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<SEC-DOCUMENT>0001206212-09-000094.txt : 20090501
<SEC-HEADER>0001206212-09-000094.hdr.sgml : 20090501
<ACCEPTANCE-DATETIME>20090430210231
ACCESSION NUMBER:		0001206212-09-000094
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20090430
FILED AS OF DATE:		20090501
DATE AS OF CHANGE:		20090430

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:		09786347

	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>o55081e6vk.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 6-k</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<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: 12pt"><B>April&nbsp;30, 2009</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Commission File Number: 001-14534</B></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: 12pt"><B>4200, 150 &#150; 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: 6pt">Form&nbsp;20-F&nbsp;<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form&nbsp;40-F&nbsp;<FONT face="Wingdings">&#254;</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):&nbsp;<FONT face="Wingdings">&#111;</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)(7):&nbsp;<FONT face="Wingdings">&#111;</FONT>
</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: 6pt">Yes&nbsp;<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT face="Wingdings">&#254;</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>

<!-- PAGEBREAK -->
<P><HR noshade><P>

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








<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">INDEX TO EXHIBITS</A></TD></TR>
<TR><TD colspan="9"><A HREF="o55081exv99w1.htm">EX-99.1</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<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: April 30, 2009&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><IMG src="o55081o5508101.gif" alt="-s- Joanne Alexander">
&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">Joanne Alexander&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>

</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"><A HREF="#toc">Table of Contents</A></H5><P>

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


<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>

</TABLE>
<!-- link1 "INDEX TO EXHIBITS" -->
<DIV align="left"><A NAME="000"></A></DIV>

<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="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" 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"><!-- Blank Space -->
    <TD align="center" 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 align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Note Indenture dated April&nbsp;22, 2009</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>o55081exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;1</B>
</DIV>

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

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">$175,000,000 10% Senior Unsecured Notes<BR>
due April&nbsp;22, 2007
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>NOTE INDENTURE</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">April&nbsp;22, 2009

</DIV>

<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>TABLE OF CONTENTS</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="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="9" align="center"><BR><B>ARTICLE 1</B>
<BR><B>DEFINITIONS</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">1.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Defined Terms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">1.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Definitional Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">1.3</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Concerning the Trustees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">1.4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Schedules</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 2</B>
<BR><B>NOTES</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Authorization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sale and Purchase of Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2.3</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Repayment of Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2.4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest Rates and Payment Dates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2.5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Computation of Interest and Other Amounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2.6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Pro rata </I>Treatment and Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2.7</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additional Obligors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2.8</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Optional Prepayments with Make-Whole Amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 3</B>
<BR><B>CLOSING</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">3.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 4</B>
<BR><B>REPRESENTATIONS AND WARRANTIES</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Condition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">No Change</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.3</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Existence; Compliance with Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Power; Authorization; Enforceable Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">No Legal Bar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.7</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">No Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.8</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.10</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.11</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Federal Regulations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.12</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Labor Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.13</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">ERISA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.14</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Canadian Pension and Benefit Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->(i)<!-- /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="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.15</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Investment Company Act</I>; Other Regulations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.16</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Subsidiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.17</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Use of Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.18</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Environmental Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.19</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accuracy of
Information, etc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.20</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.21</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Solvency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4.22</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certain Documents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 5</B>
<BR><B>CONDITIONS PRECEDENT</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">5.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conditions to Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 6</B>
<BR><B>AFFIRMATIVE COVENANTS</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Certificates; Other Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.3</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payment of Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Maintenance of Property; Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Inspection of Property; Books and Records; Discussions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.7</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.8</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Environmental Laws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest Rate Protection</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.10</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Guarantors; Ownership of Assets by Note Parties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.11</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mandatory Application of Certain Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.12</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effect of Changes to Senior Credit Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.13</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rights Offering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6.14</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Reduction of Indebtedness Using Cash on Hand</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 7</B>
<BR><B>NEGATIVE COVENANTS</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Indebtedness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.3</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fundamental Changes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Disposition of Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Restricted Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital Expenditures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.7</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.8</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Optional Payments and Modifications of Certain Debt Instruments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transactions with Affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.10</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales and Leasebacks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78</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="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.11</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Swap Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.12</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Changes in Fiscal Periods</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.13</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Clauses Restricting Subsidiary Distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">79</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.14</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Material Change in Business</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.15</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amendments to Material Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7.16</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Redemption Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 8</B>
<BR><B>CERTAIN OBLIGATIONS</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">8.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional Restrictions if Certain Thresholds Not Met</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">8.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Covenant Suspension</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 9</B>
<BR><B>CHANGE OF CONTROL OFFER</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">9.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Change of Control Offer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 10</B>
<BR><B>EVENTS OF DEFAULT</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">10.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Events of Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">84</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 colspan="9" align="center"><BR><B>ARTICLE 11</B>
<BR><B>MISCELLANEOUS</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <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 valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amendments and Waivers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.3</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">No Waiver; Cumulative Remedies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Survival of Representations and Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Payment of Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Successors and Assigns; Participations and Assignments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.7</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments; Set-off</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.8</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Counterparts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Severability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.10</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Integration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.11</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">GOVERNING LAW</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">94</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.12</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Submission To Jurisdiction; Waivers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.13</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Acknowledgements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.14</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Release of Guarantee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.15</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Confidentiality</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.16</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">WAIVERS OF JURY TRIAL</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.17</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Judgment Currency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11.18</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Permitted Reorganization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97</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">


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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTE INDENTURE (this &#147;<B>Indenture</B>&#148;), dated as of April&nbsp;22, 2009, among PRECISION
DRILLING TRUST, an Alberta unincorporated open-ended investment trust (&#147;<B>Holdings</B>&#148;),
PRECISION DRILLING CORPORATION, a corporation amalgamated under the laws of the Province of
Alberta (the &#147;<B>Corporation</B>&#148;) and the several entities from time to time parties to this
Indenture (the &#147;<B>Purchasers</B>&#148;).
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1.1 Defined Terms.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this Indenture, 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; margin-left: 2%">&#147;<B>Acquisition</B>&#148;: the merger of Target with and into Precision Lobos Corporation, with
Precision Lobos Corporation surviving such merger, in accordance with the Acquisition
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Acquisition Agreement</B>&#148;: the Agreement and Plan of Merger, dated as of August&nbsp;24, 2008, by
and among Holdings, the Corporation, 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; margin-left: 2%">&#147;<B>Additional Obligor</B>&#148;: as defined in Section&nbsp;2.7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Affiliate</B>&#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)
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; margin-left: 2%">&#147;<B>Agreed Currency</B>&#148;: as defined in Section&nbsp;11.17.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Approved Capital Expenditures</B>&#148;: the following Capital Expenditures:
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upgrade Capital Expenditures;</TD>
</TR>

</TABLE>
</DIV>
<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">

<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->


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



</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>up to $170,000,000 of Expansion Capital Expenditures that are to be incurred in 2009 and
$60,000,000 of Expansion Capital Expenditures that are to be incurred
in 2010, for which the Corporation or its Subsidiaries have made binding commitments prior to the
date hereof and the particulars of which expenditures have been disclosed in writing to the
Purchasers prior to the date hereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in any calendar year, up to $25,000,000 of unbudgeted
Expansion Capital Expenditures that are approved by the Chairman of the Board of Directors of the
Corporation (the &#147;<B>Chairman-Approved Cap-Ex</B>&#148;); provided that no further Chairman-Approved Cap-Ex may
be incurred unless and until the Board of Directors of the Corporation and the Purchasers, acting
reasonably, have ratified all previously incurred Chairman-Approved Cap-Ex;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in any calendar year, up to $3,000,000 of unbudgeted Expansion Capital Expenditures that are approved by the Chief
Executive Officer of the Corporation (the &#147;<B>CEO-Approved Cap-Ex</B>&#148;); provided that no further
CEO-Approved Cap-Ex may be incurred unless and until the Board of Directors of the Corporation and
the Purchasers, acting reasonably, have ratified all previously incurred CEO-Approved Cap-Ex; 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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such other Expansion Capital Expenditures as the Purchasers, acting reasonably, may approve in
writing from time to time.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Asset Sale</B>&#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;7.4)
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 US$3,000,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Assignee</B>&#148; : as defined in Section&nbsp;11.6(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Assignment and Assumption</B>&#148;: an Assignment and Assumption, substantially in the form of Exhibit&nbsp;D.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Base Case Operating Cash Flow Before Working Capital</B>&#148; : for any fiscal quarter, the amount set
forth in the table below opposite such fiscal quarter:
</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="left">Fiscal Quarter Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Flow Before Working Capital</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;31, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">182,407,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;30, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">81,085,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-3-<!-- /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="left" style="border-bottom: 0px solid #000000">Fiscal Quarter Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 0px solid #000000">Flow Before Working Capital</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">September&nbsp;30, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">168,255,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">December&nbsp;31, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">196,510,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;31, 2010
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">192,944,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;30, 2010
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">84,209,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">September&nbsp;30, 2010
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">176,445,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">December&nbsp;31, 2010
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">209,422,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;31, 2011
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">178,066,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;30, 2011
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">76,332,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">September&nbsp;30, 2011
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">163,591,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">December&nbsp;31, 2011
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">194,129,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;31, 2012
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">182,616,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;30, 2012
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">80,420,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">September&nbsp;30, 2012
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">168,283,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">December&nbsp;31, 2012
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">199,198,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;31, 2013
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">186,525,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;30, 2013
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">81,920,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">September&nbsp;30, 2013
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">172,420,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">December&nbsp;31, 2013
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">204,924,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;31, 2014
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">203,801,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">June&nbsp;30, 2014
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">95,285,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">September&nbsp;30, 2014
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">191,151,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">December&nbsp;31, 2014
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">225,107,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Benefitted Purchaser</B>&#148;: as defined in Section&nbsp;11.7(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Bridge Credit Agreement</B>&#148;: the Bridge Credit Agreement, dated as of December&nbsp;23, 2008, among
Holdings, the Corporation, the lenders party thereto and Deutsche Bank Securities Inc, as
administrative agent, as amended by a First Amendment and Waiver dated as of February&nbsp;17, 2009 and
a Second Amendment dated as of March&nbsp;19, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Bridge Loans</B>&#148;: the &#147;Loans&#148; as defined in the Bridge Credit Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Business</B>&#148;: as defined in Section&nbsp;4.18(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Business day</B>&#148;: a day other than a Saturday, Sunday or other day on which banks in Calgary or
Toronto are authorized or required by law to close.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Canadian Benefit Plans</B>&#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,
</DIV>

</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">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; margin-left: 2%">&#147;<B>Canadian Pension Plans</B>&#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; margin-left: 2%">&#147;<B>Canadian &#147;SIFT&#148; Rules</B>&#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; margin-left: 2%">&#147;<B>Capex Deposit</B>&#148;: as defined in the definition of &#147;Capital Expenditures&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Capital Expenditures</B>&#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;
provided, however, that Capital Expenditures shall not include:
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>interest capitalized in
accordance with GAAP during such period;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Corporation 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 Corporation 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);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

</TABLE>
</DIV>
</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->-5-<!-- /Folio -->


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



</TABLE>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>beginning to reuse such asset during such period without a corresponding expenditure
actually having been made in such period, provided that (i)&nbsp;any 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;lost in hole&#148; replacement capital
expenditures to the extent invoiced to customers of the Corporation or its Subsidiaries in
the ordinary course of business (and paid by such customers within 90&nbsp;days);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expenditures to the extent funded by a
prepayment or deposit (&#147;<B>Capex Deposit</B>&#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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Capital Lease Obligations</B>&#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
Indenture, 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; margin-left: 2%">&#147;<B>Capital Stock</B>&#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; margin-left: 2%">&#147;<B>Cash Equivalents</B>&#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
</DIV>

</DIV>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->-6-<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">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 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
US$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; margin-left: 2%">&#147;<B>Centralized Banking Agreement</B>&#148;: the centralized banking agreement entered into or to be entered
into among the Corporation, Precision Limited Partnership and Royal Bank of Canada providing for
the administration of and netting of balances between Canadian bank accounts maintained by the
Corporation 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 Corporation and any Subsidiaries
with Royal Bank of Canada from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Change of Control</B>&#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)
the board of directors of the Corporation shall cease to consist of a majority of Continuing
Directors, or (iv)&nbsp;Holdings shall cease to own and control, beneficially, directly or indirectly,
100% of each class of outstanding Capital Stock of the Corporation (disregarding the Exchangeable
LP Units) free and clear of all Liens (except Liens created by the December&nbsp;2008 Loan Documents),
or (b)&nbsp;after a Permitted Reorganization (i)&nbsp;any &#147;person&#148; or &#147;group&#148; (as such terms are used in
Sections 13(d) and 14(d) of the <I>Securities Exchange Act of 1934</I>, as amended (the &#147;<B><I>Exchange Act</I></B>&#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 <I>Exchange Act</I>), directly or
indirectly, of more than 35% of any class of the outstanding Voting Capital Stock of Parent, (ii)
the board of directors (or similar governing body) of Parent (if other than the New Corporation)
shall cease to consist of a majority of Continuing Directors, (iii)&nbsp;the board of directors (or
similar governing body) of the New Corporation shall cease to consist of a majority of Continuing
</DIV>

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Directors, or (iv)&nbsp;Parent (if other than the New Corporation) shall cease to own and control,
beneficially, directly or indirectly, 100% of each class of outstanding Capital Stock of the New
Corporation free and clear of all Liens (except Liens created by the December&nbsp;2008 Loan Documents).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Closing Date</B>&#148;: the date on which the conditions precedent set forth in Section&nbsp;5.1 shall have been
satisfied, which date is April&nbsp;22, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Code</B>&#148;: the Internal Revenue Code of 1986, as amended from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Compliance Certificate</B>&#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; margin-left: 2%">&#147;<B>Computation Period</B>&#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; margin-left: 2%">&#147;<B>Consolidated Capitalization</B>&#148;: as at the last day of each fiscal quarter, the sum of (a)
Consolidated Total Debt at such time, and (b)&nbsp;the amount which would, in accordance with GAAP, be
classified on the consolidated balance sheet of Holdings at such time as unitholders&#146; equity or,
following a Permitted Reorganization, shareholders&#146; equity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Consolidated Cash Flow</B>&#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;7.5(d)) plus 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; margin-left: 2%">&#147;<B>Consolidated Current Assets</B>&#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; margin-left: 2%">&#147;<B>Consolidated Current Liabilities</B>&#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 (as those terms are defined in the
Senior Credit Agreement) and (c)&nbsp;all Indebtedness in respect of Specified Operating Facilities and
other local lines of credit permitted under Section&nbsp;7.1(q), in each case to the extent otherwise
included therein.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Consolidated Debt to Capitalization Ratio</B>&#148;: as at the last day of each fiscal quarter following a
Permitted Reorganization, the ratio of Consolidated Total Debt at such time to Consolidated
Capitalization at such time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Consolidated EBITDA</B>&#148;: for any period, Consolidated Net Income for such period plus, 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 Notes), (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)&nbsp;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 backup is provided to support such costs upon request by the Purchasers; provided, that
the aggregate amount of such costs that may be added to Consolidated EBITDA pursuant to this clause
(f)&nbsp;shall not exceed US$50,000,000 and minus, (a)&nbsp;to the extent included in the determination of
such Consolidated Net Income for such period, the sum of (i)&nbsp;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, and (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. For the
purposes of calculating Consolidated EBITDA for any period of four consecutive fiscal quarters
(each, a &#147;<B>Reference Period</B>&#148;) pursuant to any determination of the Consolidated Leverage Ratio, (i)&nbsp;if at any
time during such Reference Period Holdings or any
</DIV>

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">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 pro forma 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)&nbsp;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 US$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
US$25,000,000; provided, that in determining the Consolidated Leverage 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 $116,960,000 and $203,747,000 respectively. 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; margin-left: 2%">&#147;<B>Consolidated Interest Expense</B>&#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 Notes)) minus (b)
total cash interest income of Holdings and its Subsidiaries, in each case determined on a
consolidated basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Consolidated Leverage Ratio</B>&#148;: as at the last day of any period, the ratio of (a)&nbsp;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; margin-left: 2%">&#147;<B>Consolidated Net Income</B>&#148;: for any period, the consolidated net income (or loss) of Holdings and
its Subsidiaries, determined on a consolidated basis in
</DIV>

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">accordance with GAAP; provided 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 Note Document) or Requirement of Law applicable to such
Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Consolidated Total Debt</B>&#148;: at any date, without duplication, (a)&nbsp;the aggregate principal amount of
all Indebtedness (other than Indebtedness specified in clause (c)&nbsp;of the definition thereof and
Indebtedness permitted under Section&nbsp;7.1(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, minus (b)&nbsp;the amount, up to US$50,000,000, of cash
pledged to cash collateralize Term Loans, letters of credit and/or swingline loans pursuant to and
in accordance with the Senior Credit
Agreement; provided, that no amounts shall be subtracted pursuant to this clause (b)&nbsp;unless at
least US$25,000,000 of cash is so pledged, minus (c)&nbsp;Consolidated Working Capital at such date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Consolidated Working Capital</B>&#148;: at any date, the excess of Consolidated Current Assets on such date
over Consolidated Current Liabilities on such date, provided that, for purposes of the definition
of &#147;Consolidated Total Debt&#148;, &#147;Consolidated Working Capital&#148; shall be the excess of cash, prepaid
expenses and accounts receivable (net of (a)&nbsp;provisions for doubtful accounts determined in
accordance with GAAP, and (b)&nbsp;receivables that are more than 60&nbsp;days old) over accounts payable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Contingent Tax Liabilities</B>&#148;: the contingent tax liabilities disclosed in note 25 to the financial
statements of Holdings as at and for the period ended December&nbsp;31, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Continuing Directors</B>&#148;: in respect of any Person, the directors (or other Persons performing
similar functions) of such Person on the Closing Date, 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
</DIV>

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">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; margin-left: 2%">&#147;<B>Continuing Trustees</B>&#148;: the trustees of Holdings on the Closing Date, 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; margin-left: 2%">&#147;<B>Contractual Obligation</B>&#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; margin-left: 2%">&#147;<B>Control Person</B>&#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; 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%">&#147;<B>Convertible Debentures</B>&#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 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
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 Indenture and the other Note 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 Indenture 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 Indenture and the other Note Documents shall first be paid
in full, or provisions
</DIV>

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">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 Indenture or enforcement of the rights and remedies of the Purchasers hereunder or under any
other Note 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; margin-left: 2%">&#147;<B>Corporation</B>&#148;: as defined in the preamble hereto; provided, that such term shall also include any
Person that assumes the Notes pursuant to Section&nbsp;2.7 and, following a Permitted Reorganization,
the New Corporation (if applicable).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Debtor Relief Laws</B>&#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; margin-left: 2%">&#147;<B>December&nbsp;2008 Loan Documents</B>&#148;: the loan and security documents delivered by Holdings or any of its
Subsidiaries pursuant to the Senior Credit Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Default</B>&#148;: any of the events specified in Article&nbsp;10, 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; margin-left: 2%">&#147;<B>Disposition</B>&#148;: with respect to any property, any sale, lease, sale and leaseback, assignment,
conveyance, transfer or other disposition thereof. The terms &#147;Dispose&#148; and &#147;Disposed of&#148; shall
have correlative meanings.
</DIV>

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Distributable Cash Flow</B>&#148;: for any period, Consolidated Cash Flow for such period determined without regard to
non-cash working capital, plus, without duplication, proceeds of Dispositions made as permitted by Section&nbsp;7.4
during the applicable period not otherwise reinvested or applied toward the prepayment of Term Loans in accordance
with Section&nbsp;6.11, minus 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 Notes)) made during such period in respect of Indebtedness (including the Notes)
of Holdings or any of its Subsidiaries (other than principal payments in respect of revolving credit loans (including
the Revolving Extensions of Credit (as that term is defined in the Senior Credit Agreement), Specified Operating
Facilities and local lines of credit permitted under Section&nbsp;7.1(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; margin-left: 2%">&#147;<B>Distributions</B>&#148;: as defined in Section&nbsp;7.5(d).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Dollars</B>&#148; and &#147;<B>$</B>&#148;: dollars in lawful currency of Canada.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>ECF Percentage</B>&#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 or, following a Permitted Reorganization, the Consolidated Debt to Capitalization
Ratio as of the last day of such fiscal year is greater than or equal to 0.30 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; margin-left: 2%">&#147;<B>Environmental Laws</B>&#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; margin-left: 2%">&#147;<B>Environmental Liabilities</B>&#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
</DIV>

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">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 Corporation 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; margin-left: 2%">&#147;<B>ERISA</B>&#148;: the <I>Employee Retirement Income Security Act of 1974</I>, as amended from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>ERISA Affiliate</B>&#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; margin-left: 2%">&#147;<B>ERISA Event</B>&#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 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)&nbsp;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; margin-left: 2%">&#147;<B>Event of Default</B>&#148;: any of the events specified in Article&nbsp;10, provided 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; margin-left: 2%">&#147;<B>Excess Cash Flow</B>&#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,
</DIV>

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(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 over (b)&nbsp;the sum, without duplication, of (i)
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 under the Senior Credit Agreement during such fiscal
year to the extent accompanying permanent optional reductions of the revolving commitments thereunder 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 and the Notes) 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)&nbsp;increases in Consolidated Working Capital for such fiscal year, (vi)
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;7.5(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; margin-left: 2%">&#147;<B>Exchangeable LP Units</B>&#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; margin-left: 2%">&#147;<B>Excluded Subsidiaries</B>&#148;: the Subsidiaries listed on Schedule&nbsp;1.1B, except to the extent any such Subsidiaries become a party to the Guarantee
pursuant to Section&nbsp;6.10 after the date hereof, and any Securitization Subsidiary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Existing Convertible Securities</B>&#148;: the Target&#146;s 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; margin-left: 2%">&#147;<B>Expansion Capital Expenditures</B>&#148;: all Capital Expenditures of Holdings and its Subsidiaries other than Upgrade Capital Expenditures.
</DIV>


</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Foreign Benefit Arrangement</B>&#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; margin-left: 2%">&#147;<B>Foreign Plan</B>&#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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Foreign Subsidiary Guarantor</B>&#148;: each Subsidiary Guarantor that is not a North American Subsidiary
Guarantor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Funded Debt</B>&#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 Corporation, Indebtedness in respect of
the Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>GAAP</B>&#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;7.6, 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;4.1(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 Indenture, then the
Corporation and the Purchasers agree to enter into negotiations in order to amend such provisions
of this Indenture so as to reflect equitably such Accounting Changes with the desired result that
the criteria for evaluating Holdings&#146; 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 Holdings, the Corporation and the
Purchasers, all financial covenants, standards and terms in this Indenture 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>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Governmental Authority</B>&#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.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Group Members</B>&#148;: the collective reference to Holdings, the Corporation and their respective
Subsidiaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Guarantee</B>&#148;: the Guarantee Agreement to be executed and delivered by Holdings and each Subsidiary
Guarantor, substantially in the form of Exhibit&nbsp;A-2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Guarantee Obligation</B>&#148;: as to any Person (the &#147;<B>guaranteeing person</B>&#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;<B>primary
obligations</B>&#148;) of any other third Person (the &#147;<B>primary obligor</B>&#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)
otherwise to assure or hold harmless the owner of any such primary obligation against loss in
respect thereof; provided, however, 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 Corporation in good faith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Guarantors</B>&#148;: the collective reference to Holdings and the Subsidiary Guarantors.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Holdings</B>&#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; margin-left: 2%">&#147;<B>Indebtedness</B>&#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)
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 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 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)&nbsp;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 Leverage Ratio and the Consolidated Debt to Capitalization
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; margin-left: 2%">&#147;<B>Indenture</B>&#148;: as defined in the preamble hereto.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Insolvency</B>&#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; margin-left: 2%">&#147;<B>Insolvency of Holdings</B>&#148;: any of the following with respect to Precision Drilling Trust:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Trustees shall: (i)&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; (ii)&nbsp;file a voluntary petition in
bankruptcy; (iii)&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 (iv)&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;</TD>
</TR>

</TABLE>
</DIV></DIV>
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<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any event (other than pursuant to a Permitted Reorganization) resulting in the dissolution,
termination, winding-up or insolvency of Holdings.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Insolvent</B>&#148;: pertaining to a condition of Insolvency.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Insolvent Person</B>&#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; margin-left: 2%">&#147;<B>Intellectual Property</B>&#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; margin-left: 2%">&#147;<B>Interest Payment Date</B>&#148;: 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 Note is
outstanding and the final maturity date of such Note.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Investments</B>&#148;: as defined in Section&nbsp;7.7.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Judgment Currency</B>&#148;: as defined in Section&nbsp;11.17.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Lien</B>&#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
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">security interests arising under Section&nbsp;1(1)(tt)(ii) 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; margin-left: 2%">&#147;<B>Limited Partnership Agreement</B>&#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; margin-left: 2%">&#147;<B>Make-Whole Amount</B>&#148;: with respect to any Note, an amount equal to the excess, if any, of the
Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such
Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event
be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have
the following meanings:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Applicable Percentage</B>&#148; means 2.00% (200 bps).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Called Principal</B>&#148; means, with respect to any Note, the principal of such Note that has become
or is declared to be immediately due and payable pursuant to this Indenture.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Discounted Value</B>&#148; means, with respect to the Called Principal of any Note, the amount obtained
by discounting all Remaining Scheduled Payments with respect to such Called Principal from their
respective scheduled due dates to the Settlement Date with respect to such Called Principal, in
accordance with accepted financial practice and at a discount factor (applied on the same periodic
basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with
respect to such Called Principal.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Reinvestment Yield</B>&#148; means, with respect to the Called Principal of any Note, the sum of the
(x)&nbsp;Applicable Percentage plus (y)&nbsp;the yield to maturity implied by the yields, determined by the
Purchasers, acting reasonably, in accordance with accepted financial practice as of 8:00 A.M.
(Edmonton time) on the second Business day preceding the Settlement Date with respect to such
Called Principal, for the most recently issued actively traded on the run Canadian federal
government treasury securities having a maturity equal to the Remaining Average Life of such Called
Principal as of such Settlement Date. The Reinvestment Yield shall
</TD>
</TR>
</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be rounded to the number of decimal places as appears in the interest rate of the
applicable Note.</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Remaining Average Life</B>&#148; means, with respect to any Called Principal, the number of years
(calculated to the nearest one twelfth year) obtained by dividing (i)&nbsp;such Called Principal into
(ii)&nbsp;the sum of the products obtained by multiplying (a)&nbsp;the principal component of each Remaining
Scheduled Payment with respect to such Called Principal by (b)&nbsp;the number of years (calculated to
the nearest one twelfth year) that will elapse between the Settlement Date with respect to such
Called Principal and the scheduled due date of such Remaining Scheduled Payment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Remaining Scheduled Payments</B>&#148; means, with respect to the Called Principal of any Note, all
payments of such Called Principal and interest thereon that would be due after the Settlement Date
with respect to such Called Principal if no payment of such Called Principal were made prior to its
scheduled due date, provided that if such Settlement Date is not a date on which interest payments
are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled
interest payment will be reduced by the amount of interest accrued to such Settlement Date and
required to be paid on such Settlement Date pursuant to this Indenture.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Settlement Date</B>&#148; means, with respect to the Called Principal of any Note, the date on which
such Called Principal has become or is declared to be immediately due and payable pursuant to this
Indenture.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Material Adverse Effect</B>&#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 Indenture or any
of the other Note Documents or the rights or remedies of the Purchasers hereunder or thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Material Contract</B>&#148;: any contract listed on Schedule&nbsp;7.15 and any other contract entered into by
Holdings or any of its Subsidiaries that the Purchasers designate in writing and with notice to the
Corporation as a &#147;Material Contract&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Material Subsidiary</B>&#148;: as to any Person, any Subsidiary of such Person owning assets having a fair
market value of at least US$1,000,000 in the aggregate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Materials of Environmental Concern</B>&#148;: any gasoline or petroleum (including crude oil or any
fraction thereof) or petroleum products or any hazardous or
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">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; margin-left: 2%">&#147;<B>Maturity Date</B>&#148;: April&nbsp;22, 2017.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Moody&#146;s</B>&#148;: Moody&#146;s Investors Service, Inc. and its successors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Multiemployer Plan</B>&#148;: a Plan that is a multiemployer plan as defined in Section&nbsp;4001(a)(3) of
ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Net Cash Proceeds</B>&#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 December&nbsp;2008 Loan
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; margin-left: 2%">&#147;<B>New Corporation</B>&#148;: as defined in the definition of &#147;Permitted Reorganization&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Non-Excluded Taxes</B>&#148;: as defined in Section&nbsp;2.8(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Non-U.S. Purchaser</B>&#148;: as defined in Section&nbsp;2.8(d).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Note Documents</B>&#148;: this Indenture, the Guarantee and the Notes, and any amendment, waiver,
supplement or other modification to any of the foregoing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Note Parties</B>&#148;: each Group Member that is a party to a Note Document.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Notes</B>&#148;: as defined in Section&nbsp;2.1.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Obligations</B>&#148;: the unpaid principal of and interest on (including interest accruing after the
maturity of the Notes and interest accruing after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to the Corporation,
whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the
Notes and all other obligations and liabilities of the Corporation to the Purchasers, 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 Indenture, any other Note
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 Alberta Investment Management
Corporation and the Purchasers that are required to be paid by Holdings or the Corporation pursuant
hereto) or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Operating Cash Flow Before Working Capital</B>&#148;: for any period, (a)&nbsp;Consolidated EBITDA for such
period minus (b)&nbsp;Consolidated Interest Expense for such period minus (c)&nbsp;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 (as that term is defined in the
Senior Credit Agreement), the Canadian Revolving Facility (as that term is defined in the Senior
Credit Agreement) or any Specified Operating Facility).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Other Taxes</B>&#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 Indenture or any other
Note Document.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Parent</B>&#148;: as defined in the definition of &#147;Permitted Reorganization.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Participant</B>&#148;: as defined in Section&nbsp;11.6(c).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>PBGC</B>&#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; margin-left: 2%">&#147;<B>Pension Plan</B>&#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,
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">if such Plan were terminated, would under Section&nbsp;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; margin-left: 2%">&#147;<B>Permitted Acquisition</B>&#148;: any acquisition by the Corporation 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; provided, 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 compliance with Section&nbsp;6.10, and the financial covenants set forth in
section 8.1 of the Senior Credit Agreement and, if applicable, the financial covenants set forth in
any Refinancing Credit Agreement 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, 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;6.10; (d)&nbsp;in the case of any acquisition of US$100,000,000
or more (whether paid in cash, securities, the assumption of debt or otherwise), the Corporation
shall have delivered to Purchasers 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; margin-left: 2%">&#147;<B>Permitted Reorganization</B>&#148;: a reorganization, in a transaction or series of related transactions,
of Holdings and/or the Corporation 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); provided, that such reorganization satisfies the following conditions (a)&nbsp;if
Holdings elects to change the issuer of the Notes hereunder, one or more Solvent entities organized
under the laws of Canada, the United States, or a province or state thereof (collectively, the &#147;<B>New
Corporation</B>&#148;) shall assume, pursuant to documentation reasonably acceptable to the Purchasers, all
of the applicable obligations and liabilities of the Corporation under this Indenture and the other
Note Documents, and thereafter all references to the &#147;Corporation&#148; for purposes of this Indenture
and the other
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Note Documents shall be deemed to include the New Corporation, (b)&nbsp;the ultimate parent company
resulting from such reorganization (&#147;<B>Parent</B>&#148;), if not the New Corporation, shall assume all of the
applicable obligations of Holdings under this Indenture and the other Note Documents pursuant to
documentation reasonably acceptable to the Purchasers and thereafter all references to &#147;Holdings&#148;
for purposes of this Indenture and the other Note Documents shall be deemed to be a reference to
Parent, and Parent (if not the New Corporation) and the New Corporation (if applicable) shall
comply, and shall cause their respective Subsidiaries to comply, with the applicable requirements
of Section&nbsp;6.10, (c)&nbsp;Parent and the New Corporation (if applicable) shall deliver legal opinions of
Bennett Jones LLP and/or Mayer Brown LLP or other independent legal counsel reasonably satisfactory
to the Purchasers, addressed to the Purchasers, 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;11.18, 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 Purchasers hereunder or under
any other Note Document (after taking into account the Corporation&#146;s indemnification obligations
under Section&nbsp;2.8), (f)&nbsp;the reorganization shall not, by itself, result in any reduction to the
corporate credit rating of Holdings or the Corporation by either S&#038;P or Moody&#146;s from that in effect
immediately prior to the reorganization and (g)&nbsp;the Purchasers 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 Purchasers including, without limitation, to preserve as against the
Parent, the New Corporation (if applicable) and other entities resulting from the reorganization
the substance of Article&nbsp;6, Article&nbsp;7 and Article&nbsp;10 hereof and the Parent, the New Corporation (if
applicable), the other entities resulting from the reorganization and the Purchasers, each acting
reasonably, shall enter into such amendments and other documents as requested or required by the
Purchasers in accordance with the foregoing to give effect to the terms of this Indenture
(including Section&nbsp;11.18) with respect to a Permitted Reorganization and any consequential
amendments required to preserve the substance of Article&nbsp;6, Article&nbsp;7 and Article&nbsp;10 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Person</B>&#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>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Plan</B>&#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; margin-left: 2%">&#147;<B>PPSA</B>&#148;: the <I>Personal Property Security Act </I>(Alberta) (or any successor statute) 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; margin-left: 2%">&#147;<B>Pro Forma Statement of Operations</B>&#148;: as defined in Section&nbsp;4.1(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Prohibited Transaction</B>&#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; margin-left: 2%">&#147;<B>Projections</B>&#148;: as defined in Section&nbsp;6.2(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Properties</B>&#148;: as defined in Section&nbsp;4.18(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Prospectus</B>&#148;: the short form base shelf prospectus of Holdings dated February&nbsp;4, 2009, as
supplemented by the prospectus supplement dated February&nbsp;9, 2009, together with the documents
incorporated by reference therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Purchasers</B>&#148;: as defined in the preamble hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Qualified Securitization Financing</B>&#148;: any Securitization Financing that meets the following
conditions (a)&nbsp;the board of directors of the Corporation 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 Corporation 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
Corporation) and (c)&nbsp;the financing terms, covenants, termination events and other provisions
thereof shall be market terms (as determined in good faith by the Corporation) and may include
Standard Securitization Undertakings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Recovery Event</B>&#148;: any settlement of or payment in excess of $5,000,000 in respect of (a)&nbsp;any
property or casualty insurance claim or (b)&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; margin-left: 2%">&#147;<B>Redemption Notes</B>&#148;: the notes defined as such in the Trust Declaration.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Refinancing Credit Agreement</B>&#148;: any credit agreement pursuant to which Holdings, Parent or any
Subsidiary (including the Corporation) of either of them incurs Refinancing Indebtedness from time
to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Refinancing Indebtedness</B>&#148;: any Indebtedness of Holdings, Parent or any Subsidiary (including the
Corporation) of either of them incurred from time to time 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, Parent or any Subsidiary of either of them
(including any &#147;Additional Borrower&#148;, as that term is defined in the Senior Credit Agreement) under
or in respect of the Senior Credit Agreement or any Refinancing Credit Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Regulation&nbsp;U</B>&#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; margin-left: 2%">&#147;<B>Reinvestment Deferred Amoun</B>t&#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;6.11 as a result of the delivery of a Reinvestment Notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Reinvestment Event</B>&#148;: any Asset Sale or Recovery Event in respect of which the Corporation has
delivered a Reinvestment Notice.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Reinvestment Notice</B>&#148;: a written notice executed by a Responsible Officer stating that no Event of
Default has occurred and is continuing and that the Corporation 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; margin-left: 2%">&#147;<B>Reinvestment Prepayment Amount</B>&#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 Corporation&#146;s business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Reinvestment Prepayment Date</B>&#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 Corporation shall
have determined not to, or shall have otherwise ceased to, acquire or repair assets useful in the
Corporation&#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; margin-left: 2%">&#147;<B>Release</B>&#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,
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">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; margin-left: 2%">&#147;<B>Reorganization</B>&#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; margin-left: 2%">&#147;<B>Reportable Event</B>&#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; margin-left: 2%">&#147;<B>Requirement of Law</B>&#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; margin-left: 2%">&#147;<B>Responsible Officer</B>&#148;: the chief executive officer, president, chief financial officer or vice
president, finance of the Corporation, but in any event, with respect to financial matters, the
chief financial officer or vice president, finance of the Corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Restricted Payments</B>&#148;: as defined in Section&nbsp;7.5.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Revolving Loans</B>&#148;: as defined in the Senior Credit Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>S&#038;P</B>&#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; margin-left: 2%">&#147;<B>Sale and Repurchase Agreements</B>&#148;: the Sale and Repurchase Agreement, dated as of December&nbsp;23, 2008,
by and between the Corporation 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 Note Parties
entered into after the date hereof; provided that any restrictions on Restricted Payments, payments
of Indebtedness, loans, Investments, transfers and other transactions contained in such other
agreements which are subject to the restrictions in Section&nbsp;7.13 of this Indenture are in the
reasonable judgment of the Purchasers no more restrictive to any Note Party in all material
respects as the analogous restrictions in the Sale and Repurchase Agreement, dated as of December
23, 2008, and the applicable covenants therein are qualified so as to permit exceptions thereto for
the purpose of permitting payment of the Obligations under this Indenture and the other Note
Documents to the same extent in all
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">material respects as the qualifications contained in the Sale and Repurchase Agreement, dated as of
December&nbsp;23, 2008.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>SEC</B>&#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; margin-left: 2%">&#147;<B>Securitization Assets</B>&#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; margin-left: 2%">&#147;<B>Securitization Financing</B>&#148;: any transaction or series of transactions that may be entered into by
the Corporation or any Subsidiary pursuant to which the Corporation or any Subsidiary may sell,
convey or otherwise transfer to a Securitization Subsidiary, or may grant a security interest in,
any Securitization Assets of the Corporation 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; margin-left: 2%">&#147;<B>Securitization Repurchase Obligation</B>&#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; margin-left: 2%">&#147;<B>Securitization Subsidiary</B>&#148;: a wholly owned Subsidiary of the Corporation (or another Person formed
for the purposes of engaging in a Qualified Securitization Financing in which the Corporation or
any Subsidiary makes an Investment and to which the Corporation 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 Corporation 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 Corporation 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 Corporation or any Subsidiary, other than another
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Securitization Subsidiary (excluding guarantees of obligations (other than the principal of, and
interest on, Indebtedness) pursuant to Standard Securitization Undertakings), (ii)is recourse to or
obligates the Corporation 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 Corporation 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 Corporation or any Subsidiary,
other than another Securitization Subsidiary, has any material contract, agreement, arrangement or
understanding other than on terms which the Corporation reasonably believes to be no less favorable
to the Corporation or such Subsidiary than those that might be obtained at the time from Persons
that are not Affiliates of the Corporation and (c)&nbsp;to which none of the Corporation 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 Corporation or such other
Person shall be evidenced to the Purchasers by delivery to the Purchasers of a certified copy of
the resolution of the board of directors of the Corporation 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; margin-left: 2%">&#147;<B>Senior Credit Agreement</B>&#148;: the Credit Agreement dated as of December&nbsp;23, 2008 among Holdings, as a
guarantor, the Corporation, as borrower, the several lenders from time to time parties 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, as
amended by a First Amendment dated as of February&nbsp;2, 2009, a Second Amendment dated as of February
11, 2009, and a Third Amendment dated as of March&nbsp;25, 2009, and as further amended, supplemented,
restated or otherwise modified from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Solvent</B>&#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
</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; margin-left: 2%">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 (ii) &#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; margin-left: 2%">&#147;<B>Specified Cash Management Agreemen</B>t&#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 Corporation or any Guarantor and any
lender under the Senior Credit Agreement 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; margin-left: 2%">&#147;<B>Specified Operating Facilities</B>&#148;: one or more bilateral operating facilities provided by any of the
lenders under the Senior Credit Agreement or the respective affiliates thereof to the Corporation
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 US$60,000,000, including but not limited to
the facilities described on Schedule&nbsp;1.1C to the Senior Credit Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Standard Securitization Undertakings</B>&#148;: representations, warranties, covenants and indemnities
entered into by the Corporation or any Subsidiary of the Corporation which the Corporation 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; margin-left: 2%">&#147;<B>Subject Property</B>&#148;: as defined in Section&nbsp;7.2(g).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Subscription Agreement</B>&#148;: the subscription agreement dated April&nbsp;20, 2009 among Holdings, the
Corporation and Her Majesty the Queen in Right of the Province of Alberta.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Subsidiary</B>&#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,
</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; margin-left: 2%">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 Indenture shall refer to a Subsidiary or Subsidiaries of
Holdings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Subsidiary Guarantor</B>&#148;: (a)&nbsp;each Material Subsidiary of Holdings (other than the Corporation)
organized in Canada or the United States other than any Excluded Subsidiary, (b)&nbsp;each other
Subsidiary of Holdings party to the Guarantee, and (c)&nbsp;each other Subsidiary of Holdings party to
the Guarantee pursuant to Section&nbsp;6.10(a).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Swap Agreement</B>&#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; provided 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; margin-left: 2%">&#147;<B>Target</B>&#148;: Grey Wolf, Inc., a Texas corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Term Loans</B>&#148;: as defined in the Senior Credit Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Transferee</B>&#148;: any Assignee or Participant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Trust Conversion Capex</B>&#148;: as defined in Section&nbsp;7.6(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Trust Declaration</B>&#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; margin-left: 2%">&#147;<B>Trust Distribution Amount</B>&#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 (a)&nbsp;Operating Cash Flow Before Working Capital for such period
and (b)&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 Before Working Capital for such period and
(B)&nbsp;any Computation Period thereafter, an amount determined by the Parent&#146;s board of directors in
compliance with all Requirements of Law.
</DIV>



</DIV>



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

<P align="center" style="font-size: 10pt"><!-- Folio -->-34-<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Trust Fund</B>&#148; the &#147;<B>Trust Assets</B>&#148;: as defined in the Trust Declaration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Trust Units</B>&#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; margin-left: 2%">&#147;<B>Trustees</B>&#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; margin-left: 2%">&#147;<B>United States</B>&#148;: the United States of America.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Upgrade Capital Expenditures</B>&#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; margin-left: 2%">&#147;<B>US Dollars</B>&#148; and &#147;<B>US$</B>&#148;: dollars in lawful currency of the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Voting and Exchange Trust Agreement</B>&#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 align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Voting Capital Stock</B>&#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; margin-left: 2%">&#147;<B>Wholly Owned North American Subsidiary Guarantor</B>&#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; margin-left: 2%">&#147;<B>Wholly Owned Subsidiary</B>&#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>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-35-<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&#147;<B>Withdrawal Liability</B>&#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 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="1%" nowrap align="left"><B>1.2</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Other Definitional Provisions.</B></TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise specified therein, all terms defined in this Indenture shall have the
defined meanings when used in the other Note Documents or any certificate or other document
made or delivered pursuant hereto or thereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As used herein and in the other Note 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)
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 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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The words &#147;hereof&#148;, &#147;herein&#148; and &#147;hereunder&#148; and words of similar import, when used in
this Indenture, shall refer to this Indenture as a whole and not to any particular
provision of this Indenture, and Section, Schedule and Exhibit references are to this
Indenture unless otherwise specified.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>1.3</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Concerning the Trustees.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto acknowledge that Precision Drilling Corporation , solely in its
capacity as administrator of Precision Drilling Trust (in such capacity, the
&#147;<B>Administrator</B>&#148;), is entering into this Indenture in such capacity as agent for and on behalf of
Precision Drilling Trust and the obligations of Precision Drilling Trust
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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;<B>annuitant</B>&#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 Indenture 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 style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>1.4</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Schedules</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following are the Schedules and Exhibits annexed hereto and incorporated by
reference and deemed to be part hereof:
</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="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000"><B>Schedules:</B></TD>
    <TD>&nbsp;</TD>
    <TD>&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">Purchasers and Principal Amount</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">4.4
</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">4.6
</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">4.9
</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">4.16
</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">4.18
</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">7.1(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">7.2(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">7.7(k)
</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">7.13
</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">7.15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material Contracts</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibits:</B></TD>
    <TD>&nbsp;</TD>
    <TD>&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 Note</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 Guarantee</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>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 2<BR>
NOTES</B>
</DIV>


<DIV style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>2.1</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Authorization.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof, the Corporation will authorize the
issuance and sale of its $175,000,000 10% Senior Unsecured Notes due April&nbsp;22, 2017 (the
&#147;<B>Notes</B>&#148;, such term to include any such Notes issued in substitution therefor
</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 -->-37-<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">pursuant to this Indenture). The Notes shall be substantially in the form set out in Exhibit&nbsp;A-1.
</DIV>

<DIV style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>2.2</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Sale and Purchase of Notes.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof, the Corporation will issue and sell to
each Purchaser, and each Purchaser will purchase from the Corporation, on the Closing Date,
Notes in the principal amount specified opposite such Purchaser&#146;s name in Schedule&nbsp;1.1A at
the purchase price of 100% of the principal amount thereof. The Purchasers&#146; obligations
hereunder are several and not joint obligations and no Purchaser shall have any liability
to any Person for the performance or non-performance of any obligation by any other
Purchaser hereunder.
</DIV>

<DIV style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>2.3</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Repayment of Notes.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes shall mature in three consecutive annual instalments on each of April&nbsp;22,
2015, 2016 and 2017, each of which instalments shall be repayable in Dollars and shall be
in an amount equal to one-third of the principal amount of each Note.
</DIV>

<DIV style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>2.4</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Interest Rates and Payment Dates.</B></TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to the provisions set forth below, each Note shall bear interest at a rate per
annum equal to 10%.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Corporation reasonably anticipates that the Corporation will have insufficient
Excess Cash Flow on any Interest Payment Date (calculated before accounting for the payment
of interest on the Notes on such date) to pay the interest required to be paid on such
date, then the Corporation may by notice in writing to the Purchasers at least five
Business days prior to that Interest Payment Date elect to defer the payment of some or all
of that interest amount, to the extent of such insufficiency; provided that, (i)&nbsp;the
interest otherwise payable on any Interest Payment Date may not be deferred for more than
two years, and (ii)&nbsp;at any time while there is a deferred and unpaid interest amount
hereunder, the Notes and all such deferred interest amounts shall bear interest at a rate
per annum equal to 12%. The Corporation shall not have deferred more than four payments of
interest in this manner at any particular time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If all or a portion of (i)&nbsp;the principal amount of, or (except to the extent the
payment of interest is deferred pursuant to Section&nbsp;2.4(b)) any interest payable on, any
Note, or (ii)&nbsp;any other amount payable hereunder, shall not be paid when due (whether at
the stated maturity, by acceleration or otherwise), all outstanding Notes (whether or not
overdue) and, if applicable, such interest and overdue amount shall bear interest at a rate</TD>
</TR>

</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 -->-38-<!-- /Folio -->

<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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>per annum equal to 12% from the date of such non-payment until such
amount is paid in full (as well after as before judgment).</TD>
</TR><TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Interest shall be payable in arrears on each Interest Payment Date,
provided that (except to the extent the payment of interest is deferred
pursuant to Section&nbsp;2.4(b)) interest accruing pursuant to paragraph (c)&nbsp;of
this Section&nbsp;2.4 shall be payable from time to time on demand.</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">(e)</TD>
    <TD width="4%">(i)&nbsp;</TD>
    <TD>If any provision of this Indenture would obligate the Corporation
to make any payment of interest or other amount payable to any
Purchaser in an amount or calculated at a rate which would be
prohibited by law or would result in a receipt by such Purchaser 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 Purchaser 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;2.4 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).</TD>
</TR>

</TABLE>
</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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If, notwithstanding the provisions of clause (i)&nbsp;of this paragraph (e),
and after giving effect to all adjustments contemplated thereby, any
Purchaser shall have received an amount in excess of the maximum
permitted by such clause, then the Corporation shall be entitled, by
notice in writing to such Purchaser, to obtain reimbursement from
such Purchaser of an amount equal to such excess, and, pending
such reimbursement, such amount shall be deemed to be an
amount payable by such Purchaser to the Corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any amount or rate of interest referred to in this paragraph (e)&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 Note 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 Maturity
Date, and, in the event of dispute, a certificate of a Fellow of the
Canadian Institute of Actuaries appointed by the Purchasers shall</TD>
</TR>

</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-39-<!-- /Folio -->

<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: #textcolor#; background: #bgcolor#">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be conclusive for the purposes of such determination absent manifest
error.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>2.5</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Computation of Interest and Other Amounts.</B></TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Interest and other amounts payable pursuant hereto shall be calculated on the basis of
a 360-day year of twelve 30-day months.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Solely for purpose of disclosure under the <I>Interest Act </I>(Canada), and without affecting
the calculation of interest hereunder, the yearly rate of interest to which interest
calculated for a period of less than one year on the basis of a year of 360&nbsp;days consisting
of twelve 30-day periods is equivalent is such rate of interest multiplied by a fraction of
which (i)&nbsp;the numerator is the product of (A)&nbsp;the actual number of days in the year
commencing on the first day of such period, multiplied by (B)&nbsp;the sum of (y)&nbsp;the product of
30 multiplied by the number of complete months elapsed in such period and (z)&nbsp;the actual
number of days elapsed in any incomplete month in such period; and (ii)&nbsp;the denominator is
the product of (A)&nbsp;360 multiplied by (B)&nbsp;the actual number of days in such period. In
addition, the principles of deemed investment of interest do not apply to any interest
calculations under this Indenture and the rates of interest stipulated in this Indenture
are intended to be nominal rates and not effective rates or yields.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>2.6</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B><I>Pro rata </I></B><B>Treatment and Payments.</B></TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each payment by the Corporation on account of principal of and interest on the Notes
shall be made <I>pro rata </I>according to the respective outstanding principal amounts of the
Notes then held by the Purchasers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All payments (including prepayments) to be made by
the Corporation hereunder, whether on account of principal, interest or otherwise, shall be
made without setoff or counterclaim and shall be made prior to 10:00&nbsp;a.m., Edmonton time,
on the due date thereof to the Purchasers in immediately available funds. 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>2.7</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Additional Obligors.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation may at any time and from time to time designate any Wholly Owned
Subsidiary of the Corporation or Holdings as an additional obligor hereunder for all or any
portion of any of the obligations of the Corporation hereunder in addition
</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="center" style="font-size: 10pt"><!-- Folio -->-40-<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to the Corporation (an &#147;<B>Additional Obligor</B>&#148;), in each case by delivery to the Purchasers of a
joinder agreement in form and substance reasonably satisfactory to the Purchasers, executed by such
Additional Obligor which will provide that such Additional Obligor will be liable for such portion
of the Notes (together with
interest and any other amounts which may become payable from time to time in respect thereof, the
&#147;<B>Additional Obligor&#146;s Obligations</B>&#148;) as is specified in such joinder agreement (and the
Corporation&#146;s only liability for the Additional Obligor&#146;s Obligations will be as guarantor
thereof); provided, that (a)&nbsp;the Purchasers 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 Purchasers, including but not limited to
those relating to the formation, existence and good standing of such Additional Obligor and the
authorization and legality of the delivery and performance of the Note Documents to which it is a
party and the assumption of liability for the Additional Obligor&#146;s Obligations made by it hereunder
and under such joinder agreement; (b)&nbsp;such Additional Obligor shall (unless it is the sole obligor
on the Notes) have become party to the Guarantee 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;6.10; (c)&nbsp;the Purchasers shall have received, at least five Business days prior to the
effectiveness of the designation of such Additional Obligor, all documentation and other
information relating to such Additional Obligor requested by them for purposes of ensuring
compliance with applicable anti-money laundering rules and regulations; (d)&nbsp;such Additional Obligor
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 Obligor as an obligor hereunder shall not
result in any adverse tax consequences related to withholding tax or similar amounts on payments to
the Purchasers (after taking into account the Corporation&#146;s indemnification obligations under
Section&nbsp;2.8). Notwithstanding the foregoing, no joinder agreement shall become effective with
respect to any Additional Obligor if it shall be unlawful for such Additional Obligor to become an
obligor hereunder or for any Purchaser to be the payee of the corresponding Additional Obligor&#146;s
Obligations as provided herein.
</DIV>

<DIV style="margin-top: 12pt">
<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="1%" nowrap align="left"><B>2.8</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Taxes.</B></TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All payments and reimbursements made by the Corporation under this Indenture 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</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on any Purchaser as a result of a present or former connection between such Purchaser 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 such Purchaser having executed,
delivered or performed its obligations or received a payment under, or enforced, this
Indenture or any other Note Document). If any such non-excluded taxes, levies, imposts,
duties, charges, fees, deductions or withholdings (&#147;<B>Non-Excluded Taxes</B>&#148;) or Other Taxes are
required to be withheld from any amounts payable to any Purchaser hereunder, the amounts so
payable to such Purchaser shall be increased to the extent necessary to yield to such
Purchaser (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 Indenture,
provided, however, that the Corporation shall not be required to increase any such amounts
payable to any Purchaser with respect to any Non-Excluded Taxes (i)&nbsp;that are attributable
to such Purchaser&#146;s failure to comply with the requirements of paragraph (d)&nbsp;or (e)&nbsp;of this
Section&nbsp;2.8 or (ii)&nbsp;that are Canadian or United States withholding taxes imposed on amounts
payable to such Purchaser at the time such Purchaser becomes a party to this Indenture,
except to the extent that such Purchaser&#146;s assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from the Corporation with respect to such
Non-Excluded Taxes pursuant to this paragraph or to the extent such Non-Excluded Taxes are
imposed because the Corporation designates an Additional Obligor pursuant to Section&nbsp;2.7.</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition, the Corporation shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whenever any Non-Excluded Taxes or Other Taxes are payable by the Corporation, as promptly as
possible thereafter the Corporation shall send to the Purchasers a certified copy of an official
receipt received by the Corporation, if any, showing payment thereof. If the Corporation fails to
pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to
remit to the Purchasers the required receipts or other required documentary evidence, the
Corporation shall indemnify each Purchaser for any incremental taxes, interest or penalties that
may become payable by such Purchaser as a result of any such failure.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent the Corporation is a &#147;U.S. Person&#148; as defined in Section&nbsp;7701(a)(30) of the Code,
each Purchaser (or Transferee) that is not a &#147;U.S. Person&#148; as defined in Section&nbsp;7701(a)(30) of the
Code (a &#147;<B>Non-U.S.
Purchaser</B>&#148;) shall deliver to the Corporation (or, in the case of a Participant, to the
Purchaser from which the related participation shall
</TD>
</TR>
</TABLE>
</DIV></DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>have been purchased, which Purchaser, if a Non-U.S. Purchaser, shall in
turn deliver to the Corporation) two copies of the applicable U.S. Internal Revenue Service
Form W-8, or, in the case of a Non-U.S. Purchaser 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;, an exemption certificate in such form as the Corporation may
reasonably require and the applicable Form W-8, or any subsequent versions thereof or
successors thereto, and each Purchaser (or Transferee) that is a &#147;U.S. Person&#148; as defined
in Section&nbsp;7701(a)(3) of the Code (a &#147;<B>U.S. Purchaser</B>&#148;), shall deliver to the Corporation
(or, in the case of a Participant, to the Purchaser from which the related participation
shall have been purchased, which Purchaser if a Non-U.S. Purchaser, shall in turn deliver
to the Corporation) an IRS Form W-9, in each case properly completed and duly executed by
such Purchaser claiming complete exemption from, or a reduced rate of, U.S. federal
withholding tax on all payments by the Corporation under this Indenture and the other Note
Documents. Such forms shall be delivered by each Purchaser on or before the date it
becomes a party to this Indenture (or, in the case of any Participant, on or before the
date such Participant purchases the related participation). In addition, each Purchaser
shall deliver such forms promptly upon the obsolescence or invalidity of any form
previously delivered by such Purchaser. Each Purchaser shall promptly notify the
Corporation at any time it determines that it is no longer in a position to provide any
previously delivered certificate to the Corporation (or any other form of certification
adopted by the U.S. taxing authorities for such purpose). Notwithstanding any other
provision of this paragraph, a Purchaser shall not be required to deliver any form pursuant
to this paragraph that such Purchaser is not legally able to deliver.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Purchaser that is entitled to an exemption from or reduction of non-U.S. withholding tax
under the law of the jurisdiction in which the Corporation is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Indenture shall deliver to the
Corporation, at the time or times prescribed by applicable law or reasonably requested by the
Corporation, 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, provided that such
Purchaser is legally entitled to complete, execute and deliver such documentation and in such
Purchaser&#146;s judgment such completion, execution or submission would not materially prejudice the
legal position of such Purchaser.</TD>
</TR>

</TABLE>
</DIV>

</DIV>

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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">-43-
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any Purchaser 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 Holdings
and the Corporation or with respect to which the Corporation has paid additional amounts
pursuant to this Section&nbsp;2.8, it shall pay over such refund to the Corporation (but only to
the extent of indemnity payments made, or additional amounts paid, by the Corporation under
this Section&nbsp;2.8 with respect to the Non-Excluded Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of such Purchaser and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such refund);
provided, that the Corporation, upon the request of such Purchaser, agrees to repay the
amount paid over to the Corporation (plus any penalties, interest or other charges imposed
by the relevant Governmental Authority) to such Purchaser in the event such Purchaser is
required to repay such refund to such Governmental Authority. This paragraph shall not be
construed to require any Purchaser to make available its tax returns (or any other
information relating to its taxes which it deems confidential) to the Corporation or any
other Person.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
     <TD>The agreements in this Section&nbsp;2.8 shall survive the termination of this Indenture and
the payment of the Notes and all other amounts payable hereunder.</TD>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2.9 Optional Prepayments with Make-Whole Amount.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation may, at its option, upon notice as provided below, prepay at any time
all, or from time to time any part of, the Notes, in an amount not less than 5% of the
aggregate principal amount of the Notes then outstanding in the case of a partial
prepayment, at 100% of the principal amount so prepaid, plus the Make-Whole Amount
determined for the prepayment date with respect to such principal amount. The Corporation
will give each holder of Notes written notice of each optional prepayment under this
Section&nbsp;2.9 not less than 30&nbsp;days and not more than 60&nbsp;days prior to the date fixed for
such prepayment. Each such notice shall specify such date (which shall be a Business day),
the aggregate principal amount of the Notes to be prepaid on such date, the principal
amount of each Note held by such holder to be prepaid, and the interest to be paid on the
prepayment date with respect to such principal amount being prepaid, and shall be
accompanied by a certificate of a Responsible Officer as to the estimated Make-Whole Amount
due in connection with such prepayment (calculated as if the date of such notice were the
date of the prepayment), setting forth the details of such computation. Two Business days
prior to such prepayment, the Corporation shall deliver to each holder of Notes a
certificate of a Responsible Officer of the Corporation specifying the calculation of
such Make-Whole Amount as of the specified prepayment date.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-44-<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 3<BR>
CLOSING</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.1 Closing.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sale and purchase of the Notes to be purchased by each Purchaser shall occur at
the offices of Bennett Jones LLP, 4500, 855-2nd Street S.W. at 8:00 a.m., Calgary, Alberta
time, at a closing (the &#147;<B>Closing</B>&#148;) on April&nbsp;22, 2009 or on such other Business day
thereafter on or prior to May&nbsp;8, 2009 as may be agreed upon by the Corporation and the
Purchasers. At the Closing the Corporation will deliver to each Purchaser the Notes to be
purchased by such Purchaser in the form of a single Note (or such greater number of Notes
in denominations of at least $100,000 as such Purchaser may request) dated the Closing Date
and issued in such Purchaser&#146;s name (or in the name of its nominee), against delivery by
such Purchaser to the Corporation or its order of immediately available funds in the amount
of the purchase price therefor by wire transfer of immediately available funds for the
account of the Corporation at an account the particulars of which are communicated to the
Purchasers no later than 48 hours before the Closing.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 4<BR>
REPRESENTATIONS AND WARRANTIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To induce the Purchasers to enter into this Indenture and to purchase the Notes,
Holdings and the Corporation hereby jointly and severally represent and warrant to each
Purchaser that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.1 Financial Condition.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The unaudited pro forma 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;<B>Pro Forma Statement of Operations</B>&#148;), copies of which
have heretofore been furnished to each Purchaser, have been prepared giving effect (as if
such events had occurred on the first day of the period set forth above) to (i)&nbsp;the
consummation of the Acquisition, (ii)&nbsp;the Indebtedness incurred on December&nbsp;23, 2008 and
the use of proceeds thereof and (iii)&nbsp;the payment of fees and expenses in connection with
the foregoing. The Pro Forma Statement of Operations has been prepared based on the best
information available to Holdings and the Corporation as of the date of preparation
thereof, and as at the date prepared present fairly on a pro forma basis 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 on the first day of such period.</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The audited consolidated balance sheets of Holdings and its consolidated Subsidiaries
as at December&nbsp;31, 2007 and December&nbsp;31, 2008, 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. 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).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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
paragraph (b). During the period from December&nbsp;31, 2008 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).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.2 No Change.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since December&nbsp;31, 2008, 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: 12pt"><B>4.3 Existence; Compliance with Law.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;4.3 shall restrict any
transaction permitted pursuant to Section&nbsp;7.3.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.4 Power; Authorization; Enforceable Obligations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Note Party has the power and authority, and the legal right, to make, deliver and
perform the Note Documents to which it is a party and, in the case of the Corporation, to
issue the Notes hereunder. Each Note Party has taken all necessary action to authorize the
execution, delivery and performance of the Note Documents to which it is a party and, in
the case of the Corporation, to authorize the issuance of the Notes on the terms and
conditions of this Indenture. 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 issuance of the Notes hereunder or with the execution, delivery,
performance, validity or enforceability of this Indenture or any of the Note Documents,
except consents, authorizations, filings and notices described in Schedule&nbsp;4.4, which
consents, authorizations, filings and notices have been obtained or made and are in full
force and effect and except where the failure to obtain or make such consents,
authorizations, filings or notices would not reasonably be expected to have a Material
Adverse Effect. Each Note Document has been duly executed and delivered on behalf of each
Note Party party thereto. This Indenture constitutes, and each other Note Document upon
execution will constitute, a legal, valid and binding obligation of each Note Party party
thereto, enforceable against each such Note 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: 12pt"><B>4.5 No Legal Bar.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance of this Indenture and the other Note Documents
and the use of the proceeds thereof will not violate any Requirement of Law or any
Contractual Obligation of any Group Member except for any such violation of any Contractual
Obligation which would not reasonably be expected to have a Material Adverse Effect, 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: 12pt"><B>4.6 Litigation.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No litigation, investigation or proceeding of or before any arbitrator or Governmental
Authority is pending or, to the knowledge of Holdings or the Corporation, threatened by or
against any Group Member or against any of their respective properties or revenues (a)&nbsp;with
respect to any of the Note Documents or any of the transactions contemplated hereby or
thereby except as described in Schedule&nbsp;4.6, or (b)&nbsp;that would reasonably be expected
to have a Material Adverse Effect.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.7 No Default.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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: 12pt"><B>4.8 Ownership of Property; Liens.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
7.2 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: 12pt"><B>4.9 Intellectual Property.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;4.9, does Holdings or the Corporation know of any valid basis for any such claim.
The use of Intellectual Property by each Note Party does not infringe on the rights of any
Person in any material respect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.10 Taxes.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 GAAP have been provided on the books
of the relevant Group Member) and other than taxes which in the aggregate do not exceed
US$2,500,000; to the knowledge of Holdings and the Corporation, no claim is being asserted
with respect to any such tax, fee or other charge, except as previously disclosed in
writing to the Purchasers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.11 Federal Regulations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No part of the proceeds of any Notes, 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
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-48-<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">time to time hereafter in effect for any purpose that violates the provisions of the Regulations of
the Board (as defined in the Senior Credit Agreement) or (b)&nbsp;for any purpose that violates the
provisions of the Regulations of the Board. If requested by any Purchaser, the Corporation will
furnish to each Purchaser 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: 12pt"><B>4.12 Labor Matters.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Corporation, threatened; (b)&nbsp;hours worked
by and payment made to employees of each Group Member have not been in violation of the
<I>Fair Labor Standards Act </I>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: 12pt"><B>4.13 ERISA.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

</TABLE>
</DIV></DIV>
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<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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.14 Canadian Pension and Benefit Plans.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.15 </B><B><I>Investment Company Act</I></B><B>; Other Regulations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Note Party is an &#147;investment company&#148;, or a company &#147;controlled&#148; by an &#147;investment
company&#148;, within the meaning of the <I>Investment Company Act of 1940</I>, as amended. No Note
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: 12pt"><B>4.16 Subsidiaries.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as disclosed to the Purchasers by the Corporation in writing from time to time
after the Closing Date, (a)&nbsp;Schedule&nbsp;4.16 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 Note 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;
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">qualifying shares) of any nature relating to any Capital Stock of the Corporation or any
Subsidiary, except as created by the December&nbsp;2008 Loan Documents and any Existing Convertible
Securities remaining outstanding on the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.17 Use of Proceeds.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proceeds of the Notes shall be used to repay the obligations of the Corporation
under the Bridge Loans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.18 Environmental Matters.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in Schedule&nbsp;4.18 or as, in the aggregate, could not reasonably be
expected to have a Material Adverse Effect:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the facilities and properties owned, leased or operated by any Group Member (the
&#147;<B>Properties</B>&#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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;<B>Business</B>&#148;), nor does Holdings or the Corporation have
knowledge or reason to believe that any such notice will be received or is being
threatened;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no judicial proceeding or governmental or administrative action is pending or, to
the knowledge of Holdings and the Corporation, 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;</TD>
</TR>

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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no Group Member has assumed any liability of any other Person under Environmental Laws.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.19 Accuracy of Information, etc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No statement or information contained in this Indenture, any other Note Document, the
Prospectus or any other material document, certificate or statement furnished by or on
behalf of any Note Party to the Purchasers, or any of them, for use in connection with the
transactions contemplated by this Indenture or the other Note Documents, contained as of
the date such statement, information, document or certificate was so furnished 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 pro forma financial
information contained in the materials referenced above are based upon good faith estimates
and assumptions believed by management of the Corporation to be reasonable at the time
made, it being recognized by the Purchasers 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 Note Party that could
reasonably be expected to have a Material Adverse Effect that has not been expressly
disclosed herein, in the other Note Documents or in the documents, certificates and
statements furnished to the Purchasers for use in connection with the transactions
contemplated hereby and by the other Note 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: 12pt"><B>4.20 Insurance.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Note Parties maintain insurance in compliance with Section&nbsp;6.5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.21 Solvency.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Holdings and the Corporation on a consolidated basis is Solvent.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4.22 Certain Documents.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has delivered to the Purchasers a complete and correct copy of each
Material Contract, including any material amendments, supplements or modifications with
respect thereto.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 5<BR>
CONDITIONS PRECEDENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5.1 Conditions to Closing.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The agreement of each Purchaser to purchase the Notes to be purchased by it is subject
to the satisfaction, prior to or concurrently with such purchase on the Closing Date, of
the following conditions precedent:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Note Indenture; Other Note Documents. The Purchasers shall have received (i)&nbsp;this
Indenture, executed and delivered by Holdings, the Corporation and each Person listed on
Schedule&nbsp;1.1A, and (ii)&nbsp;the Guarantee, executed and delivered by Holdings and each
Subsidiary Guarantor.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pro Forma Statement of Operations; Financial Statements. The Purchasers shall have
received the Pro Forma Statement of Operations and the other financial statements of
Holdings and the Target described in Section&nbsp;4.1.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Projections. The Purchasers shall have received satisfactory projections of Holdings
(giving effect to the Acquisition and in the form given to the lenders under the Senior
Credit Agreement prior to completing the Acquisition) through 2014 (and receipt of such
projections are hereby acknowledged).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Lien Searches. The Purchasers shall have received the results of a recent lien search
in each of the jurisdictions where the Note Parties are organized or their respective chief
executive offices are located or where material assets of the Note Parties are located, and
such search shall reveal no liens on any of the assets of the Note Parties except for liens
permitted by Section&nbsp;7.2 or discharged on or prior to the Closing Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Expenses. The Purchasers shall have received 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 Notes and will be reflected in the funding instructions given by
the Corporation to the Purchasers on or before the Closing Date.</TD>
</TR>

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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Closing Certificate; Certified Articles of Incorporation; Good Standing Certificates. The
Purchasers shall have received (i)&nbsp;a certificate of each Note 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 Note Party that is a corporation and certificate
of limited partnership for each Note Party that is a limited partnership, certified by the relevant
authority of the jurisdiction of organization of such Note Party (if such Note Party is organized
in the United States, and otherwise by the secretary or assistant secretary of such Note 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 Note Party
from its jurisdiction of organization.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Legal Opinions. The Purchasers shall have received the following executed legal opinions
addressed to the Purchasers:</TD>
</TR>

</TABLE>
</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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the legal opinion of Bennett Jones LLP, Canadian counsel to Holdings and its Subsidiaries, in a
form satisfactory to the Purchasers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the legal opinion of Mayer Brown LLP, New York counsel to Holdings and its Subsidiaries, in a
form satisfactory to the Purchasers; 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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Purchasers may reasonably require.</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each such legal opinion shall cover such other matters incident to the transactions
contemplated by this Indenture as the Purchasers may reasonably require.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Representations and Warranties. Each of the representations and warranties made by any Note
Party in or pursuant to the Note Documents shall be true and correct in all material respects on
and as of the Closing Date as if made on and as of such date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Default. No Default or Event of Default shall have occurred and be continuing on the
Closing Date or after giving effect to the issuance of Notes requested to be made on such date.</TD>
</TR>

</TABLE>
</DIV>


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



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

<P align="center" style="font-size: 10pt"><!-- Folio -->-54-<!-- /Folio -->
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 6<BR>
AFFIRMATIVE COVENANTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holdings and the Corporation hereby jointly and severally agree that, except as is
otherwise consented to in writing by the Purchasers, so long as any amount or obligation in
respect of any Note is owing to any Purchaser, each of Holdings and the Corporation shall
and shall cause each of its Subsidiaries to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.1 Financial Statements.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furnish to each of the Purchasers:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 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).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Purchasers that such statements are available via
EDGAR or SEDAR, as the case may be, on the Internet.
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.2 Certificates; Other Information.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furnish to each of the Purchasers:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>concurrently with the delivery of any financial statements pursuant to Section&nbsp;6.1, (i)
a Compliance Certificate containing all information and calculations reasonably necessary
for determining compliance by each Group Member with the provisions of this Indenture
referred to therein as of the last day of the fiscal quarter or fiscal year of Holdings, as
the case may be, and (ii)&nbsp;to the extent not previously disclosed to the Purchasers, (A)&nbsp;a
description of any change in the jurisdiction of organization or name of any Note Party,
and (B)&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);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;<B>Projections</B>&#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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;
provided, that such delivery shall be deemed to have been made upon delivery of notice to
the Purchasers that such narrative discussion and analysis is available via EDGAR or SEDAR,
as the case may be, on the Internet;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>within five Business days after the execution thereof, copies of any amendment,
supplement, waiver or other modification with respect to the Senior Credit Agreement;</TD>
</TR>

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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>within five days after the same are sent, copies of all financial statements and
reports that Holdings or the Corporation 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 Corporation may make
to, or file with, the SEC or pursuant to other applicable securities laws; provided, that
such delivery shall be deemed to have been made upon delivery of notice to the Purchasers
that such statements or reports are available via EDGAR or SEDAR, as the case may be, on
the Internet;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;
provided, 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 any Purchaser, 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 Corporation shall provide copies of such documents and notices promptly
after receipt thereof; 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>promptly, such additional financial and other information as any Purchaser may from
time to time reasonably request.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.3 Payment of Obligations.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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: 12pt"><B>6.4 Maintenance of Existence; Compliance.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Preserve, renew and keep in full force and effect the organizational existence of
each Note 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;7.3 or Section&nbsp;11.18 or as may
otherwise occur in connection with a Permitted Reorganization and except, in the</TD>
</TR>

</TABLE>
</DIV></DIV>
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<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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.5 Maintenance of Property; Insurance.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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: 12pt"><B>6.6 Inspection of Property; Books and Records; Discussions.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Purchasers 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 for all Purchasers, 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 for all Purchasers, except during the
continuance of an Event of Default) and (c)&nbsp;upon reasonable notice and during normal
business hours, permit representatives of the Purchasers 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 limited to no
more than three discussions per calendar year in the aggregate for all Purchasers, in each
case except during the continuance of an Event of Default).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.7 Notices.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly give notice to each Purchaser of:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the occurrence of any Default or Event of Default;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

</TABLE>
</DIV></DIV>
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</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any litigation or proceeding affecting any Group Member (i)&nbsp;in which the
amount involved is US$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 Note Document;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;an ERISA Event, (ii)&nbsp;the receipt by any Group Member or any ERISA</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 a
Responsible Officer of Holdings or the Corporation knows or has reason to know
thereof; 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any development or event that has had or would reasonably be expected to
have a Material Adverse Effect.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.8 Environmental Laws.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;6.8(a),
non-compliance 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
non-compliance, 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 non-compliance with Environmental Law, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.</TD>
</TR>

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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.9 Interest Rate Protection.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of the Corporation, except to the extent (and only for so long as)
interest rate protection arrangements are not in the reasonable judgment of the
administrative agent under the Senior Credit Agreement generally available in the market or
are not available on commercially reasonable terms, within 180&nbsp;days after the closing date
of the Acquisition, enter into Swap Agreements to the extent necessary to provide that at
least 50% of the aggregate principal amount of the Indebtedness under the Term Loans and
the Indebtedness under the Notes 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 of the
Acquisition, which Swap Agreements shall have terms and conditions reasonably satisfactory
to the administrative agent under the Senior Credit Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.10 Guarantors; Ownership of Assets by Note Parties.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Note Party, promptly cause such new Material Subsidiary (A)&nbsp;to become a party
to the Guarantee, and (B)&nbsp;to deliver to the Purchasers a certificate of such new Material
Subsidiary, substantially in the form of Exhibit&nbsp;C, with appropriate insertions and
attachments, and, if requested by the Purchasers, deliver to the Purchasers 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 Purchasers.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Ensure that at all times the Note Parties directly account for no less than 85% of
Consolidated EBITDA. Any Subsidiary organized outside of the United States and Canada may
become a Subsidiary Guarantor by (i)&nbsp;executing and delivering to the Purchasers the
Guarantee as the Purchasers may reasonably deem necessary or advisable, (ii)&nbsp;delivering to
the Purchasers a certificate of such Subsidiary, substantially in the form of</TD>
</TR>

</TABLE>
</DIV></DIV>
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<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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exhibit&nbsp;C, with appropriate insertions and attachments and (iii)&nbsp;if requested by
the Purchasers, delivering to the Purchasers 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 Purchasers.</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchasers may, in their reasonable discretion, grant Holdings and its Subsidiaries
up to 30&nbsp;days to comply with paragraph (a)&nbsp;above (in addition to any grace period provided
under Article&nbsp;10).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.11 Mandatory Application of Certain Proceeds.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any Indebtedness shall be incurred by any Group Member (excluding any Indebtedness
incurred in accordance with Section&nbsp;7.1, other than paragraph 7.1(o) thereof), 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 or any
portion thereof as set forth in the Senior Credit Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 to the Purchasers 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 or any portion thereof as set forth in the Senior
Credit Agreement; provided, that the Corporation may without penalty withhold amounts owing
pursuant to this Section&nbsp;6.11(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;6.11(b) shall
exceed US $25,000,000 in the aggregate; provided, further, 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 or any portion thereof as set forth in the Senior Credit
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If, for any fiscal year of the Corporation commencing with the fiscal year ending
December&nbsp;31, 2009, there shall be &#147;Excess Cash Flow&#148; as that term is defined in the Senior
Credit Agreement, the Corporation 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
or any portion thereof as set forth in the Senior Credit Agreement.Each such prepayment shall be made on a date (an &#147;<B>Excess Cash Flow Application</B></TD>

</TR>

</TABLE>
</DIV></DIV>
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<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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Date</B>&#148;) no later than three Business days after the earlier of (i)&nbsp;the date on which
the financial statements of Holdings referred to in Section&nbsp;6.1(a), for the fiscal
year with respect to which such prepayment is made, are required to be delivered to
the Purchasers and (ii)&nbsp;the date such financial statements are actually delivered.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.12 Effect of Changes to Senior Credit Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event (a)&nbsp;any amendments are made to articles 7, 8 or 9 of the Senior Credit
Agreement, (b)&nbsp;Holdings, Parent or any Subsidiary (including the Corporation) of either of
them enters into a Refinancing Credit Agreement, or (c)&nbsp;any amendments are made to the
covenants or events of default contained in any Refinancing Credit Agreement, in each case
with effect on or after the date hereof, Holdings, the Corporation and/or the New
Corporation, as the case may be, shall promptly provide a copy of the Triggering Amendments
to the Purchasers and shall thereupon offer, and shall be deemed to have offered, to make
corresponding amendments to this Indenture, to the extent the Corporation or New
Corporation, as the case may be, is not restricted from making such amendments to &#147;Senior
Notes&#148; pursuant to section 8.9 of the Senior Credit Agreement (the &#147;<B>Offered Amendments</B>&#148;).
Upon receipt of such offer, the Purchasers may accept the offer to make some or all of the
Offered Amendments (the &#147;<B>Accepted Amendments</B>&#148;), and the Accepted Amendments shall be
effective as of the date on which the Triggering Amendments are effective. Holdings and
the Corporation shall do, execute and deliver, or shall cause to be done, executed and
delivered, all such further acts, documents (including certificates and opinions) and
things as the Purchasers may reasonably request for the purpose of giving effect to the
Accepted Amendments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.13 Rights Offering.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holdings shall, promptly and expeditiously following the Closing Date, conduct and
complete a rights offering as required by the Subscription Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6.14 Reduction of Indebtedness Using Cash on Hand.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall, on or before June&nbsp;10, 2009, repay at least $100,000,000 of
principal outstanding under the Revolving Loans and cancel the revolving commitments of the
lenders under the Senior Credit Agreement to the extent of such repayment, all without
incurring any Indebtedness that will remain outstanding after such repayment or resorting
to any of the proceeds realized from the investment described in the Subscription Agreement
or from the rights offering described in Section&nbsp;6.13.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-62-<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 7<BR>
NEGATIVE COVENANTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holdings and the Corporation hereby jointly and severally agree that, except as is
otherwise consented to in writing by the Purchasers, so long as any amount or obligation in
respect of any Note is owing to any Purchaser, each of Holdings and the Corporation shall
not, and shall not permit any of its Subsidiaries to, directly or indirectly:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.1 Indebtedness.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Create, issue, incur, assume, become liable in respect of or suffer to exist any
Indebtedness, except:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness of any Note Party pursuant to any Note Document;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness (i)&nbsp;of the Corporation to any Subsidiary or Holdings, (ii)&nbsp;of any
Wholly Owned North American Subsidiary Guarantor to Holdings, the Corporation or any other
Subsidiary, (iii)&nbsp;of any Subsidiary that is not a Note Party to any other Subsidiary that
is not a Note 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 Corporation 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;7.7(h) and outstanding at
such time that are made in the form of intercompany loans and (y)&nbsp;US$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;7.7(o));</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Guarantee Obligations incurred in the ordinary course of business by the
Corporation, the Parent or any Subsidiaries of Indebtedness or other obligations of (i)&nbsp;any
Wholly Owned North American Subsidiary Guarantor or the Corporation and (ii)&nbsp;any other
Subsidiary, in an aggregate principal amount under this clause (ii)&nbsp;not to exceed
US$50,000,000 at any one time outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness outstanding on the date hereof and listed on Schedule&nbsp;7.1(d) and any
refinancings, refundings, renewals or extensions thereof (without increasing, or shortening
the maturity of, the principal amount thereof);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness (including, without limitation, Capital Lease Obligations) secured by
Liens permitted by Section&nbsp;7.2(g) in an aggregate principal amount not to exceed
US$50,000,000 at any one time outstanding;</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-63-<!-- /Folio -->

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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Indebtedness of the Corporation in respect of the Senior Credit Agreement and any
Refinancing Credit Agreement, and (ii)&nbsp;Guarantee Obligations of Holdings and any Subsidiary
Guarantor in respect of such Indebtedness;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Indebtedness of Precision Drilling Oilfield Services Corporation in respect of the Existing
Convertible Securities in an aggregate principal amount not to exceed 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness assumed in connection with any Permitted Acquisition; provided, 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)&nbsp;the aggregate principal amount of Indebtedness permitted by this Section
7.1(h), together with the aggregate principal amount of Indebtedness permitted by Section&nbsp;7.1(i),
shall not exceed US$100,000,000 at any time outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness incurred to finance any Permitted Acquisition in an aggregate principal amount,
together with the aggregate principal amount of Indebtedness permitted by Section&nbsp;7.1(h), not to
exceed US$100,000,000 at any time outstanding; (j)&nbsp;Indebtedness incurred by the Corporation, the
Parent or any Subsidiaries in connection with any Permitted Acquisition or Disposition permitted by
Section&nbsp;7.4 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness in respect of Specified Cash Management Agreements entered into in the ordinary
course of business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness in respect of any Centralized Banking Agreement;</TD>
</TR>

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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Convertible Debentures of Holdings in an aggregate principal amount not to exceed
US$500,000,000 at any one time outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness incurred to finance the Contingent Tax Liabilities in an aggregate principal
amount not to exceed US$175,000,000 at any one time outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness of the Corporation 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 US$100,000,000 at
any one time outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(r)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness representing deferred compensation to directors, officers, trustees, members of
management or employees (in their capacities as such) of the Corporation, Holdings, or any
Subsidiaries and incurred in the ordinary course of business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(s)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(t)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness arising in connection with endorsement of instruments for deposit in the ordinary
course of business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(u)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subject to the requirements of Section&nbsp;7.16, Indebtedness represented by Redemption Notes
incurred to satisfy Holdings&#146; obligation to repurchase Trust Units at the option of the holders
thereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness incurred by a Securitization Subsidiary in a Qualified Securitization Financing
that is non recourse (except for Standard Securitization Undertakings) to the Corporation or any of
its Subsidiaries (other than such Securitization Subsidiary); provided, 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</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>receivables sale or factoring arrangements, shall not exceed US$100,000,000 at
any one time outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(w)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>additional Indebtedness of the Corporation, Holdings (after a Permitted
Reorganization) or any Subsidiaries in an aggregate principal amount (for the
Corporation, Holdings and all Subsidiaries) not to exceed US$125,000,000 at any one
time outstanding; 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness of the Corporation under the Bridge Credit Agreement (to the
extent that Indebtedness is not fully repaid by the application of the proceeds of
the &#147;Investment&#148; as that term is defined in the Subscription Agreement) until
repaid from the proceeds of the rights offering referred to in Section&nbsp;6.13.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of this Section&nbsp;7.1, 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.2 Liens.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Create, incur, assume or suffer to exist any Lien upon any of its property, whether
now owned or hereafter acquired, except:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens for taxes not yet due or that are being contested in good faith by
appropriate proceedings, provided 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 US$5,000,000 in the aggregate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pledges or deposits in connection with workers&#146; compensation, unemployment
insurance, road transportation and social security regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>easements, rights-of-way, restrictions and other similar encumbrances incurred in
the ordinary course of business that, in the aggregate, do not</TD>
</TR>

</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="center" style="font-size: 10pt"><!-- Folio -->-66-<!-- /Folio -->

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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Corporation or any
Subsidiary;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens in existence on the date hereof listed on Schedule&nbsp;7.2(f), securing
Indebtedness permitted by Section&nbsp;7.1(d), provided 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens securing Indebtedness of the Parent, the Corporation or any Subsidiary
incurred pursuant to Section&nbsp;7.1(e) to finance the acquisition, construction, installation
or improvement of fixed or capital assets, provided 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;<B>Subject Property</B>&#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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens created in favour of any of the Secured Parties (as that term is defined in
the US Guarantee and Collateral Agreement described in the Senior Credit Agreement)
pursuant to the security documents now or hereafter delivered under the Senior Credit
Agreement and/or the other loan documents, swap agreements, cash management agreements,
operating facilities and other documents secured by the Liens granted in connection with
the Senior Credit Agreement, and any Liens substantially similar to the foregoing which are
granted in respect of any Refinancing Credit Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any interest or title of a lessor under any lease entered into by the Parent, the
Corporation or any Subsidiary in the ordinary course of its business and covering only the
assets so leased;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>customary Liens on cash, Cash Equivalents and other assets that are not Collateral
(as defined in the Senior Credit Agreement) securing Indebtedness incurred pursuant to
Section&nbsp;7.1(n) to the extent granted in the ordinary course of business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens securing Indebtedness of the Parent, the Corporation or any Subsidiary
incurred pursuant to Section&nbsp;7.1(h), provided 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;</TD>
</TR>

</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-67-<!-- /Folio -->

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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Liens placed upon the Capital Stock of any Subsidiary acquired pursuant to a
Permitted Acquisition to secure Indebtedness of the Parent, the Corporation or any other
Subsidiary incurred pursuant to Section&nbsp;7.1(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 Corporation or such other
Subsidiary;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens securing Indebtedness of the Corporation or any Subsidiary (and Guarantee
Obligations of Holdings in respect of Specified Operating Facilities) incurred pursuant to
Section&nbsp;7.1(q), provided that such Liens (except in the case of Specified Operating
Facilities) do not at any time encumber any property of Holdings, the Corporation or any
Subsidiary Guarantor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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
Corporation and all Subsidiaries) US$125,000,000 at any one time;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens on the Securitization Assets in connection with a Qualified Securitization Financing; 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Corporation pursuant
to such Sale and Repurchase Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of this Section&nbsp;7.2, 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: 12pt"><B>7.3 Fundamental Changes.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any Subsidiary may be merged, amalgamated or consolidated with or into the
Corporation or the Parent (provided that the Corporation or the</TD>
</TR>

</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="center" style="font-size: 10pt"><!-- Folio -->-68-<!-- /Folio -->

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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Corporation or the Parent, as
the case may be, under the Note Documents) or with or into any Wholly Owned North American
Subsidiary Guarantor (provided 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 Note Documents);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holdings, the Corporation and any Subsidiary may Dispose of any or all of its
assets (i)&nbsp;to the Parent, the Corporation or any Wholly Owned North American Subsidiary
Guarantor (upon voluntary liquidation, dissolution or winding up or otherwise) or (ii)
pursuant to a Disposition permitted by Section&nbsp;7.4 (provided that in no case may Holdings
Dispose of the Capital Stock of the Corporation except to a Wholly Owned North American
Subsidiary Guarantor and except in connection with a Permitted Reorganization);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;any Subsidiary that is not a Note 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 Note 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holdings and/or the Corporation and/or their respective direct and/or indirect
Subsidiaries, as the case may be, may enter into a Permitted Reorganization notwithstanding
any other provision contained in this Indenture but subject to the requirements of the
definition thereof;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any Investment expressly permitted by Section&nbsp;7.7 may be structured as a merger,
consolidation or amalgamation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Precision Drilling Trust may be terminated or wound-up in connection with or
following a Permitted Reorganization where there is a new Parent; and</TD>
</TR>

</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="center" style="font-size: 10pt"><!-- Folio -->-69-<!-- /Folio -->
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>following a Permitted Reorganization where there is a new Parent, the Corporation may
be merged, amalgamated or consolidated with or into the new Parent; provided, 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
Corporation under the Note Documents and (iii)&nbsp;the new Parent and or the Corporation shall
deliver or cause to be delivered any legal opinions (subject to customary qualifications
and exclusions) or other documents reasonably requested by Purchasers in connection with
any such transaction.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.4 Disposition of Property.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Disposition of obsolete or worn out property in the ordinary course
of business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the sale of inventory in the ordinary course of business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dispositions
permitted by Section&nbsp;7.3;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;the sale or issuance of any Subsidiary&#146;s Capital Stock to
Holdings, the Parent, the Corporation or any Wholly Owned North American Subsidiary
Guarantor or (ii)&nbsp;the sale or issuance of the Capital Stock of a non Note Party to Holdings
or any Subsidiary;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dispositions of property not otherwise permitted under this Section
7.4; provided, that to the extent any individual Disposition or series of related
Dispositions involve property with a fair market value in excess of US$3,000,000 (i)&nbsp;such
Dispositions are made for fair market value and for at least 80% cash consideration and
(ii)&nbsp;the Net Cash Proceeds of such Dispositions are applied pursuant to Section&nbsp;6.11(b)
(subject to the Corporation&#146;s and the Parent&#146;s reinvestment rights pursuant thereto);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dispositions of property and issuances of the Capital Stock of Subsidiaries not otherwise
permitted under this Section&nbsp;7.4 to the extent (i)&nbsp;the fair market value of such
Dispositions and issuances does not exceed US$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
6.11(b)</TD>
</TR>

</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-70-<!-- /Folio -->
</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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(subject to the Corporation&#146;s and the Parent&#146;s reinvestment rights pursuant
thereto);</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(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; provided, that
the aggregate face amount of accounts 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 US$100,000,000;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dispositions of cash or Cash Equivalents;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>transfers of property subject to
casualty events upon receipt of the proceeds of such casualty events; 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dispositions constituting Investments permitted pursuant to Section&nbsp;7.7(h).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.5 Restricted Payments.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the last sentence of Section&nbsp;7.13, 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;<B>Restricted Payments</B>&#148;), except that:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any Subsidiary may make
Restricted Payments to Holdings, the Corporation or any Wholly Owned North American
Subsidiary Guarantor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;any Subsidiary that is not a Note Party may make Restricted
Payments to any other Subsidiary that is not a Note Party or to a Note Party and (ii)&nbsp;any
Foreign Subsidiary Guarantor may make Restricted Payments to any other Foreign Subsidiary
Guarantor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>so long as no Default or Event of Default shall have occurred and be
continuing, the Corporation 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</TD>
</TR>

</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-71-<!-- /Folio -->
</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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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, provided, 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 Corporation after the date hereof in connection with resales of any
Trust Units or Capital Stock or options thereon so purchased) shall not exceed
US$10,000,000;</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 (ii)&nbsp;above other than distributions of Redemption
Notes themselves, collectively, &#147;<B>Distributions</B>&#148;), in an aggregate amount for all such
Distributions not to exceed the Trust Distribution Amount for such Computation Period;
provided, 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</TD>
</TR>

</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-72-<!-- /Folio -->
</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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;7.5(d);</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation 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 Corporation 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; provided, that the aggregate amount of payments made
pursuant to clause (iii)&nbsp;shall not exceed US$1,000,000 in any calendar year;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Indenture.</TD>
</TR>

</TABLE>
</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: 12pt"><B>7.6 Capital Expenditures.</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Make or commit to make any Capital Expenditure, except:
</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="center" style="font-size: 10pt"><!-- Folio -->-73-<!-- /Folio -->
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Capital Expenditures of the Corporation, 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;<B>Scheduled Amount</B>&#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 Scheduled
Amount set forth opposite such fiscal year in the column labeled &#147;<B>Maximum Expansion Capital
Expenditures</B>&#148;):</TD>
</TR>

</TABLE>
</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 nowrap align="center" colspan="3">Total Capital</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Maximum Expansion</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Fiscal Year Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Expenditures</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">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 align="right">$</TD>
    <TD align="right">404,171,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">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 align="right">$</TD>
    <TD align="right">368,011,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">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 align="right">$</TD>
    <TD align="right">416,572,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">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 align="right">$</TD>
    <TD align="right">411,210,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">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 align="right">$</TD>
    <TD align="right">412,574,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">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 align="right">$</TD>
    <TD align="right">418,677,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">235,167,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provided, that (i)&nbsp;the maximum amount of Capital Expenditures and the Maximum Expansion
Capital Expenditures for the fiscal years ending December&nbsp;31, 2015, 2016 and 2017 shall
each be determined by the Corporation, acting reasonably and in good faith and having
regard to then current market conditions, the pro forma compliance of the Trust and the
Corporation with the terms hereof (giving effect to the incurrence of such Capital
Expenditures) and such other facts and assumptions as the Corporation, acting reasonably
and in good faith, deems appropriate, and (ii)&nbsp;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 (A)&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 (I)&nbsp;90&nbsp;days after the end of such fiscal year and (II)&nbsp;the date
on which audited financial statements are delivered for such year pursuant to Section
6.1(a) and (B)&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:</TD>
</TR>

</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-74-<!-- /Folio -->
</DIV>



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



</TABLE>
</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" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Fiscal Year Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">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 align="right">$</TD>
    <TD align="right">935,551,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">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 align="right">$</TD>
    <TD align="right">963,942,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">December&nbsp;31, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">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 align="right">$</TD>
    <TD align="right">1,022,789,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provided, further, that (iii)&nbsp;the threshold Consolidated EBITDA for the fiscal years ending
December&nbsp;31, 2014, 2015, 2016 and 2017 shall each be determined by the Corporation, acting
reasonably and in good faith and having regard to the then current market conditions, the
pro forma compliance of the Trust and the Corporation with the terms hereof (giving effect
to the incurrence of the planned Capital Expenditures for the applicable fiscal year) and
such other facts and assumptions as the
Corporation, acting reasonably and in good faith, deems appropriate, (iv)&nbsp;any Scheduled
Amount of Capital Expenditures permitted during any fiscal year pursuant to this Section
7.6(a) and any Trust Conversion Capex permitted for a particular fiscal year pursuant to
Section&nbsp;7.6(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 (v)&nbsp;Capital
Expenditures made pursuant to this Section&nbsp;7.6(a) during any fiscal year shall be deemed
made, first, in respect of amounts permitted for such fiscal year as provided above and,
second, in respect of amounts carried over from the prior fiscal year pursuant to clause
(iv)&nbsp;above; provided, further, that the Corporation, 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 US$75,000,000 of the Capital Expenditures permitted to be made
during the fiscal year ending December&nbsp;31, 2010 (the &#147;<B>Capex Carryback</B>&#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;7.6(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.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to the Capital Expenditures permitted pursuant to paragraph (a)&nbsp;above, to the
extent Holdings undertakes a Permitted</TD>
</TR>

</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-75-<!-- /Folio -->
</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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reorganization during or prior to such fiscal years, the Corporation, the Parent or any
Subsidiary may make additional Capital Expenditures
(&#147;<B>Trust Conversion Capex</B>&#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;7.5(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;7.5(d) after giving effect to such Permitted
Reorganization.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.7 Investments.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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;<B>Investments</B>&#148;), except:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>extensions of
trade credit in the ordinary course of business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investments in Cash Equivalents,
provided 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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Guarantee
Obligations permitted by Section&nbsp;7.1 and (ii)&nbsp;performance guarantees by the Parent, the
Corporation 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; provided, that, to the extent the Parent, the Corporation
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&nbsp;7.7(o) (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</TD>
</TR>

</TABLE>
</DIV>

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


<P align="center" style="font-size: 10pt"><!-- Folio -->-76-<!-- /Folio -->
</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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>services performed by any property temporarily deployed to consummate such
performance);</TD>
</TR>

</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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
US$25,000,000 at any one time outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments in assets (including Capital
Stock) useful in the business of the Parent, the Corporation and any Subsidiaries made by
the Parent, the Corporation or any Subsidiaries with the proceeds of any Reinvestment
Deferred Amount;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>intercompany Investments by any Group Member in the Parent, the
Corporation or any Person that, prior to such investment, is a Wholly Owned North American
Subsidiary Guarantor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Investments by any Subsidiary that is not a Note Party in any
other Subsidiary that is not a Note Party and (ii)&nbsp;Investments by any Foreign Subsidiary
Guarantor in any other Foreign Subsidiary Guarantor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments in the ordinary course
of business by any Note Party in any Wholly Owned Subsidiary that is not a Note Party of
any drilling rigs, service rigs or other
related equipment owned by such Note Party, and which at the time of any such
Investment are in the reasonable judgment of the Corporation able to be more optimally
utilized by such Wholly Owned Subsidiary that is not a Note Party than by any Note Party;
provided, that (i)&nbsp;Holdings and the Corporation remain in compliance with Section&nbsp;6.10
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
Corporation, 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);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;Investments in a
Securitization Subsidiary in connection with a Qualified Securitization Financing;
provided, however, 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)
purchases of Securitization Assets pursuant to a Securitization Repurchase Obligation in
connection with a Qualified Securitization Financing;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Permitted Acquisitions;</TD>
</TR>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->-77-<!-- /Folio -->
</DIV>


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



</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments existing on the Closing Date and identified in Schedule&nbsp;7.7(k) 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;7.7;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments consisting of any deferred portion of the
sales price received by the Parent, the Corporation or any Subsidiary in connection with
any Disposition permitted under Section&nbsp;7.4;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in addition to Investments otherwise expressly permitted by this Section&nbsp;7.7,
Investments by the Parent, the Corporation or any Subsidiary in an aggregate amount (valued
at cost net of return of Investments) not to exceed US$125,000,000 during the term of this
Indenture; 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Precision Drilling Limited Partnership may make cash distributions in
the form of loans as permitted by Section&nbsp;7.5(d).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.8 Optional Payments and Modifications of Certain Debt Instruments.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 any subordinated Indebtedness or any Convertible Debentures
(excluding, for the avoidance of doubt, the Existing Convertible Securities); provided,
that so long as no Default or Event of Default shall have occurred and be continuing or
would result therefrom during the term of this Indenture up to US$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 any subordinated Indebtedness or any Convertible
Debentures; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>amend, modify, waive or otherwise change, or consent or agree to any
amendment, modification, waiver or other change to, any of the terms of any subordinated
Indebtedness or any Convertible Debentures in any manner that would be materially adverse
to the Purchasers (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</TD>
</TR>

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

<P align="center" style="font-size: 10pt"><!-- Folio -->-78-<!-- /Folio -->
</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: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>principal thereof or reduce the rate or extend any date for payment of interest
thereon).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.9 Transactions with Affiliates.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Corporation or any Wholly Owned
North American Subsidiary Guarantor), except:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Restricted Payments permitted by Section
7.5;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments permitted by Sections&nbsp;7.7(d), (f), (g), (h)&nbsp;and (o) (in respect of
intercompany Investments);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>employment and severance arrangements between the Corporation,
Holdings and any Subsidiaries and their directors, officers, trustees, employees and
members of management in the ordinary course of business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Acquisition and the
transactions contemplated by the Acquisition Documents in connection therewith; 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any Disposition of Securitization Assets or related assets in connection with any Qualified
Securitization Financing.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">unless such transaction is (i)&nbsp;otherwise permitted under this
Indenture, (ii)&nbsp;in the ordinary course of business of the relevant Group Member, and (iii)
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: 12pt"><B>7.10 Sales and Leasebacks.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
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;7.1(e) and 7.2(g).
</DIV>




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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">-79-
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.11 Swap Agreements.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enter into any Swap Agreement, except (a)&nbsp;Swap Agreements entered into to hedge or
mitigate risks to which the Parent, the Corporation 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 Corporation or any Subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.12 Changes in Fiscal Periods.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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: 12pt"><B>7.13 Clauses Restricting Subsidiary Distributions.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enter into or suffer to exist or become effective any consensual encumbrance or
restriction on the ability of any Note Party to (a)&nbsp;make Restricted Payments in respect of
any Capital Stock of such Note Party held by, or pay any Indebtedness owed to, the
Corporation or any other Subsidiary, (b)&nbsp;make loans or advances to, or other Investments
in, the Corporation or any other Subsidiary or (c)&nbsp;transfer any of its assets (except under
any financings in connection with (A)&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),
(B)&nbsp;any agreements governing Indebtedness assumed under Section&nbsp;7.1(h) (in which case, any
prohibition or limitation shall only be effective against the assets acquired in the
relevant Permitted Acquisition) and (C)&nbsp;any agreements governing Indebtedness incurred
under Section&nbsp;7.1(q) (in which case, any prohibition or limitation shall only be effective
against assets located outside of the United States and Canada), in each case in respect of
the assets financed thereby) to the Corporation or any other Subsidiary, except for such
encumbrances or restrictions existing under or by reason of (i)&nbsp;any restrictions existing
under this Indenture, the other Note Documents, the Senior Credit Agreement or any
Refinancing 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 Corporation or any Subsidiary which
is required to be subordinated in connection with Indebtedness permitted by Section&nbsp;7.1,
(iv)&nbsp;encumbrances
or restrictions existing under agreements existing on the date hereof and listed on
Schedule&nbsp;7.13, (v)&nbsp;any agreement or other instrument of a Person acquired by Holdings, the
Corporation or any Subsidiary in existence at the time of such acquisition (but not created
in contemplation thereof), which encumbrance or restriction
</DIV>
</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->-80-<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 this Indenture,
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 Indenture and the other Note Documents. To the extent any restriction on
making Restricted Payments or payments of Indebtedness to, or loans or advances to, or transfers of
assets to, Holdings, the Corporation or any Subsidiary contained in this Indenture would result in
a breach of section 8.15 of the Senior Credit Agreement, such restriction in this Indenture shall
be construed in a manner so as not to result in a breach of section 8.15 of the Senior Credit
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.14 Material Change in Business.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change its primary business from the oil and gas energy services business (including
any business currently carried on by the Corporation or any Subsidiaries or referred to in
the Prospectus) 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: 12pt"><B>7.15 Amendments to Material Contracts.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Purchasers; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-81-<!-- /Folio -->

<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Declaration except for any such modification that is not materially adverse to the
Purchasers or is in connection with a Permitted Reorganization or is otherwise
permitted under Section&nbsp;7.3.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7.16 Redemption Notes.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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)&nbsp;the same are
subordinated and postponed, in form and substance satisfactory to the Purchasers, 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 Purchasers, acting
reasonably.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 8<BR>
CERTAIN OBLIGATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8.1 Additional Restrictions if Certain Thresholds Not Met.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Consolidated Leverage Ratio measured as at the last day of any period of four
consecutive fiscal quarters of Holdings beginning June&nbsp;30, 2009 exceeds 2.50 to 1.00, or
if, following a Permitted Reorganization, the Consolidated Debt to Capitalization Ratio
measured as at the last day of any fiscal quarter exceeds 0.30 to 1.00, then Holdings shall
not declare or make any Distribution (except for Distributions permitted by Section&nbsp;7.5(e))
at any time until it has delivered a Compliance Certificate pursuant to Section&nbsp;6.2(a) in
which (A)&nbsp;the Consolidated Leverage Ratio as at and for the period ending on the last day
of the applicable fiscal quarter, adjusted to give pro forma effect to the Distribution, is
less than
2.50 to 1.00, and (B)&nbsp;the Consolidated Debt to Capitalization Ratio as at the last
day of the applicable fiscal quarter, adjusted to give pro forma effect to the
Distribution, is less than 0.30 to 1.00.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Debt Incurrence. Except for Indebtedness permitted to be incurred pursuant to
paragraphs (a), (b), (c), (d), (f) (provided (i)&nbsp;such Indebtedness does not exceed the
maximum authorized principal amount under the agreements referred to in that paragraph as
of the most recent fiscal
quarter end after the Closing Date that the Consolidated Leverage Ratio was first greater
than 2.50 to 1.00 or the Consolidated Debt to Capitalization Ratio was first greater than
0.30 to 1.00 and (ii)&nbsp;Indebtedness under the incremental facilities referred to in section
2.25 of the Senior Credit Agreement shall only be permitted to the extent such Indebtedness
is incurred to pay or secure the Contingent Tax Liabilities or reduces the Indebtedness
described in Section&nbsp;7.1(p)), (g), (h), (j), (k), (l),</TD>
</TR>



</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-82-<!-- /Folio -->

<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(m), (n), (p), (q) (provided the aggregate principal amount of such Indebtedness
does not exceed US$60,000,000), (r), (s), (t), (u)&nbsp;and (x)&nbsp;of Section&nbsp;7.1, each of
Holdings and the Corporation shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, incur any Indebtedness that would rank
senior to or pari passu with the Indebtedness represented by the Notes (including
interest thereon and any Make-Whole Amount in respect thereof) if, after giving pro
forma effect to the incurrence of such Indebtedness, as at and for the period
ending on the last day of the most recently completed fiscal quarter in respect of
which Holdings has delivered or is required to have delivered a Compliance
Certificate pursuant to Section&nbsp;6.2(a), (A)&nbsp;the Consolidated Leverage Ratio would
have been greater than 2.50 to 1.00, or (B)&nbsp;if the Indebtedness is to be incurred
following a Permitted Reorganization, the Consolidated Debt to Capitalization Ratio
would have been greater than
0.30 to 1.00.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Capital Expenditures. If the Consolidated Leverage Ratio measured as at the last day
of any period of four consecutive fiscal quarters of Holdings beginning June&nbsp;30, 2009
exceeds 2.50 to 1.00, or if, following a Permitted Reorganization, the Consolidated Debt to
Capitalization Ratio measured as at the last day of any fiscal quarter exceeds 0.30 to
1.00, then each of Holdings and the Corporation shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, incur or agree to incur Capital Expenditures other
than Approved Capital Expenditures.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8.2 Covenant Suspension.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During any period of time that Holdings and/or the Corporation have a Moody&#146;s
corporate family rating of Baa3 or higher and an S&#038;P corporate family rating of BBB- or
higher (collectively, an &#147;<B>Investment Grade Rating</B>&#148;) and no Default or Event of Default has
occurred and is then continuing, Holdings (or the Parent, as applicable) and the
Corporation will not be subject to Section&nbsp;7.5 (Restricted Payments), Section&nbsp;7.6 (Capital
Expenditures), Section&nbsp;7.7 (Investments), Section&nbsp;7.8 (Optional Payments and Modifications
of Certain Debt Instruments),
Section&nbsp;7.9 (Transactions with Affiliates), Section&nbsp;7.10 (Sales and Leasebacks),
Section&nbsp;7.13 (Clauses Restricting Subsidiary Distributions) and Section&nbsp;7.16 (Redemption
Notes) (collectively, the &#147;<B>Suspended Covenants</B>&#148;). In the event that Holdings (or the
Parent, as applicable) and the Corporation are not subject to the Suspended Covenants for
any period of time as a result of the preceding sentence and, subsequently, (i)&nbsp;one or both
of Moody&#146;s and S&#038;P withdraw their ratings or downgrade the corporate family rating assigned
to Holdings and/or the Corporation such that Holdings and/or the Corporation do not have an
Investment Grade Rating, or (ii)&nbsp;Holdings (or the Parent, as applicable) or any of its
Subsidiaries enters into an agreement to effect a transaction that would result in a Change
of Control and either Moody&#146;s or S&#038;P notifies Holdings (or the Parent, as
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-83-<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">applicable) in writing that if consummated, such transaction (alone or together with any
recapitalization or refinancing transactions) would cause such ratings agency to withdraw its
rating or downgrade the rating assigned to Holdings and/or the Corporation such that Holdings
and/or the Corporation will not have an Investment Grade Rating, then Holdings (or the Parent, as
applicable) and the Corporation will thereafter again be subject to the Suspended Covenants, it
being understood that no actions taken by (or omissions of) Holdings (or the Parent, as applicable)
or the Corporation during the suspension period shall constitute a Default or an Event of Default
under the Suspended Covenants.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 9<BR>
CHANGE OF CONTROL OFFER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9.1 Change of Control Offer.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within 30&nbsp;days following the occurrence of a Change of Control, and subject to the
provisions and conditions of this Section&nbsp;9.1, the Corporation shall be obligated to offer
to purchase the Notes. The terms and conditions of such obligation are set forth below:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>
Within 30&nbsp;days following the occurrence of a Change of Control, the Corporation shall
deliver to the holders of the Notes a notice stating that there has been a Change of
Control and specifying the circumstances surrounding such event (a &#147;<B>Change of Control
Notice</B>&#148;) together with an offer in writing (the &#147;<B>Offer</B>&#148;) to purchase all then outstanding
Notes made in accordance with the requirements of applicable law at a price equal to 100%
of the aggregate principal amount of all of the Notes, plus the Make-Whole Amount
determined for the effective date of the Change of Control with respect to such principal
amount (the &#147;<B>Offer Price</B>&#148;) plus accrued and unpaid interest on such Notes up to, but
excluding, the date of acquisition by the Corporation or a related party of such Notes
(collectively, the &#147;<B>Total Offer Price</B>&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Corporation shall, on or before 11:00&nbsp;a.m. (Calgary Time), on the Business day
immediately following the expiry of the Offer, deposit with the holders of the Notes which
have accepted the Offer such sums of money as may be sufficient to pay the Total Offer
Price of the Notes respectively held by such holders.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that one or more of such Notes being purchased in accordance with this
Section&nbsp;9.1 becomes subject to purchase in part only, upon surrender of such Notes for
payment of the Total Offer Price, the Corporation shall execute and deliver without charge
to the holder thereof</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-84-<!-- /Folio -->

<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>or upon the holder&#146;s order, one or more new Notes for the portion of the principal
amount of the Notes not purchased.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notes for which holders have accepted the Offer shall become due and payable at the
Total Offer Price on the date of expiry of the Offer, in the same manner and with the same
effect as if it were the date of maturity specified in such Notes, anything therein or
herein to the contrary notwithstanding, and from and after such date of expiry of the
Offer, if the money necessary to purchase the Notes shall have been deposited as provided
in this Section&nbsp;9.1 and affidavits or other proofs satisfactory to the holders of such
Notes as to the publication and/or mailing of such notices shall have been lodged with it,
interest on the Notes shall cease.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 10 <BR>EVENTS
OF DEFAULT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10.1 Events of Default.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the following events shall occur and be continuing:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Corporation shall fail to pay any principal of any Notes when due in accordance
with the terms hereof; or the Corporation shall fail to pay any interest on any Note
(except to the extent the payment of such interest is deferred in accordance with Section
2.4(b)), or any other amount payable hereunder or under any other Note Document, within
five days after any such interest or other amount becomes due in accordance with the terms
hereof; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any representation or warranty made or deemed made by any Note Party herein
or in any other Note 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
Indenture or any such other Note Document shall prove to have been inaccurate in any
material respect on or as of the date made or deemed made; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any Note Party shall
default in the observance or performance of any agreement contained in clause (i)&nbsp;or (ii)
of Section&nbsp;6.4(a) (with respect to Holdings and the Corporation only), Section&nbsp;6.7(a) or
Article&nbsp;7 of this Indenture; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any Note Party shall default in the observance or
performance of any other agreement contained in this Indenture or any other Note 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</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-85-<!-- /Folio -->

<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>case of Section&nbsp;6.10, 60&nbsp;days) after notice to the Corporation from the Purchasers; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any Group Member shall (i)&nbsp;default in making any payment of any principal of any
Indebtedness (including any Guarantee Obligation, but excluding the Notes) 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 referred to in clause (i), (ii)&nbsp;or (iii)&nbsp;above 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)
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
US$25,000,000; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;any Note 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 Note 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 Note Party (other than Precision Drilling Trust) any case, proceeding or other
action seeking issuance of a</TD>
</TR>


</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Note 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
Note 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)
any Note 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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;an ERISA
Event shall have occurred or (ii)&nbsp;any Note 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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>one or more judgments or decrees shall be entered against any Note 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 US$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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Guarantee shall cease, for any
reason, to be in full force and effect in all material respects, or any Note Party shall so
assert, and such event shall continue unremedied for a period of 30&nbsp;days; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>




</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Indebtedness or other material liabilities or financial obligations, except
(w)&nbsp;the Indebtedness in respect of the Convertible Debentures, the Redemption
Notes, the Indebtedness under the Senior Credit Agreement 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 Note Documents to
which it is a party and (z)&nbsp;obligations with respect to its Trust Units, or (iii)
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;7.5 pending application in the
manner contemplated by said Section) and cash equivalents) other than the ownership
of shares of Capital Stock of its Subsidiaries;</TD>
</TR>

</TABLE>
</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), (ii)&nbsp;or (vii)&nbsp;of
paragraph (f)&nbsp;above with respect to Holdings or the Corporation, automatically the
Notes (with accrued interest thereon), the Make-Whole Amount determined in respect
of the aggregate principal amount of the Notes at such time (to the full extent
permitted by applicable law) and all other amounts owing under this Indenture and
the other Note Documents shall immediately become due and payable, and (B)&nbsp;if such
event is any other Event of Default, the Purchasers may, by notice to the
Corporation declare the Notes (with accrued interest thereon), the Make-Whole
Amount determined in respect of the aggregate principal amount of the Notes at such
time (to the full extent permitted by applicable law) and all other amounts owing
under this Indenture and the other Note Documents to be due and payable forthwith,
whereupon the same shall immediately become due and payable. Holdings and the
Corporation acknowledge, and the parties hereto agree, that each holder has the
right to maintain its investment in the Notes free from repayment by the
Corporation and that the provision for payment of a Make-Whole Amount by the
Corporation in the event that the Notes are accelerated as a result of an Event of
Default, is intended to provide compensation for the deprivation of such right
under such circumstances. Except as expressly provided above in this Article&nbsp;10,
presentment, demand, protest and all other notices
of any kind are hereby expressly waived by the Corporation.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 11<BR>
MISCELLANEOUS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.1 Amendments and Waivers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither this Indenture, any other Note 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 or as otherwise expressly permitted hereunder in connection with a Permitted
Reorganization. The Purchasers and each Note Party party
</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 -->-88-<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to the relevant Note Document may, from time to time, (a)&nbsp;enter into written amendments,
supplements or modifications hereto and to the other Note Documents for the purpose of adding any
provisions to this Indenture or the other Note Documents or changing in any manner the rights of
the Purchasers or of the Note Parties hereunder or thereunder or (b)&nbsp;waive, on such terms and
conditions as the Purchasers may specify in such instrument, any of the requirements of this
Indenture or the other Note Documents or any Default or Event of Default and its consequences. Any
such waiver and any such amendment, supplement or modification shall apply equally to each of the
Purchasers and shall be binding upon the Note Parties, the Purchasers and all future holders of the
Notes. In the case of any waiver, the Note Parties and the Purchasers shall be restored to their
former position and rights hereunder and under the other Note 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: 12pt"><B>11.2 Notices.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
Corporation and the Purchasers, 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="30%">&nbsp;</TD>
    <TD width="5%">&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">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 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</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">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"><!-- 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">Corporation:
</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 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</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">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"><!-- 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">Purchasers:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c/o Alberta Investment Management 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">Room&nbsp;340, 9515 &#151; 107th 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">Edmonton, AB T5K 2C3 Canada</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 -->-89-<!-- /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="30%">&nbsp;</TD>
    <TD width="5%">&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">Attention: Senior Vice President, Public Equities</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: (780)&nbsp;427-5136</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provided that any notice, request or demand to or upon any Purchaser shall not be effective until
received.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the parties hereto may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to procedures approved
by it; provided that approval of such procedures may be limited to particular notices or
communications.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.3 No Waiver; Cumulative Remedies.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No failure to exercise and no delay in exercising, on the part of any Purchaser, any
right, remedy, power or privilege hereunder or under the other Note 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: 12pt"><B>11.4 Survival of Representations and Warranties.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All representations and warranties made hereunder, in the other Note Documents and in
any document, certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Indenture and the purchase of the Notes
hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.5 Payment of Expenses.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation agrees (a)&nbsp;to pay or reimburse Alberta Investment Management
Corporation 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 Indenture and the other Note 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 Purchasers, with statements with respect to the foregoing to
be submitted to the Corporation 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 Purchasers shall deem appropriate, (b)&nbsp;to pay or reimburse each
Purchaser and Alberta Investment Management Corporation for all their out-of-pocket costs
and expenses incurred in connection with the enforcement, preservation of any rights under,
or the restructuring or workout of, this Indenture, the other Note Documents and any such
other documents, including the
</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="center" style="font-size: 10pt"><!-- Folio -->-90-<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">fees and disbursements of counsel to each Purchaser, and (c)&nbsp;to pay, indemnify, and hold each
Purchaser and Alberta Investment Management Corporation and their respective officers, directors,
employees, affiliates, agents, advisors and controlling persons (each, an &#147;<B>Indemnitee</B>&#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 Indenture, the other
Note Documents and any such other documents, including any of the foregoing relating to the use of
proceeds of the Notes 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 Purchaser of credit to any Group Member,
purchasing any Note, 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 Note Party under any Note Document (all the foregoing in this clause (c), collectively,
the &#147;<B>Indemnified Liabilities</B>&#148;), provided, that the Corporation 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 Indenture or any
other Note Document, no Indemnitee shall be liable for any special, indirect, consequential or
punitive damages in connection with its activities related to this Indenture or any other Note
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 Corporation
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
</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 -->-91-<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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 Notes
and all other amounts payable hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.6 Successors and Assigns; Participations and Assignments.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provisions of this Indenture 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;neither Holdings nor the Corporation may assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of each Purchaser (and any
attempted assignment or transfer by Holdings or the Corporation without such consent shall
be null and void) and (ii)&nbsp;no Purchaser may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section and applicable law; provided,
that, notwithstanding the foregoing and any other provision of this Indenture to the
contrary, (A)&nbsp;the Corporation may assign its rights and obligations hereunder without the
consent of the Purchasers to the New Corporation resulting from a
Permitted Reorganization or a Person that assumes the Notes pursuant to Section&nbsp;2.7, in
each case so long as the New Corporation assumes all obligations of the Corporation under
this Indenture and any other applicable Note Documents pursuant to documentation reasonably
acceptable to the Purchasers (which documentation shall provide that the original
Corporation is released to the extent the New Corporation has assumed its obligations) and
complies with all other obligations under this Indenture in respect thereof, and (B)
Holdings may assign its rights and obligations hereunder without the consent of the
Purchasers to the Parent resulting from a Permitted Reorganization so long as the Parent
assumes all obligations of Holdings under this Indenture and any other applicable Note
Documents pursuant to documentation reasonably acceptable to the Purchasers (which
documentation shall provide that Holdings is released to the extent the Parent has assumed
its obligations) and complies with all other obligations under this Indenture in respect
thereof.</TD>
</TR>

</TABLE>
</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="2%">&nbsp;</TD>

    <TD width="4%" style="background: transparent">(b)</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Purchaser may assign to one or more assignees (each, an
&#147;<B>Assignee</B>&#148;) all or a portion of its rights and obligations under this
Indenture with the prior written consent of the Corporation (such consent
not to be unreasonably withheld or delayed), provided that no consent of
the Corporation shall be required for an assignment to another Purchaser,
an affiliate of any Purchaser, any other Person whose funds are managed by
Alberta Investment Management Corporation or, if an Event of Default has
occurred and is continuing, any other Person.</TD>
</TR>


</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-92-<!-- /Folio -->

<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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The parties to each assignment shall execute and deliver to each other an Assignment
and Assumption.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>From and after the effective date specified in each Assignment and Assumption the
Assignee thereunder shall be a party hereto as a Purchaser 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 Purchaser under this Indenture in addition to any
rights theretofore held by it as a Purchaser, and the assigning Purchaser thereunder shall,
to the extent of the interest assigned by such Assignment and Assumption, be released from
its obligations under this Indenture (and, in the case of an Assignment and Assumption
covering all of the assigning Purchaser&#146;s rights and obligations under this Indenture, such
Purchaser shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections&nbsp;2.8 and 11.5). Any assignment or transfer by a Purchaser of rights or
obligations under this Indenture that does not comply with this Section&nbsp;11.6 shall not be
effective as an assignment
hereunder.</TD>
</TR>

</TABLE>
</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="2%">&nbsp;</TD>

    <TD width="4%" style="background: transparent">(c)&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Purchaser may, without the consent of Holdings or the Corporation, sell participations
to one or more banks or other entities, which may not be the Corporation, Holdings or any
Subsidiary or affiliate of the Corporation or Holdings (a
&#147;<B>Participant</B>&#148;) in all or a portion of such Purchaser&#146;s rights and obligations under
this Indenture; provided that (A)&nbsp;such Purchaser&#146;s obligations under this Indenture
shall remain unchanged, (B)&nbsp;such Purchaser shall remain solely responsible to the
other parties hereto for the performance of such obligations and (C)&nbsp;Holdings, the
Corporation and each of the other Purchasers shall continue to deal solely and
directly with such Purchaser in connection with such Purchaser&#146;s rights and
obligations under this Indenture. Any agreement pursuant to which a Purchaser sells
such a participation shall provide that such Purchaser shall retain the sole right
to enforce this Indenture and to approve any amendment, modification or waiver of
any provision of this Indenture; provided that such agreement may provide that such
Purchaser will not, without the consent of the Participant, agree to any amendment,
modification or waiver that directly affects such Participant. Subject to
paragraph (c)(ii) of this Section, Holdings and the Corporation agree that each
Participant shall be entitled to the benefits of Section&nbsp;2.8 to the same extent as
if it were a Purchaser and had acquired its interest by assignment pursuant to</TD>
</TR>



</TABLE>
</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="center" style="font-size: 10pt"><!-- Folio -->-93-<!-- /Folio -->

<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="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Purchaser, provided such Participant shall be subject to
Section&nbsp;11.7(a) as though it were a Purchaser.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A Participant shall not be entitled to receive any greater payment under
Section&nbsp;2.8 than the applicable Purchaser 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 Corporation&#146;s prior written
consent. Any Participant that is a Non-U.S. Purchaser shall not be entitled to the
benefits of Section&nbsp;2.8 unless such Participant complies with Section&nbsp;2.8(d).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.7 Adjustments; Set-off.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except to the extent that this Indenture, any other Note Document or a court order
expressly provides for payments to be allocated to a particular
Purchaser, if any Purchaser (a &#147;<B>Benefitted Purchaser</B>&#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;10.1(f), or otherwise), in a greater proportion than any such
payment to or collateral received by any other Purchaser, if any, in respect of the
Obligations owing to such other Purchaser, such Benefitted Purchaser shall purchase for
cash from the other Purchasers a participating interest in such portion of the Obligations
owing to each such other Purchaser, or shall provide such other Purchasers with the
benefits of any such collateral, as shall be necessary to cause such Benefitted Purchaser
to share the excess payment or benefits of such collateral ratably with each of the
Purchasers; provided, however, that if all or any portion of such excess payment or
benefits is thereafter recovered from such Benefitted Purchaser, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such recovery,
but without interest.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to any rights and remedies of the Purchasers provided by law, each
Purchaser shall have the right, if an Event of Default has occurred and is continuing,
without notice to Holdings or the Corporation, any such notice being expressly waived by
Holdings and the Corporation to the extent permitted by applicable law, upon any
Obligations becoming due and payable by the Corporation (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</TD>
</TR>

</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="center" style="font-size: 10pt"><!-- Folio -->-94-<!-- /Folio -->

<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Purchaser, any
affiliate thereof or any of their respective agencies to or for the credit or the
account of the Corporation. Each Purchaser agrees promptly to notify the
Corporation and the other Purchasers after any such application made by such
Purchaser, provided that the failure to give such notice shall not affect the
validity of such application.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.8 Counterparts.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Indenture may be executed by one or more of the parties to this Indenture 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 Indenture 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;5.1(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 Indenture signed by all the parties shall be lodged with the Corporation and at least
one of the Purchasers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.9 Severability.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any provision of this Indenture 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: 12pt"><B>11.10 Integration.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Indenture and the other Note Documents represent the entire agreement of
Holdings, the Corporation and the Purchasers with respect to the subject matter hereof and
thereof, and there are no promises, undertakings, representations or warranties by any
Purchaser relative to the subject matter hereof not expressly set forth or referred to
herein or in the other Note Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.11 GOVERNING LAW.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS INDENTURE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS INDENTURE
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
PROVINCE OF ALBERTA.</B>
</DIV>


</DIV>



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


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">-95-
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.12 Submission To Jurisdiction; Waivers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each party hereby irrevocably and unconditionally:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>submits for itself and its property in any legal action or proceeding relating to this
Indenture and the other Note Documents 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 Province of Alberta;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Corporation, as the case may be at its
address set forth in Section&nbsp;11.2 or at such other address of which the Purchasers shall
have been notified pursuant thereto;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.13 Acknowledgements.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Holdings and the Corporation hereby acknowledges that:
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has been advised by counsel in the negotiation, execution and delivery of this
Indenture and the other Note Documents;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>none of the Purchasers have any fiduciary
relationship with or duty to Holdings or the Corporation arising out of or in connection
with this Indenture or any of the other Note Documents, and the relationship between the
Purchasers, on one hand, and Holdings and the Corporation, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and
</TD>
</TR>
</TABLE>
</DIV></DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-96-<!-- /Folio -->
<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no joint venture is created hereby or by the other Note Documents or otherwise exists
by virtue of the transactions contemplated hereby among the Purchasers or among Holdings,
the Corporation and the Purchasers.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.14 Release of Guarantee.</B>
</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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding anything to the contrary contained herein or in any
other Note Document, the Purchasers shall (at the expense of the Corporation) take any
action requested by the Corporation having the effect of releasing any guarantee
obligations (i)&nbsp;to the extent necessary to permit consummation of any transaction not
prohibited by any Note Document (including, without limitation, any release of the
guarantee of a Subsidiary Guarantor in connection with a transfer of assets or Capital
Stock permitted by Sections&nbsp;7.3 and 7.4) 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;below.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At such time as the Notes and all other obligations under the Note Documents shall have
been paid in full, the Subsidiary Guarantors shall be released from the Guarantee in
accordance with section 6.15 thereof, all without delivery of any instrument or performance
of any act by any Person.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.15 Confidentiality.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Purchasers agrees to keep confidential all non-public information provided
to it by any Note Party or any Purchaser pursuant to or in connection with this Indenture
that is designated by the provider thereof as confidential; provided that nothing herein
shall prevent any Purchaser from disclosing any such information (a)&nbsp;to any other Purchaser
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;in connection with the
exercise of any remedy hereunder or under any other Note Document, or (i)&nbsp;if agreed by the
Corporation in its sole discretion, to any other Person.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-97-<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Purchaser acknowledges that information furnished to it pursuant to this
Indenture or the other Note Documents may include material non-public information
concerning Holdings 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: 12pt"><B>11.16 WAIVERS OF JURY TRIAL.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>HOLDINGS, THE CORPORATION AND THE PURCHASERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS INDENTURE OR ANY
OTHER NOTE DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.17 Judgment Currency.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If for the purpose of obtaining judgment in any court it is necessary to convert any
amount owing or payable to the Purchasers under this Indenture from the currency in which
it is due (the &#147;<B>Agreed Currency</B>&#148;) into a particular currency (the &#147;<B>Judgment Currency</B>&#148;), the
rate of exchange applied in that conversion shall be that at which the Purchasers, in
accordance with their 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 Corporation in respect of any amount owing
or payable under this Indenture to the Purchasers in the Agreed Currency shall,
notwithstanding any judgment and payment in the Judgment Currency, be satisfied only to the
extent that the Purchasers, in accordance with their 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 Purchasers could so purchase is less than the amount originally due in the Agreed
Currency, the Corporation shall, as a separate obligation and notwithstanding the judgment
or payment, indemnify the Purchasers against any loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11.18 Permitted Reorganization.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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
1.1 and that, notwithstanding any other provision hereof (other than such definition),
Holdings and/or the Corporation 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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<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 -->-98-<!-- /Folio -->

<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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>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 Purchasers that are not in the reasonable judgment
of the Purchasers materially detrimental to their interests; 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="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>following the
completion of such Permitted Reorganization in the manner prescribed above, all
representations and warranties herein 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.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Parent, the New Corporation (if applicable), the other entities resulting from the Permitted
Reorganization and the Purchasers, each acting reasonably, shall enter into such amendments and
other documents as may be required to give effect to the terms of this Indenture with respect to a
Permitted Reorganization and any consequential amendments required to preserve the substance of the
terms of this Indenture and the other Note Documents.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->-99-<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Indenture 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"><B>PRECISION DRILLING TRUST, by its Administrator,<BR>
PRECISION DRILLING CORPORATION</B><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">&#147;<I>Signed by Authorized Signatory</I>&#148;
&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"><B>PRECISION DRILLING CORPORATION</B><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">&#147;<I>Signed by Authorized Signatory</I>&#148;
&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"><B>HER MAJESTY THE QUEEN IN RIGHT<BR>
OF THE PROVINCE OF ALBERTA</B><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">&#147;<I>Signed by Authorized Signatory</I>&#148;
&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">&#147;<I>Signed by Authorized Signatory</I>&#148;
&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="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
