products and proceeds thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Liens encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual or warranty requirements of Holdings or any Restricted Subsidiary,
including rights of offset and setoff;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) bankers&#146; Liens, rights of setoff and other similar Liens existing solely with
respect to cash and Cash Equivalents on deposit in one or more of accounts maintained by
Holdings or any Restricted Subsidiary, in each case granted in the ordinary course of
business in favor of the bank or banks with which such accounts are maintained, securing
amounts owing to such bank with respect to cash management and operating account
arrangements, including those involving pooled accounts and netting arrangements;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) leases with respect to the assets or properties of Holdings and any Restricted
Subsidiary, in each case entered into in the ordinary course of Holdings&#146; or such Restricted
Subsidiary&#146;s business so long as such leases do not, individually or in the aggregate, (i)
interfere in any material respect with the ordinary conduct of the business of Holdings or
any Restricted Subsidiary or (ii)&nbsp;materially impair the use (for its intended purposes) or
the value of the property subject thereto;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Liens resulting from the filing of financing statements solely as a precautionary
measure in connection with operating leases or consignments of goods or transfers of
accounts;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Liens securing all of the Loans, the Guarantee, any Exchange Notes and any
guarantees thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Liens securing Hedging Obligations entered into for bona fide hedging purposes of
Holdings or any Restricted Subsidiary not for the purpose of speculation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Liens existing on the Closing Date securing Indebtedness outstanding on the
Closing Date; <U>provided</U> that (i)&nbsp;the aggregate principal amount of the Indebtedness,
if any, secured by such Liens does not increase; and (ii)&nbsp;such Liens do not encumber any
property other than the property subject thereto on the Closing Date (plus improvements,
accessions, proceeds or dividends or distributions in respect thereof);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) Liens in favor of Holdings, the Borrower or a Subsidiary Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) Liens securing Indebtedness under the Credit Facilities incurred and then
outstanding pursuant to Section&nbsp;8.3(b)(i) and related Hedging Obligations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) Liens arising pursuant to Purchase Money Indebtedness incurred pursuant to Section
8.3(b)(viii); <U>provided</U> that (i)&nbsp;the Indebtedness secured by any such Lien (including
refinancings thereof) does not exceed 100.0% of the cost of the property being acquired or
leased at the time of the incurrence of such Indebtedness; (ii)&nbsp;any such Liens attach only
to the property being financed pursuant to such Purchase Money Indebtedness (plus
improvements, accessions, proceeds or dividends or distributions in respect thereof) and do
not encumber any other property of Holdings or any Restricted Subsidiary and (iii)&nbsp;such
Liens are created within 180&nbsp;days of construction, acquisition or improvement of such assets
or property;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) Liens securing Acquired Indebtedness permitted to be incurred under this
Agreement; <U>provided</U> that the Liens do not extend to assets not subject to such Lien
at the time of acquisition (plus improvements, accessions, proceeds or dividends or
distributions in respect thereof) and are no more favorable in any material respect to the
lienholders than those securing such Acquired Indebtedness prior to the incurrence of such
Acquired Indebtedness by Holdings or a Restricted Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) Liens on property of a Person existing at the time such Person is acquired or
amalgamated or merged with or into or consolidated with Holdings or any Restricted
Subsidiary (and not created in anticipation or contemplation thereof); provided that such
Liens do not extend to property not subject to such Liens at the time of acquisition (plus
improvements, accessions, proceeds or dividends or distributions in respect thereof) and are
no more favorable in any material respect to the lienholders than the existing Lien;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) Liens to secure Refinancing Indebtedness of Indebtedness secured by Liens referred
to in the foregoing clauses (14), (15), (16), (17), (18)&nbsp;and (19)&nbsp;and this clause (20);
provided that such Liens do not extend to any additional assets (other than improvements
thereon and replacements thereof);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21) licenses of Intellectual Property granted by Holdings or any Restricted Subsidiary
in the ordinary course of business and not interfering in any material respect with the
ordinary conduct of the business of Holdings or such Restricted Subsidiary;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by the Borrower or any Restricted Subsidiary
in the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23) Liens in favor of the Administrative Agent or the Exchange Note Trustee as
provided for in this Agreement or the Exchange Notes Indenture, as the case may be, on money
or property held or collected by the Administrative Agent or the Exchange Note Trustee in
its capacity as such;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24) Liens securing Specified Cash Management Agreements entered into in the ordinary
course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25) Liens on assets of any Foreign Restricted Subsidiary to secure Indebtedness of
such Foreign Restricted Subsidiary which Indebtedness is permitted by this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26) Liens securing Indebtedness incurred under Section&nbsp;8.3(b)(xviii); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27) other Liens with respect to obligations which do not in the aggregate exceed the
greater of (a)&nbsp;U.S.$150.0&nbsp;million or (b)&nbsp;5.0% of Holdings&#146; Consolidated Tangible Assets at
any time outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Reorganization</U>&#148;: a reorganization, in a transaction or series of related
transactions, of Holdings and/or the Borrower and/or their respective direct and/or indirect
Subsidiaries for the purposes of avoiding the application of the Canadian &#147;SIFT&#148; Rules and any
related tax or trust, corporate or partnership reorganization including, without limitation, the
contemporaneous or, to the extent entered into in connection with such reorganization, subsequent
termination or winding-up of Holdings (provided that if Precision Drilling Trust remains in
existence, it shall remain a Guarantor); <U>provided</U>, that such reorganization satisfies the
following conditions: (a)&nbsp;if Holdings elects to change the borrower hereunder, one or more Solvent
entities organized under the laws of Canada, the United States, or a province or state thereof
(collectively, the &#147;<U>New Borrower</U>&#148;) shall assume, pursuant to documentation reasonably
acceptable to the Administrative Agent, all of the applicable obligations and liabilities of the
Borrower under this Agreement and the other Loan Documents, and thereafter all references to the
&#147;Borrower&#148; for purposes of this Agreement and the other Loan Documents shall be deemed to include
the New Borrower, (b)&nbsp;the ultimate parent company resulting from such reorganization
(&#147;<U>Parent</U>&#148;), if not the New Borrower, shall assume all of the applicable obligations of
Holdings under this Agreement and the other Loan Documents pursuant to documentation reasonably
acceptable to the Administrative Agent and thereafter all references to &#147;Holdings&#148; for purposes of
this Agreement and the other Loan Documents shall be deemed to be a reference to Parent, and Parent
(if not the New Borrower) and the New Borrower (if applicable) shall comply, and shall cause their
respective Subsidiaries to comply, with the applicable requirements of Section&nbsp;7.10, (c)&nbsp;Parent and
the New Borrower (if applicable) shall deliver legal opinions of Bennett Jones LLP and/or Mayer
Brown LLP or other independent legal counsel reasonably satisfactory to the Administrative Agent,
addressed to the Administrative Agent and the Lenders, that all assumption agreements and
guarantees entered into pursuant to clauses (a)&nbsp;and (b)&nbsp;above are enforceable in accordance with
their terms, including customary opinions as to existence, power and authority (subject in each
case to customary qualifications and assumptions), (d)&nbsp;after giving effect to any steps taken in
accordance with Section&nbsp;11.19, no Default or Event of Default shall have occurred and be continuing
nor will result therefrom, (e)&nbsp;the reorganization shall not result in any adverse tax consequences
related to withholding tax or similar amounts in respect of payments to the Lenders hereunder or
under any other Loan Document (after taking into account the Borrower&#146;s indemnification obligations
under Section&nbsp;2.21), (f)&nbsp;the reorganization shall not, by itself, result in any reduction to the
corporate credit rating of Holdings or the Borrower by either S&#038;P or Moody&#146;s from that in effect
immediately prior to the
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">reorganization and (g)&nbsp;the Administrative Agent and the Lenders shall receive the benefit of
such other representations and warranties, assurances, legal opinions (subject to customary
qualifications and assumptions) and other documents with respect to such reorganization as may be
reasonably requested by the Administrative Agent including, without limitation, to preserve as
against the Parent, the New Borrower (if applicable) and other entities resulting from the
reorganization the substance of Section&nbsp;7, Section&nbsp;8 and Section&nbsp;9 hereof and the Parent, the New
Borrower (if applicable), the other entities resulting from the reorganization, the Administrative
Agent and the Lenders, each acting reasonably, shall enter into such amendments and other documents
as requested or required by the Administrative Agent in accordance with the foregoing to give
effect to the terms of this Agreement (including Section&nbsp;11.19) with respect to a Permitted
Reorganization and any consequential amendments required to preserve the substance of Section&nbsp;7,
Section&nbsp;8 and Section&nbsp;9 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148;: any individual, corporation, partnership, limited liability company, joint
venture, incorporated or unincorporated association, joint-stock company, trust, mutual fund trust,
unincorporated organization or government or other agency or political subdivision thereof or other
legal entity of any kind.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Plan</U>&#148;: any employee benefit plan as defined in Section&nbsp;3(3) of ERISA, including any
employee welfare benefit plan (as defined in Section&nbsp;3(1) of ERISA), any employee pension benefit
plan (as defined in Section&nbsp;3(2) of ERISA), and any plan which is both an employee welfare benefit
plan and an employee pension benefit plan, and in respect of which any Group Member or any ERISA
Affiliate is an &#147;employer&#148; as defined in Section&nbsp;3(5) of ERISA, excluding Foreign Benefit
Arrangements, Foreign Plans, Canadian Benefit Plans and Canadian Pension Plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Plan of Liquidation</U>&#148;: for any Person, a plan that provides for, contemplates or the
effectuation of which is preceded or accompanied by (whether or not substantially
contemporaneously, in phases or otherwise): (1)&nbsp;the sale, lease, conveyance or other disposition of
all or substantially all of the assets of such Person otherwise than as an entirety or
substantially as an entirety; and (2)&nbsp;the distribution of all or substantially all of the proceeds
of such sale, lease, conveyance or other disposition of all or substantially all of the remaining
assets of such Person to holders of Equity Interests of such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Preferred Stock</U>&#148;: with respect to any Person, any and all preferred or preference
stock or other equity interests (however designated) of such Person whether now outstanding or
issued after the Closing Date that is preferred as to the payment of dividends upon liquidation,
dissolution or winding up.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pro Forma Balance Sheet</U>&#148;: as defined in Section&nbsp;5.1(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pro Forma Financial Statements</U>&#148;: as defined in Section&nbsp;5.1(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pro Forma Statement of Operations</U>&#148;: as defined in Section&nbsp;5.1(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Projections</U>&#148;: as defined in Section&nbsp;7.2(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Properties</U>&#148;: as defined in Section&nbsp;5.18(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Purchase Money Indebtedness</U>&#148;: Indebtedness, including Capitalized Lease Obligations,
of Holdings or any Restricted Subsidiary incurred for the purpose of financing all or any part of
the purchase price of property, plant or equipment used in the business of Holdings or any
Restricted Subsidiary or the cost of installation, construction or improvement thereof;
<U>provided</U>, <U>however</U>, that (except in the case of Capitalized Lease Obligations) (1)
the amount of such Indebtedness shall not exceed such purchase price or cost and (2)&nbsp;such
Indebtedness shall be incurred within 90&nbsp;days after such
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">acquisition of such asset by Holdings or such Restricted Subsidiary or such installation,
construction or improvement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Qualified Equity Interests</U>&#148;: of any Person, Equity Interests of such Person other
than Disqualified Equity Interests; provided that such Equity Interests shall not be deemed
Qualified Equity Interests to the extent sold or owed to a Subsidiary of such Person or financed,
directly or indirectly, using funds (1)&nbsp;borrowed from such Person or any Subsidiary of such Person
until and to the extent such borrowing is repaid or (2)&nbsp;contributed, extended, guaranteed or
advanced by such Person or any Subsidiary of such Person (including, without limitation, in respect
of any employee stock ownership or benefit plan). Unless otherwise specified, Qualified Equity
Interests refer to Qualified Equity Interests of Holdings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Qualified Equity Offering</U>&#148;: the issuance and sale of Qualified Equity Interests of
Holdings (or any direct or indirect parent of Holdings to the extent the net proceeds therefrom are
contributed to the equity capital of Holdings or used to purchase Qualified Equity Interests of
Holdings), other than (a)&nbsp;any issuance pursuant to employee benefit plans or otherwise in
compensation to officers, directors, trustees or employees, (b)&nbsp;public offerings with respect to
Holdings&#146; Qualified Equity Interests, or options, warrants or rights, registered on Form S-4 or
S-8, or (c)&nbsp;any offering of Qualified Equity Interests issued in connection with a transaction that
constitutes a Change of Control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Real Property</U>&#148; means, collectively, all right, title and interest (including any
leasehold estate) in and to any and all parcels of or interests in real property owned, leased or
operated by any Person, whether by lease, license or other means, together with, in each case, all
easements, hereditaments and appurtenances relating thereto, all improvements and appurtenant
fixtures and equipment, all general intangibles and contract rights and other property and rights
incidental to the ownership, lease or operation thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Recovery Event</U>&#148;: any settlement of or payment in excess of $5,000,000 in respect of
(i)&nbsp;any property or casualty insurance claim or (ii)&nbsp;any condemnation or expropriation proceeding
relating to any asset of any Group Member.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Redemption Notes</U>&#148;: the notes defined as such in the Trust Declaration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Redesignation</U>&#148;: as defined in Section&nbsp;7.14.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Refinancing Indebtedness</U>&#148;: Indebtedness of Holdings or a Restricted Subsidiary
incurred in exchange for, or the proceeds of which are used to redeem, refinance, replace, defease,
discharge, refund or otherwise retire for value, in whole or in part, any Indebtedness of Holdings
or any Restricted Subsidiary (the &#147;<U>Refinanced Indebtedness</U>&#148;); provided that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the principal amount (and accreted value, in the case of Indebtedness issued at a
discount) of the Refinancing Indebtedness does not exceed the principal amount (and accreted
value, as the case may be) of the Refinanced Indebtedness plus the amount of accrued and
unpaid interest on the Refinanced Indebtedness, any reasonable premium paid to the holders
of the Refinanced Indebtedness and reasonable expenses incurred in connection with the
incurrence of the Refinancing Indebtedness;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the obligor of the Refinancing Indebtedness does not include any Person (other than
Holdings, the Borrower or any Subsidiary Guarantor) that is not an obligor of the Refinanced
Indebtedness;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if the Refinanced Indebtedness was subordinated in right of payment to the Loans or
the Guarantee, as the case may be, then such Refinancing Indebtedness, by its terms, is
subordinate in right of payment to the Loans or the Guarantee, as the case may be, at least
to the same extent as the Refinanced Indebtedness;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Refinancing Indebtedness has a Stated Maturity either (a)&nbsp;no earlier than the
Refinanced Indebtedness being repaid or amended or (b)&nbsp;no earlier than 91&nbsp;days after the
Final Maturity Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the portion, if any, of the Refinancing Indebtedness that is scheduled to mature on
or prior to the Final Maturity Date has a Weighted Average Life to Maturity at the time such
Refinancing Indebtedness is incurred that is equal to or greater than the Weighted Average
Life to Maturity of the portion of the Refinanced Indebtedness being repaid that is
scheduled to mature on or prior to the Final Maturity Date; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the proceeds of the Refinancing Indebtedness shall be used substantially
concurrently with the incurrence thereof to redeem, refinance, replace, defease, discharge,
refund or otherwise retire for value the Refinanced Indebtedness, unless the Refinanced
Indebtedness is not then due and is not redeemable or prepayable at the option of the
obligor thereof or is redeemable or prepayable only with notice, in which case such proceeds
shall be held in a segregated account of the obligor of the Refinanced Indebtedness until
the Refinanced Indebtedness becomes due or redeemable or prepayable or such notice period
lapses and then shall be used to refinance the Refinanced Indebtedness; <U>provided</U>
that in any event the Refinanced Indebtedness shall be redeemed, refinanced, replaced,
defeased, discharged, refunded or otherwise retired for value within one year of the
incurrence of the Refinancing Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Register</U>&#148;: as defined in Section&nbsp;11.6(b)(iv).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Regulation&nbsp;U</U>&#148;: Regulation&nbsp;U of the Board as in effect from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Deferred Amount</U>&#148;: with respect to any Reinvestment Event, the aggregate
Net Cash Proceeds received by any Group Member in connection therewith that are not applied toward
the prepayment of the Loans pursuant to Section&nbsp;2.13(b), the payment of obligations of the Borrower
under the Senior Secured Credit Facilities and the payment of obligations of the Borrower under any
Exchange Notes as a result of the delivery of a Reinvestment Notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Event</U>&#148;: any Asset Sale or Recovery Event in respect of which the
Borrower has delivered a Reinvestment Notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Notice</U>&#148;: a written notice executed by an Officer stating that no Event
of Default has occurred and is continuing and that the Borrower or Holdings (directly or indirectly
through a Subsidiary) intends and expects to use all or a specified portion of the Net Cash
Proceeds of an Asset Sale or Recovery Event to (A)&nbsp;make any capital expenditure or otherwise invest
within 12&nbsp;months all or any part of the Net Cash Proceeds thereof in the purchase, improvement or
repair of assets (other than securities and excluding working capital or current assets for the
avoidance of doubt) to be used by Holdings or any Restricted Subsidiary in a Permitted Business,
(B)&nbsp;acquire within 12&nbsp;months Qualified Equity Interests in a Person that is a Restricted Subsidiary
or in a Person engaged in a Permitted Business that shall become a Restricted Subsidiary
immediately upon the consummation of such acquisition or (C)&nbsp;a combination of (A)&nbsp;and (B).
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Prepayment Amount</U>&#148;: with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended prior to the relevant
Reinvestment Prepayment Date for the purposes described in clauses (A), (B)&nbsp;and (C)&nbsp;of the
definition of &#147;Reinvestment Notice.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reinvestment Prepayment Date</U>&#148;: with respect to any Reinvestment Event, the earlier
of (a)&nbsp;the date occurring 12&nbsp;months after such Reinvestment Event and (b)&nbsp;the date on which the
Borrower shall have determined not to, or shall have otherwise ceased to, acquire or repair assets
useful in the Borrower&#146;s business with all or any portion of the relevant Reinvestment Deferred
Amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Release</U>&#148;: any presence, release, spill, emission, leaking, pumping, pouring,
injection, escaping, deposit, disposal, discharge, leaching or migration of any Materials of
Environmental Concern in or into the indoor or outdoor environment (including the abandonment or
disposal of any barrels, tanks, containers or receptacles containing any Materials of Environmental
Concern), or in, into or out of any vessel or facility, including the movement of any Materials of
Environmental Concern through the air, soil, subsoil, surface, water, ground water, rock formation
or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reorganization</U>&#148;: with respect to any Multiemployer Plan, the condition that such
plan is in reorganization within the meaning of Section&nbsp;4241 of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Reportable Event</U>&#148;: any of the events set forth in Section 4043(c) of ERISA or the
regulations issued thereunder, other than those events for which the thirty-day notice period has
been waived.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Required Lenders</U>&#148;: at any time, the holders of more than 50% of the sum of the
aggregate Commitments then in effect and the aggregate unpaid principal amount of the Loans then
outstanding; <U>provided</U>, that the portion of (x)&nbsp;any Commitments of any Defaulting Lender and
(y)&nbsp;any unpaid Loans then held by any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Requirement of Law</U>&#148;: as to any Person, the Certificate of Incorporation and By-Laws,
Articles of Incorporation or Amalgamation or other organizational or governing documents of such
Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Restricted Payment</U>&#148;: any of the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the declaration or payment of any dividend or any other distribution (whether made
in cash, securities or other property) on or in respect of Equity Interests of Holdings or
any Restricted Subsidiary or any payment made to the direct or indirect holders (in their
capacities as such) of Equity Interests of Holdings or any Restricted Subsidiary, including,
without limitation, any payment in connection with any merger or consolidation involving
Holdings or any of its Restricted Subsidiaries but excluding (a)&nbsp;dividends or distributions
payable solely in Qualified Equity Interests or through accretion or accumulation of such
dividends on such Equity Interests and (b)&nbsp;in the case of Restricted Subsidiaries, dividends
or distributions payable to Holdings or to a Restricted Subsidiary (and if such Restricted
Subsidiary is not a Wholly-Owned Subsidiary, to its other holders of its Common Stock on a
pro rata basis);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the purchase, redemption, defeasance or other acquisition or retirement for value
of any Equity Interests of Holdings or any direct or indirect parent of Holdings held by
Persons
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">other than Holdings or a Restricted Subsidiary (including, without limitation, any
payment in connection with any merger or consolidation involving Holdings);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any Investment other than a Permitted Investment; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any principal payment on, purchase, redemption, defeasance, prepayment, decrease or
other acquisition or retirement for value prior to any scheduled maturity or prior to any
scheduled repayment of principal or sinking fund payment, as the case may be, in respect of
Subordinated Indebtedness (other than any Subordinated Indebtedness owed to and held by
Holdings or any Restricted Subsidiary permitted under Section&nbsp;8.3(b)(vi)).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Restricted Payments Basket</U>&#148; has the meaning given to such term in Section&nbsp;8.1(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Restricted Subsidiary</U>&#148;: any Subsidiary other than an Unrestricted Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>S&#038;P</U>&#148;: Standard &#038; Poor&#146;s Ratings Services, a division of The McGraw-Hill Companies,
Inc., and its successors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Sale and Repurchase Agreements</U>&#148;: the Sale and Repurchase Agreement, dated as of
December&nbsp;23, 2008, by and between the Borrower and Precision Lobos Corporation, as in effect on the
Closing Date, and any other sale and repurchase agreements or similar agreements among any of the
Loan Parties entered into after the date hereof; <U>provided</U> that any restrictions on
dividends or distributions, loans or advances or transfers of property contained in such other
agreements are, in the reasonable judgment of the Administrative Agent, no more restrictive to any
Loan Party in all material respects as the analogous restrictions in the Sale and Repurchase
Agreement, dated as of December&nbsp;23, 2008, and the applicable covenants therein are qualified so as
to permit exceptions thereto (i)&nbsp;for the purpose of permitting payment of the Obligations under
this Agreement and the other Loan Documents to the same extent in all material respects as the
qualifications contained in the Sale and Repurchase Agreement, dated as of December&nbsp;23, 2008, (ii)
to permit the granting of Liens under the Loan Documents and (iii)&nbsp;to subordinate any Liens
(including backup Liens) thereunder to any Liens under the Loan Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>SEC</U>&#148;: the U.S. Securities and Exchange Commission, any successor thereto and any
analogous Governmental Authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Secretary&#146;s Certificate</U>&#148;: a certificate signed by the Secretary of the Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Act</U>&#148;: the U.S. Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Senior Secured Credit Agreement</U>&#148;: the Credit Agreement dated the date hereof by and
among the Borrower, as borrower, Holdings, the several lenders party thereto, HSBC Bank Canada and
The Toronto-Dominion Bank, as co-documentation agents, Deutsche Bank Securities Inc, as syndication
agent and Royal Bank of Canada, as administrative agent, including any notes, guarantees,
collateral and security documents, instruments and agreements executed in connection therewith
(including Hedging Obligations related to the Indebtedness incurred thereunder), and in each case
as further amended or refinanced from time to time by one or more agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Senior Secured Credit Facilities</U>&#148;: the loans and commitments outstanding under the
Senior Secured Credit Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Senior Secured Loans</U>&#148;: the loans outstanding under the Senior Secured Credit
Facilities.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Senior Secured Security Documents</U>&#148;: the Security Documents (as defined in the Senior
Secured Credit Agreement).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Solvent</U>&#148;: (a)&nbsp;when used with respect to any Person organized in the United States,
means that, as of any date of determination, (i)&nbsp;the amount of the &#147;present fair saleable value&#148; of
the assets of such Person will, as of such date, exceed the amount of all &#147;liabilities of such
Person, contingent or otherwise,&#148; as of such date, as such quoted terms are determined in
accordance with applicable federal, state and provincial laws governing determinations of the
insolvency of debtors, (ii)&nbsp;the present fair saleable value of the assets of such Person will, as
of such date, be greater than the amount that will be required to pay the liability of such Person
on its debts as such debts become absolute and matured, (iii)&nbsp;such Person will not have, as of such
date, an unreasonably small amount of capital with which to conduct its business, and (iv)&nbsp;such
Person will be able to pay its debts as they mature and (b)&nbsp;when used with respect to any Person
organized in Canada, means that, as of any date of determination, such Person is not an Insolvent
Person. For purposes of this definition, (A) &#147;debt&#148; means liability on a &#147;claim,&#148; and (B) &#147;claim&#148;
means any (x)&nbsp;right to payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable,
secured or unsecured or (y)&nbsp;right to an equitable remedy for breach of performance if such breach
gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to
judgment, fixed, contingent, matured or unmatured, disputed, undisputed, secured or unsecured.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Specified Cash Management Agreements</U>&#148;: any agreement providing for treasury,
depositary, purchasing card or cash management services, including in connection with any automated
clearing house transfers of funds or any similar transactions between the Borrower or any Guarantor
and any lender under the Senior Secured Credit Agreement or affiliate thereof, including, without
limitation, the centralized banking agreement among the Borrower, Precision Limited Partnership and
Royal Bank of Canada providing for the administration of and netting of balances between Canadian
bank accounts maintained by the Borrower and certain Subsidiaries with Royal Bank of Canada, as
amended, restated or otherwise modified from time to time including, but not limited to, through
the addition of new Subsidiaries as parties thereto and withdrawals of Subsidiaries therefrom from
time to time, and including any replacement thereof entered into by the Borrower and any
Subsidiaries with Royal Bank of Canada from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Specified Representations</U>&#148;: (a)&nbsp;the representations made by or on behalf of the
Target in the Acquisition Agreement as are material to the interests of the Lenders, but only to
the extent that the Borrower (or Holdings) has the right to terminate its obligations under the
Acquisition Agreement as a result of the breach of such representations in the Acquisition
Agreement and (b)&nbsp;the representations and warranties set forth in Sections&nbsp;5.4, 5.5, 5.11, 5.15 and
5.17.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Stated Maturity</U>&#148;: with respect to any Indebtedness, the date specified in the
agreement governing or certificate relating to such Indebtedness as the fixed date on which the
final payment of principal of such Indebtedness is due and payable, including pursuant to any
mandatory redemption provision, but shall not include any contingent obligations to repay, redeem
or repurchase any such principal prior to the date originally scheduled for the payment thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subordinated Indebtedness</U>&#148;: Indebtedness of Holdings, the Borrower or any Subsidiary
Guarantor that is expressly subordinated in right of payment to the Loans or the Guarantee, as
applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subsidiary</U>&#148;: with respect to any Person:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any corporation, limited liability company, association, trust or other business
entity of which more than 50.0% of the total voting power of the Equity Interests entitled
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(without regard to the occurrence of any contingency) to vote in the election of the
Board of Directors thereof is at the time owned or controlled, directly or indirectly, by
such Person or one or more of the other Subsidiaries of such Person (or a combination
thereof); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any partnership (a)&nbsp;the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b)&nbsp;the only general partners of
which are such Person or of one or more Subsidiaries of such Person (or any combination
thereof).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified, &#147;Subsidiary&#148; refers to a Subsidiary of Holdings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subsidiary Guarantors</U>&#148;: each Restricted Subsidiary of Holdings on the Closing Date
(other than the Borrower) that is a guarantor of the Borrower&#146;s obligations under this Agreement,
and each other Person that is required to, or at the election of Holdings, does become a Subsidiary
Guarantor by the terms of this Agreement after the Closing Date, in each case, until such Person is
released from the Guarantee in accordance with the terms of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Successor</U>&#148;: as defined in Section&nbsp;8.9(a).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Syndication Agent</U>&#148;: as defined in the preamble hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Target</U>&#148;: Grey Wolf, Inc., a Texas corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Target Material Adverse Effect</U>&#148;: with respect to the Target, a material adverse
effect on the business, results of operations, or condition (financial or otherwise) of the Target
and its Subsidiaries, taken as a whole, except to the extent any such effect results from: (a)
changes in the industry in which the Target or its Subsidiaries operate or in the economy or the
financial, securities or credit markets in the U.S. or elsewhere in the world, including any
regulatory or political conditions or developments, or any outbreak or escalation of hostilities or
declared or undeclared acts of war, terrorism, insurrection or natural disasters, that do not
disproportionately affect the business, results of operations or condition (financial or otherwise)
of the Target and its Subsidiaries, taken as a whole, relative to other industry participants, in
any material respect, (b)&nbsp;the execution or public disclosure of the Acquisition Agreement or the
consummation or the pendency of the transactions contemplated thereby, (c)&nbsp;fluctuations in the
price or trading volume of shares of any trading stock of the Target (provided, however, that the
exception in this clause (c)&nbsp;shall not prevent or otherwise affect a determination that any fact,
circumstance, event, change, effect or occurrence underlying such fluctuation has resulted in, or
contributed to, a Target Material Adverse Effect), (d)&nbsp;changes in Applicable Law (as defined in the
Acquisition Agreement) or in U.S. GAAP (as defined in the Acquisition Agreement) (or the
interpretation thereof) after the date of the Acquisition Agreement that do not disproportionately
affect the business, results of operations or condition (financial or otherwise) of the Target and
its Subsidiaries, taken as a whole, relative to other industry participants, in any material
respect, (e)&nbsp;any legal proceedings made or brought by any of the current or former holders of
Equity Interests (as defined in the Acquisition Agreement) of the Target (or on their behalf or on
behalf of such Persons) arising out of or related to the Acquisition Agreement or any of the
transactions contemplated thereby, or (f)&nbsp;any failure by the Target to meet any published analyst
estimates or expectations regarding the Target&#146;s revenue, earnings or other financial performance
or results of operations for any period or any failure by the Target to meet its internal budgets,
plans or forecasts regarding its revenues, earnings or other financial performance or results of
operations (<U>provided</U>, <U>however</U>, that the exception in this clause (f)&nbsp;shall not
prevent or otherwise affect a determination that any fact, circumstance, event, change, effect or
occurrence underlying such failure has resulted in, or contributed to, a Target Material Adverse
Effect).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Term Loans</U>&#148;: has the meaning specified in Section&nbsp;2.1(c).
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transferee</U>&#148;: any Assignee or Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trust Declaration</U>&#148;: the Declaration of Trust of Holdings, dated as of September&nbsp;22,
2005, between the settlor and the Trustees named therein, as amended, supplemented or otherwise
modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trust Fund</U>&#148;: the &#147;Trust Assets&#148; as defined in the Trust Declaration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trust Units</U>&#148;: the trust units of Holdings representing beneficial ownership
interests therein and created, issued and certified under the Trust Declaration as from time to
time outstanding and entitled to the benefits thereof but excluding any Special Voting Unit as
provided for in the Trust Declaration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Trustees</U>&#148;: the trustees of Precision Drilling Trust from time to time and being, on
the date hereof, Robert J.S. Gibson, Patrick M. Murray and Allen Hagerman. Prior to a Permitted
Reorganization, references herein to Precision Drilling Trust or Holdings include the Trustees in
their capacity as trustees of Precision Drilling Trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>United States</U>&#148;: the United States of America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Unrestricted Subsidiary</U>&#148;: (a)&nbsp;any Subsidiary that at the time of determination shall
be designated an Unrestricted Subsidiary by the Board of Directors of the Borrower and Holdings in
accordance with Section&nbsp;7.14 and (b)&nbsp;any Subsidiary of an Unrestricted Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Voting Stock</U>&#148;: with respect to any Person, securities of any class of Equity
Interests of such Person (including, with respect to Holdings and without limitation, Trust Units)
entitling the holders thereof (whether at all times or only so long as no senior class of stock or
other relevant equity interest has voting power by reason of any contingency) to vote in the
election of members of the Board of Directors of such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Weighted Average Life to Maturity</U>&#148; when applied to any Indebtedness at any date,
means the number of years obtained by dividing (1)&nbsp;the sum of the products obtained by multiplying
(a)&nbsp;the amount of each then remaining installment, sinking fund, serial maturity or other required
payment of principal, including payment at Stated Maturity, in respect thereof by (b)&nbsp;the number of
years (calculated to the nearest one-twelfth) that will elapse between such date and the making of
such payment by (2)&nbsp;the then outstanding principal amount of such Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Wholly Owned Subsidiary</U>&#148;: a Restricted Subsidiary, all of the Equity Interests of
which (other than directors&#146; qualifying shares) are owned by Holdings or another Wholly-Owned
Subsidiary; <U>provided</U> that for purposes of determining if Precision Drilling Limited
Partnership is a Wholly-Owned Subsidiary of Holdings, the Exchangeable LP Units shall be
disregarded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Withdrawal Liability</U>&#148;: any liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Title IV
of ERISA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <U>Other Definitional Provisions</U>. (a)&nbsp;Unless otherwise specified therein, all terms defined
in this Agreement shall have the defined meanings when used in the other Loan Documents or any
certificate or other document made or delivered pursuant hereto or thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;As used herein and in the other Loan Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, (i)&nbsp;accounting terms relating to any Group
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Member not defined in Section&nbsp;1.1 and accounting terms partly defined in Section&nbsp;1.1, to the
extent not defined, shall have the respective meanings given to them under GAAP, (ii)&nbsp;the words
&#147;include,&#148; &#147;includes&#148; and &#147;including&#148; shall be deemed to be followed by the phrase &#147;without
limitation,&#148; (iii)&nbsp;the words &#147;asset&#148; and &#147;property&#148; shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and properties, including cash,
Equity Interests, securities, revenues, accounts, leasehold interests and contract rights, and (iv)
references to agreements or other Contractual Obligations shall, unless otherwise specified, be
deemed to refer to such agreements or Contractual Obligations as amended, supplemented, restated or
otherwise modified from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The words &#147;hereof,&#148; &#147;herein&#148; and &#147;hereunder&#148; and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <U>Concerning the Trustees</U>. The parties hereto acknowledge that Precision Drilling
Corporation, solely in its capacity as administrator of Precision Drilling Trust (in such capacity,
the &#147;<U>Administrator</U>&#148;), is entering into this Agreement in such capacity as agent for and on
behalf of Precision Drilling Trust, and the obligations of Precision Drilling Trust hereunder shall
not be binding upon any of the Trustees in a personal capacity, but only in their capacity as
Trustees, and that any recourse against Precision Drilling Trust, the Trustees, the Administrator
(in such capacity) or any of the holders of Trust Units or any annuitant under a plan of which a
holder of Trust Units is a trustee or carrier (an &#147;<U>annuitant</U>&#148;) in any manner in respect of
any indebtedness, obligation or liability of Precision Drilling Trust arising hereunder or in
connection herewith or from matters to which this Agreement relates, if any, including, without
limitation, claims based on negligence or otherwise tortious behaviour, shall be limited to, and
satisfied only out of, the Trust Fund.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 2. AMOUNT AND TERMS OF COMMITMENTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <U>Commitments</U>. (a)&nbsp;Subject to the terms and conditions set forth herein, (i)&nbsp;on the
Closing Date, each Lender severally agrees to make a loan in Dollars (individually, an &#147;<U>Initial
Loan</U>&#148; and collectively, the &#147;<U>Initial Loans</U>&#148;) to the Borrower in an amount not to exceed
the amount of such Lender&#146;s Closing Date Commitment; and (ii)&nbsp;on or prior March&nbsp;31, 2009 (such
period, the &#147;<U>Delayed Draw Availability Period</U>&#148;), each Lender severally agrees to make a
loan in Dollars (individually, a &#147;<U>Delayed Draw Loan</U>&#148; and, collectively, the &#147;<U>Delayed
Draw Loans</U>&#148; and, together with the Initial Loans, the &#147;<U>Bridge Loans</U>&#148;) to the Borrower
in an amount not to exceed the amount of such Lender&#146;s Delayed Draw Commitment; <U>provided</U>,
<U>however</U>, that the Borrower may only request one Delayed Draw Loan during the Delayed Draw
Availability Period (the date such loan is made, the &#147;<U>Delayed Draw Loan Date</U>&#148;). Amounts
borrowed under this Section&nbsp;2.1(a) and repaid or prepaid may not be reborrowed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;To the extent Initial Loans are made on the Closing Date or Delayed Draw Loans are made
during the Delayed Draw Availability Period, and, in each case, to the extent requested by a
Lender, the Borrower shall execute and deliver to each requesting Lender on the Closing Date or the
Delayed Draw Loan Date, as the case may be, a Note dated the Closing Date or the Delayed Draw Loan
Date, as the case may be, to evidence the Initial Loan or the Delayed Draw Loan, as the case may
be, made on such date, in the principal amount of the Initial Loans or Delayed Draw Loans, as the
case may be, held by such Lender on such date and with other appropriate insertions.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Subject to Section&nbsp;2.3(a), the Borrower and each Lender severally agrees, if the Bridge
Loans have not been repaid in full, that the then outstanding principal amount of each Bridge Loan
shall automatically be converted into a term loan (individually, a &#147;<U>Term Loan</U>&#148; and
collectively, the &#147;<U>Term Loans</U>&#148;) by the Borrower on the Initial Maturity Date in an
aggregate principal amount equal to the then outstanding principal amount of the Bridge Loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;To the extent the Bridge Loans are converted into Term Loans on the Initial Maturity Date
and to the extent requested by a Lender, the Borrower shall execute and deliver to each requesting
Lender on the Initial Maturity Date a Note dated the Initial Maturity Date to evidence the Term
Loan made on such date. Such Note shall be denominated in the principal amount of the Term Loans
held by such Lender on such date and shall include other appropriate insertions. Upon the
conversion of the Bridge Loans into Term Loans, each Lender shall cancel on its records a principal
amount of the Bridge Loans held by such Lender corresponding to the principal amount of Term Loans
held by such Lender, which corresponding principal amount of the Bridge Loans shall be satisfied by
the conversion of such Bridge Loans into Term Loans in accordance with Section&nbsp;2.1(c). Amounts
repaid in respect of Term Loans may not be reborrowed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <U>Procedure for Borrowing</U>. The Borrower shall give the Administrative Agent irrevocable
notice (which notice must be received by the Administrative Agent prior to 10:00&nbsp;A.M., New York
City time, one Business Day prior to the anticipated Closing Date or the anticipated date of the
Delayed Draw Loans, as the case may be) requesting that the Lenders make the Initial Loans on the
Closing Date or the Delayed Draw Loans on the Delayed Draw Loan Date, as the case may be, and
specifying the amount to be borrowed. Upon receipt of such notice the Administrative Agent shall
promptly notify each Lender thereof. Not later than 12:00 Noon, New York City time, on the Closing
Date or the Delayed Draw Loan Date, as the case may be, each Lender shall make available to the
Administrative Agent at the Funding Office an amount in immediately available funds equal to the
Initial Loan or Delayed Draw Loan, as the case may be, to be made by such Lender. The
Administrative Agent shall credit the account specified by the Borrower with the aggregate of the
amounts made available to the Administrative Agent by the Lenders in immediately available funds.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <U>Repayment</U>. (a)&nbsp;The Bridge Loans will mature on the Initial Maturity Date and, to the
extent then unpaid, will automatically be converted into Term Loans; <U>provided</U> that the
Bridge Loans shall not be so converted and shall be due and payable on the Initial Maturity Date if
(i)&nbsp;an Event of Default shall have occurred and be continuing under Section 9(a) hereof, (ii)&nbsp;the
Bridge Loans shall have become due and payable prior to their stated maturity pursuant to Section&nbsp;9
hereof, (iii)&nbsp;any Senior Secured Loans shall have become due and payable prior to their stated
maturity pursuant to the Senior Secured Credit Agreement or any other Indebtedness of the Borrower
in an aggregate principal amount in excess of $30,000,000 shall have become due and payable prior
to their stated maturity pursuant to the documentation governing such Indebtedness, (iv)&nbsp;any fees
due to the Lenders, Agents and Arrangers on or before the Initial Maturity Date shall not have been
paid in full or (v)&nbsp;such conversion would violate any injunction, decree, order or judgment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Term Loans will mature on the Final Maturity Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <U>&#091;Reserved&#093;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <U>&#091;Reserved&#093;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <U>&#091;Reserved&#093;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <U>&#091;Reserved&#093;</U>.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <U>&#091;Reserved&#093;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <U>&#091;Reserved&#093;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <U>Commitment Fees, etc.</U> (a)&nbsp;The Borrower agrees to pay to the Administrative Agent for the
account of each Lender (other than Defaulting Lenders) a commitment fee for the period from the
Closing Date to and including the Delayed Draw Loan Date, computed at the Commitment Fee Rate on
the amount of the remaining Commitment of such Lender during the period from the Closing Date to
and including the Delayed Draw Loan Date payable on the Delayed Draw Loan Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Borrower agrees to pay to the Administrative Agent the fees in the amounts and on the
dates as set forth in any fee agreements with the Administrative Agent and to perform any other
obligations contained therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <U>&#091;Reserved&#093;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <U>Optional Prepayments</U>. The Borrower may, at any time and from time to time, prepay the
Loans, in whole or in part, without premium or penalty, upon irrevocable notice delivered to the
Administrative Agent no later than 12:00 Noon, New York City time, three Business Days prior
thereto, which notice shall specify the date and amount of prepayment. Upon receipt of any such
notice, the Administrative Agent shall promptly notify each relevant Lender thereof. If any such
notice is given, the amount specified in such notice shall be due and payable on the date specified
therein, together with accrued interest to such date on the amount prepaid. Partial prepayments of
Loans shall be in an aggregate principal amount of $1,000,000 or a whole multiple thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 <U>Mandatory Prepayments and Commitment Reductions</U>. (a)&nbsp;If any Indebtedness shall be
incurred by any Group Member (excluding any Permitted Indebtedness incurred in accordance with
Section&nbsp;8.3, other than Permitted Indebtedness incurred pursuant to Section&nbsp;8.3(b)(xi), as such
clause relates to the Loans), an amount equal to 100% of the Net Cash Proceeds thereof shall be
applied within three Business Days of the date of such issuance or incurrence toward the prepayment
of the Loans as set forth in Section&nbsp;2.13(d); <U>provided</U> that, during the Delayed Draw
Availability Period, if the amount of such Net Cash Proceeds exceeds the aggregate outstanding
principal amount of the Loans, the Delayed Draw Commitments shall be automatically and permanently
reduced by an amount equal to such excess.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If on any date any Group Member shall receive Net Cash Proceeds from any Asset Sale or
Recovery Event, then, unless a Reinvestment Notice shall be delivered in respect thereof within ten
Business Days of such date, an amount equal to such Net Cash Proceeds shall be applied within three
Business Days of receipt of such Net Cash Proceeds toward the prepayment of the Loans as set forth
in Section&nbsp;2.13(d); <U>provided</U>, that the Borrower may without penalty withhold amounts owing
pursuant to this Section&nbsp;2.13(b) until such time as the amount of Net Cash Proceeds received from
all such Asset Sales and Recovery Events that would otherwise be required to be applied toward the
prepayment of Loans pursuant to this Section&nbsp;2.13(b), the payment of obligations of the Borrower
under the Senior Secured Credit Facilities and the payment of obligations of the Borrower under any
Exchange Notes shall exceed $25,000,000 in the aggregate; <U>provided</U>, <U>further</U>, that
notwithstanding the foregoing, on each Reinvestment Prepayment Date, an amount equal to the
Reinvestment Prepayment Amount with respect to the relevant Reinvestment Event shall be applied
toward the prepayment of the Loans as set forth in Section&nbsp;2.13(d).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If on any date prior to the Initial Maturity Date any Group Member shall receive Net Cash
Proceeds from any issuance or sale of Equity Interests (other than any issuance or sale (i)
pursuant to employee benefit plans or otherwise in compensation to officers, directors, trustees or
employees, (ii)
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">in connection with a transaction that constitutes a Change of Control or (iii)&nbsp;by the Borrower
to a Restricted Subsidiary or by a Restricted Subsidiary to the Borrower or another Restricted
Subsidiary), then an amount equal to such Net Cash Proceeds shall be applied within three Business
Days of receipt of such Net Cash Proceeds toward the prepayment of the Loans as set forth in
Section&nbsp;2.13(d).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the Delayed Draw Availability Period, if the amount of Net Cash Proceeds actually
received under this Section&nbsp;2.13(b) exceeds the aggregate outstanding principal amount of the
Loans, the Delayed Draw Commitments shall be automatically and permanently reduced by an amount
equal to such excess.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the sale, conveyance or other disposition of all or
substantially all of the assets of Holdings and its Restricted Subsidiaries, taken as a whole, will
be governed by Section&nbsp;2.13(c) and/or Section&nbsp;8.9 and not by this Section&nbsp;2.13(b) or Section&nbsp;8.4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Upon the occurrence of any Change of Control, unless the Borrower has previously or
concurrently exercised its right to prepay all of the Loans as described under Section&nbsp;2.12, each
Lender will have the right to require that the Borrower prepay all or any portion of that Lender&#146;s
Loans for an amount (the &#147;<U>Change of Control Purchase Price</U>&#148;) equal to 100.0% of the
principal amount of the Loans to be prepaid, plus accrued and unpaid interest, thereon to the date
of payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within 30&nbsp;days following any Change of Control, the Borrower will mail, or caused to be
mailed, to the Lenders, with a copy to the Administrative Agent, a notice:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) describing the transaction or transactions that constitute the Change of Control;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) offering to prepay, pursuant to the procedures required by this Agreement and
described in the notice (a &#147;<U>Change of Control Offer</U>&#148;), on a date specified in the
notice, which shall be a Business Day not earlier than 30&nbsp;days, nor later than 60&nbsp;days, from
the date the notice is mailed (the &#147;<U>Change of Control Payment Date</U>&#148;), and for the
Change of Control Purchase Price, all Loans with respect to which a Lender has properly
accepted the Change of Control Offer; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) describing the procedures, as determined by the Borrower, consistent with this
Agreement, that Lenders must follow to accept the Change of Control Offer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the Change of Control Payment Date, the Borrower will, to the extent lawful:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) accept for payment all Loans or portions of Loans with respect to which a Lender
has properly accepted the Change of Control Offer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deposit with the Administrative Agent an amount equal to the Change of Control
Purchase Price in respect of the Loans or portions of Loans with respect to which a Lender
has properly accepted the Change of Control Offer; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) deliver or cause to be delivered to the Administrative Agent an Officers&#146;
Certificate stating the aggregate principal amount of Loans or portions of Loans being
prepaid by the Borrower.
</DIV>


<P align="right" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">&nbsp;40
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Administrative Agent will promptly mail to each Lender who has so tendered Loans the
Change of Control Purchase Price for such Loans, and the Lender will thereafter be deemed to hold
Loans equal in principal amount to any unpaid portion of the Loans it holds, if any.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Change of Control Offer will be required to remain open for at least 20 Business Days or for
such longer period as is required by law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower&#146;s obligation to make a Change of Control Offer will be satisfied if a third party
makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Agreement applicable to a Change of Control Offer made by the
Borrower and purchases all Loans with respect to which a Lender has properly accepted the Change of
Control Offer and has not withdrawn such acceptance under such Change of Control Offer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary contained herein, a Change of Control Offer may be
made in advance of a Change of Control, conditional upon such Change of Control, if a definitive
agreement is in place for the Change of Control at the time of making of the Change of Control
Offer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding anything to the contrary herein, (i)&nbsp;the amount of any prepayment required
pursuant to Sections&nbsp;2.13(a), (b)&nbsp;and (c)&nbsp;shall be reduced by the aggregate principal amount of the
loans required to be repaid, and actually repaid, pursuant to Sections&nbsp;2.13(a) or (b)&nbsp;or Section
9(k) of the Senior Secured Credit Agreement and (ii)&nbsp;to the extent that any Exchange Notes are
outstanding at the time any prepayment is required pursuant to Section&nbsp;2.13(b) or (c)&nbsp;hereof, the
amount of any prepayment required pursuant to such subsections shall be reduced by any ratable
amounts payable to holders of Exchange Notes that have accepted a Net Proceeds Offer or a Change of
Control Offer (each as defined in Exhibit&nbsp;B-1), as the case may be, under the Exchange Notes
Indenture (which ratable amounts, in the case of a Change of Control Offer under and as defined in
the Exchange Notes Indenture, shall be deemed to include the 1% premium payable to holders of
Exchange Notes pursuant to such offer). Amounts to be applied in connection with prepayments made
pursuant to paragraph (a)&nbsp;and (b)&nbsp;of this Section&nbsp;2.13 shall be applied to the prepayment of the
Loans in accordance with Section&nbsp;2.19(b). Each prepayment of the Loans under this Section&nbsp;2.13
shall be accompanied by accrued interest to the date of such prepayment on the amount prepaid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 <U> &#091;Reserved&#093;</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 <U>&#091;Reserved&#093;</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 <U>Interest Rates and Payment Dates</U>. (a)&nbsp;Each Loan shall bear interest at a rate
per annum equal to 17.0%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If all or a portion of the principal amount of, or any interest payable on, any Loan shall
not be paid when due (whether at the stated maturity, by acceleration or otherwise), all
outstanding Loans (whether or not overdue) shall bear interest at a rate per annum equal to the
rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this
Section&nbsp;2.16 <U>plus</U> 2%, from the date of such non-payment until such amount is paid in full
(as well after as before judgment).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Interest shall be payable in arrears on each Interest Payment Date; <U>provided</U> that
interest accruing pursuant to paragraph (b)&nbsp;of this Section&nbsp;2.16 shall be payable from time to time
on demand.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i)&nbsp;If any provision of this Agreement would obligate the Borrower to make any payment of
interest or other amount payable to any Lender in an amount or calculated at a rate which
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">would be prohibited by law or would result in a receipt by such Lender of &#147;interest&#148; at a
&#147;criminal rate&#148; (as such terms are construed under the <I>Criminal Code </I>(Canada)), then
notwithstanding such provision, such amount or rate shall be deemed to have been adjusted with
retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be
so prohibited by law or so result in a receipt by such Lender of &#147;interest&#148; at a &#147;criminal rate&#148;,
such adjustment to be effected, to the extent necessary, (x)&nbsp;first, by reducing the amount or rates
of interest required to be paid under this Section&nbsp;2.16 and (y)&nbsp;thereafter, by reducing any fees,
commissions, premiums and other amounts which would constitute interest for purposes of Section&nbsp;347
of the <I>Criminal Code </I>(Canada).
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If, notwithstanding the provisions of clause (i)&nbsp;of this Section&nbsp;2.16(d), and after
giving effect to all adjustments contemplated thereby, any Lender shall have received an
amount in excess of the maximum permitted by such clause, then the Borrower shall be
entitled, by notice in writing to such Lender, to obtain reimbursement from such Lender of
an amount equal to such excess, and, pending such reimbursement, such amount shall be deemed
to be an amount payable by such Lender to the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any amount or rate of interest referred to in this Section<U> </U>2.16(d) shall
be determined in accordance with generally accepted actuarial practices and principles as an
effective annual rate of interest over the term of any Loan on the assumption that any
charges, fees or expenses that fall within the meaning of &#147;interest&#148; (as defined in the
<I>Criminal Code </I>(Canada)) shall, if they relate to a specific period of time, be prorated over
that period of time and otherwise be prorated over the period from the Closing Date to the
Initial Maturity Date or the Final Maturity Date, as applicable, and, in the event of
dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the
Administrative Agent shall be conclusive for the purposes of such determination absent
manifest error.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 <U>Computation of Interest and Fees</U>. (a)&nbsp;Interest and fees payable pursuant hereto
shall be calculated on the basis of a 360-day year for the actual days elapsed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the
absence of manifest error. The Administrative Agent shall, at the request of the Borrower, deliver
to the Borrower a statement showing the quotations used by the Administrative Agent in determining
any interest rate pursuant to Section&nbsp;2.16(a)(ii).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;For the purposes of the <I>Interest Act </I>(Canada), the yearly rate of interest to which the
rate determined pursuant to such calculation is equivalent is the rate so determined multiplied by
the actual number of days in the calendar year for which the calculation is made and divided by
either 360 or such other period of time, as the case may be. In addition, the principles of deemed
investment of interest do not apply to any interest calculations under this Agreement and the rates
of interest stipulated in this Agreement are intended to be nominal rates and not effective rates
or yields.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 <U>&#091;Reserved&#093;</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 <U>Pro Rata Treatment and Payments</U>. (a)&nbsp;Each borrowing by the Borrower from the
Lenders hereunder and each payment by the Borrower on account of any fee hereunder shall be made
<U>pro</U> <U>rata</U> according to the Aggregate Exposure Percentages of the relevant Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each payment (including each prepayment, except for any prepayment pursuant to Section
2.13(c)) by the Borrower on account of principal of and interest on the Loans and each reduction of
any outstanding Delayed Draw Commitments shall be made <U>pro</U> <U>rata</U> according to the
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">respective outstanding principal amounts of the Loans then held by the Lenders or the
respective outstanding Delayed Draw Commitments of such Lenders, as the case may be. Amounts
prepaid on account of the Loans may not be reborrowed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;All payments (including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and
shall be made prior to 12:00 Noon, New York City time, on the due date thereof to the
Administrative Agent, for the account of the Lenders, at the Funding Office in Dollars in
immediately available funds. The Administrative Agent shall distribute such payments to each
relevant Lender promptly upon receipt in like funds as received, net of any amounts owing by such
Lender pursuant to Section&nbsp;10.7. If any payment hereunder becomes due and payable on a day other
than a Business Day, such payment shall be extended to the next succeeding Business Day. In the
case of any extension of any payment of principal pursuant to the preceding sentence, interest
thereon shall be payable at the then applicable rate during such extension.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Unless the Administrative Agent shall have been notified in writing by any Lender prior to
a borrowing that such Lender will not make the amount that would constitute its share of such
borrowing available to the Administrative Agent, the Administrative Agent may assume that such
Lender is making such amount available to the Administrative Agent, and the Administrative Agent
may, in reliance upon such assumption, make available to the Borrower a corresponding amount. If
such amount is not made available to the Administrative Agent by the required time on the Closing
Date or the Delayed Draw Loan Date, as the case may be, such Lender shall pay to the Administrative
Agent, on demand, such amount with interest thereon, at a rate equal to the greater of (A)&nbsp;the
Federal Funds Effective Rate and (B)&nbsp;a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation for the period until such Lender makes such
amount immediately available to the Administrative Agent. A certificate of the Administrative
Agent submitted to any Lender with respect to any amounts owing under this paragraph shall be
conclusive in the absence of manifest error. If such Lender&#146;s share of such borrowing is not made
available to the Administrative Agent by such Lender within three Business Days after the Closing
Date, or the Delayed Draw Loan Date, as the case may be, the Administrative Agent shall also be
entitled to recover such amount with interest thereon at the rate applicable to the Loans pursuant
to Section&nbsp;2.16(a), on demand, from the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Unless the Administrative Agent shall have been notified in writing by the Borrower prior
to the date of any payment due to be made by the Borrower hereunder that the Borrower will not make
such payment to the Administrative Agent, the Administrative Agent may assume that the Borrower is
making such payment, and the Administrative Agent may, but shall not be required to, in reliance
upon such assumption, make available to the Lenders their respective <U>pro</U> <U>rata</U>
shares of a corresponding amount. If such payment is not made to the Administrative Agent by the
Borrower within three Business Days after such due date, the Administrative Agent shall be entitled
to recover, on demand, from each Lender to which any amount which was made available pursuant to
the preceding sentence, such amount with interest thereon at the rate per annum equal to the daily
average Federal Funds Effective Rate. Nothing herein shall be deemed to limit the rights of the
Administrative Agent or any Lender against the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 <U>Requirements of Law</U>. (a)&nbsp;If any Lender shall have determined that the adoption of or
any change in any Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling such Lender with
any request or directive regarding capital adequacy (whether or not having the force of law) from
any Governmental Authority made subsequent to the date hereof shall have the effect of reducing the
rate of return on such Lender&#146;s or such corporation&#146;s capital as a consequence of its obligations
hereunder to a
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">level below that which such Lender or such corporation could have achieved but for such adoption,
change or compliance (taking into consideration such Lender&#146;s or such corporation&#146;s policies with
respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to
time, after submission by such Lender to the Borrower (with a copy to the Administrative Agent) of
a written request therefor, the Borrower shall pay to such Lender such additional amount or amounts
as will compensate such Lender or such corporation for such reduction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;A certificate as to any additional amounts payable pursuant to this Section&nbsp;2.20 submitted
by any Lender to the Borrower (with a copy to the Administrative Agent) shall be conclusive in the
absence of manifest error. Notwithstanding anything to the contrary in this Section&nbsp;2.20, the
Borrower shall not be required to compensate a Lender pursuant to this Section&nbsp;2.20 for any amounts
incurred more than six months prior to the date that such Lender notifies the Borrower of such
Lender&#146;s intention to claim compensation therefor; provided that, if the circumstances giving rise
to such claim have a retroactive effect, then such six-month period shall be extended to include
the period of such retroactive effect. The obligations of the Borrower pursuant to this Section
2.20 shall survive the termination of this Agreement and the payment of the Loans and all other
amounts payable hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 <U>Taxes</U>. (a)&nbsp;All payments and reimbursements made by the Borrower under this
Agreement shall be made free and clear of, and without deduction or withholding for or on account
of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by
any Governmental Authority, excluding taxes imposed on or in respect of overall net income,
franchise taxes (imposed in lieu of net income taxes) and Canadian federal and provincial capital
taxes imposed on the Administrative Agent or any Lender as a result of a present or former
connection between the Administrative Agent or such Lender and the jurisdiction of the Governmental
Authority imposing such tax or any political subdivision or taxing authority thereof or therein
(other than any such connection arising solely from the Administrative Agent or such Lender having
executed, delivered or performed its obligations or received a payment under, or enforced, this
Agreement or any other Loan Document). If any such non-excluded taxes, levies, imposts, duties,
charges, fees, deductions or withholdings (&#147;<U>Non-Excluded Taxes</U>&#148;) or Other Taxes are
required to be withheld from any amounts payable to the Administrative Agent or any Lender
hereunder, the amounts so payable to the Administrative Agent or such Lender shall be increased to
the extent necessary to yield to the Administrative Agent or such Lender (after payment of all
Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder at the
rates or in the amounts specified in this Agreement; <U>provided</U>, <U>however</U>, that the
Borrower shall not be required to increase any such amounts payable to any Lender with respect to
any Non-Excluded Taxes (i)&nbsp;that are attributable to such Lender&#146;s failure to comply with the
requirements of paragraph (d)&nbsp;or (e)&nbsp;of this Section&nbsp;2.21 or (ii)&nbsp;that are Canadian or United
States withholding taxes imposed on amounts payable to such Lender at the time such Lender becomes
a party to this Agreement, except to the extent that such Lender&#146;s assignor (if any) was entitled,
at the time of assignment, to receive additional amounts from the Borrower with respect to such
Non-Excluded Taxes pursuant to this Section&nbsp;2.21(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as
possible thereafter the Borrower shall send to the Administrative Agent for its own account or for
the account of the relevant Lender, as the case may be, a certified copy of an official receipt
received by the Borrower, if any, showing payment thereof. If the Borrower fails to pay any
Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to
the Administrative Agent the required receipts or other required documentary evidence, the Borrower
shall
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">indemnify the Administrative Agent and the Lenders for any incremental taxes, interest or
penalties that may become payable by the Administrative Agent or any Lender as a result of any such
failure.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;To the extent the Borrower is a &#147;U.S. Person&#148; as defined in Section&nbsp;7701(a)(30) of the
Code, each Lender (or Transferee) that is not a &#147;U.S. Person&#148; as defined in Section&nbsp;7701(a)(30) of
the Code (a &#147;<U>Non-U.S. Lender</U>&#148;) shall deliver to the Borrower and the Administrative Agent
(or, in the case of a Participant, to the Lender from which the related participation shall have
been purchased) two copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI, or,
in the case of a Non-U.S. Lender claiming exemption from U.S. federal withholding tax under Section
871(h) or 881(c) of the Code with respect to payments of &#147;portfolio interest&#148;, a statement
substantially in the form of Exhibit&nbsp;G and a Form W-8BEN, or any subsequent versions thereof or
successors thereto, properly completed and duly executed by such Non-U.S. Lender claiming complete
exemption from, or a reduced rate of, U.S. federal withholding tax on all payments by the Borrower
under this Agreement and the other Loan Documents. Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the case of any
Participant, on or before the date such Participant purchases the related participation). In
addition, each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall
promptly notify the Borrower at any time it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose). Notwithstanding any other provision of
this Section&nbsp;2.21(d), a Non-U.S. Lender shall not be required to deliver any form pursuant to this
Section&nbsp;2.21(d) that such Non-U.S. Lender is not legally able to deliver.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;A Lender that is entitled to an exemption from or reduction of non-U.S. withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law or reasonably requested by the Borrower, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or at a
reduced rate; <U>provided</U> that such Lender is legally entitled to complete, execute and
deliver such documentation and in such Lender&#146;s judgment such completion, execution or submission
would not materially prejudice the legal position of such Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;If the Administrative Agent or any Lender determines, in its sole discretion, that it has
received a refund of any Non-Excluded Taxes or Other Taxes as to which it has been indemnified by
the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this
Section&nbsp;2.21, it shall pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section&nbsp;2.21 with respect to
the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent or such Lender and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund); <U>provided</U>, that
the Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay the
amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the
relevant Governmental Authority) to the Administrative Agent or such Lender in the event the
Administrative Agent or such Lender is required to repay such refund to such Governmental
Authority. This Section&nbsp;2.21(f) shall not be construed to require the Administrative Agent or any
Lender to make available its tax returns (or any other information relating to its taxes which it
deems confidential) to the Borrower or any other Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The agreements in this Section&nbsp;2.21 shall survive the termination of this Agreement and
the payment of the Loans and all other amounts payable hereunder.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 <U>&#091;Reserved&#093;</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 <U>Change of Lending Office</U>. Each Lender agrees that, upon the occurrence of any event
giving rise to the operation of Section&nbsp;2.20 or 2.21(a) with respect to such Lender, it will, if
requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such
Lender) to designate another lending office for any Loans affected by such event with the object of
avoiding the consequences of such event; <U>provided</U>, that such designation is made on terms
that, in the sole judgment of such Lender, cause such Lender and its lending office(s) to suffer no
economic, legal or regulatory disadvantage; and <U>provided</U>, <U>further</U>, that nothing in
this Section shall affect or postpone any of the obligations of the Borrower or the rights of any
Lender pursuant to Section&nbsp;2.20 or 2.21(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 <U>Replacement of Lenders</U>. The Borrower shall be permitted to replace any Lender that
(a)&nbsp;requests reimbursement for amounts owing pursuant to Section&nbsp;2.20 or 2.21(a), (b)&nbsp;becomes a
Defaulting Lender, or (c)&nbsp;does not consent to any proposed amendment, supplement, modification,
consent or waiver of any provision of this Agreement or any other Loan Document that requires the
consent of each of the Lenders or each of the Lenders affected thereby (so long as the consent of
the Required Lenders (with the percentage in such definition being deemed to be 75% for this
purpose) has been obtained), with a replacement financial institution; <U>provided</U> that (i)
such replacement does not conflict with any Requirement of Law, (ii)&nbsp;no Event of Default shall have
occurred and be continuing at the time of such replacement, (iii)&nbsp;prior to any such replacement,
such Lender shall have taken no action under Section&nbsp;2.23 so as to eliminate the continued need for
payment of amounts owing pursuant to Section&nbsp;2.20 or 2.21(a), (iv)&nbsp;the replacement financial
institution shall purchase, at par (unless the replacement financial institution and the replaced
Lender otherwise agree), all Loans and other amounts owing to such replaced Lender on or prior to
the date of replacement, (v)&nbsp;the replacement financial institution shall be reasonably satisfactory
to the Administrative Agent, (vi)&nbsp;the replaced Lender shall be obligated to make such replacement
in accordance with the provisions of Section&nbsp;11.6 (provided that the Borrower shall be obligated to
pay the registration and processing fee referred to therein), (vii)&nbsp;until such time as such
replacement shall be consummated, the Borrower shall pay all additional amounts (if any) required
pursuant to Section&nbsp;2.20 or 2.21(a), as the case may be, and (viii)&nbsp;any such replacement shall not
be deemed to be a waiver of any rights that the Borrower, the Administrative Agent or any other
Lender shall have against the replaced Lender or that the replaced Lender shall have against any
other Person.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 3. &#091;RESERVED&#093;
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">SECTION 4. &#091;RESERVED&#093;

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">SECTION 5. REPRESENTATIONS AND WARRANTIES

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To induce the Administrative Agent and the Lenders to enter into this Agreement and to make
the Loans, Holdings and the Borrower hereby jointly and severally represent and warrant to the
Administrative Agent and each Lender that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U>Financial Condition</U>. (a)&nbsp;The unaudited <U>pro</U> <U>forma</U> consolidated balance
sheet of Holdings and its consolidated Subsidiaries as at September&nbsp;30, 2008 (including the notes
thereto) (the &#147;<U>Pro Forma Balance Sheet</U>&#148;) and the unaudited <U>pro</U> <U>forma</U>
consolidated statements of income and cash flows of Holdings and its consolidated Subsidiaries for
the nine-month period ended September&nbsp;30, 2008 (including the notes thereto) (the &#147;<U>Pro Forma
Statement of Operations</U>&#148; and, collectively with the Pro Forma Balance Sheet, the &#147;<U>Pro Forma
Financial Statements</U>&#148;), copies of which have heretofore been furnished to each Lender, have
been prepared giving effect (as if such events had occurred, with respect to the Pro Forma Balance
Sheet, on such date and, with respect to the Pro Forma Statements of Operations, on the first day
of the period set forth above) to (i)&nbsp;the consummation of the Acquisition, (ii)
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Loans and the Senior Secured Loans to be made on the Closing Date and the Delayed Draw Loan
Date and the use of proceeds thereof and (iii)&nbsp;the payment of fees and expenses in connection with
the foregoing. The Pro Forma Financial Statements have been prepared based on the best information
available to Holdings and the Borrower as of the date of delivery thereof and present fairly on a
<U>pro</U> <U>forma</U> basis the estimated financial position of Holdings and its consolidated
Subsidiaries as at, and the results of operations of Holdings and its consolidated Subsidiaries for
the twelve-month period ended, September&nbsp;30, 2008, assuming that the events specified in the
preceding sentence had actually occurred at such date or on the first day of such period, as the
case may be.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The audited consolidated balance sheets of Holdings and its consolidated Subsidiaries as
at December&nbsp;31, 2006 and December&nbsp;31, 2007, and the related consolidated statements of income and
of cash flows for the fiscal years ended on such dates, reported on by and accompanied by an
unqualified report from KPMG LLP, present fairly the consolidated financial condition of Holdings
and its consolidated Subsidiaries as at such date, and the consolidated results of its operations
and its consolidated cash flows for the respective fiscal years then ended. The unaudited
consolidated balance sheets of Holdings and its consolidated Subsidiaries as at March&nbsp;31, 2008,
June&nbsp;30, 2008 and September&nbsp;30, 2008, and the related unaudited consolidated statements of income
and cash flows for the three-month, six-month and nine-month periods respectively ended on such
dates, present fairly the consolidated financial condition of Holdings and its consolidated
Subsidiaries as at such respective dates, and the consolidated results of its operations and its
consolidated cash flows for the three-month, six-month and nine-month periods respectively then
ended (subject to normal year-end audit adjustments). All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP applied
consistently throughout the periods involved (except as approved by the aforementioned firm of
accountants and disclosed therein).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The audited consolidated balance sheets of the Target and its consolidated Subsidiaries as
at December&nbsp;31, 2005, December&nbsp;31, 2006 and December&nbsp;31, 2007, and the related consolidated
statements of income and of cash flows for the fiscal years ended on such dates, reported on by and
accompanied by an unqualified report from KPMG LLP, present fairly the consolidated financial
condition of the Target and its consolidated Subsidiaries as at such date, and the consolidated
results of its operations and its consolidated cash flows for the respective fiscal years then
ended. The unaudited consolidated balance sheets of the Target and its consolidated Subsidiaries
as at March&nbsp;31, 2008, June&nbsp;30, 2008 and September&nbsp;30, 2008, and the related unaudited consolidated
statements of income and cash flows for the three-month, six-month and nine-month periods
respectively ended on such dates, present fairly the consolidated financial condition of the Target
and its consolidated Subsidiaries as at such respective dates, and the consolidated results of its
operations and its consolidated cash flows for the three-month, six-month and nine-month periods
respectively then ended (subject to normal year-end audit adjustments). All such financial
statements, including the related schedules and notes thereto, have been prepared in accordance
with U.S. generally accepted accounting principles applied consistently throughout the periods
involved (except as approved by the aforementioned firm of accountants and disclosed therein).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;No Group Member has any material Guarantee Obligations, material contingent liabilities
and liabilities for taxes, or any capital lease obligations or unusual forward or long-term
commitments, including any interest rate or foreign currency swap or exchange transaction or other
obligation in respect of derivatives, that are not reflected in the most recent financial
statements (including the related schedules and notes thereto) referred to in Sections&nbsp;5.1(b) and
(c)&nbsp;above. During the period from December&nbsp;31, 2007 to and including the date hereof there has
been no Disposition by any Group Member of any material part of its business or property (other
than to another Group Member that is a Subsidiary Guarantor).
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <U>No Change</U>. Since December&nbsp;31, 2007, there has been no development or event that has
had or would reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <U>Existence; Compliance with Law</U>. Each Group Member (a)&nbsp;is duly organized, formed or
settled, validly existing and in good standing (to the extent applicable in the relevant
jurisdiction) under the laws of the jurisdiction of its organization, formation or settlement, (b)
has the power and authority, and the legal right, to own and operate its property, to lease the
property it operates as lessee and to conduct the business in which it is currently engaged, (c)&nbsp;is
duly qualified as a foreign corporation or other organization and in good standing (to the extent
applicable in the relevant jurisdiction) under the laws of each jurisdiction where its ownership,
lease or operation of material property or the conduct of material business requires such
qualification and (d)&nbsp;is in compliance with all Requirements of Law except to the extent that the
failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material
Adverse Effect. Nothing in this Section&nbsp;5.3 shall restrict any transaction permitted pursuant to
Section&nbsp;8.9.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <U>Power; Authorization; Enforceable Obligations</U>. Each Loan Party has the power and
authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a
party and, in the case of the Borrower, to obtain extensions of credit hereunder. Each Loan Party
has taken all necessary action to authorize the execution, delivery and performance of the Loan
Documents to which it is a party and, in the case of the Borrower, to authorize the extensions of
credit on the terms and conditions of this Agreement. No consent or authorization of, filing with,
notice to or other act by or in respect of, any Governmental Authority or any other Person is
required in connection with the completion of the Acquisition and the extensions of credit
hereunder or with the execution, delivery, performance, validity or enforceability of this
Agreement or any of the Loan Documents, except (i)&nbsp;consents, authorizations, filings and notices
described in Schedule&nbsp;5.4, which consents, authorizations, filings and notices have been obtained
or made and are in full force and effect and (ii)&nbsp;other immaterial consents, authorizations,
filings and notices in connection with the Acquisition. Each Loan Document has been duly executed
and delivered on behalf of each Loan Party party thereto. This Agreement constitutes, and each
other Loan Document upon execution will constitute, a legal, valid and binding obligation of each
Loan Party party thereto, enforceable against each such Loan Party in accordance with its terms,
except as enforceability may be limited by applicable Debtor Relief Laws and equitable principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <U>No Legal Bar</U>. The execution, delivery and performance of this Agreement and the other
Loan Documents, the borrowings hereunder and the use of the proceeds thereof will not violate any
Requirement of Law or any Contractual Obligation of any Group Member and will not result in, or
require, the creation or imposition of any Lien on any of their respective properties or revenues
pursuant to any Requirement of Law or any such Contractual Obligation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <U>Litigation</U>. No litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of Holdings or the Borrower, threatened by
or against any Group Member or against any of their respective properties or revenues (a)&nbsp;with
respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby,
except as described in Schedule&nbsp;5.6 or (b)&nbsp;that would reasonably be expected to have a Material
Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <U>No Default</U>. No Group Member is in default under or with respect to any of its
Contractual Obligations in any respect that could reasonably be expected to have a Material Adverse
Effect. No Default or Event of Default has occurred and is continuing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <U>Ownership of Property; Liens</U>. Each Group Member has title in fee simple to, or a valid
leasehold interest in, all its real property, and good title to, or a valid leasehold interest in,
all its other property, and none of such property is subject to any Lien, except as permitted by
Section&nbsp;8.6 and
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">except for minor defects in title that do not materially interfere with such Group Member&#146;s ability
to conduct its business or to utilize such assets for their intended purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <U>Intellectual Property</U>. Each Group Member owns, or is licensed to use, all Intellectual
Property reasonably necessary for the conduct of its business as currently conducted. No material
claim has been asserted and is pending by any Person challenging or questioning the use of any
material Intellectual Property by any Group Member or the validity or effectiveness of any Group
Member&#146;s rights in any material Intellectual Property, nor, except as set forth on Schedule&nbsp;5.9,
does Holdings or the Borrower know of any valid basis for any such claim. The use of Intellectual
Property by each Loan Party does not infringe on the rights of any Person in any material respect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <U>Taxes</U>. Each Group Member has filed or caused to be filed all Federal, state,
provincial and other material tax returns that are required to be filed and has paid all taxes
shown to be due and payable on said returns or on any assessments made against it or any of its
property and all other taxes, fees or other charges imposed on it or any of its property by any
Governmental Authority (other than any such taxes, fees or other charges the amount or validity of
which are currently being contested in good faith by appropriate proceedings and with respect to
which reserves in conformity with Canadian generally accepted accounting principles (or U.S.
generally accepted accounting principles in the case of the Target prior to the Closing Date) have
been provided on the books of the relevant Group Member) and other than taxes which in the
aggregate do not exceed $2,500,000; to the knowledge of Holdings and the Borrower, no claim is
being asserted, with respect to any such tax, fee or other charge, except as previously disclosed
in writing to the Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <U>Federal Regulations</U>. No part of the proceeds of any Loans, and no other extensions of
credit hereunder, will be used (a)&nbsp;for &#147;buying&#148; or &#147;carrying&#148; any &#147;margin stock&#148; within the
respective meanings of each of the quoted terms under Regulation&nbsp;U as now and from time to time
hereafter in effect for any purpose that violates the provisions of the Regulations of the Board or
(b)&nbsp;for any purpose that violates the provisions of the Regulations of the Board. If requested by
any Lender or the Administrative Agent, the Borrower will furnish to the Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the requirements of FR Form&nbsp;G-3
or FR Form&nbsp;U-1, as applicable, referred to in Regulation&nbsp;U.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <U>Labor Matters</U>. Except as, in the aggregate, could not reasonably be expected to have
a Material Adverse Effect: (a)&nbsp;there are no strikes or other labor disputes against any Group
Member pending or, to the knowledge of Holdings or the Borrower, threatened; (b)&nbsp;hours worked by
and payment made to employees of each Group Member have not been in violation of the Fair Labor
Standards Act or any other applicable Requirement of Law dealing with such matters; and (c)&nbsp;all
payments due from any Group Member on account of employee health and welfare insurance have been
paid or accrued as a liability on the books of the relevant Group Member.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <U>ERISA</U>. (a)&nbsp;Except as could not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect: (i)&nbsp;each Group Member and each of their respective
ERISA Affiliates is in compliance with the applicable provisions of ERISA and the provisions of the
Code relating to Plans and the regulations and published interpretations thereunder; (ii)&nbsp;no ERISA
Event has occurred or is reasonably expected to occur; and (iii)&nbsp;all amounts required by applicable
law with respect to, or by the terms of, any retiree welfare benefit arrangement maintained by any
Group Member or any ERISA Affiliate or to which any Group Member or any ERISA Affiliate has an
obligation to contribute have been accrued in accordance with Statement of Financial Accounting
Standards No.&nbsp;106.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as, in the aggregate, could not reasonably be expected to have a Material Adverse
Effect, (i)&nbsp;all employer and employee contributions required by applicable law or by the terms of
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">any Foreign Benefit Arrangement or Foreign Plan have been made, or, if applicable, accrued in
accordance with normal accounting practices; (ii)&nbsp;the accrued benefit obligations of each Foreign
Plan (based on those assumptions used to fund such Foreign Plan) with respect to all current and
former participants do not exceed the assets of such Foreign Plan; (iii)&nbsp;each Foreign Plan that is
required to be registered has been registered and has been maintained in good standing with
applicable regulatory authorities; and (iv)&nbsp;each such Foreign Benefit Arrangement and Foreign Plan
is in compliance (A)&nbsp;with all material provisions of applicable law and all material applicable
regulations and published interpretations thereunder with respect to such Foreign Benefit
Arrangement or Foreign Plan and (B)&nbsp;with the terms of such plan or arrangement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 <U>Canadian Pension and Benefit Plans</U>. (a)&nbsp;All obligations of Holdings and its
Subsidiaries under each Canadian Pension Plan and Canadian Benefit Plan have been performed in
accordance with the terms thereof and any Requirement of Law (including, without limitation, the
<I>Income Tax Act </I>(Canada)), except where the failure to so perform could not reasonably be expected
to result in a Material Adverse Effect. No Canadian Pension Plan has any unfunded liabilities
which could reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as could not reasonably be expected to have a Material Adverse Effect, the present
value of all accumulated benefit obligations under each Canadian Pension Plan and Foreign Pension
Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards
No.&nbsp;87) did not, as of the date of the most recent financial statements reflecting such amounts,
exceed the fair market value of the assets of such Pension Plan allocable to such accrued benefits,
and the present value of all accumulated benefit obligations of all underfunded Pension Plans
(based on the assumptions used for purposes of Statement of Financial Accounting Standards No.&nbsp;87)
did not, as of the date of the most recent financial statements reflecting such amounts, exceed by
more than a material amount the fair market value of the assets of all such underfunded Pension
Plans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 <U>Investment Company Act; Other Regulations</U>. No Loan Party is an &#147;investment company,&#148;
or a company &#147;controlled&#148; by an &#147;investment company,&#148; within the meaning of the Investment Company
Act of 1940, as amended. No Loan Party is subject to regulation under any Requirement of Law
(other than Regulation&nbsp;X of the Board) that limits its ability to incur Indebtedness.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16 <U>Subsidiaries</U>. Except as disclosed to the Administrative Agent by the Borrower in
writing from time to time after the Closing Date, (a)&nbsp;Schedule&nbsp;5.16 sets forth the name and
jurisdiction of incorporation of each Subsidiary and, as to each such Subsidiary, the percentage of
each class of Equity Interests owned by any Loan Party and (b)&nbsp;there are no outstanding
subscriptions, options, warrants, calls, rights or other agreements or commitments (other than
stock or unit options granted to employees or directors and directors&#146; qualifying shares) of any
nature relating to any Equity Interests of the Borrower or any Subsidiary, except as created by the
Loan Documents, the Senior Secured Security Documents and any Existing Convertible Securities
remaining outstanding on the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17 <U>Use of Proceeds</U>. The proceeds of the Loans made on the Closing Date shall be used to
finance a portion of the Acquisition, and the proceeds of the Loans made on the Delayed Draw Loan
Date shall be used to refinance, in whole or in part, the Existing Convertible Securities and, in
each case, to pay related fees and expenses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18 <U>Environmental Matters</U>. Except as set forth in Schedule&nbsp;5.18 or as, in the aggregate,
could not reasonably be expected to have a Material Adverse Effect:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the facilities and properties owned, leased or operated by any Group Member (the
&#147;<U>Properties</U>&#148;) do not contain, and have not previously contained, any Materials of
Environmental
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Concern in amounts or concentrations or under circumstances that constitute or constituted a
violation of, or could give rise to liability under, any Environmental Law;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;no Group Member has received or is aware of any notice of violation, alleged violation,
non-compliance, liability or potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Properties or the business operated by any Group
Member (the &#147;<U>Business</U>&#148;), nor does Holdings or the Borrower have knowledge or reason to
believe that any such notice will be received or is being threatened;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Materials of Environmental Concern have not been transported to or disposed of at, on or
under any property in violation of, or in a manner or to a location that could reasonably be
expected to give rise to liability under, any Environmental Law, nor have any Materials of
Environmental Concern been generated, treated, stored or disposed of at, on or under any of the
Properties in violation of, or in a manner that could reasonably be expected to give rise to
liability under, any applicable Environmental Law;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;no judicial proceeding or governmental or administrative action is pending or, to the
knowledge of Holdings and the Borrower, threatened, under any Environmental Law to which any Group
Member is or could reasonably be expected to be named as a party with respect to the Properties or
the Business, nor are there any consent decrees or other decrees, consent orders, administrative
orders or other orders, or other administrative or judicial judgments remaining in effect under any
Environmental Law with respect to the Properties or the Business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;there has been no Release or threat of Release of Materials of Environmental Concern at,
on, under or from the Properties, or arising from or related to the operations of any Group Member
in connection with the Properties or otherwise in connection with the Business, in violation of or
in amounts or in a manner that could give rise to liability under Environmental Laws;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;the Business, the Properties and all operations at the Properties are in compliance, and
have in the last five years been in compliance, with all applicable Environmental Laws; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;no Group Member has assumed any liability of any other Person under Environmental Laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19 <U>Accuracy of Information, etc</U>. No statement or information contained in this
Agreement, any other Loan Document, the Confidential Information Memorandum (as updated by the
Borrower from time to time prior to the Closing Date) or any other material document, certificate
or statement furnished by or on behalf of any Loan Party to the Administrative Agent or the
Lenders, or any of them, for use in connection with the transactions contemplated by this Agreement
or the other Loan Documents, contained as of the date such statement, information, document or
certificate was so furnished (or, in the case of the Confidential Information Memorandum (as
updated on or prior to the date hereof), as of the date of this Agreement), any untrue statement of
a material fact or omitted to state a material fact necessary to make the statements contained
herein or therein not materially misleading in light of the circumstances under which such
statement was made. The projections and <U>pro</U> <U>forma</U> financial information contained
in the materials referenced above are based upon good faith estimates and assumptions believed by
management of the Borrower to be reasonable at the time made, it being recognized by the Lenders
that such financial information as it relates to future events is not to be viewed as fact and that
actual results during the period or periods covered by such financial information may differ from
the projected results set forth therein by a material amount. There is no fact known to any Loan
Party that could reasonably be expected to have a Material Adverse Effect that has not been
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expressly disclosed herein, in the other Loan Documents, in the Confidential Information Memorandum
or in any other documents, certificates and statements furnished to the Administrative Agent and
the Lenders for use in connection with the transactions contemplated hereby and by the other Loan
Documents. No representation is made with respect to information of a general economic or general
industry nature.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20 <U>&#091;Reserved&#093;</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.21 <U>Insurance</U>. The Loan Parties maintain insurance in compliance with Section&nbsp;7.5.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.22 <U>Solvency</U>. Each of Holdings and the Borrower on a consolidated basis is, and after
giving effect to the Acquisition and the incurrence of all Indebtedness and obligations being
incurred in connection herewith and therewith will be Solvent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.23 <U>Certain Documents</U>. The Borrower has delivered to the Administrative Agent a complete
and correct copy of the Acquisition Documentation, including any material amendments, supplements
or modifications with respect thereto.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 6. CONDITIONS PRECEDENT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <U>Conditions to Initial Extension of Credit</U>. The agreement of each Lender to make the
initial extension of credit requested to be made by it is subject to the satisfaction, prior to or
concurrently with the making of such extension of credit on the Closing Date, of the following
conditions precedent:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Credit Agreement; Other Loan Documents</U>. The Administrative Agent shall have
received (i)&nbsp;this Agreement, executed and delivered by the Administrative Agent, Holdings, the
Borrower and each Person listed on Schedule&nbsp;1.1, (ii)&nbsp;the Guarantee, executed and delivered by
Holdings, the Borrower and each Subsidiary Guarantor, (iii)&nbsp;copies of the Marketing Side Letter and
the Sale and Repurchase Agreement, dated as of the Closing Date, in each case executed and
delivered by the Borrower and each other party thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Acquisition, etc</U>. The following transactions shall have been consummated
substantially simultaneously therewith:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Target shall be merged with and into Precision Lobos Corporation, with
Precision Lobos Corporation surviving such merger (the &#147;<U>Acquisition</U>&#148;) in accordance
with the Acquisition Agreement, and no provision of the Acquisition Agreement shall have
been waived, amended, supplemented or otherwise modified in a manner material and adverse to
the Lenders without the written consent of the Arrangers (which consent shall not be
unreasonably withheld or delayed);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower shall have received <B>&#091;Redacted pursuant to Section&nbsp;12.2 of national
instrument 51-102&#093; </B>from borrowings under the Senior Secured Credit Facilities (it being
understood that the Borrower shall repay a portion of the revolving borrowings thereunder by
no later than 11:00&nbsp;A.M., New York City time, on the Business Day immediately following the
Closing Date so that not more than $100,000,000 (exclusive of any letters of credit issued
on the Closing Date to replace any existing letters of credit of the Target), plus any
additional amounts necessary to finance any OID in respect of the term loan borrowings under
the Senior Secured Credit Agreement, of such revolving borrowings used for such purposes
remain outstanding);
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Administrative Agent shall have received reasonably satisfactory evidence
that the fees and expenses (including on account of any OID) to be incurred in connection
with the Acquisition and the financing thereof shall not exceed <B>&#091;Redacted pursuant to
Section&nbsp;12.2 of national instrument 51-102&#093;</B>; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Administrative Agent shall have received reasonably satisfactory evidence that
(i)&nbsp;substantially all of the Indebtedness (including commitments in respect thereof) of the
Target (excluding those Existing Convertible Securities not converted or redeemed on or
prior to the Closing Date) existing prior to the Closing Date and (ii)&nbsp;all obligations under
the Extendible Revolving Term Credit Agreement, dated November&nbsp;2, 2005, as amended from time
to time, between the Borrower, the financial institutions from time to time parties thereto
and Royal Bank of Canada, as agent, shall have been repaid (or cancelled) on terms
reasonably satisfactory to the Administrative Agent and all related security interests
released or arrangements shall have been made which are reasonably satisfactory to the
Administrative Agent for the repayment thereof and release of all related security
interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Pro Forma Financial Statements; Financial Statements</U>. The Lenders shall have
received the Pro Forma Financial Statements and the other financial statements of Holdings and the
Target described in Section&nbsp;5.1 and all other financial statements for completed or pending
acquisitions that may be required under Regulation&nbsp;S-X of the Securities Act of 1933, as amended
(&#147;<U>Regulation&nbsp;S-X</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Projections</U>. The Lenders shall have received satisfactory projections of Holdings
(giving effect to the Acquisition) through 2014 (and receipt of such projections are hereby
acknowledged).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Approvals</U>. All governmental and third party approvals required under Section&nbsp;6.1
of the Acquisition Agreement shall have been obtained and be in full force and effect on terms
reasonably satisfactory to the Arrangers. No Governmental Authority (as defined in the Acquisition
Agreement) of competent jurisdiction shall have issued, promulgated, enforced or entered any Order
(as defined in the Acquisition Agreement), temporary restraining order, preliminary or permanent
injunction, or other legal restraint or prohibition that is continuing and which prevents the
consummation of the Acquisition. There shall not be any pending suit, action or proceeding
asserted by any Governmental Authority (as defined in the Acquisition Agreement) challenging or
seeking to restrain or prohibit the consummation of the Acquisition or the transactions
contemplated under the Acquisition Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Target Material Adverse Effect.</U> Except as described in the Grey Wolf Reports (as
defined in the Acquisition Agreement), no Target Material Adverse Effect shall have occurred since
December&nbsp;31, 2007.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Consolidated Leverage Ratio</U>. The Consolidated Leverage Ratio (calculated, solely
for purposes of this Section&nbsp;6.1(g), in accordance with Section&nbsp;6.1(g) of the Senior Secured Credit
Agreement) shall not exceed 2.00 to 1.00.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) &#091;<U>Reserved</U>&#093;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Fees</U>. The Lenders, the Administrative Agent and the Arrangers shall have received
all fees required to be paid, and all expenses for which invoices have been presented (including
the reasonable fees and expenses of legal counsel), on or before the Closing Date. All such
amounts will be paid with proceeds of the Senior Secured Credit Facilities received on the Closing
Date and will be reflected in the funding instructions given by the Borrower to the Administrative
Agent on or before the Closing Date.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Closing Certificate; Certified Articles of Incorporation; Good Standing
Certificates</U>. The Administrative Agent shall have received (i)&nbsp;a certificate of each Loan
Party, dated the Closing Date, substantially in the form of Exhibit&nbsp;D, with appropriate insertions
and attachments, including the certificate or articles of incorporation of each Loan Party that is
a corporation and certificate of limited partnership for each Loan Party that is a limited
partnership, certified by the relevant authority of the jurisdiction of organization of such Loan
Party (if such Loan Party is organized in the United States, and otherwise by the secretary or
assistant secretary of such Loan Party) and (ii)&nbsp;a long form good standing certificate, certificate
of status or certificate of limited partnership, as applicable (in each case, if available in such
jurisdiction), for each Loan Party from its jurisdiction of organization.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>Legal Opinions</U>. The Administrative Agent shall have received the following
executed legal opinions addressed to the Administrative Agent and the Lenders:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the legal opinion of Bennett Jones LLP, Canadian counsel to Holdings and its
Subsidiaries, substantially in the form of Exhibit&nbsp;F-1;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the legal opinion of Mayer Brown LLP, New York counsel to Holdings and its
Subsidiaries, substantially in the form of <BR>
Exhibit&nbsp;F-2;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the legal opinion of Joanne Alexander, general counsel of Borrower, substantially
in the form of Exhibit&nbsp;F-3; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the legal opinion of local counsel in each of Nevada, Louisiana, Manitoba and of
such other special and local counsel as may be required by the Administrative Agent.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each such legal opinion shall cover such other matters incident to the transactions contemplated by
this Agreement as the Administrative Agent may reasonably require.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) &#091;<U>Reserved</U>&#093;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) &#091;<U>Reserved</U>&#093;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <U>Solvency Certificate</U>. The Administrative Agent shall have received a certificate
from the chief financial officer or vice president, finance of Holdings and the Borrower attesting
to the Solvency of Holdings and the Borrower on a consolidated basis after giving effect to the
Acquisition and the incurrence of all Indebtedness and obligations being incurred in connection
herewith and therewith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <U>&#091;Reserved&#093;</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <U>&#091;Reserved&#093;</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the purpose of determining compliance with the conditions specified in this Section&nbsp;6.1, each
Lender that has signed this Agreement shall be deemed to have accepted, and to be satisfied with,
each document or other matter required under this Section&nbsp;6.1 unless the Administrative Agent shall
have received written notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <U>Conditions to Each Extension of Credit.</U> The agreement of each Lender to make any
extension of credit requested to be made by it on any date (including its initial extension of
credit) is subject to the satisfaction of the following conditions precedent:
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Representations and Warranties</U>. Each of the representations and warranties made by any
Loan Party in or pursuant to the Loan Documents shall be true and correct in all material respects
on and as of such date as if made on and as of such date; <U>provided</U>, that the only
representations and warranties relating to the Target and its Subsidiaries and their respective
businesses the making of which shall be a condition to such extensions of credit shall be the
Specified Representations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>No Default</U>. No Default or Event of Default shall have occurred and be continuing
on such date or after giving effect to the extensions of credit requested to be made on such date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each borrowing by the Borrower hereunder shall constitute a representation and warranty by the
Borrower as of the date of such extension of credit that the conditions contained in this Section
6.2 have been satisfied.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 7. AFFIRMATIVE COVENANTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holdings and the Borrower hereby jointly and severally agree that, so long as the Commitments
remain in effect or any Loan or other amount is owing to any Lender or the Administrative Agent
hereunder, each of Holdings and the Borrower shall and shall cause each of its Subsidiaries to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <U>Provision of Financial Information</U>. (a)&nbsp;Whether or not required by the SEC, furnish
to the Administrative Agent and the Lenders, or, to the extent permitted by the SEC, file
electronically with the SEC through the SEC&#146;s Electronic Data Gathering, Analysis and Retrieval
System (or any successor system) within the time periods specified in the SEC&#146;s rules and
regulations applicable to a foreign private issuer subject to the Multijurisdictional Disclosure
System:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all annual financial information that would be required to be contained in a filing
with the SEC on Forms 40-F or 20-F (or any successor form), as applicable, containing the
information required therein (or required in such successor form), including a report on the
annual financial statements by Holdings&#146; certified independent accountants and a
reconciliation of Holdings&#146; financial statements to U.S. generally accepted accounting
principles, as if Holdings was required to file such forms and was a reporting issuer under
the securities laws of the Province of Alberta or Ontario;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for the first three quarters of each year, all quarterly financial information
that Holdings would be required to file or furnish with the SEC on Form 6-K (or any
successor form), if Holdings were required to file or furnish, as applicable, such forms and
as if Holdings was a reporting issuer under the securities laws of the Province of Alberta
or Ontario, in each case including a &#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148;; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all current reports that would otherwise be required to be filed or furnished by Holdings
with the SEC on Form 6-K if Holdings were required to file or furnish, as applicable, such form as
if Holdings was a reporting issuer under the securities laws of the Province of Alberta or Ontario.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Holdings has designated any of its Subsidiaries as Unrestricted Subsidiaries, then the
quarterly and annual financial information required by the preceding paragraph will include a
reasonably detailed presentation, either on the face of the financial statements or in the
footnotes thereto, and in Management&#146;s Discussion and Analysis of Financial Condition and Results
of Operations, of the financial condition and results of operations of Holdings and its Restricted
Subsidiaries excluding the Unrestricted Subsidiaries. In addition, the quarterly and annual
financial information required by the preceding
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">paragraph shall include or be accompanied by (x)&nbsp;a reasonably detailed calculation of the
Consolidated Interest Coverage Ratio as of the last day of such period and, so long as Holdings is
a mutual fund trust for Canadian federal income tax purposes, the Consolidated Leverage Ratio as of
the last day of such period and (y)&nbsp;a reasonably detailed presentation of Consolidated Cash Flow,
Consolidated Interest Expense and, so long as Holdings is a mutual fund trust for Canadian federal
income tax purposes, Indebtedness and Consolidated Cash Flow from Operations, each calculated in
accordance with GAAP (to the extent applicable) and quantifying the difference between each such
item listed in this clause (y)&nbsp;and the manner in which such item would be calculated in accordance
with Canadian generally accepted accounting principles then used to prepare the financial
information included in the quarterly and annual information required by the preceding paragraph.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, whether or not required by the SEC, Holdings will file a copy of all of the
information and reports referred to in Sections&nbsp;7.1(a)(i) and (ii)&nbsp;with the SEC for public
availability within the time periods specified in the SEC&#146;s rules and regulations applicable to
such reports applicable to a foreign private issuer subject to the Multijurisdictional Disclosure
System (unless the SEC will not accept the filing) and make the information available to
prospective investors upon request. If, notwithstanding the foregoing, the SEC will not accept
Holdings&#146; filings for any reason, Holdings will post the reports referred to in Sections&nbsp;7.1(a)(i)
and (ii)&nbsp;on its website within the time periods that would apply if Holdings were required to file
those reports with the SEC.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary contained herein, the Borrower will be deemed to have
complied with its obligations in this Section&nbsp;7.1 by the filing with the SEC of a registration
statement that includes the information specified in Section&nbsp;7.1(a) at the times it would otherwise
be required to file such forms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <U>Certificates; Other Information</U>. Furnish to the Administrative Agent and each Lender
(or, in the case of clause (g), to the relevant Lender):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>&#091;Reserved&#093;.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;concurrently with the delivery of any financial statements pursuant to Section&nbsp;7.1, (i)&nbsp;a
certificate of an Officer stating that, to the best of such Officer&#146;s knowledge, each Loan Party
during such period has observed or performed all of its covenants and obligations contained in this
Agreement and the other Loan Documents to which it is a party to be observed, performed or
satisfied by it, and that such Officer has obtained no knowledge of any Default or Event of Default
except as specified in such certificate and (ii)&nbsp;in the case of quarterly or annual financial
statements, a Compliance Certificate containing, to the extent not previously disclosed to the
Administrative Agent, (1)&nbsp;a description of any change in the jurisdiction of organization or name
of any Loan Party and (2)&nbsp;a description of any Person that has become a Group Member, in each case
since the date of the most recent report delivered pursuant to this clause (ii) (or, in the case of
the first such report so delivered, since the Closing Date);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;as soon as available, and in any event no later than 45&nbsp;days after the end of each fiscal
year of Holdings, a detailed consolidated budget for the following fiscal year (including a
projected consolidated balance sheet of Holdings and its Subsidiaries as of the end of the
following fiscal year, the related consolidated statements of projected cash flow and projected
income and a description of the underlying assumptions applicable thereto), and, as soon as
available, significant revisions, if any, of such budget and projections with respect to such
fiscal year (collectively, the &#147;<U>Projections</U>&#148;), which Projections shall in each case be
accompanied by a certificate of an Officer stating that such Projections are based on reasonable
estimates, information and assumptions and that such Officer has no reason to believe that such
Projections are incorrect or misleading in any material respect;
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;no later than five Business Days prior to the effectiveness thereof, copies of
substantially final drafts of any proposed amendment, supplement, waiver or other modification with
respect to the Senior Secured Credit Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;within five days after the same are sent, copies of all financial statements and reports
that Holdings or the Borrower sends to the holders of any class of its debt securities or public
equity securities; <U>provided</U>, that such delivery shall be deemed to have been made upon
delivery of notice to the Administrative Agent that such statements or reports are available via
EDGAR or SEDAR, as the case may be, on the Internet;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;promptly following receipt thereof, copies of (i)&nbsp;any documents described in Section
101(k) of ERISA that any Group Member or any ERISA Affiliate may request with respect to any
Multiemployer Plan and (ii)&nbsp;any notices described in Section 101(l) of ERISA that any Group Member
or any ERISA Affiliate may request with respect to any Multiemployer Plan; <U>provided</U>, that
if the Group Member or any ERISA Affiliate has not requested such documents or notices from the
administrator or sponsor of the applicable Multiemployer Plan, then, upon reasonable request of the
Administrative Agent, the Group Member and/or the ERISA Affiliates shall promptly make a request
for such documents or notices from such administrator or sponsor and the Borrower shall provide
copies of such documents and notices promptly after receipt thereof; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;promptly, such additional financial and other information as the Administrative Agent may
from time to time reasonably request on behalf of itself or any Lender.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <U>Payment of Obligations</U>. Pay, discharge or otherwise satisfy at or before maturity or
before they become delinquent, as the case may be, all its material obligations of whatever nature
(including but not limited to tax liabilities), except where the amount or validity thereof is
currently being contested in good faith by appropriate proceedings and reserves in conformity with
Canadian generally accepted accounting principles with respect thereto have been provided on the
books of the relevant Group Member.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <U>Maintenance of Existence; Compliance</U>. (a) (i)&nbsp;Preserve, renew and keep in full force
and effect the organizational existence of each Loan Party and Subsidiary Guarantor and (ii)&nbsp;take
all reasonable action to maintain its qualification to carry on business in each jurisdiction in
which it carries on business, except, in each case, as otherwise permitted by Section&nbsp;8.9 or 11.19
or as may otherwise occur in connection with a Permitted Reorganization and except, in the case of
clause (ii)&nbsp;above, to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (b)&nbsp;comply with all Contractual Obligations and Requirements of Law
except to the extent that failure to comply therewith could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <U>Maintenance of Property; Insurance</U>. (a)&nbsp;Maintain, use and operate assets in a proper
and businesslike manner and in accordance with good business and industry practice and (b)&nbsp;maintain
with financially sound and reputable insurance companies insurance on all its property in such
amounts and against such risks as are usually insured against in the same general area by companies
engaged in the same or a similar business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <U>Inspection of Property; Books and Records; Discussions</U>. (a)&nbsp;Keep proper books of
account in accordance with GAAP and Canadian generally accepted accounting principles from time to
time, (b)&nbsp;upon reasonable notice and during normal business hours, permit representatives of the
Administrative Agent to (i)&nbsp;visit and inspect any of its properties to the extent it is within such
Person&#146;s control to permit such inspection (and shall use commercially reasonable efforts to cause
such inspection to be permitted to the extent it is not within such Person&#146;s control to permit such
inspection) (provided
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">that such visits shall be limited to no more than three visits per calendar year in the aggregate,
except during the continuance of an Event of Default) and (ii)&nbsp;discuss the business, operations,
properties and financial and other condition of the Group Members with the Group Members&#146;
independent certified public accountants (provided that such discussions shall be limited to no
more than three discussions per calendar year in the aggregate, except during the continuance of an
Event of Default) and (c)&nbsp;upon reasonable notice and during normal business hours, permit
representatives of the Administrative Agent or any Lender to discuss the business, operations,
properties and financial and other condition of the Group Members with officers and employees of
the Group Members (provided that such discussions shall be coordinated by the Administrative Agent
and shall be limited to no more than three discussions per calendar year in the aggregate, in each
case except during the continuance of an Event of Default).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <U>Notices</U>. Promptly give notice to the Administrative Agent and each Lender of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the occurrence of any Default or Event of Default;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any (i)&nbsp;default or event of default under any Contractual Obligation of any Group Member
or (ii)&nbsp;litigation, investigation or proceeding that may exist at any time between any Group Member
and any Governmental Authority, that in either case, if not cured or if adversely determined, as
the case may be, could reasonably be expected to have a Material Adverse Effect;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any litigation or proceeding affecting any Group Member (i)&nbsp;in which the amount involved
is $25,000,000 or more and not covered by insurance, (ii)&nbsp;in which injunctive or similar relief of
a material nature is sought or (iii)&nbsp;which relates to any Loan Document;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i)&nbsp;an ERISA Event, (ii)&nbsp;the receipt by any Group Member or any ERISA Affiliate from the
PBGC or a plan administrator of any notice relating to an intention to terminate any Pension Plan
or to appoint a trustee to administer any Pension Plan under Section&nbsp;4042 of ERISA or (iii)&nbsp;the
receipt by any Group Member or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from a Group Member or any ERISA Affiliate of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, Insolvent, in Reorganization or in endangered or critical status, within the meaning of
Section&nbsp;432 of the Code or Section&nbsp;305 or Title IV of ERISA, in each case as soon as possible and
in any event within 10&nbsp;days after an Officer of Holdings or the Borrower knows or has reason to
know thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any change to the location of the chief executive office of any Loan Party that at the
time of such change has its chief executive office in Canada, or becomes located in Canada as a
result of such change; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;any development or event that has had or would reasonably be expected to have a Material
Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <U>Environmental Laws</U>. (a)&nbsp;Comply and take all reasonable efforts to ensure compliance
by all tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and
comply with and maintain, and take all reasonable efforts to ensure that all tenants and subtenants
obtain and comply with and maintain, any and all licenses, approvals, notifications, registrations
or permits required by applicable Environmental Laws. For purposes of this Section&nbsp;7.8(a),
noncompliance by any Group Member with any such Environmental Law or any such licenses, approvals,
notifications, registrations or permits shall be deemed not to constitute a breach of this covenant
provided that, upon learning of any actual or suspected noncompliance, such Group Member shall
promptly undertake all reasonable efforts to achieve compliance, and provided further that, in any
case, such non-compliance,
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and any other noncompliance with Environmental Law, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Conduct and complete all investigations, studies, sampling and testing, and all remedial,
removal and other actions required under Environmental Laws and promptly comply in all material
respects with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws except those that are being timely and properly contested in good faith and
provided that the pendency of any and all such contests or appeals could not reasonably be expected
to have a Material Adverse Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <U>&#091;Reserved&#093;</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 <U>Additional Guarantees, etc</U>. If any Restricted Subsidiary of Holdings (other than
the Borrower) shall guarantee any Indebtedness of Holdings, the Borrower or any Subsidiary
Guarantor under the Credit Facilities or under debt securities issued in the capital markets
(without regard to any such Indebtedness that, together with all other Indebtedness of U.S. and
Canadian Restricted Subsidiaries that are not Subsidiary Guarantors, does not exceed U.S.$10.0
million in the aggregate), then Holdings shall cause such Restricted Subsidiary to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;execute and deliver to the Administrative Agent an assumption agreement in the form of
Annex 1 to the Guarantee pursuant to which such Restricted Subsidiary shall unconditionally
guarantee, on a joint and several basis, the full and prompt payment of the principal of, premium,
if any, and interest in respect of the Loans on a senior basis and all other obligations of the
Borrower under this Agreement; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;deliver to the Administrative Agent one or more Opinions of Counsel that such assumption
agreement (a)&nbsp;has been duly authorized, executed and delivered by such Restricted Subsidiary and
(b)&nbsp;constitutes a valid and legally binding obligation of such Restricted Subsidiary in accordance
with its terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 <u>&#091;Reserved&#093;</u>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 <u>&#091;Reserved&#093;</u>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 <u>Exchange Notes</u>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Borrower shall, as promptly as practicable after being requested to do so by the
Lenders at any time on or after the Initial Maturity Date, (i)&nbsp;select a bank or trust company
reasonably acceptable to the Lenders to act as Exchange Note Trustee (including, to the extent
required, any Canadian trustee), (ii)&nbsp;enter into the Exchange and Registration Rights Agreement and
the Exchange Notes Indenture, (iii)&nbsp;cause counsel to the Borrower to deliver to the Administrative
Agent an executed legal opinion in form and substance customary for a transaction of that type to
be mutually agreed upon by the Borrower and the Administrative Agent (including, without
limitation, with respect to due authorization, execution and delivery, validity and enforceability
of the Exchange Documents and the Exchange and Registration Rights Agreement) and (iv)&nbsp;deliver a
customary secretary&#146;s certificate certifying such matters as the Lenders shall reasonably request
and including as exhibits thereto copies of resolutions of the Boards of Directors of Holdings, the
Borrower and each Subsidiary Guarantor authorizing the transactions undertaken in connection with
the issuance of the Exchange Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Borrower will, on the fifth Business Day following the written request (the
&#147;<U>Exchange Request</U>&#148;) of the holder of any Loan (or beneficial owner of a portion thereof):
(i)&nbsp;execute and
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">deliver, cause each other Loan Party to execute and deliver, and cause the Exchange Note
Trustee to execute and deliver, the Exchange Notes Indenture if such Exchange Notes Indenture has
not previously been executed and delivered; and (ii)&nbsp;execute and deliver to such holder or
beneficial owner in accordance with the Exchange Notes Indenture an Exchange Note bearing interest
as set forth in Section&nbsp;7.13(d) in exchange for such Loan, dated the date of the issuance of such
Exchange Note, payable to the order of such holder or owner, as the case may be, in the same
principal aggregate amount as such Loan (or portion thereof, including any accrued interest not
required to be paid in cash) being exchanged.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Exchange Request shall specify the principal amount of the Loans to be exchanged pursuant
to this Section&nbsp;7.13, which shall at least aggregate $1.0&nbsp;million and integral multiples thereof or
the entire remaining aggregate principal amount of the Loans of such Lender. Loans exchanged under
this Section&nbsp;7.13 for Exchange Notes shall be canceled by the Borrower, and the corresponding
amount of the Loan deemed repaid. The Exchange Notes shall be governed by and construed in
accordance with the terms of the Exchange Notes Indenture.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Exchange Note Trustee shall at all times be a corporation organized and doing business
under the laws of the United States or the State of New York, in good standing and having its
principal offices in the Borough of Manhattan, in The City of New York, authorized under such laws
to exercise corporate trust powers and subject to supervision or examination by federal or state
authority and which has a combined capital and surplus of not less than $500,000,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If Exchange Notes are issued pursuant to the terms hereof, then the holders of such
Exchange Notes shall have the registration rights with respect to such Exchange Notes described in
the Exchange and Registration Rights Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Exchange Notes Indenture shall provide that the unpaid principal amount of any
Exchange Note shall bear interest at a rate per annum equal to Interest Rate Cap (calculated on the
date of issuance of such Exchange Note).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;It is understood and agreed that the Loans exchanged for Exchange Notes constitute the
same indebtedness as such Exchange Notes and that no novation shall be effected by any such
exchange.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.14 <U>Designation of Unrestricted Subsidiaries</U>. The Boards of Directors of the Borrower and
Holdings may designate any Subsidiary (including any newly formed or newly acquired Subsidiary or a
Person becoming a Subsidiary through merger or consolidation or Investment therein) of Holdings
(other than the Borrower or any parent company of the Borrower) as an &#147;Unrestricted Subsidiary&#148;
under this Agreement (a &#147;<U>Designation</U>&#148;) only if:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;no Default shall have occurred and be continuing at the time of or after giving effect to
such Designation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Holdings would be permitted to make, at the time of such Designation, (a)&nbsp;a Permitted
Investment or (b)&nbsp;an Investment pursuant to Section&nbsp;8.1(a), in either case, in an amount (the
&#147;<U>Designation Amount</U>&#148;) equal to the Fair Market Value of Holdings&#146; proportionate interest in
such Subsidiary on such date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Subsidiary shall be Designated as an &#147;Unrestricted Subsidiary&#148; unless:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all of the Indebtedness of such Subsidiary and its Subsidiaries shall, at the date
of Designation, consist of Non-Recourse Debt, except for any guarantee given solely to
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">support the pledge by Holdings or any Restricted Subsidiary of the Equity Interests of
such Unrestricted Subsidiary, which guarantee is not recourse to Holdings or any Restricted
Subsidiary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) on the date such Subsidiary is Designated an Unrestricted Subsidiary, such
Subsidiary is not party to any agreement, contract, arrangement or understanding with
Holdings or any Restricted Subsidiary unless the terms of the agreement, contract,
arrangement or understanding are no less favorable in any material respect to Holdings or
the Restricted Subsidiary than those that would be obtained at the time from Persons who are
not Affiliates of Holdings;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such Subsidiary is a Person with respect to which neither Holdings nor any of its
Restricted Subsidiaries has any direct or indirect obligation (a)&nbsp;to subscribe for
additional Equity Interests of such Person or (b)&nbsp;to maintain or preserve the Person&#146;s
financial condition or to cause the Person to achieve any specified levels of operating
results; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such Subsidiary has not guaranteed or otherwise directly or indirectly provided
credit support for any Indebtedness of Holdings or any Restricted Subsidiary, except for any
guarantee given solely to support the pledge by Holdings or any Restricted Subsidiary of the
Equity Interests of such Unrestricted Subsidiary, which guarantee is not recourse to
Holdings or any Restricted Subsidiary.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any such Designation by the Boards of Directors of the Borrower and Holdings shall be evidenced to
the Administrative Agent by filing with the Administrative Agent a resolution of the Board of
Directors of the Borrower and a resolution of the Board of Directors of Holdings giving effect to
such Designation and an Officers&#146; Certificate certifying that such Designation complies with the
foregoing conditions. If, at any time, any Unrestricted Subsidiary fails to meet the preceding
requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
Subsidiary for purposes of this Agreement and any Indebtedness of the Subsidiary and any Liens on
assets of such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary at such time
and, if the Indebtedness is not permitted to be incurred under Section&nbsp;8.3 or the Lien is not
permitted under Section&nbsp;8.6, Holdings shall be in default of the applicable covenant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Boards of Directors of the Borrower and Holdings may redesignate an Unrestricted
Subsidiary as a Restricted Subsidiary (a &#147;<U>Redesignation</U>&#148;) only if:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Default shall have occurred and be continuing at the time of and after giving
effect to such Redesignation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all Liens, Indebtedness and Investments of such Unrestricted Subsidiary
outstanding immediately following such Redesignation would, if incurred or made at such
time, have been permitted to be incurred or made for all purposes of the this Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any such Redesignation shall be evidenced to the Administrative Agent by filing with the
Administrative Agent a resolution of the Board of Directors of the Borrower and a resolution of the
Board of Directors of Holdings giving effect to such designation and an Officers&#146; Certificate
certifying that such Redesignation complies with the foregoing conditions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.15 <U>Merger Certificate</U>. Furnish to the Administrative Agent and each Lender, on or prior
to the 15th day after the Closing Date, a copy of the certificate of merger with respect to the
Acquisition, duly issued by the secretary of state of the State of Texas in accordance with all
applicable
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Texas corporate law, including without limitation, Section&nbsp;10.151 of the Texas Corporation Law and
Section&nbsp;5.04 of the Texas Business Corporation Act.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 8. NEGATIVE COVENANTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Limitation on Restricted Payments</u>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Holdings will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, make any Restricted Payment if at the time of such Restricted Payment:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Default shall have occurred and be continuing or shall occur as a consequence
thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (a)&nbsp;Holdings is not able to incur at least U.S.$1.00 of additional Indebtedness
pursuant to the Coverage Ratio Exception, or (b)&nbsp;so long as Holdings is a mutual fund trust
for Canadian federal income tax purposes, the Consolidated Leverage Ratio exceeds 3.00 to
1.00; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the amount of such Restricted Payment, when added to the aggregate amount of all
other Restricted Payments made after the Closing Date (other than Restricted Payments made
pursuant to Sections&nbsp;8.1(b)(ii), (iii), (v)&nbsp;or (vi)), exceeds the sum (the &#147;<U>Restricted
Payments Basket</U>&#148;) of (without duplication) of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) (1)&nbsp;so long as Holdings is a mutual fund trust for Canadian federal income tax
purposes, Consolidated Cash Flow from Operations of Holdings and the Restricted Subsidiaries
for the period (taken as one accounting period) commencing on the first day of the fiscal
quarter in which the Closing Date occurs to and including the last day of the fiscal quarter
ended immediately prior to the date of such calculation for which consolidated financial
statements are available; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) at any time on or after the date that Holdings is no longer a mutual fund
trust for Canadian federal income tax purposes, 50.0% of Consolidated Net Income of
Holdings and the Restricted Subsidiaries for the period (taken as one accounting
period) commencing on the first day of the fiscal quarter in which the Closing Date
occurs to and including the last day of the fiscal quarter ended immediately prior
to the date of such calculation for which consolidated financial statements are
available (or, if such Consolidated Net Income shall be a deficit, minus 100.0% of
such deficit),
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">in each case, plus
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) 100.0% of (a) (i)&nbsp;the aggregate net cash proceeds and (ii)&nbsp;the Fair Market Value of
(x)&nbsp;marketable securities (other than marketable securities of Holdings), (y)&nbsp;Equity
Interests of a Person (other than Holdings or an Affiliate of Holdings) engaged in a
Permitted Business and (z)&nbsp;other assets used in any Permitted Business, received by Holdings
or its Restricted Subsidiaries after the Closing Date, in each case as a contribution to its
common equity capital or from the issue or sale of Qualified Equity Interests or from the
issue or sale of convertible or exchangeable Disqualified Equity Interests or convertible or
exchangeable debt securities of Holdings that have been converted into or exchanged for such
Qualified Equity Interests (other than Equity Interests or debt securities sold to a
Subsidiary of Holdings or net cash proceeds received by Holdings from Qualified Equity
Offerings to the extent applied to prepay the Loans in accordance with the provisions set
forth under Section&nbsp;2.12 or 2.13(b) or
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">applied to redeem any Exchange Notes), and (b)&nbsp;the aggregate net cash proceeds, if any,
received by Holdings or any of its Restricted Subsidiaries upon any conversion or exchange
described in Section&nbsp;8.1(a)(iii)(B)(a), plus
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) 100.0% of the aggregate amount by which Indebtedness (other than any Subordinated
Indebtedness or Indebtedness held by a Subsidiary of Holdings) of Holdings or any Restricted
Subsidiary is reduced on Holdings&#146; consolidated balance sheet upon the conversion or
exchange after the Closing Date of any such Indebtedness into or for Qualified Equity
Interests, plus
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) in the case of the disposition or repayment of or return on any Investment that was
treated as a Restricted Payment made by Holdings after the Closing Date, an amount (to the
extent not included in the computation of Consolidated Net Income) equal to the lesser of
(i)&nbsp;100.0% of the aggregate amount received by Holdings or any Restricted Subsidiary in cash
or other property (valued at the Fair Market Value thereof) as the return of capital with
respect to such Investment and (ii)&nbsp;the amount of such Investment that was treated as a
Restricted Payment, in either case, less the cost of the disposition of such Investment and
net of taxes, plus
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) upon a Redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, an
amount (to the extent not included in the computation of Consolidated Net Income) equal to
the lesser of (i)&nbsp;the Fair Market Value of Holdings&#146; proportionate interest in such
Subsidiary immediately following such Redesignation, and (ii)&nbsp;the aggregate amount of
Holdings&#146; Investments in such Subsidiary to the extent such Investments reduced the
Restricted Payments Basket and were not previously repaid or otherwise reduced; <I>plus</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) U.S.$60.0&nbsp;million;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>provided, however</I>, that if, on the date immediately prior to the date on which Holdings ceases to
be a mutual fund trust for Canadian federal income tax purposes, after giving pro forma effect to
any Restricted Payments made from the Restricted Payments Basket prior to the date Holdings ceased
to be a mutual fund trust as calculated under Section&nbsp;8.1(a)(iii)(A)(1), the Restricted Payments
Basket would be equal to or greater than zero, such amount shall be added to the calculation of the
Restricted Payments Basket on a going forward basis. If such amount is negative, it shall not
reduce the amount of the Restricted Payment Basket in future calculations. Notwithstanding the
foregoing, the Restricted Payments made in reliance on Section&nbsp;8.1(a)(iii)(A)(1) shall nevertheless
be permitted under this Agreement and no Default shall exist by virtue of any Restricted Payments
made in reliance thereon while Holdings constituted a mutual fund trust for Canadian federal income
tax purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Notwithstanding the foregoing, Section&nbsp;8.1(a) will not prohibit:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the payment of (a)&nbsp;any dividend or redemption payment or the making of any
distribution within 60&nbsp;days after the date of declaration thereof if, on the date of
declaration, the dividend, redemption or distribution payment, as the case may be, would
have complied with the provisions of this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Restricted Payment made in exchange for, or out of the proceeds of, the
substantially concurrent issuance and sale of Qualified Equity Interests;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of Subordinated Indebtedness of the Borrower, Holdings or any
Subsidiary Guarantor in exchange for, or out of the proceeds of, the substantially
concurrent incurrence of,
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Refinancing Indebtedness permitted to be incurred under Section&nbsp;8.3 and the other terms
of this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of Subordinated Indebtedness of Holdings, the Borrower or any
Restricted Subsidiary (A)&nbsp;at a purchase price not greater than 101% of the principal amount
of such Subordinated Indebtedness in the event of a Change of Control in accordance with
provisions similar to those contained in Section&nbsp;2.13(c) or (B)&nbsp;at a purchase price not
greater than 100% of the principal amount thereof in accordance with provisions similar to
Section&nbsp;2.13(b) with respect to asset sales; <U>provided</U> that, prior to or
simultaneously with such purchase, repurchase, redemption, defeasance or other acquisition
or retirement, the Borrower has made the Change of Control Offer as provided in Section
2.13(c) with respect to the Loans and has completed the prepayment of all Loans with respect
to which the Lender has accepted such Change of Control Offer or has complied with Section
2.13(b) with respect to such Asset Sale, as applicable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the redemption, repurchase or other acquisition or retirement for value of Equity
Interests of Holdings held by officers, directors or employees or former officers, directors
or employees (or their transferees, estates or beneficiaries under their estates), either
(x)&nbsp;upon any such individual&#146;s death, disability, retirement, severance or termination of
employment or service or (y)&nbsp;pursuant to any equity subscription agreement, stock option
agreement, stockholders&#146; agreement or similar agreement; provided, in any case, that the
aggregate cash consideration paid for all such redemptions, repurchases or other
acquisitions or retirements shall not exceed (A)&nbsp;U.S.$5.0&nbsp;million during any calendar year
(with unused amounts in any calendar year being carried forward to the next succeeding
calendar year) plus (B)&nbsp;the amount of any net cash proceeds received by or contributed to
Holdings from the issuance and sale after the Closing Date of Qualified Equity Interests to
its officers, directors or employees that have not been applied to the payment of Restricted
Payments pursuant to this clause (v), plus (C)&nbsp;the net cash proceeds of any &#147;key-man&#148; life
insurance policies that have not been applied to the payment of Restricted Payments pursuant
to this clause (v);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) (a)&nbsp;repurchases, redemptions or other acquisitions or retirements for value of
Equity Interests of Holdings deemed to occur upon the exercise of stock options, warrants,
rights to acquire Equity Interests of Holdings or other convertible securities to the extent
such Equity Interests of Holdings represent a portion of the exercise or exchange price
thereof and (b)&nbsp;any repurchases, redemptions or other acquisitions or retirements for value
of Equity Interests of Holdings made in lieu of withholding taxes in connection with any
exercise or exchange of stock options, warrants or other similar rights;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) dividends on Disqualified Equity Interests of Holdings issued in compliance with
Section&nbsp;8.3 to the extent such dividends are included in the definition of Consolidated
Interest Expense;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the payment of cash in lieu of fractional Equity Interests of Holdings;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) payments or distributions to dissenting stockholders pursuant to applicable law in
connection with a merger, amalgamation, consolidation or transfer of assets that complies
with the provisions of Section&nbsp;8.9; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the redemption for cash of Trust Units or Exchangeable LP Units at the option of
the holders thereof in accordance with the terms of the Trust Declaration and the
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Limited Partnership Agreement and related documents; provided that the aggregate of any
such redemptions shall not exceed U.S.$1.0&nbsp;million in any calendar year;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) cash distributions by Holdings to the holders of Equity Interests of Holdings in
accordance with a distribution reinvestment plan or dividend reinvestment plan to the extent
such payments are applied to the purchase of Equity Interests directly from Holdings; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) payment of other Restricted Payments from time to time in an aggregate amount not
to exceed U.S.$30.0&nbsp;million in any fiscal year;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>provided</U> that (a)&nbsp;in the case of any Restricted Payment pursuant to Sections&nbsp;8.1(b)(iii),
(iv), (v), (x)&nbsp;or (xii), no Default shall have occurred and be continuing or occur as a consequence
thereof and (b)&nbsp;no issuance and sale of Qualified Equity Interests used to make a payment pursuant
to Sections&nbsp;8.1(b)(ii), (iii)&nbsp;or (v)(B) above shall increase the Restricted Payments Basket.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;For the purposes of determining compliance with any U.S. dollar-denominated restriction on
Restricted Payments denominated in a foreign currency, the U.S. dollar-equivalent amount of such
Restricted Payment shall be calculated based on the relevant currency exchange rate in effect on
the date that such Restricted Payment was made.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Holdings will not permit any Unrestricted Subsidiary to become a Restricted Subsidiary
except pursuant to Section&nbsp;7.14. For purposes of designating any Restricted Subsidiary as an
Unrestricted Subsidiary, all outstanding Investments by Holdings and its Restricted Subsidiaries
(except to the extent repaid) in the Subsidiary so designated will be deemed to be Restricted
Payments in an amount determined as set forth in the definition of &#147;Investment.&#148; Such designation
will be permitted only if a Restricted Payment in such amount would be permitted at such time and
if such Subsidiary otherwise meets the definition of an Unrestricted Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <U>Limitation on Dividends and Other Payment Restrictions Affecting Subsidiaries</U>.
Holdings will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create
or otherwise cause or permit to exist or become effective any consensual encumbrance or consensual
restriction on the ability of any Restricted Subsidiary to:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;pay dividends or make any other distributions on or in respect of its Equity Interests to
Holdings or any of its Restricted Subsidiaries, or with respect to any other interest or
participation in, or measured by, its profits (it being understood that the priority of any
Preferred Stock in receiving dividends or liquidating distributions prior to dividends or
liquidating distributions being paid on Common Stock shall not be deemed a restriction on the
ability to make distributions on Equity Interests);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;make loans or advances, or pay any Indebtedness or other obligation owed, to Holdings or
any other Restricted Subsidiary (it being understood that the subordination of loans or advances
made to Holdings or any Restricted Subsidiary to other Indebtedness or obligations incurred by
Holdings or any Restricted Subsidiary shall not be deemed a restriction on the ability to make
loans or advances); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;transfer any of its property or assets to Holdings or any other Restricted Subsidiary (it
being understood that such transfers shall not include any type of transfer described in Section
8.2(a) or (b));
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;except for, in each case:
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) encumbrances or restrictions existing under agreements existing on the date of this
Agreement (including, without limitation, the Senior Secured Credit Agreement) as in effect
on that date and set forth on Schedule&nbsp;8.2;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) encumbrances or restrictions existing under this Agreement and the Guarantee,
under the Exchange Documents and the guarantees in respect of the Exchange Notes and under
any Sale and Repurchase Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any instrument governing Acquired Indebtedness or Equity Interests of a Person
acquired by Holdings or any of its Restricted Subsidiaries, which encumbrance or restriction
is not applicable to any Person, or the properties or assets of any Person, other than the
Person or the properties or assets of the Person so acquired;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any agreement or other instrument of a Person acquired by Holdings or any of its
Restricted Subsidiaries in existence at the time of such acquisition (but not created in
contemplation thereof), which encumbrance or restriction is not applicable to any Person, or
the properties or assets of any Person, other than the Person and its Subsidiaries, or the
property or assets of the Person and its Subsidiaries, so acquired (including after acquired
property);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any amendment, restatement, modification, renewal, supplement, refunding,
replacement or refinancing of an agreement referred to in Sections&nbsp;8.2(d)(i), (ii), (iii),
(iv)&nbsp;or this Section&nbsp;8.2(d)(v); <U>provided</U>, <U>however</U>, that such amendments,
restatements, modifications, renewals, supplements, refundings, replacements or refinancings
are, in the good faith judgment of the Borrower, no more restrictive than the encumbrances
and restrictions contained in the agreements referred to in Sections&nbsp;8.2(d)(i), (ii), (iii)
or (iv)&nbsp;on the Closing Date or the date such Restricted Subsidiary became a Restricted
Subsidiary or was merged into a Restricted Subsidiary, whichever is applicable;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) encumbrances or restrictions existing under or by reason of applicable law,
regulation or order;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) non-assignment provisions of any contract or any lease entered into in the
ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) in the case of Section&nbsp;8.2(c), Liens permitted to be incurred under Section&nbsp;8.6
that limit the right of the debtor to dispose of the assets securing such Indebtedness;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) restrictions imposed under any agreement to sell Equity Interests or assets, as
permitted under this Agreement, to any Person pending the closing of such sale;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any other agreement governing Indebtedness or other obligations entered into after
the Closing Date that contains encumbrances and restrictions that are not materially more
restrictive with respect to any Restricted Subsidiary than those in effect on the Closing
Date with respect to that Restricted Subsidiary pursuant to agreements in effect on the
Closing Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) customary provisions in partnership agreements, limited liability company
organizational governance documents, joint venture agreements, shareholder agreements and
other similar agreements entered into in the ordinary course of business that restrict the
disposition or distribution of ownership interests in or assets of such partnership, limited
liability company, joint venture, corporation or similar Person that, in each case is not a
Subsidiary of Holdings;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Purchase Money Indebtedness and any Refinancing Indebtedness in respect thereof
incurred in compliance with Section&nbsp;8.3 that imposes restrictions of the nature described in
Section&nbsp;8.2(c) above on the assets acquired; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) restrictions on cash or other deposits or net worth imposed by customers,
suppliers or landlords under contracts entered into in the ordinary course of business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <U>Limitation on Additional Indebtedness</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Holdings will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, incur any Indebtedness (including Acquired Indebtedness); provided that Holdings, the
Borrower or any Subsidiary Guarantor may incur additional Indebtedness (including Acquired
Indebtedness), in each case, if, after giving effect thereto on a pro forma basis, the Consolidated
Interest Coverage Ratio would be at least 2.50 to 1.00 (the &#147;<U>Coverage Ratio Exception</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Notwithstanding the above, each of the following incurrences of Indebtedness shall be
permitted (the &#147;<U>Permitted Indebtedness</U>&#148;):
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Indebtedness of the Borrower, Holdings and any Subsidiary Guarantor under the
Credit Facilities in an aggregate principal amount at any time outstanding not to exceed the
greater of (a)&nbsp;U.S.$1,200.0&nbsp;million, including the issuance and creation of letters of
credit and bankers&#146; acceptances thereunder (with letters of credit and bankers&#146; acceptances
being deemed to have a principal amount equal to the face amount thereof), minus to the
extent a permanent repayment and/or commitment reduction is required thereunder as a result
of such application, the aggregate amount of Net Cash Proceeds applied to permanent
repayments and commitment reductions under the Credit Facilities in accordance with Section
2.13(b) of the Senior Secured Credit Agreement or similar agreement or (b)&nbsp;30.0% of
Holdings&#146; Consolidated Tangible Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Indebtedness under (a)&nbsp;this Agreement and the Guarantee and (b)&nbsp;the Exchange Notes
and the guarantees in respect thereof (solely to the extent used to replace the Loans);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Indebtedness of Holdings and its Restricted Subsidiaries to the extent
outstanding on the Closing Date after giving effect to the intended use of proceeds of the
Loans (other than Indebtedness referred to in Sections&nbsp;8.3(b)(i), (ii), (iv), (v), (vi),
(vii), (viii), (ix)&nbsp;and (xi));
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) guarantees by (a)&nbsp;Holdings, the Borrower or Subsidiary Guarantors of Indebtedness
permitted to be incurred in accordance with the provisions of this Agreement;
<U>provided</U> that in the event such Indebtedness that is being guaranteed is
Subordinated Indebtedness, then the related guarantee shall be subordinated in right of
payment to this Agreement or the Guarantee, as the case may be, and (b)&nbsp;guarantees of
Indebtedness incurred by Restricted Subsidiaries that are not Subsidiary Guarantors in
accordance with the provisions of this Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Indebtedness under Hedging Obligations entered into for bona fide hedging purposes
of the Borrower or any Restricted Subsidiary in the ordinary course of business and not for
the purpose of speculation; provided that in the case of Hedging Obligations relating to
interest rates, (a)&nbsp;such Hedging Obligations relate to payment obligations on Indebtedness
otherwise permitted to be incurred by this Section&nbsp;8.3, and (b)&nbsp;the notional principal
amount of
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">such Hedging Obligations at the time incurred does not exceed the principal amount of
the Indebtedness to which such Hedging Obligations relate;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Indebtedness of Holdings or the Borrower owed to and held by a Restricted
Subsidiary and Indebtedness of any Restricted Subsidiary owed to and held by Holdings, the
Borrower or any other Restricted Subsidiary; <U>provided</U>, <U>however</U>, that
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if Holdings or the Borrower is the obligor on Indebtedness and a Restricted
Subsidiary that is not a Subsidiary Guarantor is the obligee, such Indebtedness is expressly
subordinated to the prior payment in full in cash of all obligations with respect to the
Loans;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if a Guarantor is the obligor on such Indebtedness and a Restricted Subsidiary that
is not a Subsidiary Guarantor is the obligee, such Indebtedness is subordinated in right of
payment to the Guarantee of such Guarantor; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) (1)&nbsp;any subsequent issuance or transfer of Equity Interests or any other event
which results in any such Indebtedness being held by a Person other than Holdings or any
other Restricted Subsidiary; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any sale or other transfer of any such Indebtedness to a Person other than
Holdings, the Borrower or any other Restricted Subsidiary
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">shall be deemed, in each case of this clause (C), to constitute an incurrence of such
Indebtedness not permitted by this Section&nbsp;8.3(b)(vi);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Indebtedness in respect of (a)&nbsp;self-insurance obligations or completion, bid,
performance, appeal or surety bonds issued for the account of Holdings or any Restricted
Subsidiary in the ordinary course of business, including guarantees or obligations of
Holdings or any Restricted Subsidiary with respect to letters of credit supporting such
self-insurance, completion, bid, performance, appeal or surety obligations (in each case
other than for an obligation for money borrowed) of Holdings or such Restricted Subsidiary
or (b)&nbsp;obligations represented by letters of credit for the account of Holdings or any
Restricted Subsidiary, as the case may be, in order to provide security for workers&#146;
compensation claims;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Purchase Money Indebtedness incurred by Holdings, the Borrower or any Restricted
Subsidiary after the Closing Date, and Refinancing Indebtedness thereof, in an aggregate
principal amount not to exceed at any time outstanding 5.0% of Holdings&#146; Consolidated
Tangible Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Indebtedness arising from the honoring by a bank or other financial institution of
a check, draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business; provided,
however, that such Indebtedness is extinguished within five Business Days of incurrence;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Indebtedness arising in connection with endorsement of instruments for deposit in
the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Refinancing Indebtedness of Holdings or any Restricted Subsidiary with respect to
Indebtedness incurred pursuant to the Coverage Ratio Exception, Section&nbsp;8.3(b)(ii), (iii),
(xi), (xvii)&nbsp;or (xviii);
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) indemnification, adjustment of purchase price, earn-out or similar obligations,
in each case, incurred or assumed in connection with the acquisition or disposition of any
business or assets of Holdings or any Restricted Subsidiary or Equity Interests of a
Restricted Subsidiary, other than guarantees of Indebtedness incurred by any Person
acquiring all or any portion of such business, assets or Equity Interests for the purpose of
financing or in contemplation of any such acquisition; provided that (a)&nbsp;any amount of such
obligations included on the face of the balance sheet of Holdings or any Restricted
Subsidiary shall not be permitted under this Section&nbsp;8.3(b)(xii) (contingent obligations
referred to on the face of a balance sheet or in a footnote thereto and not otherwise
quantified and reflected on the balance sheet will not be deemed &#147;included on the face of
the balance sheet&#148; for purposes of the foregoing) and (b)&nbsp;in the case of a disposition, the
maximum aggregate liability in respect of all such obligations outstanding under this
Section&nbsp;8.3(b)(xii) shall at no time exceed the gross proceeds actually received by Holdings
and the Restricted Subsidiaries in connection with such disposition;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) Indebtedness of Foreign Restricted Subsidiaries in an aggregate amount
outstanding at any one time not to exceed the greater of (a)&nbsp;U.S.$50.0&nbsp;million or (b)&nbsp;10.0%
of such Foreign Restricted Subsidiaries&#146; Consolidated Tangible Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) additional Indebtedness of Holdings or any Restricted Subsidiary in an aggregate
principal amount which, when taken together with the principal amount of all other
Indebtedness incurred pursuant to this Section&nbsp;8.3(b)(xiv) and then outstanding, will not
exceed the greater of (a)&nbsp;U.S.$150.0&nbsp;million or (b)&nbsp;5.0% of Holdings&#146; Consolidated Tangible
Assets;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) Indebtedness represented by Redemption Notes to satisfy Holdings&#146; obligation to
repurchase Trust Units at the option of the holders thereof; provided that such Indebtedness
shall be expressly subordinated to the prior payment in full in cash of the Guarantee of
Holdings and shall mature after the Final Maturity Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) Indebtedness in respect of Specified Cash Management Agreements entered into in
the ordinary course of business;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) Indebtedness under the Existing Convertible Securities, to the extent and in the
amounts outstanding on the Closing Date, as such amounts shall be reduced by the amounts of
such Existing Convertible Securities repurchased by the Borrower pursuant to the terms
thereof requiring an offer to repurchase such Existing Convertible Securities triggered by
the change of control of the Target occurring by virtue of the Acquisition;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) Indebtedness incurred under one or more short-term operating facilities
provided by Royal Bank of Canada and/or other lenders or the respective affiliates thereof
to the Borrower, Holdings and/or any Subsidiary Guarantor providing for borrowings to be
made and/or letters of credit to be issued pursuant thereto in an aggregate principal amount
not to exceed U.S.$60.0&nbsp;million or, prior to the date that is 60&nbsp;days following the Closing
Date, U.S.$70.0&nbsp;million, at any one time outstanding; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) Indebtedness incurred to finance the Contingent Tax Liabilities in an aggregate
principal amount not to exceed $175.0&nbsp;million at any one time outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;For purposes of determining compliance with this Section&nbsp;8.3, in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness
described in Sections&nbsp;8.3(b)(i) through 8.3(b)(xix) above or is entitled to be incurred pursuant to
the Coverage Ratio Exception, the Borrower shall, in its sole discretion, classify such item of
Indebtedness
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and may divide and classify such Indebtedness in more than one of the types of Indebtedness
described, except that Indebtedness incurred under the Credit Facilities on the closing date of the
Acquisition shall be deemed to have been incurred under Section&nbsp;8.3(b)(i) above, and may later
reclassify any item of Indebtedness described in Sections&nbsp;8.3(b)(i) through 8.3(b)(xix) above
(<U>provided</U> that at the time of reclassification it meets the criteria in such category or
categories). In addition, for purposes of determining any particular amount of Indebtedness under
this Section&nbsp;8.3, (i)&nbsp;guarantees, Liens or letter of credit obligations supporting Indebtedness
otherwise included in the determination of such particular amount shall not be included so long as
incurred by a Person that could have incurred such Indebtedness; and (ii)&nbsp;the amount of
Indebtedness issued at a price that is less than the principal amount thereof will be equal to the
amount of the liability in respect thereof determined in accordance with GAAP.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;For the purposes of determining compliance with any U.S. dollar-denominated restriction on
the incurrence of Indebtedness denominated in a foreign currency, the U.S. dollar-equivalent
principal amount of such Indebtedness incurred pursuant thereto shall be calculated based on the
relevant currency exchange rate in effect on the earlier of the date that such Indebtedness was
incurred, in the case of term Indebtedness, or first committed, in the case of revolving credit
Indebtedness; <U>provided</U> that if such Indebtedness is incurred to refinance other
Indebtedness denominated in a foreign currency, and such refinancing would cause the applicable
U.S. dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange
rate in effect on the date of such refinancing, such U.S. dollar-denominated restriction shall be
deemed not to have been exceeded so long as the principal amount of such Refinancing Indebtedness
does not exceed the principal amount of such Indebtedness being refinanced. The principal amount of
any Indebtedness incurred to refinance other Indebtedness, if incurred in a different currency from
the Indebtedness being refinanced, shall be calculated based on the currency exchange rate
applicable to the currencies in which such Refinancing Indebtedness is denominated that is in
effect on the date of such refinancing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;In addition, Holdings will not permit any of its Unrestricted Subsidiaries to incur any
Indebtedness other than Non-Recourse Debt. If at any time an Unrestricted Subsidiary becomes a
Restricted Subsidiary, any Indebtedness of such Subsidiary shall be deemed to be incurred by a
Restricted Subsidiary as of such date (and, if such Indebtedness is not permitted to be incurred as
of such date under this Section&nbsp;8.3, Holdings shall be in Default of this Section&nbsp;8.3).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <U>Limitation on Asset Sales</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Holdings will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, consummate any Asset Sale unless:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Holdings or such Restricted Subsidiary, as the case may be, receives consideration
at least equal to the Fair Market Value (such Fair Market Value to be determined on the date
of contractually agreeing to such Asset Sale) of the shares and assets subject to such Asset
Sale; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at least 75.0% of the total consideration from such Asset Sale received by
Holdings or such Restricted Subsidiary, as the case may be, is in the form of cash or Cash
Equivalents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of clause (ii)&nbsp;above and for no other purpose, the following shall be deemed to
be cash:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the amount (without duplication) of any Indebtedness (other than Subordinated
Indebtedness) of Holdings or such Restricted Subsidiary that is expressly assumed
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">by the transferee of any such assets pursuant to a written novation agreement that
releases Holdings or such Restricted Subsidiary from further liability therefor,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the amount of any securities, notes or other obligations received from such
transferee that are within 180&nbsp;days after such Asset Sale converted by Holdings or such
Restricted Subsidiary into cash (to the extent of the cash actually so received), and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Fair Market Value of (i)&nbsp;any assets (other than securities) received by
Holdings or any Restricted Subsidiary to be used by it in a Permitted Business, (ii)&nbsp;Equity
Interests in a Person that is a Restricted Subsidiary or in a Person engaged in a Permitted
Business that shall become a Restricted Subsidiary immediately upon the acquisition of such
Person by Holdings or (iii)&nbsp;a combination of (i)&nbsp;and (ii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If at any time any non-cash consideration received by Holdings or any Restricted
Subsidiary, as the case may be, in connection with any Asset Sale is repaid or converted into or
sold or otherwise disposed of for cash (other than interest received with respect to any such
non-cash consideration), then the date of such repayment, conversion or disposition shall be deemed
to constitute the date of an Asset Sale hereunder and the Net Cash Proceeds thereof shall be
applied in accordance with Section&nbsp;2.13(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Asset Sale pursuant to a condemnation, appropriation or other similar taking, including by
deed in lieu of condemnation, or pursuant to the foreclosure or other enforcement of a Permitted
Lien or exercise by the related lienholder of rights with respect thereto, including by deed or
assignment in lieu of foreclosure shall not be required to satisfy the conditions set forth in
Sections&nbsp;8.4(a)(i) and (ii).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the 75.0% limitation referred to above shall be deemed
satisfied with respect to any Asset Sale in which the cash or Cash Equivalents portion of the
consideration received therefrom, determined in accordance with the foregoing provision on an
after-tax basis, is equal to or greater than what the after-tax proceeds would have been had such
Asset Sale complied with the aforementioned 75.0% limitation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <U>Limitation on Transactions with Affiliates</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Holdings will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, in one transaction or a series of related transactions, sell, lease, transfer or
otherwise dispose of any of its assets to, or purchase any assets from, or enter into any contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate (an
&#147;<U>Affiliate Transaction</U>&#148;), unless:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the terms of such Affiliate Transaction are no less favorable in all material
respects to Holdings or such Restricted Subsidiary, as the case may be, than those that
would have been obtained in a comparable transaction at the time of such transaction in
arm&#146;s length dealings with a Person who is not such an Affiliate; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Holdings delivers to the Administrative Agent, with respect to any Affiliate
Transaction involving aggregate value in excess of U.S.$25.0&nbsp;million, an Officers&#146;
Certificate certifying that such Affiliate Transaction complies with clause (1)&nbsp;above and a
Secretary&#146;s Certificate which sets forth and authenticates a resolution that has been
adopted by the Independent Directors approving such Affiliate Transaction.
</DIV>
</DIV>
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</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) transactions exclusively between or among (a)&nbsp;Holdings and one or more Restricted
Subsidiaries or (b)&nbsp;Restricted Subsidiaries;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reasonable director, trustee, officer and employee compensation (including
bonuses) and other benefits (including pursuant to any employment agreement or any
retirement, health, stock option or other benefit plan) and indemnification arrangements, in
each case, as determined in good faith by the Borrower&#146;s Board of Directors or senior
management;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the entering into of a tax sharing agreement, or payments pursuant thereto,
between Holdings and/or one or more Subsidiaries, on the one hand, and any other Person with
which Holdings or such Subsidiaries are required or permitted to file a consolidated tax
return or with which Holdings or such Subsidiaries are part of a consolidated group for tax
purposes to be used by such Person to pay taxes, and which payments by Holdings and the
Restricted Subsidiaries are not in excess of the tax liabilities that would have been
payable by them on a stand-alone basis;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Permitted Investments (other than pursuant to clause (1)&nbsp;and (18)&nbsp;of the
definition thereof);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Restricted Payments which are made in accordance with Section&nbsp;8.1;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any agreement in effect on the Closing Date and identified on Schedule&nbsp;8.5, as in
effect on the Closing Date or as thereafter amended or replaced in any manner that, taken as
a whole, is not more disadvantageous to the Lenders or Holdings in any material respect than
such agreement as it was in effect on the Closing Date;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any transaction with a Person (other than an Unrestricted Subsidiary of Holdings)
which would constitute an Affiliate of Holdings solely because Holdings or a Restricted
Subsidiary owns an equity interest in or otherwise controls such Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) (a)&nbsp;any transaction with an Affiliate where the only consideration paid by
Holdings or any Restricted Subsidiary is Qualified Equity Interests or (b)&nbsp;the issuance or
sale of any Qualified Equity Interests and the granting of registration and other customary
rights in connection therewith; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Acquisition and the transactions contemplated in connection with the
Acquisition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <U>Limitation on Liens</U>. Holdings shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, create, incur, assume or permit or suffer to exist any Lien
(other than Permitted Liens) upon any of their property or assets (including Equity Interests of
any Restricted Subsidiary), whether owned at the Closing Date or thereafter acquired, which Lien
secures Indebtedness or trade payables, unless contemporaneously with the incurrence of such Lien:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;in the case of any Lien securing an obligation that ranks pari passu with the Loans or the
Guarantee, effective provision is made to secure the Loans or the Guarantee, as the case may be, at
least equally and ratably with or prior to such obligation with a Lien on the same collateral; and
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;in the case of any Lien securing an obligation that is subordinated in right of payment to
the Loans or the Guarantee, effective provision is made to secure the Loans or the Guarantee, as
the case may be, with a Lien on the same collateral that is senior to the Lien securing such
subordinated obligation,
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">in each case, for so long as such obligation is secured by such Lien.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>&#091;Reserved&#093;</u>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <U>Material Change in Business</U>. Each of Holdings and the Borrower shall not, and shall
not permit any of its Subsidiaries to, directly or indirectly, change its primary business from a
Permitted Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 <U>Consolidation, Merger, Conveyance, Transfer or Lease</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Neither Holdings nor the Borrower will, directly or indirectly, in a single transaction or
a series of related transactions, consolidate, amalgamate or merge with or into or wind up or
dissolve into another Person (whether or not the Borrower or Holdings, as the case may be, is the
surviving Person), or sell, lease, transfer, convey or otherwise dispose of or assign all or
substantially all of the assets of Holdings and its Restricted Subsidiaries (taken as a whole)
unless:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) either:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Borrower or Holdings, as applicable, will be the surviving or continuing
Person; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Person (if other than the Borrower or Holdings) formed by or surviving or
continuing from such consolidation, merger, amalgamation, winding up or dissolution or to
which such sale, lease, transfer, conveyance or other disposition or assignment shall be
made (collectively, the &#147;<U>Successor</U>&#148;) is a corporation, limited liability company or
limited partnership organized, or, in the case of Holdings, a mutual fund trust organized
and existing under the laws of Canada or any province thereof or the United States of
America or of any State of the United States of America or the District of Columbia, and the
Successor expressly assumes, by agreements in form and substance reasonably satisfactory to
the Administrative Agent, all of the obligations of the Borrower, or Holdings, as the case
may be, under this Agreement or the Guarantee, as the case may be, the Exchange Notes
Indenture and the Exchange and Registration Rights Agreement; provided, that if the
Successor of the Borrower is not a corporation, a Restricted Subsidiary that is a
corporation expressly assumes as co-obligor all of the obligations of the Borrower under
this Agreement pursuant to a joinder to this Agreement executed and delivered to the
Administrative Agent;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) immediately after giving effect to such transaction and the assumption of the
obligations as set forth in Section&nbsp;8.9(a)(i)(B) and the incurrence of any Indebtedness to
be incurred in connection therewith, and the use of any net proceeds therefrom on a pro
forma basis, no Default shall have occurred and be continuing;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) immediately after giving pro forma effect to such transaction and the assumption
of the obligations as set forth in Section&nbsp;8.9(a)(i)(B) and the incurrence of any
Indebtedness to be incurred in connection therewith, and the use of any net proceeds
therefrom on a pro forma basis, Holdings or its Successor, as the case may be, could incur
U.S.$1.00 of additional Indebtedness pursuant to the Coverage Ratio Exception; and
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Holdings shall have delivered to the Administrative Agent an Officers&#146; Certificate
and an Opinion of Counsel, each stating that such merger, amalgamation, consolidation or
transfer and such joinder (if any) comply with this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For purposes of this Section&nbsp;8.9, any Indebtedness of the Successor which was not
Indebtedness of the Borrower, or Holdings, as the case may be, immediately prior to the transaction
shall be deemed to have been incurred in connection with such transaction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Subject to Section&nbsp;7.15(b) of the Guarantee, no Subsidiary Guarantor will, and Holdings
will not permit any Subsidiary Guarantor to, directly or indirectly, in a single transaction or a
series of related transactions, consolidate, amalgamate or merge with or into or wind up or
dissolve into another Person (whether or not the Subsidiary Guarantor is the surviving Person), or
sell, lease, transfer, convey or otherwise dispose of or assign all or substantially all of its
assets to any Person unless either:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A)&nbsp;such Subsidiary Guarantor will be the surviving or continuing Person; or (ii)
the Person (if other than such Subsidiary Guarantor) formed by or surviving any such
consolidation, merger, amalgamation, winding-up or dissolution is another Subsidiary
Guarantor or assumes, by agreements in form and substance reasonably satisfactory to the
Administrative Agent, all of the obligations of such Subsidiary Guarantor under the
Guarantee, this Agreement, the Exchange Notes Indenture and the Exchange and Registration
Rights Agreement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) immediately after giving effect to such transaction, no Default shall have occurred
and be continuing; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Borrower shall have delivered to the Administrative Agent an Officers&#146;
Certificate and an Opinion of Counsel, each stating that such merger, amalgamation,
consolidation or transfer and such supplemental indenture (if any) comply with this
Agreement; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transaction is made in compliance with Section&nbsp;8.4 and the Net Cash Proceeds
are applied in accordance with Section&nbsp;2.13(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a
single transaction or series of transactions) of all or substantially all of the properties or
assets of one or more Restricted Subsidiaries of Holdings or the Borrower, as applicable, the
Equity Interests of which constitute all or substantially all of the properties and assets of
Holdings or the Borrower, as applicable, will be deemed to be the transfer of all or substantially
all of the properties and assets of Holdings or the Borrower, as applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Upon any consolidation, amalgamation or merger of the Borrower, Holdings or a Subsidiary
Guarantor, or any transfer of all or substantially all of the assets of the Borrower or Holdings in
accordance with the foregoing, in which the Borrower, Holdings or such Subsidiary Guarantor is not
the continuing obligor under this Agreement or the Guarantee, as applicable, the surviving entity
formed by such consolidation or amalgamation or into which the Borrower, Holdings or such
Subsidiary Guarantor is merged or the Person to which the sale, conveyance, lease, transfer,
disposition or assignment is made will succeed to, and be substituted for, and may exercise every
right and power of, the Borrower, Holdings or such Subsidiary Guarantor under this Agreement and
the Guarantee with the same effect as if such surviving entity had been named therein as the
Borrower, Holdings or such Subsidiary Guarantor and, except in the case of a lease, the Borrower,
Holdings or such Subsidiary Guarantor, as the case may be, will be released from the obligation to
pay the principal of and interest on the Loans or in
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">respect of the Guarantee, as the case may be, and all of the Borrower&#146;s, Holdings&#146; or such
Subsidiary Guarantor&#146;s other obligations and covenants under this Agreement and the Guarantee, if
applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Notwithstanding the foregoing, (i)&nbsp;any Restricted Subsidiary may consolidate, merge or
amalgamate with or into or convey, transfer or lease, in one transaction or a series of
transactions, all or substantially all of its assets to Holdings or another Restricted Subsidiary,
(ii)&nbsp;any Subsidiary Guarantor may consolidate, merge or amalgamate with or into or convey, transfer
or lease, in one transaction or a series of transactions, all or part of its properties and assets
to Holdings, the Borrower or another Subsidiary Guarantor or the Borrower or merge with a
Restricted Subsidiary of Holdings solely for the purpose of reincorporating the Subsidiary
Guarantor in Canada or a province thereof, a State of the United States or the District of
Columbia, as long as the amount of Indebtedness of Holdings, the Borrower or such Subsidiary
Guarantor and its Restricted Subsidiaries is not increased thereby, (iii)&nbsp;this Section&nbsp;8.9 shall
not apply to a Permitted Reorganization or the Acquisition, (iv)&nbsp;the entity that was previously
Holdings may be terminated or wound-up in or at any time following a transaction complying with the
definition of &#147;Permitted Reorganization&#148; where there is a Parent and (v)&nbsp;in a transaction complying
with the definition of &#147;Permitted Reorganization&#148; where there is a Parent, the Borrower may be
merged, amalgamated, consolidated or wound up with or into the Parent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 <U>Amendments to Sale and Repurchase Agreements.</U> Each of Holdings and the Borrower shall
not, and shall not permit any of its Subsidiaries to, directly or indirectly, amend, supplement or
otherwise modify (pursuant to a waiver or otherwise) the terms and conditions of any Sale and
Repurchase Agreement except for any such amendment, supplement or modification that is not
materially adverse to the Lenders.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 9. EVENTS OF DEFAULT
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the following events shall occur and be continuing:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Borrower shall fail to pay any principal of any Loan when due in accordance with the
terms hereof; or the Borrower shall fail to pay any interest on any Loan, or any other amount
payable hereunder or under any other Loan Document, within five days after any such interest or
other amount becomes due in accordance with the terms hereof; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any representation or warranty made or deemed made by any Loan Party herein or in any
other Loan Document or that is contained in any certificate, document or financial or other
statement furnished by it at any time under or in connection with this Agreement or any such other
Loan Document shall prove to have been inaccurate in any material respect on or as of the date made
or deemed made; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any Loan Party shall default in the observance or performance of any agreement contained
in clause (i)&nbsp;or (ii)&nbsp;of Section&nbsp;7.4(a) (with respect to Holdings and the Borrower only), Section
7.7(a) or Section&nbsp;8 of this Agreement; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any Loan Party shall default in the observance or performance of any other agreement
contained in this Agreement or any other Loan Document (other than as provided in paragraphs (a)
through (c)&nbsp;of this Section), and such default shall continue unremedied for a period of 30&nbsp;days
after notice to the Borrower from the Administrative Agent or the Required Lenders; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any Group Member shall (i)&nbsp;default in making any payment of any principal of any
Indebtedness (including any Guarantee Obligation, but excluding the Loans) on the scheduled or
original due date with respect thereto; or (ii)&nbsp;default in making any payment of any interest on
any such
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indebtedness beyond the period of grace, if any, provided in the instrument or agreement under
which such Indebtedness was created; or (iii)&nbsp;default in the observance or performance of any other
agreement or condition relating to any such Indebtedness or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall occur or condition
exist, the effect of which default or other event or condition is to cause, or to permit the holder
or beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary)
to cause, with the lapse of time or the giving of notice if required, such Indebtedness to become
due prior to its stated maturity or (in the case of any such Indebtedness constituting a Guarantee
Obligation or which is payable on demand) to become payable; provided, that a default, event or
condition described in clause (i), (ii)&nbsp;or (iii)&nbsp;of this paragraph (e)&nbsp;shall not at any time
constitute an Event of Default unless, at such time, one or more defaults, events or conditions of
the type described in clauses (i), (ii)&nbsp;and (iii)&nbsp;of this paragraph (e)&nbsp;shall have occurred and be
continuing with respect to Indebtedness the outstanding principal amount of which exceeds in the
aggregate $30,000,000; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i)&nbsp;any Loan Party (other than Precision Drilling Trust) shall commence any case,
proceeding or other action (A)&nbsp;under any Debtor Relief Laws seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding up, liquidation, dissolution, composition or other
relief with respect to it or its debts, or (B)&nbsp;seeking appointment of a receiver, trustee,
custodian, conservator or other similar official for it or for all or any substantial part of its
assets; or (ii)&nbsp;there shall be commenced against any Loan Party (other than Precision Drilling
Trust) any case, proceeding or other action of a nature referred to in clause (i)&nbsp;above that (A)
results in the entry of an order for relief or any such adjudication or appointment that, solely in
the case of any such appointment, remains undismissed or unstayed for a period of 10&nbsp;days or (B)
remains undismissed or undischarged for a period of 60&nbsp;days; or (iii)&nbsp;there shall be commenced
against any Loan Party (other than Precision Drilling Trust) any case, proceeding or other action
seeking issuance of a warrant of attachment, execution, distraint or similar process against all or
any substantial part of its assets that results in the entry of an order for any such relief that
shall not have been vacated, discharged, or stayed or bonded pending appeal within 60&nbsp;days from the
entry thereof; or (iv)&nbsp;any Loan Party (other than Precision Drilling Trust) shall take any action
in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts
set forth in clause (i), (ii), or (iii)&nbsp;above; or (v)&nbsp;any Loan Party (other than Precision Drilling
Trust) shall generally not, or shall be unable to, or shall admit in writing its inability to, pay
its debts as they become due; or (vi)&nbsp;or any Loan Party (other than Precision Drilling Trust) shall
make a general assignment for the benefit of its creditors; or (vii)&nbsp;any Insolvency of Holdings
shall occur or Holdings shall take any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the acts specified in the definition thereof; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i)&nbsp;an ERISA Event shall have occurred or (ii)&nbsp;any Loan Party or any of their respective
ERISA Affiliates shall have been notified by the sponsor of a Multiemployer Plan that it has
incurred or will be assessed Withdrawal Liability to such Multiemployer Plan and such entity does
not have reasonable grounds for contesting such Withdrawal Liability or is not contesting such
Withdrawal Liability in a timely and appropriate manner; and in each case in clauses (i)&nbsp;and (ii)
above, such event or condition, together with all other such events or conditions, if any, would
reasonably be expected to result in a Material Adverse Effect; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;one or more judgments or decrees shall be entered against any Loan Party involving in the
aggregate a liability (not paid or fully covered by insurance as to which the relevant insurance
company has acknowledged coverage) of $30,000,000 or more, and all such judgments or decrees shall
not have been vacated, discharged, stayed or bonded pending appeal within 60&nbsp;days from the entry
thereof; or
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &#091;RESERVED&#093;; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;the Guarantee shall cease, for any reason, to be in full force and effect in all material
respects or any Loan Party party thereto shall so assert; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;so long as the Initial Lenders hold of record at least 50.1% of the aggregate principal
amount of the Loans, any Loan Party shall default in the observance or performance of any agreement
contained in the Marketing Side Letter, and such default shall continue unremedied for a period of
30&nbsp;days after notice to the Borrower from the Administrative Agent; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;prior to a Permitted Reorganization and except to the extent necessary in connection with
a Permitted Reorganization, Holdings shall (i)&nbsp;conduct, transact or otherwise engage in, or commit
to conduct, transact or otherwise engage in, any material business or operations other than those
incidental to its ownership of the Equity Interests of its Subsidiaries and necessary or advisable
in connection with the performance of its obligations under the Trust Declaration and other
agreements to which it is a party, (ii)&nbsp;incur, create, assume or suffer to exist any Indebtedness
or other material liabilities or financial obligations, except (w)&nbsp;the Indebtedness in respect of
the Convertible Debentures (as defined in the Senior Secured Credit Agreement), the Redemption
Notes, the Senior Secured Credit Facilities and other Indebtedness otherwise permitted to be
incurred by it hereunder, (x)&nbsp;nonconsensual obligations imposed by operation of law, (y)
obligations pursuant to the Loan Documents to which it is a party and (z)&nbsp;obligations with respect
to its Trust Units, or (iii)&nbsp;own, lease, manage or otherwise operate any properties or assets
(including cash (other than cash received in connection with distributions or other payments made
by its Subsidiaries in accordance with Section&nbsp;8.1 pending application in the manner contemplated
by said Section) and cash equivalents) other than the ownership of shares of Equity Interests of
its Subsidiaries; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;any Subordinated Indebtedness or the guarantees thereof shall cease, for any reason, to be
validly subordinated to the Obligations or the obligations of the Subsidiary Guarantors under the
Guarantee, or any Loan Party, the trustee in respect of any Subordinated Indebtedness or the
holders of at least 25% in aggregate principal amount of any such Subordinated Indebtedness shall
so assert;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">then, and in any such event, (A)&nbsp;if such event is an Event of Default specified in clause (i)&nbsp;or
(ii)&nbsp;of paragraph (f)&nbsp;above with respect to the Borrower, automatically the Commitments shall
immediately terminate and the Loans (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents shall immediately become due and payable, and (B)
if such event is any other Event of Default, with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent
shall, by notice to the Borrower, declare the Commitments to be terminated forthwith and declare
the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the
other Loan Documents to be due and payable forthwith, whereupon the same shall immediately become
due and payable. Except as expressly provided above in this Section&nbsp;9, presentment, demand,
protest and all other notices of any kind are hereby expressly waived by the Borrower.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 10. THE AGENTS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <U>Appointment</U>. Each Lender hereby irrevocably designates and appoints the
Administrative Agent as the agent of such Lender under this Agreement and the other Loan Documents,
and each such Lender irrevocably authorizes the Administrative Agent, in such capacity, to take
such action on its behalf under the provisions of this Agreement and the other Loan Documents and
to exercise such powers and perform such duties as are expressly delegated to the Administrative
Agent by the terms of this Agreement and the other Loan Documents, together with such other powers
as are reasonably
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Loan Document or otherwise exist against the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <U>Delegation of Duties</U>. The Administrative Agent may execute any of its duties under
this Agreement and the other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative
Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <U>Exculpatory Provisions</U>. Neither any Agent nor any of their respective officers,
directors, employees, agents, advisors, attorneys-in-fact or affiliates shall be (i)&nbsp;liable for any
action lawfully taken or omitted to be taken by it or such Person under or in connection with this
Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a
final and nonappealable decision of a court of competent jurisdiction to have resulted from its or
such Person&#146;s own gross negligence or willful misconduct) or (ii)&nbsp;responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made by any Loan Party
or any officer thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for in, or received by the
Agents under or in connection with, this Agreement or any other Loan Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other
Loan Document or for any failure of any Loan Party a party thereto to perform its obligations
hereunder or thereunder. The Agents shall not be under any obligation to any Lender to ascertain
or to inquire as to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or
records of any Loan Party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <U>Reliance by Administrative Agent</U>. The Administrative Agent shall be entitled to rely,
and shall be fully protected in relying, upon any instrument, writing, resolution, notice, consent,
certificate, affidavit, letter, telecopy or email message, statement, order or other document or
conversation believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons and upon advice and statements of legal counsel (including counsel to
Holdings or the Borrower), independent accountants and other experts selected by the Administrative
Agent. The Administrative Agent may deem and treat the payee of any Note as the owner thereof for
all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been
filed with the Administrative Agent. The Administrative Agent shall be fully justified in failing
or refusing to take any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders (or, if so specified by this
Agreement, all Lenders, as the case may be) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and expense that may
be incurred by it by reason of taking or continuing to take any such action. The Administrative
Agent shall in all cases be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if
so specified by this Agreement, all Lenders, as the case may be), and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Loans.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <U>Notice of Default</U>. The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default unless the Administrative Agent has
received written notice from a Lender, Holdings or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a &#147;notice of default.&#148;
In the event that the Administrative Agent receives such a notice, the Administrative Agent shall
give notice
</DIV>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->78<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">thereof to the Lenders and, unless such notice shall have been received from the Borrower or
Holdings, to the Borrower and Holdings; <U>provided</U>, that failure to give any such notice to
the Borrower or Holdings shall not affect the validity or existence of such Default or Event of
Default. The Administrative Agent shall take such action with respect to such Default or Event of
Default as shall be reasonably directed by the Required Lenders (or, if so specified by this
Agreement, all Lenders, as the case may be); <U>provided</U> that unless and until the
Administrative Agent shall have received such directions, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable in the best interests of the Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <U>Non-Reliance on Agents and Other Lenders</U>. Each Lender expressly acknowledges that
neither the Agents nor any of their respective officers, directors, employees, agents, advisors,
attorneys-in-fact or affiliates have made any representations or warranties to it and that no act
by any Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate
of a Loan Party, shall be deemed to constitute any representation or warranty by any Agent to any
Lender. Each Lender represents to the Agents that it has, independently and without reliance upon
any Agent or any other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and their affiliates and
made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also
represents that it will, independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit analysis, appraisals and decisions in taking or not taking action under this
Agreement and the other Loan Documents, and to make such investigation as it deems necessary to
inform itself as to the business, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder,
the Administrative Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that
may come into the possession of the Administrative Agent or any of its officers, directors,
employees, agents, advisors, attorneys-in-fact or affiliates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <U>Indemnification</U>. The Lenders agree to indemnify each Agent and its officers,
directors, employees, affiliates, agents, advisors and controlling persons (each, an &#147;<U>Agent
Indemnitee</U>&#148;) (to the extent not reimbursed by Holdings or the Borrower and without limiting the
obligation of Holdings or the Borrower to do so), ratably according to their respective Aggregate
Exposure Percentages in effect on the date on which indemnification is sought under this Section
10.7 (or, if indemnification is sought after the date upon which the Commitments shall have
terminated and the Loans shall have been paid in full, ratably in accordance with such Aggregate
Exposure Percentages immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever that may at any time (whether before or after the payment of
the Loans) be imposed on, incurred by or asserted against such Agent Indemnitee in any way relating
to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or any
documents contemplated by or referred to herein or therein or the transactions contemplated hereby
or thereby or any action taken or omitted by such Agent Indemnitee under or in connection with any
of the foregoing; <U>provided</U> that no Lender shall be liable for the payment of any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements that are found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted from such Agent Indemnitee&#146;s gross negligence or willful
misconduct. Notwithstanding any other provision of this Agreement or any other Loan Document, no
Agent Indemnitee shall be liable for any special, indirect, consequential or punitive damages in
connection with its activities related to this Agreement or any other Loan Document or any of the
transactions in
</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->79<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">connection herewith or therewith. The agreements in this Section shall survive the payment of the
Loans and all other amounts payable hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <U>Withholding Tax</U>. To the extent required by any applicable law, the Administrative
Agent may withhold from any interest payment to any Lender an amount equivalent to any applicable
withholding tax. If the Internal Revenue Service or any authority of the United States or other
jurisdiction asserts a claim that the Administrative Agent did not properly withhold tax from
amounts paid to or for the account of any Lender (because the appropriate form was not delivered,
was not properly executed, or because such Lender failed to notify the Administrative Agent of a
change in circumstances that rendered the exemption from, or reduction of, withholding tax
ineffective, or for any other reason), such Lender shall indemnify the Administrative Agent (to the
extent that the Administrative Agent has not already been reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so) fully for all amounts paid, directly or
indirectly, by the Administrative Agent as tax or otherwise, including penalties and interest,
together with all expenses incurred, including legal expenses, allocated staff costs and any out of
pocket expenses.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <U>Agent in Its Individual Capacity</U>. Each Agent and its affiliates may make loans to,
accept deposits from and generally engage in any kind of business with any Loan Party as though
such Agent were not an Agent. With respect to its Loans made by it, each Agent shall have the same
rights and powers under this Agreement and the other Loan Documents as any Lender and may exercise
the same as though it were not an Agent, and the terms &#147;Lender&#148; and &#147;Lenders&#148; shall include each
Agent in its individual capacity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <U>Successor Administrative Agent</U>. The Administrative Agent may resign as
Administrative Agent upon 10&nbsp;days&#146; notice to the Lenders and the Borrower. If the Administrative
Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which
successor agent shall (unless an Event of Default under Section 9(a) or Section 9(f) with respect
to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower
(which approval shall not be unreasonably withheld or delayed), whereupon such successor agent
shall succeed to the rights, powers and duties of the Administrative Agent, and the term
&#147;Administrative Agent&#148; shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent&#146;s rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of such former
Administrative Agent or any of the parties to this Agreement or any holders of the Loans. If no
successor agent has accepted appointment as Administrative Agent by the date that is 20&nbsp;days
following a retiring Administrative Agent&#146;s notice of resignation, the retiring Administrative
Agent&#146;s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and
perform all of the duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for above. After any retiring
Administrative Agent&#146;s resignation as Administrative Agent, the provisions of this Section&nbsp;10 and
of Section&nbsp;11.5 shall continue to inure to its benefit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <U>&#091;Reserved&#093;.</U>(a)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <U>Documentation Agent and Syndication Agent</U>. Neither the Documentation Agent nor the
Syndication Agent shall have any duties or responsibilities hereunder in its capacity as such.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SECTION 11. MISCELLANEOUS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <U>Amendments and Waivers</U>. Neither this Agreement, any other Loan Document, nor any
terms hereof or thereof may be amended, supplemented or modified except in accordance with
</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->80<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the provisions of this Section&nbsp;11.1 (except the Marketing Side Letter or any amendment or
supplement thereto, which may only be amended, supplemented or otherwise modified in accordance
with the provisions thereof; and the provisions of this Section&nbsp;11.1 shall not apply with respect
to the Marketing Side Letter or any amendment or supplement thereto) or as otherwise expressly
permitted hereunder in connection with a Permitted Reorganization. The Required Lenders and each
Loan Party party to the relevant Loan Document may, or, with the written consent of the Required
Lenders, the Administrative Agent and each Loan Party party to the relevant Loan Document may, from
time to time, (a)&nbsp;enter into written amendments, supplements or modifications hereto and to the
other Loan Documents for the purpose of adding any provisions to this Agreement or the other Loan
Documents or changing in any manner the rights of the Lenders or of the Loan Parties hereunder or
thereunder or (b)&nbsp;waive, on such terms and conditions as the Required Lenders or the Administrative
Agent, as the case may be, may specify in such instrument, any of the requirements of this
Agreement or the other Loan Documents or any Default or Event of Default and its consequences;
<U>provided</U>, <U>however</U>, that no such waiver and no such amendment, supplement or
modification shall (i)&nbsp;forgive the principal amount, or extend the Initial Maturity Date or Final
Maturity Date, reduce the stated rate of any interest or fee payable hereunder (except (x)&nbsp;in
connection with the waiver of applicability of any post-default increase in interest rates (which
waiver shall be effective with the consent of the Required Lenders and (y)&nbsp;that any amendment or
modification of defined terms used in the financial covenants in this Agreement shall not
constitute a reduction in the rate of interest or fees for the purpose of this clause (i)) or
extend the scheduled date of any payment thereof, or amend, modify or waive any provision in the
Description of Exchange Notes that requires (or would, if any Exchange Notes were outstanding,
require) the approval of all holders of Exchange Notes, or add further restrictions to the Lenders&#146;
right to exchange Bridge Loans for Exchange Notes or amend the rate of such exchange, without the
written consent of each Lender directly affected thereby, (ii)&nbsp;modify the voting rights of any
Lender under this Section&nbsp;11.1 without the written consent of such Lender; (iii)&nbsp;reduce any
percentage specified in the definition of Required Lenders, consent to the assignment or transfer
by the Borrower of any of its rights and obligations under this Agreement and the other Loan
Documents (except in connection with a Permitted Reorganization) or, except as otherwise provided
by Section&nbsp;11.14, release all or substantially all of the Guarantors from their obligations under
the Guarantee without the written consent of all Lenders; or (iv)&nbsp;amend, modify or waive any
provision of Section&nbsp;10 or any other provision of any Loan Document that affects the Administrative
Agent without the written consent of the Administrative Agent. Any such waiver and any such
amendment, supplement or modification shall apply equally to each of the Lenders and shall be
binding upon the Loan Parties, the Lenders, the Administrative Agent and all future holders of the
Loans. In the case of any waiver, the Loan Parties, the Lenders and the Administrative Agent shall
be restored to their former position and rights hereunder and under the other Loan Documents, and
any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extend to any subsequent or other Default or Event of Default, or impair any right
consequent thereon.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <U>Notices</U>. All notices, requests and demands to or upon the respective parties hereto
to be effective shall be in writing (including by telecopy), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered, or, in the case of
telecopy notice, when received, addressed as follows in the case of Holdings, the Borrower and the
Administrative Agent, and as set forth in an administrative questionnaire delivered to the
Administrative Agent in the case of the Lenders, or to such other address as may be hereafter
notified by the respective parties hereto:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Holdings:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Precision Drilling Trust</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">150 6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue SW</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suite&nbsp;4200</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calgary, AB T2P 3Y7</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canada</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Chief Financial Officer (with a copy</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><!-- Folio -->81<!-- /Folio -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to General Counsel)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopy: (403)&nbsp;264-0251</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (403)&nbsp;716-4500</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Borrower:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Precision Drilling Corporation</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">150 6<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue SW</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suite&nbsp;4200</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Calgary, AB T2P 3Y7</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canada</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Chief Financial Officer (with a copy to General Counsel)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopy: (403)&nbsp;264-0251</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (403)&nbsp;716-4500</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Administrative Agent:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deutsche Bank AG Cayman Islands Branch</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">60 Wall Street</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10005-2858</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Calli Hayes</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopy: (212)&nbsp;797-5904</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (212)&nbsp;250-8981</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;with a copy to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Deutsche Bank</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5022 Gate Parkway, Suite&nbsp;40</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jackson, FL 32256</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Jennifer Faas</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telecopy: (904)&nbsp;807-9460</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (904)&nbsp;527-6394</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>provided</U> that any notice, request or demand to or upon the Administrative Agent or the
Lenders shall not be effective until received.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices and other communications from the Administrative Agent to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures approved by the
Administrative Agent; <U>provided</U> that the foregoing shall not apply to service of process or
to notices pursuant to Section&nbsp;2 unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to
accept notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it; <U>provided</U> that approval of such procedures may be limited to
particular notices or communications.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 <U>No Waiver; Cumulative Remedies</U>. No failure to exercise and no delay in exercising, on
the part of the Administrative Agent or any Lender, any right, remedy, power or privilege hereunder
or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 <U>Survival of Representations and Warranties</U>. All representations and warranties made
hereunder, in the other Loan Documents and in any document, certificate or statement delivered
pursuant hereto or in connection herewith shall survive the execution and delivery of this
Agreement and the making of the Loans and other extensions of credit hereunder.
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 <U>Payment of Expenses and Taxes</U>. The Borrower agrees (a)&nbsp;to pay or reimburse the
Administrative Agent for all its reasonable out-of-pocket costs and expenses incurred in connection
with the development, preparation and execution of, and any amendment, supplement or modification
to, this Agreement and the other Loan Documents and any other documents prepared in connection
herewith or therewith, and the consummation and administration of the transactions contemplated
hereby and thereby, including the reasonable fees and disbursements of one U.S. counsel, one
Canadian counsel and one local counsel in each relevant jurisdiction to the Administrative Agent
and filing and recording fees and expenses, with statements with respect to the foregoing to be
submitted to the Borrower prior to the Closing Date (in the case of amounts to be paid on the
Closing Date) and from time to time thereafter on a quarterly basis or such other periodic basis as
the Administrative Agent shall deem appropriate, (b)&nbsp;to pay or reimburse each Lender and the
Administrative Agent for all its out-of-pocket costs and expenses incurred in connection with the
enforcement, preservation of any rights under, or the restructuring or workout of, this Agreement,
the other Loan Documents and any such other documents, including the fees and disbursements of
counsel to each Lender and of counsel to the Administrative Agent, (c)&nbsp;to pay, indemnify, and hold
each Lender and the Administrative Agent harmless from, any and all recording and filing fees and
any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise and
other taxes, if any, that may be payable or determined to be payable in connection with the
execution and delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or
in respect of, this Agreement, the other Loan Documents and any such other documents, and (d)&nbsp;to
pay, indemnify, and hold each Lender and the Administrative Agent and their respective officers,
directors, employees, affiliates, agents, advisors and controlling persons (each, an
&#147;<U>Indemnitee</U>&#148;) harmless from and against any and all other liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever with respect to the execution, delivery, enforcement, performance and
administration of this Agreement, the other Loan Documents and any such other documents, including
any of the foregoing relating to the use of proceeds of the Loans or arising out of, or in respect
of (i)&nbsp;any actual, alleged or threatened Release in respect of any Properties, whether now owned or
hereafter acquired; (ii)&nbsp;any remedial action required to be taken under any Environmental Laws by
an Indemnitee in respect of any Release or in respect of the environmental condition of any of the
Properties; (iii)&nbsp;any non-compliance by any Group Member or any predecessor in title to any Group
Member under any Environmental Laws, in respect of actions of any Governmental Authority under any
Environmental Laws or in respect of the environmental condition of any of the Properties; or (iv)
any Environmental Liability arising directly or indirectly from the provision by any Lender of
credit to any Group Member, making any Loan, or entering into any transaction as a result of which
a contingent Environmental Liability may arise, taking or being granted any Lien or any realization
of, against or upon any Group Member or any of the Properties, and the reasonable fees and expenses
of legal counsel in connection with claims, actions or proceedings by any Indemnitee against any
Loan Party under any Loan Document (all the foregoing in this clause (d), collectively, the
&#147;<U>Indemnified Liabilities</U>&#148;);
<U>provided</U>, that the Borrower shall have no obligation
hereunder to any Indemnitee with respect to Indemnified Liabilities to the extent such Indemnified
Liabilities are found by a final and nonappealable decision of a court of competent jurisdiction to
have resulted from the gross negligence or willful misconduct of such Indemnitee or from a Release
of Materials of Environmental Concern at, on, under or from a Property that is unrelated to any
Group Member and that occurs entirely following an Indemnitee&#146;s taking possession of such Property
by foreclosure, deed in lieu of foreclosure or similar transfer, other than any such Release
concerning Materials of Environmental Concern that existed at such Property prior to such
Indemnitee&#146;s possession thereof. Notwithstanding any other provision of this Agreement or any
other Loan Document, no Indemnitee shall be liable for any special, indirect, consequential or
punitive damages in connection with its activities related to this Agreement or any other Loan
Document or any of the transactions in connection herewith or therewith. Without limiting the
foregoing, and to the extent permitted by applicable law, each of Holdings and the Borrower agrees
not to assert and to cause its Subsidiaries not to assert, and hereby waives and agrees to cause
its Subsidiaries to waive, all rights for
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">contribution or any other rights of recovery with respect to all claims, demands, penalties, fines,
liabilities, settlements, damages, costs and expenses of whatever kind or nature, under or related
to Environmental Laws, that any of them might have by statute or otherwise against any Indemnitee
except in the case of gross negligence or willful misconduct of such Indemnitees. All amounts due
under this Section&nbsp;11.5 shall be payable not later than 10&nbsp;days after written demand therefor. The
agreements in this Section&nbsp;11.5 shall survive repayment of the Loans and all other amounts payable
hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 <U>Successors and Assigns; Participations and Assignments</U>. (a)&nbsp;The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that (i)&nbsp;the Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of each
Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null
and void) and (ii)&nbsp;no Lender may assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section; <U>provided</U>, that, notwithstanding the foregoing and
any other provision of this Agreement to the contrary, the Borrower may assign its rights and
obligations hereunder without the consent of the Lenders to the New Borrower resulting from a
Permitted Reorganization, so long as such New Borrower assumes all obligations of the Borrower
under this Agreement and any other applicable Loan Documents pursuant to documentation reasonably
acceptable to the Administrative Agent (which documentation shall provide that the original
Borrower is released to the extent such New Borrower has assumed its obligations) and complies with
all other obligations under this Agreement in respect thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i)&nbsp;Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees, which may not be the Borrower, Holdings or any Subsidiary or affiliate of
the Borrower or Holdings (each, an &#147;<U>Assignee</U>&#148;) all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitments and the Loans) with
the prior written consent of the Administrative Agent, <U>provided</U> that no consent of the
Administrative Agent shall be required for an assignment of all or any portion of a Loan to a
Lender, an affiliate of a Lender or an Approved Fund. In addition, prior to the Initial Maturity
Date, in the event that any such assignment would result in the Initial Lenders holding less than
50.1% of the aggregate principal amount of the Bridge Loans, the assigning Lender must also obtain
the prior written consent of the Borrower (not to be unreasonably withheld or delayed);
<U>provided</U> that no consent of the Borrower shall be required for an assignment to a Lender
that is not a Defaulting Lender, an affiliate of a Lender that is not a Defaulting Lender, an
Approved Fund (as defined below) or, if an Event of Default has occurred and is continuing, any
other Person;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Assignments shall be subject to the following additional conditions:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) except in the case of an assignment to a Lender, an affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning Lender&#146;s
Commitments or Loans, the amount of the Commitments or Loans of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent) shall not be less than
$1,000,000 unless each of the Borrower and the Administrative Agent otherwise consent;
<U>provided</U> that (1)&nbsp;no such consent of the Borrower shall be required if an Event of
Default has occurred and is continuing and (2)&nbsp;such amounts shall be aggregated in respect
of each Lender and its affiliates or Approved Funds, if any;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) (1)&nbsp;the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500
and (2)&nbsp;the assigning Lender shall have paid in full any amounts owing by it to the
Administrative Agent; and
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an administrative questionnaire in which the Assignee designates one or more credit
contacts to whom all syndicate-level information (which may contain material non-public
information about the Borrower and its Affiliates and their related parties or their
respective securities) will be made available and who may receive such information in
accordance with the assignee&#146;s compliance procedures and applicable laws, including Federal
and state securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Section&nbsp;11.6, &#147;<U>Approved Fund</U>&#148; means any Person (other than a
natural person) that is engaged in making, purchasing, holding or investing in bank loans and
similar extensions of credit in the ordinary course of its business and that is administered or
managed by (a)&nbsp;a Lender, (b)&nbsp;an affiliate of a Lender or (c)&nbsp;an entity or an affiliate of an entity
that administers or manages a Lender.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) below,
from and after the effective date specified in each Assignment and Assumption, the Assignee
thereunder shall be a party hereto as a Lender with respect to the interest assigned and, to
the extent of the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement in addition to any rights theretofore held by
it as a Lender, and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the assigning
Lender&#146;s rights and obligations under this Agreement, such Lender shall cease to be a party
hereto but shall continue to be entitled to the benefits of Sections&nbsp;2.20, 2.21 and 11.5).
Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this Section&nbsp;11.6 shall not be effective as an assignment hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices a copy of each Assignment and Assumption delivered to
it and a register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amount of the Loans owing to, each Lender pursuant to the
terms hereof from time to time (the &#147;<U>Register</U>&#148;). The entries in the Register shall
be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Upon its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an Assignee, the Assignee&#146;s completed administrative questionnaire
(unless the Assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b)(ii)(B) of this Section and any written consent to such
assignment required by paragraph (b)(i) of this Section, the Administrative Agent shall
accept such Assignment and Assumption and record the information contained therein in the
Register. No assignment shall be effective for purposes of this Agreement unless it has
been recorded in the Register as provided in this paragraph.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i)&nbsp;Any Lender may, without the consent of the Borrower or the Administrative Agent,
sell participations to one or more banks or other entities, which may not be the Borrower, Holdings
or any Subsidiary or affiliate of the Borrower or Holdings (a &#147;<U>Participant</U>&#148;) in all or a
portion of such Lender&#146;s rights and obligations under this Agreement (including all or a portion of
its Commitments and the Loans owing to it); <U>provided</U> that (A)&nbsp;such Lender&#146;s obligations
under this Agreement shall remain unchanged, (B)&nbsp;such Lender shall remain solely responsible to the
other parties hereto for the
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">performance of such obligations and (C)&nbsp;the Borrower, the Administrative Agent and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender&#146;s rights and obligations under this Agreement. Any agreement pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole right to enforce
this Agreement and to approve any amendment, modification or waiver of any provision of this
Agreement; <U>provided</U> that such agreement may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver that (1)&nbsp;requires the
consent of each Lender directly affected thereby pursuant to the proviso to the second sentence of
Section&nbsp;11.1 and (2)&nbsp;directly affects such Participant. Subject to paragraph (c)(ii) of this
Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections
2.20 and 2.21 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b)&nbsp;of this Section. To the extent permitted by law, each Participant also
shall be entitled to the benefits of Section&nbsp;11.7(b) as though it were a Lender; <U>provided</U>
such Participant shall be subject to Section&nbsp;11.7(a) as though it were a Lender.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A Participant shall not be entitled to receive any greater payment under Section
2.20 or 2.21 than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrower&#146;s prior written consent. Any Participant that is a
Non-U.S. Lender shall not be entitled to the benefits of Section&nbsp;2.21 unless such
Participant complies with Section&nbsp;2.21(d).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement and its Notes, if any, to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this
Section shall not apply to any such pledge or assignment of a security interest; <U>provided</U>
that no such pledge or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or Assignee for such Lender as a party hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Borrower, upon receipt of written notice from the relevant Lender, agrees to issue
Notes to any Lender requiring Notes to facilitate transactions of the type described in paragraph
(d)&nbsp;above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Notwithstanding the foregoing, any Conduit Lender may assign any or all of the Loans it
may have funded hereunder to its designating Lender without the consent of the Borrower or the
Administrative Agent and without regard to the limitations set forth in Section&nbsp;11.6(b). Each of
Holdings, the Borrower, each Lender and the Administrative Agent hereby confirms that it will not
institute against a Conduit Lender or join any other Person in instituting against a Conduit Lender
any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under any state
bankruptcy or similar law, for one year and one day after the payment in full of the latest
maturing commercial paper note issued by such Conduit Lender; <U>provided</U>, however, that each
Lender designating any Conduit Lender hereby agrees to indemnify, save and hold harmless each other
party hereto for any loss, cost, damage or expense arising out of its inability to institute such a
proceeding against such Conduit Lender during such period of forbearance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 <U>Adjustments; Set-off</U>. (a)&nbsp;Except to the extent that this Agreement, any other Loan
Document or a court order expressly provides for payments to be allocated to a particular Lender,
if any Lender (a &#147;<U>Benefitted Lender</U>&#148;) shall receive any payment of all or part of the
Obligations owing to it (other than in connection with an assignment made pursuant to Section
11.6), or receive any collateral in respect thereof (whether voluntarily or involuntarily, by
set-off, pursuant to events or proceedings of the nature referred to in Section&nbsp;9(f), or
otherwise), in a greater proportion than any such payment to or collateral received by any other
Lender, if any, in respect of the Obligations owing to such other Lender,
</DIV>

</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such Benefitted Lender shall purchase for cash from the other Lenders a participating interest in
such portion of the Obligations owing to each such other Lender, or shall provide such other
Lenders with the benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably with each of the Lenders;
<U>provided</U>, <U>however</U>, that if all or any portion of such excess payment or benefits is
thereafter recovered from such Benefitted Lender, such purchase shall be rescinded, and the
purchase price and benefits returned, to the extent of such recovery, but without interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition to any rights and remedies of the Lenders provided by law, each Lender shall
have the right, if an Event of Default has occurred and is continuing, without notice to the
Borrower, any such notice being expressly waived by the Borrower to the extent permitted by
applicable law, upon any Obligations becoming due and payable by the Borrower (whether at the
stated maturity, by acceleration or otherwise), to apply to the payment of such Obligations, by
setoff or otherwise, any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender, any affiliate thereof or any of their respective branches or agencies to or
for the credit or the account of the Borrower. Each Lender agrees promptly to notify the Borrower
and the Administrative Agent after any such application made by such Lender; <U>provided</U> that
the failure to give such notice shall not affect the validity of such application.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 <U>Counterparts</U>. This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts taken together shall
be deemed to constitute one and the same instrument. Delivery of an executed signature page of
this Agreement by email transmission of a PDF copy thereof or facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof for purposes of Section&nbsp;6.1(a) and
the occurrence of the Closing Date; <U>provided</U>, <U>however</U>, that original manually
signed counterparts and originals of all documents hereunder shall be promptly delivered
thereafter. A set of originals of this Agreement signed by all the parties shall be lodged with
the Borrower and the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 <U>Severability</U>. Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 <U>Integration</U>. This Agreement and the other Loan Documents represent the entire
agreement of Holdings, the Borrower, the Administrative Agent and the Lenders with respect to the
subject matter hereof and thereof, and there are no promises, undertakings, representations or
warranties by the Administrative Agent or any Lender relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 <U><B>GOVERNING LAW</B></U><B>. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12 <U>Submission To Jurisdiction; Waivers</U>. Each party hereby irrevocably and
unconditionally:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;submits for itself and its property in any legal action or proceeding relating to this
Agreement and the other Loan Documents (other than Loan Documents governed by the Laws of Canada
</DIV>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->87<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or a province thereof) to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non exclusive general jurisdiction of the courts of the State
of New York, the courts of the United States for the Southern District of New York, and appellate
courts from any thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;consents that any such action or proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of any such action or proceeding in any
such court or that such action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to Holdings or the Borrower, as the case may be at its address set forth in Section&nbsp;11.2
or at such other address of which the Administrative Agent shall have been notified pursuant
thereto;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;waives, to the maximum extent not prohibited by law, any right it may have to claim or
recover in any legal action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13 <U>Acknowledgements</U>. Each of Holdings and the Borrower hereby acknowledges that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;neither the Administrative Agent nor any Lender has any fiduciary relationship with or
duty to Holdings or the Borrower arising out of or in connection with this Agreement or any of the
other Loan Documents, and the relationship between Administrative Agent and Lenders, on one hand,
and Holdings and the Borrower, on the other hand, in connection herewith or therewith is solely
that of debtor and creditor; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;no joint venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Lenders or among Holdings, the Borrower
and the Lenders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.14 <U>Releases of Guarantees</U>(a) . Notwithstanding anything to the contrary contained
herein or in any other Loan Document, the Administrative Agent is hereby irrevocably authorized by
each Lender (without requirement of notice to or consent of any Lender except as expressly required
by Section&nbsp;11.1) to take any action requested by the Borrower having the effect of releasing any
guarantee obligations (i)&nbsp;to the extent necessary to permit consummation of any transaction not
prohibited by any Loan Document or that has been consented to in accordance with Section&nbsp;11.1,
including any transfer of assets or Equity Interests as part of a Permitted Reorganization provided
the requirements thereof have been satisfied or the release of any guarantee obligations of any
Person that will be wound up or cease to exist in connection with such Permitted Reorganization.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.15 <U>Confidentiality</U>. Each of the Administrative Agent and each Lender agrees to keep
confidential all non-public information provided to it by any Loan Party, the Administrative Agent
or any Lender pursuant to or in connection with this Agreement that is designated by the provider
thereof as confidential; <U>provided</U> that nothing herein shall prevent the Administrative
Agent or any Lender from
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->88<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">disclosing any such information (a)&nbsp;to the Administrative Agent, any other Lender or any affiliate
thereof, (b)&nbsp;subject to an agreement to comply with the provisions of this Section, to any actual
or prospective Transferee, (c)&nbsp;to its employees, directors, agents, attorneys, accountants and
other professional advisors or those of any of its affiliates, (d)&nbsp;upon the request or demand of
any Governmental Authority, (e)&nbsp;in response to any order of any court or other Governmental
Authority or as may otherwise be required pursuant to any Requirement of Law, (f)&nbsp;if required to do
so in connection with any litigation or similar proceeding, (g)&nbsp;that has been publicly disclosed,
(h)&nbsp;to the National Association of Insurance Commissioners or any similar organization or any
nationally recognized rating agency that requires access to information about a Lender&#146;s investment
portfolio in connection with ratings issued with respect to such Lender, or (i)&nbsp;in connection with
the exercise of any remedy hereunder or under any other Loan Document, or (j)&nbsp;if agreed by the
Borrower in its sole discretion, to any other Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Lender acknowledges that information furnished to it pursuant to this Agreement or the
other Loan Documents may include material non-public information concerning the Borrower and its
Affiliates and their related parties or their respective securities, and confirms that it has
developed compliance procedures regarding the use of material non-public information and that it
will handle such material non-public information in accordance with those procedures and applicable
law, including Federal, provincial and state securities laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All information, including requests for waivers and amendments, furnished by the Borrower or
the Administrative Agent pursuant to, or in the course of administering, this Agreement or the
other Loan Documents will be syndicate-level information, which may contain material non-public
information about the Borrower and its Affiliates and their related parties or their respective
securities. Accordingly, each Lender represents to the Borrower and the Administrative Agent that
it has identified in its administrative questionnaire a credit contact who may receive information
that may contain material non-public information in accordance with its compliance procedures and
applicable law, including Federal, provincial and state securities laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.16 <U><B>WAIVERS OF JURY TRIAL</B></U><B>. HOLDINGS, THE BORROWER, THE ADMINISTRATIVE AGENT AND THE
LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.17 <U>USA PATRIOT Act</U>. Each Lender hereby notifies the Borrower that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October&nbsp;26,
2001)) (the &#147;<U>PATRIOT Act</U>&#148;), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the Borrower and other
information that will allow such Lender to identify the Borrower in accordance with the PATRIOT
Act. The Borrower agrees to provide such information to each Lender on request.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.18 <U>Judgment Currency</U>. If for the purpose of obtaining judgment in any court it is
necessary to convert any amount owing or payable to the Administrative Agent or the Lenders under
this Agreement from the currency in which it is due (the &#147;<U>Agreed Currency</U>&#148;) into a
particular currency (the &#147;<U>Judgment Currency</U>&#148;), the rate of exchange applied in that
conversion shall be that at which the Administrative Agent, in accordance with its normal
procedures, could purchase the Agreed Currency with the Judgment Currency at or about noon on the
Business Day immediately preceding the date on which judgment is given. The obligation of the
Borrower in respect of any amount owing or payable under this Agreement to the Administrative Agent
or the Lenders in the Agreed Currency shall, notwithstanding any judgment and payment in the
Judgment Currency, be satisfied only to the extent that the Administrative Agent, in accordance
with its normal procedures, could purchase the Agreed Currency
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->89<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">with the amount of the Judgment Currency so paid at or about noon on the next Business Day
following that payment; and if the amount of the Agreed Currency which the Administrative Agent
could so purchase is less than the amount originally due in the Agreed Currency, the Borrower
shall, as a separate obligation and notwithstanding the judgment or payment, indemnify the
Administrative Agent and the Lenders against any loss.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.19 <U>Permitted Reorganization</U>. The parties acknowledge that the business structure of
Holdings may be converted from an income trust pursuant to a Permitted Reorganization entered into
and completed in accordance with the requirements of the definition of &#147;Permitted Reorganization&#148;
in Section&nbsp;1.1 and that, notwithstanding any other provision hereof (other than such definition),
Holdings and/or the Borrower and/or their respective direct or indirect Subsidiaries, as the case
may be, may at any time enter into and complete such a Permitted Reorganization. It is further
acknowledged that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any and all steps taken, actions made and proceedings instituted in connection with
entering into and timely completing such Permitted Reorganization shall be conclusively deemed not
to contravene or breach any of the covenants or other provisions contained herein or give rise to
any purchase obligation hereunder and shall be conclusively deemed not to constitute a Default or
Event of Default hereunder so long as such steps, actions and proceedings are taken, made or
instituted in compliance with the definition of &#147;Permitted Reorganization,&#148; with such deviations
therefrom reasonably acceptable to the Administrative Agent that are not in the reasonable judgment
of the Administrative Agent materially detrimental to the interests of the Lenders; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;following the completion of such Permitted Reorganization in the manner prescribed above,
all representations and warranties herein, all conditions to extensions of credit hereunder and all
covenants and other provisions hereof shall be construed and interpreted in a manner which gives
full force and effect to such Permitted Reorganization having been entered into and completed as a
permitted transaction or permitted transactions hereunder to the extent entered into and completed
in the manner prescribed above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Parent, the New Borrower (if applicable), the other entities resulting from the Permitted
Reorganization and the Administrative Agent on behalf of the Lenders, each acting reasonably, shall
enter into such amendments and other documents as may be required to give effect to the terms of
this Agreement with respect to a Permitted Reorganization and any consequential amendments required
to preserve the substance of the terms of this Agreement and the other Loan Documents.
</DIV>

</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="right" style="font-size: 10pt"><!-- Folio -->90<!-- /Folio -->



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers or representatives as of the day and year
first above written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">PRECISION DRILLING TRUST, by its Administrator</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRECISION DRILLING CORPORATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#147;Signed by Authorized Signatory&#148;</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">PRECISION DRILLING CORPORATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#147;Signed by Authorized Signatory&#148;</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH, as<BR>
Administrative Agent</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#147;Signed by Authorized Signatory&#148;</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#147;Signed by Authorized Signatory&#148;</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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Agent</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
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</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#147;Signed by Authorized Signatory&#148;</I></TD>
    <TD>&nbsp;</TD>
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</DIV></TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
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</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
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    <TD colspan="3" valign="top" align="left">DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH, as a Lender</TD>
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</DIV></TD>
    <TD>&nbsp;</TD>
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</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#147;Signed by Authorized Signatory&#148;</I></TD>
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    <TD align="left" valign="top">Name:</TD>
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</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#147;Signed by Authorized Signatory&#148;</I></TD>
    <TD>&nbsp;</TD>
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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
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    <TD align="left" valign="top">Title:</TD>
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</TR>
<TR valign="bottom"><!-- Blank Space -->
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</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">HSBC BANK USA, NATIONAL ASSOCIATION, as Documentation
Agent and as a Lender</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
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</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>&#147;Signed by Authorized Signatory&#148;</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
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</TR>
<TR valign="bottom">
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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
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