Document:

Revised and Restated Aquisition Agreement

 Exhibit 10.3 
 REVISED AND RESTATED 
 ACQUISITION AGREEMENT 
 THIS ACQUISITION AGREEMENT, dated as of August 23, 2005 (the “Agreement”), and revised and restated as of November 16, 2005,
is by and among Turnkey E&P Inc., an Alberta corporation (“TEP”), Turnkey E&P Corporation, a Nevada Corporation (“TEP US”) Tesco Corporation, an Alberta corporation (“Tesco”), Tesco
Corporation (US), a Delaware corporation (“Tesco US”) and Tesco Holding I, LP, a Delaware limited partnership (“Tesco Holding I”). 
 W I T N E S S E T H: 
 WHEREAS, it has been proposed that TEP US acquire certain of the assets of Tesco and of Tesco Holding I relating to their contract Casing Drilling® services business (the “Business”); 
 WHEREAS, the parties hereto desire to enter into this Agreement in order to set forth the terms and conditions of the acquisition of such assets
by TEP US; 
 NOW, THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements contained
herein, the parties hereto, intending to be legally bound, agree as follows: 
 ARTICLE I 
 THE TRANSACTION 
 Section 1.1 Sale
by Tesco and Tesco Holding I. 
 (a) Upon the terms and subject to the conditions set forth herein, at the Closing
(hereinafter defined) Tesco Holding I will sell, transfer, assign, and convey to TEP US good title in and to only the following assets (the “Tesco US Assets”), free and clear of any lien, lease, or encumbrance other than Permitted
Encumbrances: (i) the three land drilling rigs described on Schedule A1 (the “Tesco US Rigs”), (ii) the other related fixed assets described on Schedule A2, (iii) the lease of the warehouse premises
located at 4078 North Highway 16, Freer, Texas 78357 (the “Leased Warehouse”), (iv) all inventory items located in the Leased Warehouse at the Effective Time (as hereinafter defined); such inventory shall be substantially similar in
kind and quantity to the spare parts listed on Schedule A3, and (v) the drilling contracts listed on Schedule A4 (the “Tesco US Drilling Contracts”). 
 (b) Upon the terms and subject to the conditions set forth herein, at the Closing, Tesco or a Delaware limited partnership formed by Tesco
(“Tesco Holding II”) will sell, transfer, assign and convey to TEP US good title in and to only the following assets (the “Tesco Canada Assets”) free and clear of any lien, lease or encumbrance other than Permitted
Encumbrances (i) the one land drilling rig described on Schedule B1 (the “Tesco Canada Rig”), and (iv) the drilling contracts listed on Schedule B2 (the “Tesco Canada Drilling Contracts”). 

 (c) Except as listed on Schedules A1 through A4 and B1 through B2, inclusive, none of
Tesco, Tesco US, Tesco Holding I or Tesco Holding II (collectively, the “Tesco Companies”) will sell any assets to TEP or TEP US (collectively, the “TEP Companies”) as part of the transactions contemplated by this
Agreement and all other assets of the Tesco Companies, including without limitation any intellectual property, downhole tools and other specialized Casing Drilling® accessories of the Tesco Companies, shall be excluded from the Assets and retained by the Tesco Companies. 

Section 1.2 Purchase of the Assets. As consideration for the sale and transfer of the Assets, TEP US will (i) pay Tesco Holding I
$22,500,000 United States dollars and Tesco Holding II $7,500,000 (the “Assets Cash Portion”), (ii) assume at Closing all the liabilities and obligations of the Tesco Companies specifically listed on Schedule C (which
includes the obligations pursuant to the Tesco US Drilling Contracts and Tesco Canada Drilling Contracts accruing subsequent to the Effective Time) (the “Assumed Liabilities”), and (iii) deliver to Tesco Holding II or its
designee a warrant to purchase a number of shares of common stock of TEP calculated as five million (5,000,000) divided by the offering price for one share of common stock of TEP in the Offering as described below (the “Offering
Price”), such warrant to have a per share exercise price equal to 120% of the Offering Price and a term of two years following the Closing in accordance with the terms set forth in a Warrant Agreement to be agreed upon by TEP and Tesco or
its designee and finalized at or prior to the Closing (the “Warrant Agreement”). The Assets Cash Portion shall be payable by wire transfer to accounts designated by Tesco Holding I and Tesco Holding II, respectively at the Closing. Except
for the assumption of the Assumed Liabilities as provided pursuant to this Section 1.2, the TEP Companies shall not assume or be deemed to have assumed any debts or obligations of the Tesco Companies. 
 Section 1.3 Preferred Supplier Agreement. At the Closing, Tesco or its designee and TEP will also enter into a Preferred Supplier Agreement
in the form attached hereto as Schedule G (the “Preferred Supplier Agreement”). As consideration for the entry by Tesco or its designee into the Preferred Supplier Agreement with TEP, TEP will pay Tesco or its designee $5,000,000
United States dollars (“the Preferred Supplier Agreement Consideration”). The Preferred Supplier Agreement Consideration shall be payable by wire transfer to an account designated by Tesco or its designee at the Closing, and shall
be payable in addition to the Assets Cash Portion. 
 Section 1.4 Other Agreements. At the Closing, the applicable
parties hereto shall deliver: 
 (a) a certificate executed by an officer of each party hereto, on behalf of such party,
certifying the following: (i) copies of such party’s organizational documents certified by the applicable governmental agency, (ii) a copy of such party’s bylaws or regulations, as applicable, together with resolutions of the
members, managers or board of directors, as applicable, authorizing and approving this Agreement and the transactions contemplated by this Agreement, and (iii) the incumbency of each person executing on behalf of such party any document
executed and delivered by such party pursuant to the terms of this Agreement; 

 (b) a bill of sale, assignment, assumption agreement from each of Tesco Holding II and
Tesco Holding I with regard to their respective assets, executed by the applicable parties; 
 (c) the certificates required
by Sections 6.2(a) and 6.3(a); 
 (d) the Preferred Supplier Agreement in the form attached as Schedule G
executed by the applicable parties; 
 (e) a Warrant Agreement executed by TEP and Tesco or its designee; 
 (f) an agreement between TEP US and Tesco US whereby TEP US agrees to provide personnel services, following the Closing, for certain
drilling rigs leased by Tesco US from a third party (the “Personnel Supply Agreement”), executed by TEP US and Tesco US; and 
 (g) such other documents as any party hereto shall reasonably require. 
 This Agreement, the Preferred Supplier Agreement,
the Warrant Agreement, the Personnel Supply Agreement, and each of the other contracts, agreements and documents entered into by the parties are referred to collectively as the “Transaction Agreements”. 
 Section 1.5 Closing. The closing (the “Closing”) of the transactions contemplated by this Agreement (the
“Transaction”) shall take place at the offices of Tesco US in Houston, Texas as promptly as practicable (but in any event within two business days) following the date on which the last of the conditions set forth in Article
VI is fulfilled or waived, or at such other time and place as the parties hereto shall agree. The date on which the Closing occurs is referred to in this Agreement as the “Closing Date.” At the Closing, each of the parties
hereto shall take such actions required to be taken by it pursuant to the terms hereof at or before Closing. The Transaction will be effective as of 12:01 am on the Closing Date (the “Effective Time”). 
 Section 1.6 Taking of Necessary Action; Further Action. Each of the Tesco Companies will take all such reasonable and lawful action as may
be necessary or appropriate either before, at, or after the Closing in order to effectuate the Transaction in accordance with this Agreement and as necessary or desirable to carry out the purposes of this Agreement and to vest TEP US with full
right, title and possession to the Assets. Specifically, but not by way of limitation, the Tesco Companies shall deliver to the TEP Companies all files, data, records and other information set forth in tangible form (whether written or electronic)
which relate exclusively to the Tesco Canada Assets and Tesco US Assets (collectively, the “Assets”), and shall make available to the TEP Companies following the Closing, on reasonable notice and during normal business hours, all
other information related to the Assets, but not exclusively so, in the possession of the Tesco Companies. 
 Section 1.7 Allocation of
Drilling Contract Revenue. The Tesco Companies shall prepare invoices for all day rate Tesco US Drilling Contracts and Tesco Canada Drilling Contracts (collectively, the “Drilling Contracts”) for periods up to the Effective Time
and TEP US shall prepare invoices for periods after the Effective Time. With respect to turnkey or 

 
footage basis drilling contracts ongoing on the Effective Time, the TEP Companies shall conduct the accounting for such Drilling Contracts in cooperation
with the Tesco Companies through the completion of the relevant well, and shall invoice the customer on behalf of both parties. With respect to each such turnkey or footage basis contract, the TEP Companies shall determine the expenses for the well
and the revenue for the well, and the TEP Companies and the Tesco Companies shall agree upon an equitable apportionment of the revenue net of expenses (or of any loss) based upon both the number of days drilling is completed before and after the
Effective Time and the expenses incurred by the TEP Companies and the Tesco Companies respectively. 
 Section 1.8 Taxes. The Tesco
Companies shall be liable for and shall pay, and shall indemnify and save the TEP Companies harmless with respect to, any and all Taxes owing at or prior to the Effective Time and properly payable in connection with or relating to the pre-closing
activities of the Business or pre-closing ownership or use of the Assets (other than expressly assumed hereunder). Notwithstanding the foregoing, any transfer taxes or sales taxes applicable to the transfer of the Assets shall be borne by TEP.
“Taxes” for this purpose means all federal, provincial, state, local, foreign and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use,
withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits, customs, duties, or other taxes, fees, assessments, or government imposed charges of any kind whatever, together with any interest and any
penalties, additions to tax, or additional amounts with respect thereto, and the term “Tax” means any one of the foregoing Taxes. 
 Section 1.9 Prorations. Ad valorem taxes relating to the Assets shall be prorated between the Tesco Companies and the TEP Companies as of the Effective Time based upon estimates of the amount of such ad valorem taxes that will be due
and payable on the Assets during the year during which the Effective Time occurs. As soon as the amount of actual ad valorem taxes is known, the Tesco Companies and the TEP Companies shall readjust the amount to be paid by each party with the result
that the Tesco Companies shall pay for those ad valorem taxes attributable to the period of time up to and including the Effective Time and the TEP Companies shall pay for those ad valorem taxes attributable to the period thereafter. 
 Section 1.10 Like Kind Exchange. The Tesco Companies may consummate the sale of all or part of the Assets as part of a so-called like kind
exchange (the “Exchange”) pursuant to §1031 of the Internal Revenue Code of 1986, as amended, provided that (i) all costs, fees and expenses attendant to the Exchange shall be the responsibility of the Tesco Companies;
(ii) the Closing shall not be delayed or affected by reason for the Exchange nor shall the consummation or accomplishment of the Exchange be a condition precedent or condition subsequent to the Tesco Companies’ obligations and covenants
under this Agreement; (iii) the TEP Companies shall not be required to acquire or hold title to any property or assets other than the Assets for purposes of consummating the Exchange but rather the Exchange shall be affected through an
assignment by one or more of the Tesco Companies of its rights under this Agreement to a qualified intermediary. The TEP Companies shall not, by this Agreement or acquiescence to the Exchange, (1) have their rights under this Agreement,
including (without limitation) those that survive Closing, affected or diminished in any manner or (2) be responsible for compliance with or be deemed to have warranted to the Tesco Companies that the Exchange in fact complies with §1031
of the Internal Revenue Code of 1986, as amended. 

 ARTICLE II 
 REPRESENTATIONS AND 
 WARRANTIES OF THE TEP COMPANIES 
 The TEP Companies represent and warrant, jointly and severally, to the Tesco Companies as follows: 
 Section 2.1 Organization and Qualification. TEP is a corporation duly organized, validly existing and in good standing under the laws of the
Province of Alberta and has the requisite corporate power and authority to own, lease and operate its assets and properties and to carry on its businesses as now conducted, and to execute the Transaction Agreements and to consummate the Transaction
contemplated hereby and thereby. TEP US is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power and authority to own, lease and operate its assets and
properties and to carry on its businesses as now conducted, and to execute the Transaction Agreements and to consummate the Transaction contemplated hereby and thereby. 
 Section 2.2 Authority; Non-Contravention; Approvals. 
 (a) The Transaction Agreements
have been approved by the Boards of Directors of each of the TEP Companies, or will be so approved prior to Closing, and no other corporate proceedings (including any shareholder approvals) on the part of the TEP Companies are necessary to authorize
the execution and delivery of the Transaction Agreements or the consummation by the TEP Companies of the transactions contemplated hereby or thereby. This Agreement has been and at Closing each other Transaction Agreement will be duly executed and
delivered by each of the TEP Companies, and, assuming the due authorization, execution and delivery hereof by the Tesco Companies, constitute (and with respect to the other Transaction Agreements will at Closing constitute) a valid and legally
binding agreement of the TEP Companies enforceable against each of them in accordance with its terms, except that such enforcement may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or
relating to enforcement of creditors’ rights generally and (ii) general equitable principles. 
 (b) The execution
and delivery of this Agreement by the TEP Companies, the execution and delivery of the other Transaction Agreements by the TEP Companies, and the consummation by the TEP Companies of the transactions contemplated hereby do not and will not violate
or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in
a right of termination or acceleration under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the properties or assets of either of the TEP Companies under any of the terms, conditions or provisions of
(i) the charters of the TEP Companies, (ii) the bylaws of the TEP Companies, (iii) any statute, law, ordinance, rule, regulation, judgment, decree, order, injunction, writ, permit or license of any court or governmental authority
applicable to either of the TEP Companies or any of their properties or assets, or (iv) any note, bond, mortgage, indenture, deed of trust, license, 

 
franchise, permit, concession, contract, lease or other instrument, obligation or agreement of any kind to which the TEP Companies or either of them is now a
party or by which the TEP Companies or any of their properties or assets may be bound or affected. 
 (c) No declaration,
filing or registration with, or notice to, or authorization, consent or approval of, any governmental or regulatory body or authority is necessary for the execution and delivery of the Transaction Agreements by the TEP Companies or the consummation
by the TEP Companies of the transactions contemplated hereby or thereby. 
 Section 2.3 Brokers and Finders. Neither of the TEP
Companies has not entered into any contract, arrangement or understanding with any person or firm which may result in any obligation of any of the Tesco Companies to pay any finder’s fees, brokerage or agent commissions or other like payments
in connection with the Transaction. There is no claim for payment by either of the TEP Companies of any investment banking fees, finder’s fees, brokerage or agent commissions or other like payments in connection with the negotiations leading to
this Agreement or the consummation of the Transaction. 
 Section 2.4 Capitalization and Shareholding. Immediately after the Closing,
the shares of TEP to be purchased pursuant to the Offering will be validly issued, fully paid, nonassessable and free of preemptive rights, and TEP will be the 100% legal and beneficial owner of the shares of TEP US. No person will hold any right,
option or other right to acquire any other ownership interest in either of the TEP Companies. There are no agreements regarding the governance of either of the TEP Companies or the transfer of any shares of either of the TEP Companies other than as
may be issued pursuant to incentive stock options. The shares of the TEP Companies, when issued, will have been issued in compliance with all Applicable Laws (hereinafter defined), including, but not limited to, any applicable securities laws.

 Section 2.5 Absence of Undisclosed Liabilities. Except as disclosed in the disclosure schedule delivered by TEP and attached hereto
as Schedule E (the “TEP Disclosure Schedule”), the TEP Companies have not incurred any material liabilities or obligations (whether absolute, accrued, contingent or otherwise) of any nature, except liabilities or obligations under
this Agreement. 
 Section 2.6 No Violation of Law. Except as disclosed in the TEP Disclosure Schedule, neither of the TEP Companies
is in violation of, nor has it been given notice or been charged with any violation of, any law, statute, order, rule, regulation, ordinance or judgment (including, without limitation, any environmental law) of any governmental or regulatory body or
authority (collectively, all “Applicable Laws”). Except as disclosed in the TEP Disclosure Schedule, as of the date of this Agreement, no investigation or review by any governmental or regulatory body or authority with respect to
the TEP Companies or either of them is pending or to the knowledge of the TEP Companies, is contemplated or threatened, nor has any governmental or regulatory body or authority indicated an intention to conduct the same. The TEP Companies have all
permits (including without limitation environmental permits), licenses, franchises, variances, exemptions, orders and other governmental authorizations, consents and approvals necessary to own and operate their business. All activities of the TEP
Companies in connection with the Offering have been and will be conducted in compliance with all Applicable Laws, including, 

 
but not limited to, all securities laws, and none of the activities of the TEP Companies in connection with the Offering has, or will have, created any
liability of the TEP Companies or any of the Tesco Companies to any investor or potential investor. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 OF
THE TESCO COMPANIES 
 Tesco (for itself and Tesco Holding II once formed) and Tesco US and Tesco Holding I, jointly and severally,
hereby represent and warrant to the TEP Companies that: 
 Section 3.1 Organization and Qualification. Tesco is a corporation duly
organized, validly existing and in good standing under the laws of the Province of Alberta. Tesco US is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Tesco Holding I is, and upon its
formation prior to Closing Tesco Holding II will be, a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware. Each of the Tesco Companies has the requisite corporate power and authority to
own, lease and operate its assets and properties and to carry on its business as it is now being conducted. 
 Section 3.2 Authority;
Non-Contravention; Approvals. 
 (a) Tesco, Tesco US and Tesco Holding I each has and at Closing Tesco Holding II will
have full corporate or partnership power and authority to execute and deliver the Transaction Agreements and to consummate the transactions contemplated hereby and thereby. The Transaction Agreements have been approved by the Boards of Directors of
Tesco and Tesco US and the partners of Tesco Holding I, and will be so approved by the partners of Tesco Holding II prior to Closing, and no other corporate or partnership proceedings on the part of any of the Tesco Companies are necessary to
authorize the execution and delivery of the Transaction Agreements or the consummation by the Tesco Companies of the transactions contemplated hereby or thereby. This Agreement has been (and the other Transaction Agreements will at Closing be) duly
executed and delivered by the Tesco Companies, and, assuming the due authorization, execution and delivery hereof by TEP, constitutes (and with respect to the other Transaction Agreements will at Closing constitute) a valid and legally binding
agreement of the Tesco Companies, enforceable against the Tesco Companies (and with respect to the other Transaction Agreements will at Closing constitute) in accordance with its terms, except that such enforcement may be subject to
(i) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally and (ii) general equitable principles. 
 (b) Except as set forth in the disclosure schedule delivered by the Tesco Companies to TEP and attached hereto as Schedule F (the
“Tesco Companies Disclosure Schedule”), the execution and delivery of the Transaction Agreements by the Tesco Companies and the consummation by the Tesco Companies of the transactions contemplated hereby and thereby do not and will
not violate or result in a material breach of any provision of, or constitute a material default (or an event which, with notice or 

 
lapse of time or both, would constitute a material default) under, or result in the termination of, or accelerate the performance required by, or result in a
right of termination or acceleration under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the properties or assets of any of the Tesco Companies under any of the terms, conditions or provisions of
(i) the respective charters, bylaws or partnership agreements of any of the Tesco Companies, (ii) any statute, law, ordinance, rule, regulation, judgment, decree, order, injunction, writ, permit or license of any court or governmental
authority applicable to any of the Tesco Companies, or any of their respective properties or assets, or (iii) any note, bond, mortgage, indenture, deed of trust, license, franchise, permit, concession, contract, lease or other instrument,
obligation or agreement of any kind to which any of the Tesco Companies is now a party or by which any of the Tesco Companies or any of their respective properties or assets may be bound or affected, including, but not limited to, any Drilling
Contract. 
 (c) No declaration, filing or registration with, or notice to, or authorization, consent or approval of, any
governmental or regulatory body or authority is necessary for the execution and delivery of this Agreement by any of the Tesco Companies or the consummation by any of the Tesco Companies of the transactions contemplated hereby. 
 Section 3.3 Title. At Closing, either Tesco Holding I or Tesco Holding II will have good and indefeasible title to all of the Assets and all such
Assets shall be conveyed at the Closing free and clear of all mortgages, liens, pledges, charges, security interests or encumbrance of any nature whatsoever other than Permitted Encumbrances. For purposes hereof, Permitted Encumbrances means any
claim, encumbrance, charge, security interest or lien relating to (i) Taxes and assessments not yet delinquent or, if delinquent, that are being contested in good faith, (ii) inchoate liens, mechanic’s, materialmen’s and similar
liens securing obligations not due and (iii) other liens and matters which do not individually or in the aggregate materially and adversely impact the operation of the Assets. 
 Section 3.4 Drilling Contracts. Each Drilling Contract, at Closing, will be a valid, binding, and enforceable agreement with respect to Tesco
Holding I or Tesco Holding II, and to Tesco’s Knowledge (hereinafter defined), of the other parties thereto. There has not occurred any material breach or material default under the Drilling Contracts by any of the Tesco Companies, or, to
Tesco’s Knowledge, any other party thereto. No event has occurred which with the giving of notice or the passage of time would constitute a material default under any of the Drilling Contracts by any of the Tesco Companies, or, to Tesco’s
Knowledge, any other party thereto. None of the Tesco Companies nor, to the Knowledge of Tesco, any other party thereto, has assigned or delegated any of their rights under the Drilling Contracts. To Tesco’s Knowledge, there is no dispute among
the parties to any Drilling Contract as to the interpretation thereof or as to whether any party is in breach or default thereunder, and no party to any Drilling Contract has indicated its intention to, or suggested it may evaluate whether to,
terminate any Drilling Contract. “Tesco’s Knowledge” or to the “Knowledge of Tesco” or words of similar import means the current actual knowledge of the following officers or employees of Tesco: Robert M.
Tessari and Steven J. Smart and any other employees of Tesco or Tesco US with direct responsibility for the Assets. 

 Section 3.5 No Change; Location. Since January 1, 2005, the Assets have only been operated in
the ordinary course of business and there has been no material casualty or loss with respect to any of the Assets. The locations at which each Asset is located on the date of this Agreement are indicated in Schedules A4 and B2. 
 Section 3.6 Labor Matters. Schedule D sets forth a list of each of the key employees of the Tesco Companies who are to be hired by TEP US
(the “Business Employees”) and a description of each Business Employee’s position or function. Except as set forth in the Tesco Companies Disclosure Schedule, (i) there are no material controversies pending or, to
Tesco’s Knowledge, threatened between any Tesco Company and any of the Business Employees, (ii) Tesco US is not a party to a collective bargaining agreement or other labor union contract applicable to any Business Employee, nor to
Tesco’s Knowledge have there been any activities or proceedings of any labor union to organize any Business Employees, (iii) none of the Tesco Companies is a party to any written agreement, memorandum, or understanding with respect to the
employment of any Business Employee, and (iv) no unfair labor practice complaint or sex or age discrimination claim has been brought during the last five years against any of the Tesco Companies by any Business Employee before the U.S.
Department of Labor or any other governmental or regulatory authority, (v) there has been no work stoppage, strike or other concerted action by the Business Employees (vi) the Tesco Companies have complied in all material respects with all
applicable laws relating to employment of labor with respect to the Business Employees, including, without limitation, those relating to wages, hours and collective bargaining and (vii) to Tesco’s Knowledge, no Business Employee has any
intention to terminate his or her employment with a Tesco Company, either as a result of the Transaction or otherwise (except as contemplated hereby). The Tesco Companies Disclosure Schedule describes all bonuses and other compensation which will be
payable to any of the Business Employees as a result of the consummation of the Transaction, including but not limited to any obligation to pay severance payments. 
 Section 3.7 Employees Benefits. The Tesco Companies Disclosure Schedule contains a complete list of the “employee welfare benefit plans” (as that term is defined in Section 3(1) of the Employee
Retirement Income Security Act of 1974 (“ERISA”) currently maintained by Tesco, Tesco US, and their respective affiliates (the “Tesco Group”), in which any Business Employee participates (which plans are hereinafter
referred to as “Welfare Plans”). The Tesco Companies Disclosure Schedule also contains a complete list of “employee pension benefit plans” as that term is defined in Section 3(2) of ERISA maintained by any member of
the Tesco Group, or in which any such entity currently contributes or is required to contribute in which any Business Employees currently participate (which plans are hereinafter referred to as “Pension Plans”). No Business
Employees participate or have ever participated in any “multiemployer plan” (as that term is defined in Section 3(37) of ERISA). The Welfare Plans and Pension Plans, and any other plans of the type described in the first two sentences
of this Section 3.10 previously applicable at any time to the Tesco Group, are collectively referred to as “Company Plans”. The Tesco Group is or was in compliance in all material respects with the provisions of all
applicable laws, rules and regulations, including, without limitation, ERISA and the Internal Revenue Code of 1986, as amended (the “Code”), with respect to the Company Plans. None of the Pension Plans has incurred any
“accumulated funding deficiency” (as defined in Section 412(a) of the Code). Tesco has not incurred any liability to the Pension Benefit Guaranty 

 
Corporation under Section 4062, 4063 or 4064 of ERISA, or any withdrawal liability under Title IV of ERISA with respect to any multiemployer plan.

 Section 3.8 Litigation. Except as described in the Tesco Companies Disclosure Schedule, there are no claims, suits, actions, or
proceedings (a “Proceeding”) which relate to the Business or the Assets pending or, to the Knowledge of Tesco, threatened, before any court, governmental department, commission, agency, instrumentality or authority, or any
arbitrator. Except as described in the Tesco Companies Disclosure Schedule, none of the Tesco Companies is subject to any judgment, decree, injunction, rule or order of any court, governmental department, commission, agency, instrumentality or
authority, or any arbitrator which relates to the Business or the Assets. 
 Section 3.9 No Violation of Law. Except as indicated in
the Tesco Companies Disclosure Schedule, none of the Tesco Companies is in violation, in any material respect, of and has been given notice of or been charged with any material violation of, any law, statute, order, rule, regulation, ordinance or
judgment (including, without limitation, any Environmental Law, as defined in Section 3.13) of any governmental or regulatory body or authority with respect to the ownership or operation of the Assets. Except as disclosed in the Tesco
Companies Disclosure Schedule, as of the date of this Agreement, no investigation or review by any governmental or regulatory body or authority with respect to any of the Tesco Companies which relates to the Assets is pending or to the Knowledge of
Tesco contemplated or threatened, nor, to the Knowledge of Tesco, has any governmental or regulatory body or authority indicated an intention to conduct the same. The Tesco Companies have all permits (including without limitation Environmental
Permits (as defined in Section 3.13), licenses, franchises, variances, exemptions, orders and other governmental authorizations, consents and approvals necessary to own and operate the Assets as presently operated (collectively, the
“Company Permits”). None of the Tesco Companies is in violation, in any material respect, of the terms of any Company Permit. 
 Section 3.10 Environmental Matters. Except as set forth in the Tesco Companies Disclosure Schedule: 
 (a) no
notice, demand, request for information, citation, summons or order has been received, no complaint has been served, no penalty has been assessed, and no investigation, action, claim, suit, proceeding or review is pending or, to the Knowledge of
Tesco, is threatened by any governmental entity or other person with respect to the Business relating to or arising out of any Environmental Law (hereinafter defined); 
 (b) each of the Tesco Companies is and have been in compliance with all Environmental Laws and Environmental Permits (hereinafter defined)
with respect to the operation of the Business; and 
 (c) there are no liabilities of or relating to the Business of any kind
whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, arising under or relating to any Environmental Law and there are no facts, conditions, situations or set of circumstances which could reasonably be expected to
result in or be the basis for any such liability. 

 For purposes of this Agreement, (i) “Environmental Laws” means any and all laws, statutes,
ordinances, rules, regulations, orders or determinations of any Governmental Authority (hereinafter defined) pertaining to health or the environment currently in effect in any and all jurisdictions in which the Business owns property or conducts
business, including without limitation, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980, as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and
Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976, as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as
amended, the Hazardous Materials Transportation Act, as amended, and all other environmental conservation or protection laws, (ii) the term “Governmental Authority” includes the United States of America, as well as any other
foreign jurisdiction or state, county, city and political subdivisions in which any part of the business of the Business is conducted, and any agency, department, commission, board, bureau or instrumentality of any of them that exercises
jurisdiction over the Business, and (iii) “Environmental Permits” means all permits, licenses, certificates, registrations, identification numbers, applications, consents, approvals, variances, notices of intent, and exemptions
necessary for the ownership, use and/or operation of any facility or operation of the Business to comply with requirements of Environmental Laws. 
 Section 3.11 Brokers and Finders. None of the Tesco Companies has entered into any contract, arrangement or understanding with any person or firm which may result in the obligation of TEP or any of the Tesco Companies to pay any
finder’s fees, brokerage or agent commissions or other like payments in connection with the transactions contemplated hereby. There is no claim for payment by any of the Tesco Companies of any investment banking fees, finder’s fees,
brokerage or agent commissions or other like payments in connection with the negotiations leading to this Agreement or the consummation of the transactions contemplated hereby. 
 Section 3.12 Limitation of Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT,
(i) THE TESCO COMPANIES DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, AS TO THE CONDITION OF THE ASSETS (INCLUDING ANY WARRANTY AS TO THE MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE) AND (ii) THE TEP COMPANIES ARE ACQUIRING THE
ASSETS “AS IS, WHERE IS.” 
 THE TESCO COMPANIES ARE NOT MAKING ANY OTHER REPRESENTATIONS OR WARRANTIES, WRITTEN OR ORAL, STATUTORY, EXPRESS OR
IMPLIED, CONCERNING THE ASSETS, OR THE BUSINESS, ASSETS OR LIABILITIES OF THE TESCO COMPANIES. THE TEP COMPANIES ACKNOWLEDGE THAT, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NONE OF THE TESCO COMPANIES HAVE MADE, AND THEY HEREBY EXPRESSLY
DISCLAIM AND NEGATE ANY REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED, AT COMMON LAW, BY STATUTE OR OTHERWISE RELATING TO, AND THE TEP COMPANIES HEREBY EXPRESSLY WAIVE AND RELINQUISHE ANY AND ALL RIGHTS, CLAIMS AND CAUSES OF ACTION AGAINST THE TESCO
COMPANIES AND THEIR REPRESENTATIVES (OTHER THAN RIGHTS, CLAIMS AND CAUSES OF ACTION 

 
AGAINST THE TESCO COMPANIES AND THEIR REPRESENTATIVES INVOLVING FRAUD) IN CONNECTION WITH, THE ACCURACY, COMPLETENESS OR MATERIALITY OF ANY INFORMATION, DATA
OR OTHER MATERIALS (WRITTEN OR ORAL) HERETOFORE FURNISHED TO TEP OR THEIR REPRESENTATIVES BY OR ON BEHALF OF A TESCO COMPANY. WITHOUT LIMITING THE FOREGOING, NONE OF THE TESCO COMPANIES MAKES ANY REPRESENTATION OR WARRANTY WITH RESPECT TO ANY
FINANCIAL PROJECTION OR FORECAST RELATING TO THE BUSINESS, THE ASSETS OR LIABILITIES OF THE BUSINESS OR THE ASSETS. 
 ARTICLE IV

 CONDUCT OF BUSINESS PENDING THE TRANSACTIONS 
 Section 4.1 Conduct of Business of Tesco. Prior to the Effective Time, the Tesco Companies shall operate the Assets in, and only in, the usual, regular and ordinary course of business in substantially the same
manner as the Assets are operated on the date of this Agreement. Without limiting the generality of the foregoing, during the period from the date of this Agreement to the Effective Time, none of the Tesco Companies will, except as permitted or
contemplated by this Agreement,: 
 (a) Sell, lease or otherwise dispose of, or agree to sell, lease or otherwise dispose of,
any of the Assets (other than inventory in the ordinary course of business); 
 (b) Adopt, amend or terminate any Company Plan
applicable to the Business Employees; 
 (c) Amend in any material respect or terminate any Drilling Contract; 
 (d) Enter into any agreement to provide drilling services using the Assets without prior notification to TEP; or 
 (e) Enter into or modify any employment or severance agreement with any Business Employee, agree to increase the compensation of any
Business Employee, terminate any Business Employee, or hire any additional Business Employee without prior notification to TEP. 
 Section
4.2 Business Organization. Prior to the Effective Time, the Tesco Companies shall use their commercially reasonable efforts to (i) keep available the services of the Business Employees, and (ii) maintain and keep the Assets in as good
a repair and condition as presently exists. 
 Section 4.3 Acquisition Transactions. After the date hereof and prior to the Closing or
earlier termination of this Agreement, none of the Tesco Companies will initiate, solicit, negotiate, encourage or provide confidential information to facilitate, and none of the Tesco Companies shall, and shall cause any officer, director or
employee of any of the Tesco Companies, or any attorney, accountant, investment banker, financial advisor or other agent retained by any of them to, initiate, solicit, negotiate, encourage or provide non-public or confidential information to
facilitate, any proposal or offer to acquire any portion of the Assets. 

 ARTICLE V 
 ADDITIONAL AGREEMENTS 
 Section 5.1 Due Diligence. 
 (a) The Tesco Companies shall afford to TEP and its accountants, counsel, financial advisors and other representatives reasonable access
during normal business hours throughout the period prior to the Effective Time to all of its properties, books, contracts, personnel, representatives or contacts with governmental or regulatory authorities, agencies or bodies, commitments, and
records (including, but not limited to, tax returns and any and all records or documents which are within the possession of governmental or regulatory authorities, agencies or bodies, and the disclosure of which the Tesco Companies can facilitate or
control) as their representatives may reasonably request that are related to the Assets. Any investigation pursuant to this Section 5.1(a) shall be conducted in such manner as not to interfere unreasonably with the conduct of the
business of the Tesco Companies or with the performance of any of the employees of the Tesco Companies and at the sole risk of TEP. 
 (b) The TEP Companies shall afford to the Tesco Companies and their respective accountants, counsel, financial advisors and other representatives reasonable access during normal business hours throughout the period prior to the Effective
Time to all of their properties, books, contracts, personnel, representatives or contacts with governmental or regulatory authorities, agencies or bodies, commitments, and records (including, but not limited to, tax returns and any and all records
or documents which are within the possession of governmental or regulatory authorities, agencies or bodies, and the disclosure of which the TEP Companies can facilitate or control) as its representatives may reasonably request that are related to
the TEP Companies. Any investigation pursuant to this Section 5.2(b) shall be conducted in such manner as not to interfere unreasonably with the conduct of the business of the TEP Companies or with the performance of any of the employees
of the TEP Companies and at the sole risk of the Tesco Companies. 
 Section 5.2 Expenses and Fees. All costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses, unless otherwise agreed. 
 Section 5.3 Agreement to Cooperate. 
 (a) Subject to the terms and conditions herein
provided, each of the parties hereto shall use all reasonable efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make
effective the transactions contemplated by this Agreement, including using its reasonable efforts to obtain all necessary, proper or advisable waivers, consents and approvals under applicable laws and regulations to consummate and make effective the
transactions contemplated by this Agreement, including using its reasonable efforts to obtain all necessary or appropriate waivers, consents or approvals of third parties required in order to preserve material contractual relationships of the
Business and to lift any injunction or other legal bar to the Transaction (and, in such case, to proceed with the Transaction as expeditiously as possible). 

 (a) In the event any claim, action, suit, investigation or other proceeding by any
governmental body or other person or other legal or administrative proceeding is commenced that questions the validity or legality of the transactions contemplated hereby or seeks damages in connection therewith, whether before or after the
Effective Time, the parties hereto agree to cooperate and use their reasonable efforts to defend against and respond thereto. 
 Section
5.4 Public Statements. The parties shall consult with each other prior to issuing any press release or any written public statement with respect to this Agreement or the transactions contemplated hereby and shall not issue any such press release
or written public statement without the consent of the other party, which consent shall not be unreasonably withheld or delayed, except that TEP will have the right, without notice, to provide information regarding the Transaction for the purpose of
any offering material or disclosure required in connection with the Offering provided such information to the extent it references any of the Tesco Companies shall be subject to the prior written approval of the Tesco Companies such approval not to
be unreasonably withheld. 
 Section 5.5 Notification of Certain Matters. Each of the Tesco Companies and the TEP Companies agrees to
give prompt notice to the other of, and to use their respective commercially reasonable efforts to prevent or promptly remedy, (i) the occurrence or failure to occur or the impending or threatened occurrence or failure to occur, of any event
which occurrence or failure to occur would be likely to cause any of its representations or warranties in this Agreement to be untrue or inaccurate in any material respect (or in all respects in the case of any representation or warranty containing
any materiality qualification) at any time from the date hereof to the Effective Time and (ii) any material failure (or any failure in the case of any covenant, condition or agreement containing any materiality qualification) on its part to
comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder; provided, however, that the delivery of any notice pursuant to this Section 5.5 shall not limit or otherwise affect the
remedies available hereunder to the party receiving such notice. 
 Section 5.6 Retained Employees. With respect to the Business
Employees: 
 (a) Effective immediately following the Closing, TEP US shall offer employment to all of the Business Employees
on substantially the same terms as they are currently employed by any of the Tesco Companies, including any applicable seniority rights and benefits. Each such Business Employee who accepts a position shall hereinafter be referred to as a
“Retained Employee” and shall become an employee of TEP US, terminable at will. In order to facilitate the foregoing, the applicable Tesco Company shall, effective at the Closing, terminate the employment of all Business Employees
and take all appropriate steps necessary to comply with applicable law in connection with the termination of such Business Employees. 
 (b) Notwithstanding anything to the contrary contained in this Section 5.6, the parties acknowledge and agree that they do not intend to create any third-party 

 
beneficiary rights respecting any Business Employee as a result of the provisions hereof and specifically hereby negate any intention to so create any
third-party beneficiary rights. 
 (c) With respect to Retained Employees, the Tesco Companies will remain responsible for
medical expenses covered under their plans actually incurred prior to the Effective Time and TEP US will be responsible for all other medical expenses incurred on or after the Effective Time to the extent covered under their plans without the
application of any waiting period for coverage generally applicable to newly hired employees. The Tesco Companies shall make available, at such Business Employee’s expense, medical coverage under the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended, to the Business Employees to the extent required by applicable law. The Tesco Companies and the TEP Companies shall cooperate and coordinate with each other to provide continuity of health, hospitalization, life, travel and
accident insurance coverage for the Retained Employees. The cost of insurance coverage for the Retained Employees from and after the Effective Time shall be borne solely by the TEP Companies. 
 (d) The TEP Companies and the Tesco Companies shall complete and furnish to each other any other employee data as shall be reasonably
required from time to time for each party to perform and fulfill its obligations under this Section 5.6. 
 (e)
The Tesco Companies agree that they shall be solely responsible for all liability, costs and expenses (including attorneys’ fees) for all employment claims (collectively, the “Employment Claims”) by any employee or former
employee of such Tesco Company which accrued prior to the Effective Time relating to arbitrations, unfair labor practice charges, employment discrimination charges, wrongful termination claims, workers’ compensation claims, any
employment-related tort claim or other claims or charges of or by employees of such Tesco Company. The TEP Companies agree that they shall be responsible for all Employment Claims by any Retained Employee which accrued after the Effective Time
relating to arbitrations, unfair labor practice charges, employment discrimination charges, wrongful termination claims, workers’ compensation claims, any employment-related tort claim or other claims or charges of or by the Retained Employee.
The Tesco Companies Disclosure Schedule sets forth a description of any known Employment Claims by the Business Employees that have been filed or may be filed after the date hereof arising out of conditions, actions or events that occurred before
the Effective Time. 
 Section 5.7 Offering of Shares. 
 (a) TEP shall use its commercially reasonable efforts to complete a private or public offering of common shares and to solicit and close
subscriptions to purchase common shares of TEP for an amount to be determined by TEP in its sole discretion. (the “Offering”) , but in any event providing sufficient net proceeds to pay the Assets Cash Portion and the Preferred
Supplier Consideration hereunder, permit the TEP Companies to consummate the Transaction and provide adequate working capital for the TEP Companies to pursue their business plan. TEP shall control the manner in which the 

 
Offering is conducted, and shall have complete and absolute discretion to determine whether to accept subscriptions from any specific investor. TEP will
comply with applicable securities laws in connection with the Offering. 
 (b) None of the Tesco Companies shall have any
responsibility or liability with respect to any of the financial or other information contained in or statements made in the offering materials prepared in connection with the Offering. Any references to the Tesco Companies made in the offering
materials prepared in connection with the Offering will be subject to the prior written approval of the Tesco Companies, as the case may be. TEP agrees to and shall include a statement in the offering materials, in form and substance satisfactory to
the Tesco Companies, to the effect that none of the Tesco Companies has endorsed or shall be considered to be responsible for any of the offering material disclosures. TEP shall indemnify and hold harmless the Tesco Companies and their respective
Affiliates from and against any claims, actions, causes of action, arbitrations, proceedings, losses, damages, liabilities, judgments and expenses (including, without limitation, reasonable attorney’s fees) arising out of, resulting from, or in
connection with the Offering. 
 Section 5.8 Financial Statements. The Tesco Companies shall provide to TEP reasonable access (before
and after Closing) to any financial information required by TEP in order to comply with applicable securities laws in connection with the Offering, which will include the preparation by or on behalf of TEP and at TEP’s expense of audited
financial statements for the past three years and interim period to the time of Closing in connection with the Business. None of the Tesco Companies are making any representations or warranties with respect to any such financial information prepared
by or on behalf of TEP. TEP shall indemnify and hold harmless the Tesco Companies and their respective Affiliates from and against any claims, actions, causes of action, arbitrations, proceedings, losses, damages, liabilities, judgments and expenses
(including, without limitation, reasonable attorneys fees) arising out of or resulting from or in connection with such financial statements. 
 Section 5.9 Founders Funding. TEP shall obtain from its founders a minimum of $3,000,000 in new capital investment within the 48 hours following the execution of this Agreement. 
 ARTICLE VI 
 CONDITIONS TO CLOSING

 Section 6.1 Conditions to Each Party’s Obligation to Effect the Transaction. The respective obligations of each party to
effect the Transaction shall be subject to the fulfillment or waiver, if permissible, at or prior to the Effective Time of the following conditions: 
 (a) no preliminary or permanent injunction or other order or decree by any federal or state court which prevents the consummation of the Transaction shall have been issued and remain in effect (each party agreeing to
use its reasonable efforts to have any such injunction, order or decree lifted); 

 (b) no action shall have been taken, and no statute, rule or regulation shall have been
enacted, by any state or federal government or governmental agency in Canada or the United States which would prevent the consummation of the Transaction or make the consummation of the Transaction illegal; 
 (c) The appropriate Tesco Company and TEP shall enter or have entered into a mutually acceptable Warrant Agreement; and, 
 (d) Tesco (US) and TEP US shall enter or have entered into a mutually acceptable Personnel Supply Agreement. 
 Section 6.2 Conditions to Obligation of the Tesco Companies to Effect the Transaction. Unless waived by the Tesco Companies, the obligation of the
Tesco Companies to effect the Transaction shall be subject to the fulfillment at or prior to the Effective Time of the following additional conditions: 
 (a) The TEP Companies shall have performed in all material respects (or in all respects in the case of any agreement containing any materiality qualification) their agreements contained in this Agreement required to
be performed on or prior to the Closing Date and the representations and warranties of the TEP Companies contained in this Agreement shall be true and correct in all material respects (or in all respects in the case of any representation or warranty
containing any materiality qualification) on and as of the date made and on and as of the Closing Date as if made at and as of such date, and the Tesco Companies shall have received a certificate executed on behalf of each of the TEP Companies by an
officer of such company to that effect; 
 (b) TEP shall have received from its founders no less than $3,000,000 of new
capital investment no later than 48 hours following the execution of this Agreement; 
 (c) The Offering shall have been
successfully consummated; and 
 (d) Since the date of this Agreement there shall have been no changes that constitute, and no
event or events shall have occurred which have resulted in or constitute, a TEP Material Adverse Effect (hereinafter defined). “TEP Material Adverse Effect” means any event, occurrence, fact, condition, change, development or effect
that is or would reasonably be anticipated to be materially adverse to TEP or TEP US, or the operation of the Assets by TEP or TEP US, excluding however, any general economic or industry trends or conditions. 
 Section 6.3 Conditions to Obligations of the TEP Companies to Effect the Transaction. Unless waived by the TEP Companies, the obligations of the
TEP Companies to effect the Transaction shall be subject to the fulfillment at or prior to the Effective Time of the following additional conditions: 
 (a) The Tesco Companies shall have performed in all material respects (or in all respects in the case of any agreement containing any materiality qualification) its agreements contained in this Agreement required to
be performed on or prior to the Closing Date and the representations and warranties of the Tesco Companies contained in 

 
this Agreement shall be true and correct in all material respects (or in all respects in the case of any representation or warranty containing any
materiality qualification) on and as of the date made and on and as of the Closing Date as if made at and as of such date, and TEP shall have received a certificate executed on behalf of the Tesco Companies by appropriate officers to that effect;

 (b) Since the date of this Agreement there shall have been no changes that constitute, and no event or events shall have
occurred which have resulted in or constitute, a Tesco Material Adverse Effect; “Tesco Material Adverse Effect” means any event, occurrence, fact, condition, change, development or effect that is or would reasonably be anticipated
to be materially adverse to the Assets or the operation of the Assets by TEP or TEP US, excluding however, any general economic or industry trends or conditions; 
 (c) The Offering shall have been successfully consummated; and 
 (d) All third party consents required to the consummation of the Transaction described in the Tesco Companies Disclosure Schedule relating
to any permit, license or agreement shall have been obtained. 
 ARTICLE VII 
 INDEMNIFICATION 
 Section 7.1 Indemnification of TEP. The Tesco Companies
each agree to jointly and severally indemnify the TEP Companies (including their respective officers, directors, employees and agents) against, and hold each of them harmless from and against, any and all claims, actions, causes of action,
arbitrations, proceedings, losses, damages, liabilities, judgments and expenses (including, without limitation, reasonable attorneys’ fees) (“Indemnified Amounts”) incurred by the indemnified party as a result of (i) any
breach of the representations and warranties made by or on behalf of any of the Tesco Companies in this Agreement, (ii) any violation or breach by any of the Tesco Companies or default by any of the Tesco Companies of any of its respective
covenants under the terms of this Agreement, or (iii) the operation of the Business prior to the Effective Time, including the Employment Claims retained by the Tesco Companies pursuant to Section 5.6(e), but exclusive of the
Assumed Liabilities. The indemnified party shall be entitled to recover its reasonable and necessary attorneys’ fees and litigation expenses incurred in connection with successful enforcement of its rights under this Section 7.1.

 Section 7.2 Indemnification of the Tesco Companies. The TEP Companies each agree to jointly and severally indemnify the Tesco
Companies (and their respective officers, directors, employees, and agents) against, and hold each of them harmless from and against, any and all Indemnified Amounts incurred by the Tesco Companies (and their respective officers, directors,
employees, and agents) as a result of (i) any breach of any of the representations and warranties made by or on behalf of any of the TEP Companies in this Agreement, (ii) any violation or breach by any of the TEP Companies or default by
any of the TEP Companies of any of its covenants under the terms of this Agreement, (iii) the Assumed Liabilities, or (iv) the operation of the Business and the Assets subsequent to the Effective Time. The indemnified parties shall 

 
be entitled to recover their reasonable and necessary attorney’s fees and litigation expenses incurred in connection with successful enforcement of
their rights under this Section 7.2. 
 Section 7.3 Procedure. The defense of any claim, action, suit, proceeding or
investigation subject to indemnification under this Article VII shall be conducted by the indemnifying party. If the indemnifying party fails to conduct such defense, the indemnified parties may retain counsel satisfactory to them and the
indemnifying party shall pay all reasonable fees and expenses of such counsel for the indemnified parties promptly as statements therefor are received. The party not conducting the defense will use reasonable efforts to assist in the vigorous
defense of any such matter, provided that such party shall not be liable for any settlement of any claim effected without its written consent, which consent, however, shall not be unreasonably withheld or delayed. Any indemnified party wishing to
claim indemnification under this Article VII, upon learning of any such claim, action, suit, proceeding or investigation, shall notify the indemnifying party (but the failure so to notify a party shall not relieve such party from any
liability which it may have under this Article VII except to the extent such failure materially prejudices such party). If the indemnifying party is responsible for the attorneys’ fees of the indemnified parties, then the indemnified
parties as a group may retain only one law firm to represent them with respect to each such matter unless there is, under applicable standards of professional conduct, a conflict on any significant issue between the positions of any two or more
indemnified parties. 
 Section 7.4 Maximum Liability; Survival. The maximum liability pursuant each of Section 7.1 or
7.2 with respect to any breach of any of the representations and warranties set forth in this Agreement shall be US$10,000,000. Except as set forth in the following sentence, the representations, warranties and indemnities set forth in this
Agreement and in any certificate or instrument delivered in connection herewith shall be continuing and shall survive (subject to any applicable statute of limitations with respect to any claim by a third party) the Closing until the first
anniversary of the Closing Date. The period during which the representations and warranties survive pursuant to this Section 7.4 is referred to herein with respect to such representations and warranties as the “Survival
Period”. After the expiration of the applicable Survival Period, the representations and warranties shall thereafter terminate and be of no further force and effect unless a written notice asserting a claim shall have been made pursuant to
this Article VII within the Survival Period with respect to such matter. Any claim for indemnification made during the Survival Period shall remain in effect for purposes of such indemnification notwithstanding such claim may not be resolved
within the Survival Period. The indemnification obligations under this Article VII shall apply regardless of whether any suit or action results solely or in part from the active, passive or concurrent negligence of the indemnified
party. The rights of the parties to indemnification under this Article VII shall not be limited due to any investigations heretofore or hereafter made by such parties or their representatives, regardless of negligence in the conduct of
any such investigations. The representations, warranties and covenants and agreements made by the parties shall not be deemed merged into any instruments or agreements delivered in connection with the Closing or otherwise in connection with the
transactions contemplated hereby. Prior to the Closing, the sole remedy of any party hereto is limited to any amounts that may be due under Section 8.2. Following the Closing, the sole remedy of a party hereto for any claims, actions,
causes of action, arbitrations, proceedings, losses, damages, liabilities, judgments and expenses relating to the Transaction shall be indemnification under this Article VII. 

 Section 7.5 Limitations. 
 (a) In the event a party is entitled to indemnification pursuant to Sections 7.1 or 7.2 (the “Indemnified
Party”), no indemnification shall be made unless the aggregate amount of the Indemnified Amounts for the Indemnified Party exceed US$250,000 and, in such event, indemnification shall be made to the Indemnified Party only to the extent the
Indemnified Party’s Indemnified Amounts exceed US$250,000. 
 (b) The amount of any Indemnified Amounts shall be reduced
by (A) any insurance proceeds (net of retroactive premiums related to such Indemnified Amounts) received by the Indemnified Party with respect to such Indemnified Amounts under any insurance coverage or from any other party alleged to be
responsible for such Indemnified Amounts and (B) the amount of any net tax benefit available to the Indemnified Party relating to such the Indemnified Amounts. The Indemnified Party shall use commercially reasonable efforts to collect any
amounts available under such insurance coverage and from such other party alleged to have responsibility, and the costs incurred by the Indemnified Party in such efforts shall be considered in determining the amount of Indemnified Amounts. If the
Indemnified Party receives an amount under insurance coverage or from such other party with respect to the Indemnified Amounts at any time subsequent to any indemnification provided by the indemnitor under this Article VII, then such
Indemnified Party shall promptly reimburse the indemnitor for any payment made or expense incurred by the indemnitor in connection with providing such indemnification up to the net amount received by the Indemnified Party. 
 Section 7.6 No Special Damages. IN NO EVENT SHALL ANY PARTY BE LIABLE UNDER THIS ARTICLE VII OR OTHERWISE IN RESPECT OF THIS AGREEMENT FOR
EXEMPLARY, SPECIAL, PUNITIVE, INDIRECT, REMOTE, SPECULATIVE OR CONSEQUENTIAL DAMAGES EXCEPT TO THE EXTENT ANY SUCH PARTY SUFFERS SUCH DAMAGES TO AN UNAFFILIATED THIRD PARTY IN CONNECTION WITH A THIRD PARTY CLAIM, IN WHICH EVENT SUCH DAMAGES SHALL BE
RECOVERABLE. 
 ARTICLE VIII 
 MISCELLANEOUS 
 Section 8.1 Termination. This Agreement may be terminated at any time prior to the Closing, as
follows: 
  

	 	(a)	The Tesco Companies shall have the right to terminate this Agreement: 

  

	 	(i)	 if any representation or warranty of the TEP Companies shall fail to be true and correct in all material respects (or in all respects in the case of any
representation or warranty containing any materiality qualification) on and as of the date made or, except in the case of any such representations and warranties made as of a specified date, on and as of any subsequent date as if made at and as of
the subsequent date and such failure shall not have been 

	 	 
cured in all material respects (or in all respects in the case of any representation or warranty containing any materiality qualification) within 30 days
after written notice of such failure is given to TEP by the Tesco Companies; 

  

	 	(ii)	if the Transaction is not completed by December 22, 2005 (provided that the right to terminate this Agreement under this Section 8.1(a)(ii) shall not be available
to the Tesco Companies if the failure of the Tesco Companies to fulfill any obligation to the TEP Companies under or in connection with this Agreement has been the cause of or resulted in the failure of the Transaction to occur on or before such
date); 

  

	 	(iii)	if the Transaction is enjoined by a final, unappealable court order; or 

  

	 	(iv)	if either of the TEP Companies (a) fails to perform in any material respects any of its covenants (or in all respects in the case of any covenant containing any materiality
qualification) in this Agreement, and (b) does not cure such default in all material respects (or in all respects in the case of any covenant containing any materiality qualification) within 30 days after written notice of such default is given
to TEP by the Tesco Companies, provided, however, that in the event of a failure by TEP to comply with its covenant contained in Section 5.9 of this Agreement, the Tesco Companies shall have the right to terminate this
Agreement immediately and without notice. 

  

	 	(b)	TEP shall have the right to terminate this Agreement: 

  

	 	(i)	if any representation or warranty of the Tesco Companies shall fail to be true and correct in all material respects (or in all respects in the case of any representation or warranty
containing any materiality qualification) on and as of the date made or, except in the case of any such representations and warranties made as of a specified date, on and as of any subsequent date as if made at and as of such subsequent date and
such failure shall not have been cured in all material respects (or in all respects in the case of any representation or warranty containing any materiality qualification) within 30 days after written notice of such failure is given to the Tesco
Companies by TEP; 

  

	 	(ii)	 if the Transaction is not completed by December 22, 2005 (provided that the right to terminate this Agreement under this Section 8.1(b)(ii) shall
not be available to TEP if the failure of TEP to fulfill any obligation to the Tesco Companies under or in 

	 	 
connection with this Agreement has been the cause of or resulted in the failure of the Transaction to occur on or before such date);

  

	 	(iii)	if the Transaction is enjoined by a final, unappealable court order; or 

  

	 	(iv)	if any of the Tesco Companies (a) fails to perform in any material respect (or in all respects in the case of any covenant containing any materiality qualification) any of its
covenants in this Agreement, and (b) does not cure such default in all material respects (or in all respects in the case of any covenant containing any materiality qualification) within 30 days after notice of such default is given to the Tesco
Companies by TEP; or 

  

	 	(c)	Tesco, Tesco US, TEP, and TEP US, mutually so agree. 

 Section 8.2 Effect of Termination. In the event of termination of this Agreement pursuant to the provisions of Section 8.1, this Agreement shall forthwith become void and there shall be no further obligations on the part
of any of the Tesco Companies, the TEP Companies, or their respective officers or directors (except as set forth in this Section 8.2 and in Sections 5.2, 8.9 and 8.10, all of which shall survive the termination).

 Section 8.3 Remedies. If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an
alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys’ fees and other costs incurred in
that action or proceeding in addition to any other relief to which it or he may be entitled at law or equity. 

 Section 8.4 Notices. All notices, consents, demands or other communications required or permitted
to be given pursuant to this Agreement shall be deemed sufficiently given: (i) when delivered personally during a business day to the appropriate location described below or telefaxed to the telefax number indicated below, or (ii) five
(5) business days after the posting thereof by United States or Canada first class, registered or certified mail, return receipt requested, with postage fee prepaid and addressed: 
  

			
	If to TEP or TEP US:	  	c/o Burstall Winger LLP
		  	3100, 324 - 8th Ave. S.W.
		  	Calgary, Alberta T2P 2Z2
		
	If to any of the Tesco Companies:	  	c/o Tesco US, Inc.
		  	11330 Brittmoore Park Drive
		  	Houston, Texas 77041
		  	Telefax No. (713) 849-0075
		  	Attn: Legal Counsel

 Section 8.5 Successors. This Agreement shall be binding upon each of the parties upon their
execution, and inure to the benefit of the parties hereto and their successors and assigns. 
 Section 8.6 Severability. In the event
that any one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provision of this Agreement or any such other instrument. 
 Section 8.7 Section Headings.
The section headings used herein are descriptive only and shall have no legal force or effect whatsoever. Except to the extent the context specifically indicates otherwise, all references to articles and sections refer to articles and sections of
this Agreement, and all references to the exhibits and schedules refer to exhibits and schedules attached hereto, each of which is made a part hereof for all purposes. 
 Section 8.8 Gender. Whenever the context so requires, the masculine shall include the feminine and neuter, and the singular shall include the plural and conversely. 
 Section 8.9 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, U.S.A., applicable
to agreements and contracts executed and to be wholly performed there, without giving effect to the conflicts of law principles thereof. 
 Section 8.10 Dispute Resolution. 
  

	 	(a)	Negotiation; Mediation. 

  

	 	(i)	 In the event of any dispute or disagreement between the Tesco Companies, on the one hand, and the TEP Companies on the other as to the interpretation of any
provision of this Agreement (or the performance of obligations under this Agreement), the matter, on written request of either party, shall be referred to representatives of the parties for decision, each party being represented by a senior
executive officer who has no direct operational responsibility for the matters contemplated by this Agreement (the “Representatives”). The Representatives shall promptly meet in a good faith effort to resolve the dispute. If the
Representatives do not agree upon a decision within thirty (30) calendar days after 

	 	 
reference of the matter to them, each of parties shall be free to exercise the remedies available to it under Section 8.10(b).

  

	 	(ii)	The Representatives may, if they desire, agree to undertake mediation and may, if they choose, do so in accordance with the commercial mediation rules of the American Arbitration
Association (“AAA”), either as written or as modified by mutual agreement. A written agreement to undertake mediation may be made at any time. If arbitration proceedings have been instituted, they shall be stayed until the mediation
process is terminated. 

  

	 	(b)	Arbitration. 

  

	 	(i)	Any controversy, dispute or claim arising out of or relating in any way to this Agreement or the other agreements contemplated by this Agreement or the transactions arising
hereunder or thereunder that cannot be resolved by negotiation or mediation pursuant to Section 8.10(a) (including the validity, interpretation or applicability of this Section 8.10) shall be settled exclusively by final and
binding arbitration in Houston, Texas. Such arbitration will apply the laws of the State of Texas and the commercial arbitration rules of AAA to resolve the dispute, and will be administered by the AAA. 

  

	 	(ii)	Written notice of arbitration must be given within one year after the notifying party has knowledge of accrual of the claim on which the notice is based. If the claiming party fails
to give notice of arbitration within that time, the claim shall be deemed to be waived and shall be barred from either arbitration or litigation. 

  

	 	(iii)	 Such arbitration shall be conducted by one independent and impartial arbitrator to be selected by mutual agreement of the parties, if possible. If the parties fail
to reach agreement regarding appointment of an arbitrator within thirty (30) days following receipt by one party of the other party’s notice of arbitration, the arbitrator shall be selected from a list or lists of proposed arbitrators
submitted by AAA. Unless the parties agree otherwise, the arbitrator shall be a licensed attorney with at least ten (10) years of experience in the practice of law. The selection process shall be that which is set forth in the AAA commercial
arbitration rules then prevailing, except that (A) the number of preemptory strikes shall not be limited and (B), if the parties fail to select an arbitrator from one or more lists, AAA shall not initially have the power to make an appointment
but shall continue to submit additional lists until an arbitrator has been selected, but if no such arbitrator is selected within sixty (60) days after the receipt of the first notice of arbitration, the AAA shall have the power to make 

	 	 
an appointment and shall promptly do so. Initially, however, promptly following its receipt of a request to submit a list of proposed arbitrators, AAA shall
convene the parties in person or by telephone and attempt to facilitate their selection of an arbitrator by agreement. If the arbitrator should die, withdraw or otherwise become incapable of serving, a replacement shall be selected and appointed in
a like manner. 

  

	 	(iv)	The arbitrator shall render an opinion setting forth findings of fact and conclusions of law with the reasons therefor stated. A transcript of the evidence adduced at the hearing
shall be made and shall, upon request, be made available to either party. The fees and expenses of the arbitrator shall be shared equally by the parties and advanced by them from time to time as required; provided that at the conclusion of the
arbitration, the arbitrator may award costs and expenses (including the costs of the arbitration previously advanced and the fees and expenses of attorneys, accountants and other experts). No pre-arbitration discovery shall be permitted, except that
the arbitrator shall have the power in his or her sole discretion, on application by either party, to order pre-arbitration examination of the witnesses and documents that the other party intends to introduce in its case-in-chief at the arbitration
hearing. The arbitrator shall render his or her award within ninety (90) days of the conclusion of the arbitration hearing. The arbitrator shall not be empowered to award to either party any punitive damages in connection with any dispute
between them arising out of or relating in any way to this Agreement or the other agreements contemplated hereby or the transactions arising hereunder or thereunder, and each party hereby irrevocably waives any right to recover such damages. The
arbitration hearings and award shall be maintained in confidence. 

 Notwithstanding anything to the contrary provided in this
Section 8.10 and without prejudice to the above procedures, either party may apply to any court of competent jurisdiction for temporary injunctive or other provisional judicial relief if such action is necessary to avoid irreparable
damage or to preserve the status quo until such time as the arbitrator is selected and available to hear such party’s request for temporary relief. The award rendered by the arbitrator shall be final and not subject to judicial review and
judgment thereon may be entered in any court of competent jurisdiction. 
 Section 8.11 Multiple Counterparts. This Agreement may be
executed in multiple counterparts, each of which shall be deemed an original. 
 Section 8.12 Waiver. Any waiver by either party to be
enforceable must be in writing and no waiver by either party shall constitute a continuing waiver. 

 Section 8.13 Entire Agreement. This Agreement and the other agreements referred to herein set
forth the entire understanding of the parties hereto relating to the subject matter hereof and thereof and supersede all prior agreements and understandings among or between any of the parties relating to the subject matter hereof and thereof.

 Section 8.14 No Assumption Against Draftsman. Each party hereto has been represented by counsel with respect to the negotiation and
drafting of this Agreement and all related documents. Accordingly, each party agrees that ambiguities with respect to any language contained herein or therein shall not be resolved against the drafting party. 
 Section 8.15 Assignability. Except as provided in Section 1.10, this Agreement shall not be assignable by any party hereto without the prior
written consent of all other parties. “Affiliate” means, with respect to any person, any other person that directly or indirectly, through one or more intermediaries, controlled, is controlled by, or is under common control with,
such person. 
 [Remainder of page intentionally left blank] 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first set
forth above. 
  

			
		 	TURNKEY E&P INC.
		
	By:	 	/s/ Dale W. Bossert
	 Name:
 Title:
	 	 Dale W. Bossert
 President

  

			
		 	TURNKEY E&P CORPORATION
		
	By:	 	/s/ Dale W. Bossert
	 Name:
 Title:
	 	 Dale W. Bossert
 President

  

			
		 	TESCO CORPORATION
		
	By:	 	/s/ Julio Quintana
	 Name:
 Title:
	 	 Julio Quintana
 President and
C.E.O.

  

			
		 	TESCO CORPORATION (US)
		
	By:	 	/s/ Julio Quintana
	 Name:
 Title:
	 	 Julio Quintana
 President

  

			
		 	 TESCO HOLDING I, LP
 by: Tesco US GP,
Inc.,
 its general partner

		
	By:	 	/s/ Julio Quintana
	 Name:
 Title:
	 	 Julio Quintana
 PresidentPreferred Supplier Agreement

 Exhibit 10.4 
 PREFERRED SUPPLIER AGREEMENT 
 This Agreement is made
effective as of this 13th day of December, 2005 (the “Effective Date”), 
 BETWEEN: 
 TESCO CORPORATION 
 an Alberta corporation, 
 having offices at
6204 – 6A Street SE, Calgary 
 in the Province of Alberta, Canada; 
 (hereinafter “Tesco”) 
 - and - 
 TURNKEY E&P INC. 
 an Alberta
corporation, 
 having offices at 3100, 324 – 8th Avenue S.W., in the City of Calgary 
 in
the Province of Alberta, Canada. 
 (hereinafter “Purchaser”) 
 WHEREAS: 
 Tesco is the owner of proprietary technology related to and including its patented process of drilling
wells using casing (hereinafter Casing Drilling®),
and is engaged in the business of providing its proprietary Casing Drilling equipment and associated services on both a sale and a rental basis to purchasers in the oil and gas industry worldwide. 
 Purchaser or its subsidiary is purchasing from Tesco several purpose built drilling rigs which are designed to use the Casing Drilling process, and wishes to have
assurance that Tesco will supply its proprietary Casing Drilling related equipment and services to support such rigs. 
 Tesco and Purchaser (the
“Parties”) desire to enter into a Preferred Supplier Agreement to govern their respective rights and obligations regarding the supply by Tesco of Casing Drilling related equipment and services to Purchaser on an ongoing basis, and related
matters. 
 NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged by each of the Parties, the Parties agree as follows: 
  

	1.	DEFINITIONS AND INTERPRETATION 

 1.1 Definitions. In this
Agreement, unless the context otherwise requires: 
 “Affiliate” means any entity which controls, is controlled by, or is under common
control with another entity. An entity is deemed to control another if it owns directly or indirectly at least fifty percent (50%) of (i) the shares entitled to vote at a general election of directors of such other entity, or (ii) the
voting interest in such other entity if such entity does not have either shares or directors. 

 “Agreement” means this Preferred Supplier Agreement between the Parties. 
 “Casing Drilling Supply” means Casing Drilling services, rental of Casing Drilling downhole tools, and Casing Drilling downhole accessories or
consumables. 
 “Effective Date” means the date specified on the first page of this Agreement. 
 “Equipment” means the equipment provided by Tesco which is set out in Schedule B to this Agreement, as specified in a Quotation. 
 “Market” means either the onshore or the offshore market of a given country, provided that Alaska will be considered a separate onshore market within
the United States. 
 “North America” means Canada, the continental (or lower 48) United States of America, and Alaska, including the
territorial waters of each of them. 
 “Partners” means those other contractors working on a site where a drilling rig owned by Purchaser is
operating, provided that Purchaser has a financial interest in the drilling project to which the work relates. 
 “person” means any
individual, corporation, partnership, joint venture, trust, unincorporated association, or any other judicial entity or a government, state or agency or political subdivision thereof. 
 “Quotation” means a detailed quotation for Equipment and/or Services issued by Tesco pursuant to this Agreement, setting out the specific equipment to be provided, services to be performed, location,
rates, start and end dates, and other information. 
 “Rates” means the rates charged by Tesco for Equipment and Services, as described in a
Quotation or in a schedule to this Agreement. In the event a pricing schedule is included in this Agreement, its terms shall prevail over any pricing terms contained in a Quotation. 
 “Request” means a written request by Purchaser, directed to Tesco, to supply the Equipment and/or Services specified in such Request. 
 “Rigs” means the purpose built drilling rigs for Casing Drilling named in Schedule A to this Agreement. 
 “Services” means the performance of services by Tesco personnel pursuant to the specifications set forth in a Quotation. The Services included within the scope of this Agreement are those which are set out in Schedule B to
this Agreement. 
 “Term” means the five year period beginning on and including the Effective Date. 
 1.2 Headings and Divisions. The division of this Agreement into Sections and subsections and the insertion of headings are for convenience of reference only and
shall not affect the interpretation of this Agreement. 
 1.3 Derivatives, Number and Gender. Any derivative of any of the definitions set forth
herein shall have the meaning appropriate to the derivation of such definition. Words importing the singular number only shall include the plural and vice versa and words importing the masculine gender shall include the feminine and neuter genders.

 1.4 References. References to any party include its successors and permitted assigns. 
  

	2.	REPRESENTATIONS 

 2.1 Tesco’s Representations. Tesco
hereby represents and warrants as follows: 
 a. that it is a corporation duly organized, validly existing and in good standing under the laws of Alberta,
and authorized to carry on business (either directly or through a subsidiary) in any jurisdiction where Equipment is sold or Services are provided under this Agreement; 
 b. that it has the requisite corporate power and authority to own, lease and operate its respective assets and properties and to carry on its respective businesses as now conducted, and to execute the Agreement and to
consummate the transactions contemplated hereby; and, 
 c. that it is solvent, able to meet its obligations as they come due, and has made no general
assignment for the benefit of creditors or filed, or had filed against it a petition of bankruptcy or for reorganization, nor is it pursuing any other remedy under any other law relating to the relief for debtors, nor has a receiver been appointed
for its property or business. 
 2.2 Purchaser’s Representations. Purchaser hereby represents and warrants as follows: 
 a. that it is a corporation duly organized, validly existing and in good standing under the laws of Alberta, and authorized to carry on business (either directly or
through a subsidiary) in any jurisdiction where Equipment and/or Services are purchased under this Agreement; 
 b. that it has the requisite corporate power
and authority to own, lease and operate its respective assets and properties and to carry on its respective businesses as now conducted, and to execute the Agreement and to consummate the transactions contemplated hereby; and, 
 c. that it is solvent, able to meet its obligations as they come due, and has made no general assignment for the benefit of creditors or filed, or had filed against it a
petition of bankruptcy or for reorganization, nor is it pursuing any other remedy under any other law relating to the relief for debtors, nor has a receiver been appointed for its property or business. 
 2.3 Representations Continuing. The representations contained in this section 2 are made as of the Effective Date and shall be deemed to continue to be
made on an ongoing basis from the Effective Date until the termination of this Agreement. 
  

	3.	OBLIGATION OF TESCO TO SUPPLY 

 3.1. Supply. Tesco and/or one
or more of its Affiliates will provide the Equipment and Services described in Schedule B to this Agreement, to Purchaser during the Term, for use on the Rigs or on any other drilling rig owned, leased or operated by Purchaser, subject to the
exceptions set out in section 3.2 below. 
 3.2 Exceptions. The obligations of Tesco under section 3.1 of this Agreement do not apply when and to the
extent that: 
  

	 	a.	Equipment and/or personnel requested by Purchaser are unavailable due to lack of supply or other commitments entered into by Tesco prior to the date of any given Request;

	 	b.	with regard to supply of Equipment and Services to a given Rig, when Purchaser ceases to be the owner, lessor or operator of that Rig; 

  

	 	c.	the supply of Equipment or Services by Tesco to Purchaser is prohibited by applicable law; 

  

	 	d.	the supply of Equipment or Services by Tesco to Purchaser is prohibited by an agreement between Tesco or an Affiliate of Tesco and a third party which exists as of the Effective
Date, and the existence of which has been notified in writing to Purchaser by Tesco prior to the Effective Date. 

 3.3 No Exclusivity.
Tesco’s obligation to supply to Purchaser is not exclusive, and Tesco may supply Equipment and/or Services to other parties at any time, whether or not such parties are in direct or indirect competition with the Purchaser or the Rigs.

  

	4.	OBLIGATIONS OF PURCHASER 

 4.1. Payment. Purchaser will pay
for Equipment purchased and Services rendered at the Rates specified in the applicable Quotation, subject to section 5 below. Place and time of payment, and payment terms, shall be specified in the Quotation. 
 4.2. Preferred Supplier. Tesco will be Purchaser’s preferred supplier of the Equipment and Services during the Term. Accordingly, Purchaser will procure
Equipment and Services from Tesco before using other suppliers, subject to the exceptions set out in section 4.3 below. 
 4.3 Exceptions. The
obligations of Purchaser under section 4.2 of this Agreement do not apply when and to the extent that: 
  

	 	a.	equipment and/or personnel requested by Purchaser are unavailable from Tesco due to lack of supply or other commitments entered into by Tesco prior to the date of any given Request;

  

	 	b.	Purchaser and Tesco are unable to agree on rates or compensation for the Equipment and/or Services, following a good faith effort by Purchaser to reach such agreement;

  

	 	c.	the operator for which Purchaser is obtaining the Equipment and/or Services objects to the use of the Equipment and/or Services of Tesco; 

  

	 	d.	the supply of Equipment and/or Services by Tesco to Purchaser is prohibited by applicable law; 

  

	 	e.	the supply of Equipment and/or Services by Tesco to Purchaser is prohibited by an agreement between Tesco or an Affiliate of Tesco and a third party which exists as of the Effective
Date and has been notified in writing to Purchaser by Tesco prior to the Effective Date. 

 4.4 Intellectual Property Rights. In no
event will Purchaser obtain or use Equipment or Services from a third party which are provided in violation of the intellectual property rights of Tesco, following notification by Tesco to Purchaser of such violation. 
 4.5 Minimum Revenue. During the eighteen (18) month period following the Effective Date, Purchaser or its Partners will procure a minimum of three million
United States dollars (US$3,000,000) worth of Casing Drilling Supply from Tesco or its Affiliates, for use on rigs 

 
owned or leased by Purchaser. If, on the date which is 18 months after the Effective Date (the “Guarantee Date”), Tesco has not provided at least
US$3,000,000 worth of Casing Drilling Supply to Purchaser or its Partners, then Tesco will have the right to invoice Purchaser for the difference between US$3,000,000 and the total value of all Casing Drilling Supply provided by Tesco or its
Affiliates to Purchaser from the Effective Date until the Guarantee Date. Such invoice will be paid by Purchaser within 30 days following receipt. The value of such Casing Drilling Supply will be calculated at the rates specified in the Quotations
applicable to the Equipment and Services actually provided. 
  

	5.	PRICING 

 5.1 Dayrate Basis. The Rates charged by Tesco for
Services will be determined on a dayrate basis, unless otherwise agreed upon by the Parties for a particular Quotation. 
 5.2 Preferred Pricing. The
Rate charged by Tesco for a given item of Equipment or a given Service in a particular Quotation will not exceed the Rate most recently charged by Tesco for the same Equipment or Service in the same Market on any job which is ongoing as of the date
of such Quotation (hereinafter the “Reference Rate”), subject to the exceptions set out in section 5.3 below. 
 5.3 Exceptions. The limit
on Rates charged by Tesco set out in section 5.2 above does not apply when and to the extent that: 
  

	 	a.	Tesco can reasonably justify charging a higher Rate due to increased costs faced by Tesco when compared to its cost of providing the same Equipment and/or Service when it charged
the Reference Rate; or, 

  

	 	b.	Tesco can demonstrate that the Reference Rate was charged for Equipment and/or Services being provided by Tesco on a promotional basis. 

 5.4 Use of Price List. Where there is no Reference Price for a given item of Equipment or Service because such Equipment or Service has never before been provided
in a given Market, Tesco will establish a list price for such Equipment or Service in the given Market, and the list price so established shall be the Reference Price until such time as the Equipment or Service is actually provided in the given
Market. 
  

	6.	QUOTATION PROCEDURE 

 6.1 Request for Equipment and/or
Services. Purchaser may, but shall not be required to, make a written Request using any format. 
 6.2 Quotation. Tesco will issue a written
Quotation for all Equipment and/or Services to be provided to Purchaser. The Quotation will be binding on Tesco for the period of time set out therein, and will specify the Equipment and/or Services to be provided, the Rates, the place and time of
delivery, and other matters customarily set out in Quotations. The Quotation will become binding on Purchaser upon its acceptance by Purchaser in writing or upon delivery of the Equipment or commencement of the Services, whichever is earlier.

 6.3. Terms and Conditions. The Quotation will include terms and conditions addressing, among other matters, the
allocation of operational risk between the Parties, warranties, and insurance. Such terms and conditions will become binding on the Parties upon acceptance of the Quotation by the Purchaser or upon delivery of the Equipment or commencement of the
Services, whichever is earlier. In the event of any conflict between the terms of this Agreement and the terms and conditions attached to a Quotation, the terms and conditions of this Agreement will prevail. 
  

	7.	NO COMPETITION BY TESCO 

 7.1 During the Term, and provided that
this Agreement has not been terminated in accordance with section 11 hereof, neither Tesco nor any of its Affiliates will act as a turnkey or footage drilling contractor, or drill wells on a turnkey basis, anywhere in North America. The phrase
“act as a turnkey or footage drilling contractor” means to rent a drilling rig owned by Tesco or an Affiliate of Tesco to a customer on a turnkey or footage basis, with or without the provision of associated Equipment and Services. The
phrase “drill wells on a turnkey basis” means to rent a drilling rig which is not owned by Tesco or an Affiliate of Tesco to a customer on a turnkey basis, with or without the provision of associated Equipment and Services. For greater
certainty, nothing herein shall prevent Tesco or its Affiliates from renting or selling Equipment or providing Services to any third party, and nothing herein shall prevent Tesco or its Affiliates from renting drilling rigs to customers on a footage
basis, provided such drilling rigs are not owned by Tesco or its Affiliates. 
  

	8.	INTELLECTUAL PROPERTY 

 8.1 Use of Trademarks. Purchaser
acknowledges that the phrase “Casing Drilling” is a trademark of Tesco, and agrees to identify it as such in any and all written documentation in which the phrase is used by Purchaser, including (without limitation) advertising material,
proposals and bids. Purchaser will identify all Tesco equipment and services described in any written material prepared by Purchaser as belonging to Tesco. Purchaser may use the Tesco logo in its written material with Tesco’s prior approval.

 8.2 Improvements. Improvements to existing products or methods which arise in the course of providing Services or use of Equipment under this
Agreement will belong to the Party which owns the product or method to which the improvement relates, regardless of which Party’s personnel suggested, developed or contributed to the improvement, and regardless of the extent of any such
contribution by the non-owning Party. The foregoing shall apply even if the improvement is separately patentable as a new invention. 
 8.3
Inventions. Any new inventions which arise in the course of providing Services or using Equipment under this Agreement and which are not improvements to the existing products or methods of one Party or the other will belong to the Party whose
personnel originated the new invention. If such new invention cannot be attributed exclusively to the personnel of one Party or the other, then it will be jointly owned by the Parties. 

 8.4 Joint Ownership. Each Party shall have an equal undivided interest in and to each jointly owned invention
(hereinafter “Invention”), as well as in and to all patent applications and patents thereon in all countries, subject to the following: 
  

	 	a.	each Party shall be free to license, make, have made or use its undivided interest in Inventions provided that a Party engaged in any such activity shall first obtain the consent of
the other Party hereto (the “non-using Party”), which consent may be withheld in any circumstance where such license, making, having made or use would, in the reasonable opinion of the non-using Party, result in substantial commercial
disadvantage to the non-using Party, and, where consent is given, shall account to the non-using Party for income derived from such activities upon terms and conditions to be agreed between the Parties prior to the commencement of such activities,
or so soon thereafter as is reasonably possible; 

  

	 	b.	neither Party shall sell its undivided interest in Inventions to a third party without first providing the other Party to such Invention with a reasonable opportunity to purchase
such undivided interest upon terms and conditions no less favorable than those contained in a bona fide offer from a third party; 

  

	 	c.	each Party shall obtain the consent of the other Party prior to disclosing Inventions to a third party. The Parties acknowledge and agree that some, if not all, of the acts
identified in subsections (a) and (b) above will inherently require the disclosure of Inventions to a third party, and each Party shall obtain the written consent of the other Party prior to making such disclosure which consent may be
withheld in any circumstance where disclosure to such third party would, in the reasonable opinion of the non-disclosing Party, result in substantial commercial disadvantage to the non-disclosing Party; and 

  

	 	d.	the Parties shall mutually elect when patent applications shall be filed for Inventions. If either Party (“Forfeiting Party”) shall elect not to join with the other Party
in any patent application(s) for any such Invention, then at the earliest practicable time, the Forfeiting Party shall notify the other Party of its decision. In so doing, the Forfeiting Party shall also forfeit to the Party which actually files
such patent application(s) (“Filing Party”) its share of the title to the Joint Invention and any joint patent based thereon. The Forfeiting Party shall also furnish the Filing Party all documents or other assistance that may be necessary
for the filing and prosecution of each patent application based on an Invention. The expense of preparing, filing and prosecuting each patent application based on an Invention, and for the issuance and maintenance of the respective joint patents,
shall be borne equally by the Parties, except that a Forfeiting Party shall only equally bear such maintenance expense of the joint patents to which it has not forfeited title. Subject to any prior distribution of patent rights to any third parties
by the Filing Party, the Forfeiting Party shall be entitled to license the Invention from the Filing Party in consideration for royalties to be mutually agreed upon. 

	9.	CONFIDENTIALITY 

 9.1. Confidential Information.
“Confidential Information” means any information disclosed (whether before or after the date of this Agreement and whether in writing, verbally or by any other means and whether directly or indirectly) by one Party or by another person on
behalf of that Party to the other Party relating to the transactions contemplated in this Agreement, including, without limitation, any information relating to products, operations, processes, plans or intentions, product information, pricing,
Know-How, design rights, Trade Secrets, market opportunities, business affairs, and Proprietary Information. “Proprietary Information” shall mean, and shall include but not be limited to each of the Party’s (including such
Party’s affiliates, contractors, agents, consultants, advisors and representatives), respective past and present research, development, technical and business activities and prospects, ideas, concepts, development plans for new or improved
products or processes, data, formulae, techniques, designs, sketches, photographs, plans, drawings, specifications, samples, test specimens, reports, client lists, price lists, findings, studies, and/or inventions. “Know how” shall mean
and include technical or operational information, experience or trade secrets devised, developed or acquired by a Party and applied by such Party to manufacturing, assembly, sale or use of equipment, devises, processes or methods. “Trade
secret(s)” shall mean and include information such as formula, pattern, compilation, program, method, technique or process, or information contained or embodied in a product, device or mechanism which (i) is or may be used in a business,
(ii) is not generally known in that business, (iii) has economic value from not being generally known and (iv) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. 
 Notwithstanding the foregoing, Confidential Information does not include information that the receiving party (the “Receiving Party”) can establish:

  

	 	a.	has become generally available to the public or commonly known in either Party’s business other than as a result of a breach by the Receiving Party of any obligation to the
Disclosing Party; or 

  

	 	b.	was known to the Receiving Party prior to disclosure to the Receiving Party by the Disclosing Party by reason other than having been previously disclosed in confidence to the
Receiving Party. 

 9.2. Disclosure of Confidential Information. Notwithstanding anything to the contrary in this Agreement, disclosure
of Confidential Information shall only be made to the extent the Parties may agree, there being no obligation on the part of either Party to disclose any Confidential Information to the other Party. Any Party which may, from time to time, disclose
Confidential Information hereunder to the other Party may make such disclosure orally, in writing, or partly orally and in writing. Both Parties agree to keep all Confidential Information confidential and in particular shall: 
  

	 	a.	keep all documents and other material bearing or incorporating any Confidential Information separate from all other documents and materials and at their usual place of business;

  

	 	b.	 not copy the Confidential Information, in whole or in part, without the prior written consent of the other Party, and if any copies are made, keep a written 

	 	 
record of all copies or reproduction of any Confidential Information specifying when and by whom they were taken and to whom they have been sent (if anyone).
That record shall be available for inspection by each party upon giving the other not less than two business days notice in writing; 

  

	 	c.	exercise in relation to the Confidential Information no lesser security measures and degree of care than those which each applies to its own confidential information (and which each
warrant, as providing adequate protection against any unauthorized disclosure, copying or use); 

  

	 	d.	not to use the Confidential Information for any purpose other than the implementation of this Agreement; 

  

	 	e.	not to disclose the Confidential Information to another person except that either may disclose the Confidential Information: 

 i. to its employees, professional advisors, or authorized representatives who are engaged in activities within the scope of this Agreement and who have
agreed to be bound by confidentiality obligations at least as strict as those imposed by this Agreement; and 
 ii. if disclosure is required
by law, by a court of competent jurisdiction or by another appropriate regulatory body provided that the Party required to disclose gives to the other Party not less than two business days notice in writing of that disclosure. 
 9.3. Return of Confidential Information. In the event that any of the Parties decide (with or without cause) to terminate this Agreement, each Party recipient of
Confidential Information agrees to (a) immediately return to the other Party any and all of the Confidential Information, including all originals, work papers, analyses, summaries, copies, translation or any other form or derivative of said
material; (b) not thereafter use such Confidential Information in its business or disclose such Confidential Information to others; and (c) cause all of the persons who are in possession of any of the Confidential Information, including
all originals, work papers, analyses, copies, translation or any other form of said material, to also immediately return same to the other Party and to not thereafter use such Confidential Information for themselves or to disclose same to others.
The obligations set forth in this Agreement shall include the recipient’s returning to the other Party, and not disclosing or using inconsistent with the terms of this Agreement, any information, documents (including all originals, work papers,
analyses, summaries, copies, translation or any other form or derivative of said material) or other materials disclosed or forwarded to the recipient, or otherwise generated, by the other Party. 
  

	10.	COMPLIANCE 

 10.1 General. The Parties each agree to comply
fully all laws applicable to the sale of the Equipment and/or the provision of the Services, including, without limitation, those laws of the United States that have extraterritorial application to the Parties and/or their operations. 

 10.2 Re-Export. Tesco’s Equipment and Services are supplied to the Purchaser at the destination indicated on
the Quotation. The Purchaser warrants that any equipment, materials, components, chemicals, product or any other item supplied by Tesco to the Purchaser will not be trans-shipped or re-exported to any other country. Further, the Purchaser is aware
that the sale or provision of certain goods to certain countries is restricted by the laws of the United States, Canada or of other countries whose laws may apply to either Tesco or the Purchaser, and that the Purchaser will not do any act or resell
any item in violation of such laws. 
 10.3. Corrupt Payments. The Parties recognize that the United States Foreign Corrupt Practices Act of 1977, the
Corruption of Foreign Public Officials Act of Canada, and similar legislation of other countries, prohibit the payment or giving of anything of value either directly or indirectly to an official of a foreign government for the purpose of influencing
an act or decision in his official capacity, or inducing him to use his influence with the foreign government, to assist a company in obtaining or retaining business for or with, or directing business to, any person. The Parties represent and
covenant that they and their officers, directors and employees will not take any action which would constitute a violation of any such applicable law of any country. 
  

	11.	TERMINATION 

 11.1 End of Term. This Agreement will terminate
automatically at the end of the Term, unless extended by the Parties in writing. 
 11.2 Material Breach. This Agreement may be terminated at any time
by either Party on thirty (30) days notice, in the event of a material breach by the non-terminating Party of its representations or obligations under this Agreement. In that case, the terminating Party will provide the non-terminating Party
with written notice of its intention to terminate the Agreement, and the non-terminating Party shall have the opportunity to correct its breach of the Agreement to the terminating Party’s reasonable satisfaction within the thirty (30) day
notice period, in which case the notice of termination will become null and void and the Agreement will continue as before. 
 11.3 Immediate
Termination. Notwithstanding section 11.2 of this Agreement, this Agreement may be terminated at any time by either Party immediately in any of the following events: 
  

	 	a.	the non-terminating Party becomes insolvent, makes a general assignment for the benefit of its creditors or files, or has filed against it a petition of bankruptcy or for
reorganization or the equivalent, or a receiver is appointed for its property or business; 

  

	 	b.	the non-terminating Party breaches its obligations under section 10.2 or 10.3 of this Agreement. 

 11.4 Survival of Obligations. In the event of termination of this Agreement pursuant to section 11.1 or 11.2, the obligations of the Parties under any Quotation then currently in effect will continue,
notwithstanding such termination, as if this Agreement were still in force. In addition, the obligations of the Parties under sections 9, 12 and 13.15 of this Agreement will survive such termination. 

	12.	GOVERNING LAW AND DISPUTE RESOLUTION 

 12.1. Governing Law.
This Agreement and all matters relating to the meaning, validity, construction or enforceability thereof and the performance of services hereunder shall be governed and controlled by the substantive laws of the Province of Alberta, and the federal
laws of Canada applicable therein, without giving effect to the conflicts of law principles thereof. 
 12.2. Negotiation. In the event of any dispute
or disagreement between the Parties as to the interpretation of any provision of this Agreement (or the performance of obligations under this Agreement), the matter, on written request of either party, shall be referred to the representatives of the
parties designated under Article 13.2 of this Agreement for decision (the “Representatives”). The Representatives shall promptly meet in a good faith effort to resolve the dispute. If the Representatives do not agree upon a decision within
thirty (30) calendar days after reference of the matter to them, each of parties shall be free to exercise the remedies available to it under Article 12.3. 
 12.3. Arbitration. Any controversy, dispute or claim arising out of or relating in any way to this Agreement or the other agreements contemplated by this Agreement or the transactions arising hereunder or thereunder that cannot be
resolved by negotiation pursuant to Article 12.2 (including the validity, interpretation or applicability of this Article 12) shall be finally settled by arbitration in accordance with the provisions of the Arbitration Act (Alberta), any amendments
thereto and the following: 
 the dispute shall be referred to arbitration for a final decision to be made by one arbitrator to be appointed
by mutual agreement between the parties; 
 should there be a failure to appoint an arbitrator as provided above within thirty (30) days
following receipt by one party of the other party’s notice of arbitration, such arbitrator shall be appointed by a justice of the Court of Queen’s Bench of Alberta; 
 the arbitrator shall have the power to obtain the assistance, advice or opinion of any expert as the arbitrator may think fit and shall have the
discretion to act upon any assistance, advice or opinion so obtained; 
 the arbitrator shall be instructed that time is of the essence in
proceeding with his determination of any dispute, claim, question or difference; 
 the costs of the arbitrator and any costs associated with
the proceedings shall be borne equally by both Parties and each Party shall be responsible for any costs associated with its own legal and professional advisors, unless otherwise decided by the arbitrator; 
 the arbitration award shall be given in writing and shall be final, binding on the Parties, not subject to any appeal and shall deal with questions of
cost of arbitration and all matters related thereto; and 

 judgment upon the award rendered may be entered into any court having jurisdiction, or application may be
made to such court for a judicial recognition of the award or an order of enforcement thereof, as the case may be; 
 the arbitrator shall
have sole discretion to determine, in accordance with any provisions of the Arbitration Act (Alberta) the process and manner pursuant to which the arbitration will proceed; and 
 the arbitration will be held in the City of Calgary in the Province of Alberta at a venue to be chosen by the arbitrator. 
 12.4. Notice of Arbitration. Written notice of arbitration must be given within one year after the notifying party has knowledge of accrual of the claim on which
the notice is based. If the claiming party fails to give notice of arbitration within that time, the claim shall be deemed to be waived and shall be barred from either arbitration or litigation. 
 12.5. Recourse to Courts. Notwithstanding anything to the contrary provided in this Article 12 and without prejudice to the above procedures, either party may
apply to any court of competent jurisdiction for temporary injunctive or other provisional judicial relief if such action is necessary to avoid irreparable damage or to preserve the status quo until such time as the arbitrator is selected and
available to hear such party’s request for temporary relief. The award rendered by the arbitrator shall be final and not subject to judicial review and judgment thereon may be entered in any court of competent jurisdiction. 
  

	13.	MISCELLANEOUS 

 13.1 Notices. All notices, statements,
service of process and other communications to be given under this Agreement by any Party to another Party shall be given to their addresses listed below in writing and delivered by registered mail, messenger service or any form of electronic
transmission (including telex and facsimile transmission) provided that confirmation of delivery is received: 
 Turnkey E&P Inc. 
 c/o Burstall Winger LLP 
 3100, 324 - 8th Ave. S.W. 
 Calgary, Alberta T2P 2Z2 
 Attn: Roger MacLeod 
 Telephone: 403-234-3346 
 Fax: 403-266-6016 
 Tesco Corporation 
 6204 – 6A Street SE 
 Calgary, Alberta, Canada T2H 2B7 
 Attn: General Counsel 
 Telephone: (403) 233-0757 
 Fax: (403) 252-3362 
 The legal address at which any Party may receive a notice may be changed by delivery of written notice of a new address to the other Parties. 

 13.2. Appointment of Representatives. Each of the Parties hereto shall appoint a representative who shall have
authority to bind such Party in respect of matters arising out of this Agreement. Any decision made or commitment given by a duly appointed representative shall be binding upon the nominating Party. Any Party may at any time change its authorised
representative by providing notice to the other Parties in accordance herewith. 
 13.3. Expenses. Each Party shall bear its own costs and expenses
incurred in its performance of this Agreement, unless otherwise agreed upon by the Parties. 
 13.4 Force Majeure. Each party hereto shall be excused
from the performance of its obligations hereunder from time to time and at any time, but only for so long as it is prevented from performance by act of God or public enemy, war, blockage, civil insurrection, the elements, fire, compliance with any
law, rule, order or regulation which has not been declared by a court of competent jurisdiction to be invalid or any other cause beyond the reasonable control of such party whether similar or dissimilar (“Force Majeure”), provided that
lack of funds or circumstances resulting from the lack of adequate planning which a party should have reasonably been expected to perform shall not be considered a Force Majeure. 
 13.5 Sole and Entire Agreement. This Agreement sets forth the entire understanding between the Parties relating to the subject matter contained herein and merges and supercedes all prior negotiations,
agreements, letters of intent, protocols, and discussions between them. 
 13.6 Amendments. This Agreement may not be amended except by an agreement
in writing between the parties hereto. 
 13.7 Severability. In the event that any provision of this Agreement is prohibited or unenforceable in any
jurisdiction such prohibition or unenforceability shall not invalidate or render unenforceable such provision in any other jurisdiction, nor shall it invalidate or render unenforceable the other provisions hereof. 
 13.8 No Waiver of Rights. No failure or delay on the part of any Party in the exercise of any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power or right preclude any other or further exercise thereof or of any other right or power. 
 13.9
Further Assurances. Subject to the limitations otherwise provided herein, the parties shall from time to time do and perform such other and further acts and execute and deliver any and all further agreements and instruments as may be required
by law or reasonably requested by the other party hereto to carry out and effect the intent and purposes of this Agreement. 
 13.10 Receipt of
Agreement. The Purchaser hereby acknowledges receipt of an executed copy of this Agreement. 
 13.11 Counterparts and Execution. This Agreement
may be executed by the Parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts shall together constitute one and the same agreement. This Agreement may be executed
and delivered by facsimile in accordance herewith, which when so executed and delivered shall constitute a binding agreement. 

 13.12 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Purchaser,
Tesco and their respective successors and permitted assigns. Tesco may assign any of its rights or transfer any of its obligations hereunder without the prior written consent of the Purchaser. Purchaser may not assign any of its rights or transfer
any of its obligations hereunder without the prior written consent of Tesco, unless such assignment is to its wholly owned subsidiary, Turnkey E&P Corporation. 
 13.13 Parties Not a Partnership or Legal Entity. The Parties shall constitute a contractual commitment of the Parties and shall not be deemed a partnership, limited partnership, limited liability company, joint stock company or other
legal entity for any purpose or to appoint one Party to act as the general agent of another Party. Each Party specifically disclaims liability to any third Party for the actions or failures of the other Party, whether or not such actions or failures
are in accordance with this Agreement. 
 13.14. No Agency. Nothing in this Agreement shall create an agency arrangement between the Parties and no
Party shall enter into or have authority to enter into any agreement or engagement, or make any representation or warranty on behalf of, or pledge the credit of, or otherwise bind or oblige the other Party hereto, without the prior written consent
or agreement of such Party. 
 13.15 No Consequential Damages. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR, AND EACH PARTY HEREBY
RELEASES THE OTHER PARTY FROM AND AGAINST, ANY CONSEQUENTIAL DAMAGES OR LOSSES (WHETHER FORESEEABLE OR NOT AT THE DATE OF THIS AGREEMENT) ARISING OUT OF, OR RELATED TO, THE PERFORMANCE OF OR SUBJECT MATTER OF THIS AGREEMENT, REGARDLESS OF THE
CAUSE, INCLUDING, WITHOUT LIMITATION, THE SOLE, JOINT OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, BREACH OF DUTY (STATUTORY OR OTHERWISE), BREACH OF WARRANTY, BREACH OF CONTRACT, OR ANY OTHER LEGAL FAULT OR RESPONSIBILITY OF EITHER PARTY, ITS
EMPLOYEES, AGENTS OR CONSULTANTS, OR ANY OTHER PERSON, PARTY OR ENTITY. AS USED HEREIN, “CONSEQUENTIAL DAMAGES OR LOSSES” SHALL MEAN ANY AND ALL SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OR LOSSES, PUNITIVE OR EXEMPLARY
DAMAGES, INCLUDING WITHOUT LIMITATION, LOSS OF REVENUE OR PROFITS, LOSS OF CONTRACTS, OR LOSS OF BUSINESS OR BUSINESS INTERRUPTIONS, LOSS OF PRODUCTION, LOSS OF VALUE OR DECREASE IN EARNINGS FROM ANY GOODS OR PROPERTY INCLUDING RESERVES, LOSS OF
USE, EXPENSES FOR LOST RIG OR PIPELINE TIME, LOSS OF FINANCIAL ADVANTAGE, OR DOWNTIME. 

 IN WITNESS WHEREOF each Party has executed this Agreement as of the day and year first above written. 
  

			
	TURNKEY E&P INC.
		
	By:	 	/s/ Dale W. Bossert
	Name:	 	Dale W. Bossert
	Title:	 	President and CEO

  

			
	TESCO CORPORATION
		
	By:	 	/s/ Julio Quintana
	Name:	 	J. M. Quintana
	Title:	 	President and CEO

 Schedule A 
 Drilling Rigs 
 Four drilling rigs described as follows: 
  

	1.	Tesco CDR1 

  

	2.	Tesco Casing Drilling Rig Alpha 

  

	3.	Tesco Casing Drilling Rig Beta 

  

	4.	Tesco Casing Drilling Rig Gamma 

 Schedule B 
 Equipment and Services Included 
 The following Equipment and Services are included within the scope of this
Agreement: 
  

	 	•	 	 Rental or sale of Tesco top drive systems; 

  

	 	•	 	 Rental or sale of Tesco’s proprietary Casing Running System; 

  

	 	•	 	 Rental or sale of downhole tools and/or accessories; 

  

	 	•	 	 Casing Drilling services; 

  

	 	•	 	 Casing running services.

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