Document:

Exhibit 10.24

 

IPSCO Inc.

2005 Form 10-K

 

REVOLVING CREDIT AGREEMENT

 

AMONG

 

IPSCO INC. and IPSCO SASKATCHEWAN INC., as
Canadian Borrowers

 

AND

 

IPSCO STEEL INC., IPSCO ENTERPRISES INC.,
IPSCO ALABAMA LTD. and

IPSCO STEEL (ALABAMA) INC., as U.S. Borrowers

 

AND

 

THE TORONTO-DOMINION BANK, as Agent

 

AND

 

JPMORGAN CHASE BANK, N.A., as Syndication
Agent

 

AND

 

TD SECURITIES and J.P. MORGAN SECURITIES,
INC., as Co-Lead Arrangers and

Joint Bookmanagers

 

AND

 

ROYAL BANK OF CANADA, BANK OF AMERICA, N.A.
and ABN AMRO BANK N.V.,

as Documentation Agents

 

AND

 

THE TORONTO-DOMINION BANK, JPMORGAN CHASE
BANK, N.A., TORONTO BRANCH, ROYAL BANK OF CANADA, BANK OF AMERICA N.A., BY ITS
CANADA BRANCH, ABN AMRO BANK N.V., CANADA BRANCH, THE BANK OF NOVA SCOTIA and
BANK OF MONTREAL, as Canadian Lenders

 

AND

 

TORONTO DOMINION (TEXAS) LLC, JPMORGAN CHASE
BANK, N.A., ROYAL BANK OF CANADA, ACTING THROUGH A NEW YORK BRANCH, BANK OF
AMERICA, N.A., ABN AMRO BANK N.V., WELLS FARGO BANK, NATIONAL ASSOCIATION, THE
BANK OF NOVA SCOTIA, BY ITS ATLANTA AGENCY, BANK OF MONTREAL, CHICAGO BRANCH and FIFTH THIRD BANK
(CHICAGO), as U.S. Lenders

 

As of November 19, 2004

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1 INTERPRETATION

  	
   

  
	
  1.1

  	
  Defined Terms.

  	
   

  
	
  1.2

  	
  Interpretation.

  	
   

  
	
  1.3

  	
  Other Credit Documents.

  	
   

  
	
  1.4

  	
  Severability.

  	
   

  
	
  1.5

  	
  Entire Agreement.

  	
   

  
	
  1.6

  	
  Waiver.

  	
   

  
	
  1.7

  	
  Governing Law.

  	
   

  
	
  1.8

  	
  Incorporation of Schedules.

  	
   

  
	
  1.9

  	
  Conflicts.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 CREDIT FACILITY

  	
   

  
	
  2.1

  	
  Credit Facility.

  	
   

  
	
  2.2

  	
  Available Accommodations.

  	
   

  
	
  2.3

  	
  Commitments and Facility Limits.

  	
   

  
	
  2.4

  	
  Use of Proceeds.

  	
   

  
	
  2.5

  	
  Repayment of Facilities.

  	
   

  
	
  2.6

  	
  Mandatory Repayments.

  	
   

  
	
  2.7

  	
  Cancellation of Undrawn Portion of Commitment.

  	
   

  
	
  2.8

  	
  Additional Commitment.

  	
   

  
	
  2.9

  	
  Standby Fee.

  	
   

  
	
  2.10

  	
  Agency Fee.

  	
   

  
	
  2.11

  	
  Evidence of Debt and Determination of Interest Rates and Fees.

  	
   

  
	
  2.12

  	
  Adjustment of Total Pro Rata Shares

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 LOAN ADVANCES

  	
   

  
	
  3.1

  	
  The Advances.

  	
   

  
	
  3.2

  	
  Procedure for Borrowing.

  	
   

  
	
  3.3

  	
  Interest on Advances.

  	
   

  
	
  3.4

  	
  Conversions and Elections Regarding Types of Advances and Interest
  Rates.

  	
   

  
	
  3.5

  	
  Circumstances Requiring Floating Rate Pricing.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 BANKERS’ ACCEPTANCES

  	
   

  
	
  4.1

  	
  Acceptances and Drafts.

  	
   

  
	
  4.2

  	
  Procedure for BA Issuance.

  	
   

  
	
  4.3

  	
  Form of Drafts.

  	
   

  
				

 

i

 

	
  4.4

  	
  Stamping of Drafts.

  	
   

  
	
  4.5

  	
  Purchase of Bankers’ Acceptances and BA Equivalent Notes.

  	
   

  
	
  4.6

  	
  Reimbursement at Contract Maturity Date.

  	
   

  
	
  4.7

  	
  Repayments.

  	
   

  
	
  4.8

  	
  Circumstances Making Bankers’ Acceptances Unavailable.

  	
   

  
	
  4.9

  	
  Presigned Draft Forms.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 LETTERS

  	
   

  
	
  5.1

  	
  Letter Commitment

  	
   

  
	
  5.2

  	
  Procedure for Issue.

  	
   

  
	
  5.3

  	
  Form of Letters.

  	
   

  
	
  5.4

  	
  Reimbursement of Amounts Drawn Under Letters of Credit.

  	
   

  
	
  5.5

  	
  Issue Fees.

  	
   

  
	
  5.6

  	
  Risk of Letters of Credit.

  	
   

  
	
  5.7

  	
  Repayments.

  	
   

  
	
  5.8

  	
  Indemnity

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 CONDITIONS OF LENDING

  	
   

  
	
  6.1

  	
  Conditions Precedent to Effectiveness of this Agreement.

  	
   

  
	
  6.2

  	
  Conditions Precedent to initial Accommodations.

  	
   

  
	
  6.3

  	
  Conditions Precedent to all Accommodations.

  	
   

  
	
  6.4

  	
  Conditions Precedent to Initial Accommodations to Additional Borrowers.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7 REPRESENTATIONS AND WARRANTIES

  	
   

  
	
  7.1

  	
  Representations and Warranties.

  	
   

  
	
  7.2

  	
  Survival of Representations and Warranties.

  	
   

  
	
  7.3

  	
  No Representations by Lenders.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8 COVENANTS OF THE BORROWER

  	
   

  
	
  8.1

  	
  Affirmative Covenants.

  	
   

  
	
  8.2

  	
  Negative Covenants.

  	
   

  
	
  8.3

  	
  Financial Covenants.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 EVENTS OF DEFAULT

  	
   

  
	
  9.1

  	
  Events of Default.

  	
   

  
	
  9.2

  	
  Payment of Letters, Etc.

  	
   

  
	
  9.3

  	
  Expense of Lender.

  	
   

  
	
  9.4

  	
  Remedies Cumulative.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10 PAYMENTS, COMPUTATIONS AND
  INDEMNITY

  	
   

  
	
  10.1

  	
  Timing of Payments under this Agreement, etc.

  	
   

  
	
  10.2

  	
  Payments on Non-Business Days.

  	
   

  
	
  10.3

  	
  Overdue Amounts.

  	
   

  

 

ii

 

	
  10.4

  	
  Application of Payments and Optional Prepayments.

  	
   

  
	
  10.5

  	
  Computations of Interest and Fees.

  	
   

  
	
  10.6

  	
  Judgment Currency.

  	
   

  
	
  10.7

  	
  Costs and Expenses.

  	
   

  
	
  10.8

  	
  Indemnity for Change in Circumstances.

  	
   

  
	
  10.9

  	
  Indemnity Relating to Accommodations.

  	
   

  
	
  10.10

  	
  Indemnity for Transactional and Environmental Liability.

  	
   

  
	
  10.11

  	
  Survival of Indemnities.

  	
   

  
	
  10.12

  	
  Taxation on Payments.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11 MISCELLANEOUS

  	
   

  
	
  11.1

  	
  Notices, etc.

  	
   

  
	
  11.2

  	
  Public Announcements and Exchange of Information.

  	
   

  
	
  11.3

  	
  Time of the Essence.

  	
   

  
	
  11.4

  	
  Third Party Beneficiaries.

  	
   

  
	
  11.5

  	
  Enurement.

  	
   

  
	
  11.6

  	
  Counterparts.

  	
   

  
	
  11.7

  	
  Knowledge.

  	
   

  
	
  11.8

  	
  Assignment.

  	
   

  
	
  11.9

  	
  Non-Merger.

  	
   

  
	
  11.10

  	
  Right to Combine and Set-Off.

  	
   

  
	
  11.11

  	
  Certificates and Opinions.

  	
   

  
	
  11.12

  	
  Permitted Encumbrances.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12 THE AGENT

  	
   

  
	
  12.1

  	
  Appointment and Authorization of Agent.

  	
   

  
	
  12.2

  	
  Interest Holders.

  	
   

  
	
  12.3

  	
  Consultation with Counsel.

  	
   

  
	
  12.4

  	
  Documents.

  	
   

  
	
  12.5

  	
  Agent as Lender.

  	
   

  
	
  12.6

  	
  Responsibility of Agent.

  	
   

  
	
  12.7

  	
  Action by Agent.

  	
   

  
	
  12.8

  	
  Notice of Events of Default.

  	
   

  
	
  12.9

  	
  Responsibility Disclaimed.

  	
   

  
	
  12.10

  	
  Indemnification.

  	
   

  
	
  12.11

  	
  Credit Decision.

  	
   

  
	
  12.12

  	
  Successor Agent.

  	
   

  
	
  12.13

  	
  Delegation by Agent.

  	
   

  
	
  12.14

  	
  Waivers and Amendments.

  	
   

  
	
  12.15

  	
  Determination by Agent Presumed to be Correct.

  	
   

  
	
  12.16

  	
  Remittance of Payments.

  	
   

  
	
  12.17

  	
  Redistribution of Payment.

  	
   

  

 

iii

 

	
  12.18

  	
  Distribution of Notices.

  	
   

  

 

iv

 

REVOLVING CREDIT AGREEMENT

 

DATED
as of the 19th day of November, 2004.

 

A
M O N G:

 

	
   

  	
  IPSCO INC. and IPSCO
  SASKATCHEWAN INC.

  
	
   

  	
   

  
	
   

  	
  (collectively, the “Canadian Borrowers”)

  
	
   

  	
   

  
	
   

  	
  - and -

  
	
   

  	
   

  
	
   

  	
  IPSCO STEEL INC., IPSCO
  ENTERPRISES INC.,

  IPSCO ALABAMA LTD. and IPSCO STEEL

  (ALABAMA) INC.

  
	
   

  	
   

  
	
   

  	
  (collectively, the “U.S. Borrowers”)

  
	
   

  	
   

  
	
   

  	
  (the Canadian Borrowers and the U.S.
  Borrowers

  collectively, the “Borrowers”)

  
	
   

  	
   

  
	
   

  	
  - and -

  
	
   

  	
   

  
	
   

  	
  THE TORONTO-DOMINION BANK

  
	
   

  	
   

  
	
   

  	
  (as “Agent”)

  
	
   

  	
   

  
	
   

  	
  - and -

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
  (as “Syndication Agent”)

  
	
   

  	
   

  
	
   

  	
  - and -

  
	
   

  	
   

  
	
   

  	
  THE TORONTO-DOMINION BANK,
  JPMORGAN

  CHASE BANK, N.A., TORONTO BRANCH, ROYAL

  BANK OF CANADA, BANK OF AMERICA, N.A., BY

  ITS CANADA BRANCH, ABN AMRO BANK N.V.,

  CANADA BRANCH, THE BANK OF NOVA SCOTIA,

  and BANK OF MONTREAL, as Canadian Lenders,

  
	
   

  	
   

  
	
   

  	
  (collectively, “Canadian Lenders”)

  
	
   

  	
   

  
	
   

  	
  - and -

  

 

 

	
   

  	
  TORONTO DOMINION (TEXAS) LLC,
  JPMORGAN

  CHASE BANK, N.A., ROYAL BANK OF CANADA,

  ACTING THROUGH A NEW YORK BRANCH,

  BANK OF AMERICA, N.A., ABN AMRO BANK N.V.,

  WELLS FARGO BANK, NATIONAL ASSOCIATION,

  THE BANK OF NOVA SCOTIA, BY ITS ATLANTA

  AGENCY, BANK OF MONTREAL, CHICAGO

  BRANCH and FIFTH THIRD BANK (CHICAGO)

  
	
   

  	
   

  
	
   

  	
  (collectively, “U.S. Lenders”)

  
	
   

  	
   

  
	
   

  	
  (the Canadian Lenders and the U.S.
  Lenders, collectively,

  the “Lenders”)

  

 

The parties agree as follows:

 

ARTICLE 1

INTERPRETATION

 

1.1                               Defined Terms.

 

In this Agreement, the following terms have the following meanings:

 

“Accommodation” means: (i) an
Advance made by the Lenders or any one or more of them on the occasion of any
Borrowing; (ii) a Bankers’ Acceptance stamped or a BA Equivalent Note
purchased by the Canadian Lenders or any one or more of them on the occasion of
any BA Issuance; and (iii) the issue of a Letter by the Lenders or any one
or more of them on the occasion of any Issue.

 

“Accommodation Notice” means a Borrowing
Notice, a BA Issuance Notice or an Issue Notice.

 

“Advances” means advances made by the
Lenders or any one or more of them under this Agreement and “Advance” means any one of such advances.  Advances may be denominated in Canadian
Dollars (a “Canadian Dollar Advance”) or in
U.S. Dollars (a “U.S. Dollar Advance”).  A Canadian Dollar Advance may be designated a
“Floating Rate Advance” and a U.S.
Dollar Advance may be designated a “LIBOR Advance”
or a “U.S. Base Rate Advance”.

 

2

 

Each of a Floating Rate Advance, a LIBOR Advance, and
a U.S. Base Rate Advance is a “Type” of
Advance.

 

“Affiliate” of any Person
means any other individual or entity who directly or indirectly controls, or is
controlled by or is under common control with, such Person, and, for purposes
of this definition only, “control”, “controlled by”, and “under common control
with” mean possession, directly or indirectly, of power to direct or cause the
direction of the management or policies (whether through ownership of voting
securities, by contract or otherwise).

 

“Agency Fee” has the meaning specified
in Section 2.10.

 

“Agency Fee Agreement” means the
agreement dated as of November 19, 2004 between IPSCO and the Agent
respecting the payment of the Agency Fee.

 

“Agent” means The Toronto-Dominion Bank
in its capacity as agent for the Lenders, and its successors and assigns in
such capacity, provided that, so long as The Toronto-Dominion Bank acts as
agent for the Lenders, it shall act through Toronto Dominion (Texas) LLC for
the purpose of making payments to, and receiving payments from, U.S. Borrowers.

 

“Agreement” means this revolving credit
agreement and all schedules and instruments in amendment or confirmation of it;
“hereof”, “hereto”
and “hereunder” and similar expressions
refer to this Agreement and not to any particular Article, Section, Subsection or
other subdivision; “Article”, “Section”, “Subsection” or
other subdivision of this Agreement followed by a number refers to the
specified Article, Section, Subsection or other subdivision of this
Agreement.

 

“Agreement for Borrowed Money” means,
with respect to any Person, any bond, debenture, note, conditional sale agreement,
lease, loan agreement, Hedging Agreement or other similar material document
evidencing any Debt or Hedging Liabilities of such Person.

 

“Ancillary Agreements” means the
Guarantees, the Assumption Agreements, all promissory notes delivered to
evidence Accommodations and all other agreements delivered or given pursuant to
this Agreement; and “Ancillary Agreement”
means any one of such Guarantees, Assumption Agreements, promissory notes or
agreements.

 

3

 

“Applicable Margin” means
at any time, subject to Sections 2.11(2) and 2.11(3),

 

(i)                       for purposes of
the definition of the Standby Fee, the percentage per annum shown in Schedule F
which corresponds to the utilization rate specified therein;

 

(ii)                    for purposes of
the definition of BA Stamping Fee Rate or Issue Fee, the percentage per annum
shown in column 3 of Schedule F which corresponds to the ratio of
Consolidated Debt to Consolidated EBITDA set forth in the Compliance
Certificate delivered to the Agent for the most recently completed Financial
Quarter;

 

(iii)                 for purposes of the
definitions of U.S. Base Rate and Floating Rate, the percentage per annum shown
in column 2 of Schedule F which corresponds to the ratio of Consolidated
Debt to Consolidated EBITDA set forth in the Compliance Certificate delivered
to the Agent for the most recently completed Financial Quarter; and

 

(iv)                for purposes of the
definition of LIBOR Rate, the percentage per annum shown in column 3 of Schedule F
under the column which corresponds to the ratio of Consolidated Debt to
Consolidated EBITDA set forth in the Compliance Certificate delivered to the
Agent for the most recently completed Financial Quarter,

 

in each case as may be applicable.

 

“Approved Fund” means any
Person (other than a natural person) that is engaged in making, purchasing,
holding or investing in Bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a
Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate
of an entity that administers or manages a Lender.

 

“arm’s length” has the
meaning ascribed thereto for the purposes of the Income Tax Act (Canada), as in effect from time to time.

 

4

 

“Assets” means, with respect to any
Person, all property and assets of such Person, both real and personal, of
every kind and wheresoever situate, whether now owned or hereafter acquired.

 

“Assignee” has the meaning
specified in Section 11.8(2)(a).

 

“Assignment Agreement”
means an agreement substantially in the form of Schedule R hereto.

 

“Assumption Agreement” means an
agreement substantially in the form of Schedule A hereto.

 

“Authorization” means, with respect to
any Person, any authorization, order, permit, approval, grant, licence,
consent, right, franchise, privilege, certificate, judgment, writ, injunction,
award, determination, direction, decree, by-law, rule or regulation of any
Governmental Entity having jurisdiction over such Person, whether or not having
the force of Law.

 

“BA Equivalent Note” means, at any time,
a notional note issued by a Canadian Borrower in favour of any Non-BA Lender
and evidenced by the account records maintained by the Agent.

 

“BA Issuance” means the creation of a
Bankers’ Acceptance or the purchase of a BA Equivalent Note by a Canadian
Lender.

 

“BA Issuance Date” means any Business
Day fixed pursuant to Section 4.2(1) for a BA Issuance.

 

“BA Issuance Notice” has the meaning
specified in Section 4.2(1).

 

“BA Lender” means each Canadian Lender
which is not a Non-BA Lender.

 

“BA Reference Discount Rate” means (a) in
respect of Bankers’ Acceptances or Drafts to be purchased by Canadian Lenders
that are Schedule I banks under the Bank Act
(Canada) pursuant to Article 4, the average rate for Canadian Dollar
Bankers’ Acceptances quoted at

 

5

 

approximately 10:00 a.m. (Toronto time) on the
Reuters Screen CDOR Page “Canadian Interbank Bid BA Rates”, and (b) in
respect of BA Equivalent Notes that are to be purchased by Non-BA Lenders and
Bankers’ Acceptances or Drafts to be purchased pursuant to Article 4 by
Canadian Lenders other than Schedule I banks under the Bank Act (Canada), the rate referred to above in this
definition, plus .10%.

 

“BA Stamping Fee” means, with respect to
each Draft or BA Equivalent Note drawn by a Canadian Borrower hereunder and, in
the case of a Draft, stamped or, in the case of a BA Equivalent Note, purchased
by a Canadian Lender on any BA Issuance Date, an amount equal to the BA
Stamping Fee Rate multiplied by the aggregate Face Amount of such Draft or BA
Equivalent Note, calculated daily on the basis of the term to maturity of such
Draft or BA Equivalent Note and a year of 365 days or 366 days in the case of a
leap year.

 

“BA Stamping Fee Rate” means the
Applicable Margin.

 

“Bank One Lease” means the operating lease agreement dated October 31,
2000 between IPSCO Steel, as lessee, and the Owner Trustee, as lessor, pursuant
to which IPSCO Steel leased from the Owner Trustee certain steel manufacturing
equipment located at its steel mill in Montpelier, Iowa.

 

“Bank One Lease Documentation” means the
Bank One Lease, the site lease made between IPSCO Steel, as site lessor, and
the Owner Trustee, as site lessee, and such other documentation entered into in
connection therewith.

 

“Bank One Lease Obligation” means the
amount of the rental obligation related to the Bank One Lease, calculated at
the date of determination thereof, as the unpaid amount of such obligation for
the corresponding period specified in Schedule P hereto, or such greater
or lesser unpaid amount (calculated on the same basis as the amounts on Schedule P
have been calculated) as is certified to be the Bank One Lease Obligation in
the most recent Compliance Certificate delivered by IPSCO.

 

“Bankers’ Acceptance” has the meaning
specified in Section 4.1.

 

“Beneficiary” means, in respect of any
Letter, the beneficiary named in such Letter.

 

6

 

“Borrowers” means, collectively, (i) IPSCO,
IPSCO Saskatchewan, IPSCO Steel, IPSCO Enterprises, IPSCO A.L. and IPSCO A.I., (ii) any
one or more of IPSCO’s direct or indirect Wholly-Owned Subsidiaries which
executes and delivers an Assumption Agreement in order to become a Borrower and
which has not executed and delivered a Release Agreement, and (iii) in
each case their respective successors and permitted assigns, whether or not
there are any Outstandings hereunder at the time; and “Borrower”
means any one of the Borrowers.

 

“Borrower’s Canadian Dollar Account”
means, with respect to any Canadian Borrower, the Canadian Dollar account
maintained by such Borrower at the Canadian Account Branch, the particulars of
which shall have been notified by such Borrower to the Agent, and communicated
by the Agent to the Canadian Lenders.

 

“Borrower’s U.S. Dollar Account” means,
with respect to: (i) any Canadian Borrower, the U.S. Dollar account
maintained by such Borrower at the Canadian Account Branch, the particulars of
which shall have been notified by such Borrower to the Agent; and (ii) any
U.S. Borrower, the U.S. Dollar account maintained by such Borrower at the U.S.
Account Branch, the particulars of which shall have been notified by such
Borrower to the Agent.

 

“Borrowing” means a borrowing consisting
of one or more Advances.

 

“Borrowing Notice” has the meaning
specified in Section 3.2.

 

“Business Day” means any day of the year
on which banks are not required or authorized to close in Toronto, Ontario,
provided that where used in the context of a U.S. Dollar Advance, such day is
also a day on which banks are not required or authorized to close in New York
City or Houston, Texas and, where used in the context of a LIBOR Advance, such
day is also a day on which dealings are carried on in the London interbank
market.

 

“Canadian Account Branch” means the
branch of the Agent at which a Canadian Borrower maintains its Borrower’s
Canadian Dollar Account and Borrower’s U.S. Dollar Account from time to time,
and at which the Agent maintains its Payment Account for Canadian Borrowers
from time to time, as the Agent from time to time notifies the Canadian
Borrowers.

 

7

 

“Canadian Borrower” means any Borrower
formed under the laws of Canada, or any Province or Territory thereof.

 

“Canadian Dollars” and “Cdn. $” each mean lawful money of Canada.

 

“Canadian Lenders” means the Lenders
specified as Canadian Lenders in Schedule B and any Assignee of a Canadian
Lender that has delivered an Assignment Agreement, and “Canadian
Lender” means any one of the Canadian Lenders.

 

“Canadian Lender Groups” means, at any particular time, those Lender Groups that include a
Canadian Lender.

 

“Canadian Plan” means (a) a
“pension plan” or “plan” which is a “registered pension plan” as defined in the
Income Tax Act (Canada) or
pension benefits standards legislation in any jurisdiction of Canada and is
applicable to employees resident in Canada or to any Canadian Borrowers or
Guarantors; and (b) any other defined benefit, supplemental pension
benefit plan or similar arrangement applicable to any employee of any Canadian
Borrower or Guarantor.

 

“Canadian Welfare Plan”
means any life, medical, health, dental, hospitalization, disability, travel,
accident, accidental health and dismemberment insurance or other employee
benefit or welfare plan, agreement or arrangement, other than a Canadian Plan,
applicable to any employee of any Canadian Borrower or Guarantor, whether or
not insured and whether or not subject to any Law, but excludes any statutory
plan by which any Canadian Borrower is required to comply, including the Canada
Pension Plan or plans administered pursuant to applicable provincial health,
workers’ compensation and employment insurance legislation.

 

“Capitalized Lease” means any lease
under which the obligation to make rental payments constitutes a Capitalized
Lease Obligation.

 

“Capitalized Lease Obligation” means any
rental obligation relating to a lease which, under GAAP, would be required to
be capitalized on the books of IPSCO and its Consolidated Subsidiaries,
calculated at the date of determination thereof as the amount thereof accounted
for as indebtedness in accordance with GAAP.

 

8

 

“Cash Equivalents” means

 

(a)                                  marketable
obligations with a maturity of 720 days or less issued or directly and fully
guaranteed or issued by the government of the United States of America or
Canada or any agency or instrumentality thereof (provided that the full faith
and credit of the United States of America or Canada is pledged in support
thereof);

 

(b)                                 demand
and time deposits and certificates of deposit or acceptances with a maturity of
360 days or less of any U.S. financial institution that is a member of the
United States Federal Reserve System or any bank organized under the laws of
Canada having combined capital and surplus and undivided profits of not less
than $500,000,000 and, in the case of any such U.S. financial institution, is
assigned at least a “B” rating by Thomson Financial Bank Watch;

 

(c)                                  commercial
paper maturing no more than 360 days from the date of purchase thereof issued
by a corporation that is not a Borrower or an affiliate of a Borrower, and is
organized under the laws of any state of the United States of America or the
District of Columbia or Canada or any province or territory thereof and rated
at least A-2 by S&P, at least P-2 by Moody’s or R-1 (low) by DBRS;

 

(d)                                 repurchase
obligations with term of not more than ten days for underlying securities of
the types described in clause (a) above entered into with any commercial
bank meeting the specifications in clause (b) above; and

 

(e)                                  investments
in money market or other mutual funds substantially all of whose assets
comprise securities of the types described in clauses (a) through (d) above.

 

“Change of Control” means,
with respect to IPSCO, the acquisition by any person or group of Persons who
are associates (as such term is defined in the Securities
Act (Ontario)), or who act together in concert for such purpose of (i) shares
or other voting securities of IPSCO to which are attached more than 30% of the
votes that may be cast to elect directors or other Persons charged with the
direction of the management of IPSCO and which, if exercised, are

 

9

 

sufficient to elect a majority of such directors or
other management Persons, or (ii) any other right to appoint a majority of
such directors or other management Persons or with respect to any Person who
from time to time has previously met the foregoing test the further acquisition
by such Person or group of Persons who are associates (as such term is defined
in the Securities Act (Ontario))
or who act together in concert for such purpose of any further units or other
voting securities of IPSCO.

 

“Claim” means any claim of any nature
whatsoever, including any demand, liability, obligation, debt, cause of action,
suit, proceeding, judgment, award, assessment and reassessment.

 

“Closing” means the date of execution of
this Agreement.

 

“Code” means the Internal Revenue Code
of 1986, as amended.

 

“Code Affiliate” means each Person
which, together with IPSCO or any of its Subsidiaries, is treated as a “single
employer” under Subsection (b), (c), (m) or (o) of Section 414 of the
Code.

 

“Commitment” means U.S. $150,000,000, as
the same may be reduced from time to time pursuant to Section 2.7, or
increased pursuant to Section 2.8.

 

“Compliance Certificate” means a
certificate in the form of Schedule L hereto.

 

“Consolidated Assets”
means, at any time, the Assets of IPSCO Consolidated at such time.

 

“Consolidated Current Assets” means, at
any time, all current assets of IPSCO Consolidated at such time.

 

“Consolidated Current Liabilities”
means, at any time, all Current Liabilities of IPSCO Consolidated at such time.

 

10

 

“Consolidated Debt” means, at any time,
the sum of: (i) all Debt of IPSCO Consolidated at such time; and (ii) the
Bank One Lease Obligation (to the extent not otherwise included as Debt of
IPSCO Consolidated in accordance with GAAP).

 

“Consolidated EBITDA” means, at any time with respect to IPSCO
Consolidated, Consolidated Net Income for IPSCO’s most recently completed four
Financial Quarters, plus:

 

(a)                                  amounts deducted in calculating net income or net loss in respect of
non-cash expenses, depreciation and amortization; and

 

(b)                                 amounts deducted in calculating such net income or net loss in
respect of Consolidated Interest Expense, net of interest income added in calculating
such net income or net loss;

 

(c)                                  amounts deducted in calculating such net income or net loss in
respect of Income Tax Expense whether or not deferred;

 

and excluding
for such period:

 

(d)                                 any gain or loss attributable to the sale, conversion or other
Disposition of Assets out of the ordinary course of business; and

 

(e)                                  any gain resulting from the write-up of Assets or any loss resulting
from the write-down of Assets; and

 

(f)                                    all non-cash gains, non-cash losses or other non-cash amounts that
were included in such net income; and

 

(g)                                 any gain or loss on the repurchase or redemption of any securities
(including in connection with the early retirement or defeasance of any Debt);
and

 

(h)                                 any other extraordinary or non-recurring items;

 

all of which
shall be calculated on a rolling four quarter basis.

 

11

 

“Consolidated Fixed Charges”
means, for any period for IPSCO Consolidated, without duplication, the
aggregate of (a) Consolidated Interest Expense for such period, plus
(b) proforma scheduled payments of principal for the 12 months immediately
following such period, including pro forma scheduled payment of principal in
respect of the 7.80% unsecured debentures of IPSCO maturing December 1,
2006, net (in the case of such 7.80% unsecured debentures only) of available
cash on hand and Cash Equivalents during such period (for greater certainty,
the inclusion of cash on hand will be applied, without duplication, to the
7.80% debentures and can in no event result in a calculation in respect of such
7.80% unsecured debentures rendering a number less than zero), plus (c) Income
Tax Expense (excluding the deferred portion thereof) of IPSCO Consolidated with
respect to such period, plus (d) common and preferred dividends
paid with respect to such period, plus (e) Rental Expense, determined in
each case for IPSCO Consolidated in accordance with GAAP.

 

“Consolidated Free Cash Flow”
means, for any period for IPSCO Consolidated, the sum of (a) Consolidated
EBITDA, plus (b) Rental Expense for such period, minus (c) Maintenance
Capital Expenditures during such period, determined in each case for IPSCO
Consolidated.

 

“Consolidated Interest Expense”
means, for any period for IPSCO Consolidated, without duplication, the aggregate
expense incurred by such Persons during such period for interest, capitalized
interest and other financing charges in connection with indebtedness incurred
by such Persons, determined in each case for
IPSCO Consolidated.

 

“Consolidated Net Income” means, for any
period, the net income (loss) after tax of IPSCO Consolidated for such period.

 

“Consolidated Revenue”
means, for any period, the Revenue of IPSCO Consolidated for such period.

 

“Consolidated Shareholders Equity”
means, at any time, in respect of IPSCO Consolidated, the sum of: (i) the
stated capital of all of the outstanding Equity Interests of IPSCO
Consolidated; (ii) the amount, without duplication, of any contributed
surplus as set forth in the financial statements of IPSCO Consolidated; (iii) the
accumulated retained earnings of IPSCO

 

12

 

Consolidated; and (iv) accumulated exchange gains
or losses arising from the translation of the financial statements of
self-sustaining operations for IPSCO Consolidated at such time, in each case
determined as at the end of its most recently completed Financial Quarter.

 

“Consolidated Subsidiary” means at any
time, in respect of any Person, any other Person the accounts of which are or
should, in accordance with GAAP, be consolidated with those of such
first-mentioned Person in its consolidated financial statements at such time.

 

“Consolidated Tangible Assets”
means, for any period, the Tangible Assets of IPSCO Consolidated for such
period.

 

“Consolidated Tangible Net Worth” means,
at any time, in respect of IPSCO Consolidated, Consolidated Shareholders Equity
at such time, but excluding the net book value of all Assets which would be
treated as intangible under GAAP at such time.

 

“Consolidated Total Assets”
means, at any time, the sum of the Assets of IPSCO Consolidated at such time.

 

“Consolidated Total Capitalization”
means, at any time, the sum of Consolidated Shareholders Equity and
Consolidated Debt at such time.

 

“Credit Documents” means this Agreement,
the Drafts, the Bankers’ Acceptances, the BA Equivalent Notes, the Letters, all
Ancillary Agreements, and all other certificates and instruments delivered or
given pursuant to this Agreement or any Ancillary Agreement; and “Credit
Document” means any one of the Credit Documents.

 

“Credit Facility” means the revolving
credit facility to be made available to the Borrowers hereunder for general
corporate purposes, including working capital and capital expenditures,
repayment of indebtedness, permitted acquisitions, permitted investments, and
permitted construction and operation of additional manufacturing and processing
facilities.

 

“Credit Party” means any
Borrower or Guarantor.

 

“Current Liabilities” means, in respect
of any Person, all current liabilities of such Person at such time.

 

13

 

“DBRS” means Dominion Bond
Rating Services, and includes any successor rating agency to DBRS, and where
reference is made herein to a rating category of DBRS, such rating category
shall include the equivalent corresponding rating category used by any such
successor rating agency.

 

“Debt” means, in respect of any Person,
without duplication and, except as provided in item (b) below, without
regard to any uncapitalized interest component thereof (whether actual or
imputed) that is not due and payable, the aggregate of the following amounts,
unless the context otherwise requires:

 

(a)                                  indebtedness for borrowed money (including, without limitation, by
way of overdraft) or obligations or indebtedness represented by bonds,
debentures, notes payable, drafts accepted and similar instruments representing
extensions of credit;

 

(b)                                 the face amount of all bankers’ acceptances and similar instruments;

 

(c)                                  all liabilities for credit extended to such Person upon which
interest charges are customarily paid by that Person;

 

(d)                                 capital stock which, by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable at the option of
the holder), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is
redeemable at the option of the holder thereof, in whole or in part, for cash
or securities constituting Debt;

 

(e)                                  all Capitalized Lease Obligations and obligations in respect of the
deferred purchase price of Assets or services (including obligations in respect
of Purchase Money Mortgages);

 

(f)                                    the amount of all contingent liabilities in respect of any Letters
and other outstanding letters of credit, letters of guarantee and similar
instruments; and

 

(g)                                 the amount of the contingent liability under any guarantee (other
than by endorsement of negotiable instruments for collection or deposit in the
ordinary

 

14

 

course of business) in any manner or any part or all
of an obligation of another Person of the type described in items (a) – (f) above;

 

and, for
greater certainty, includes Debt permitted to be incurred in accordance with
the terms of this Agreement to the extent that such permitted Debt falls within
any of the foregoing categories; provided that trade payables and
Non-Capitalized Lease Obligations incurred or entered into in the ordinary
course of business do not constitute Debt.

 

“Default” means an event which, with the
giving of notice or passage of time, or both, would constitute an Event of
Default.

 

“Disposition” means, with
respect to any Asset of any Person, any direct or indirect sale, lease (where
such Person is the lessor of such Asset), assignment, transfer (including any
transfer of title or possession), exchange, conveyance, release or gift of such
Asset, including by means of a Sale-Leaseback Transaction, a liquidation,
dissolution or winding-up; and “Dispose” and “Disposed” have meanings
correlative thereto.

 

“Draft” means, at any time, a blank bill
of exchange within the meaning of the Bills of Exchange Act (Canada)
in substantially the form set out in Schedule D hereto drawn by a Canadian
Borrower on a BA Lender and bearing such distinguishing letters and numbers as
such Lender may determine, but which at such time, except as otherwise provided
herein, has not been completed or stamped by such Lender.

 

“Election Notice” has the meaning
specified in Section 3.4(2).

 

“Encumbrances” means liens, charges,
mortgages, pledges, security interests, adverse claims, defects of title,
restrictions, voting trusts, any other rights of a similar nature of third
parties relating to any Assets and any other encumbrances of any kind.

 

“Environmental Laws” means all
applicable Laws relating to the environment, health and safety matters or
conditions, Hazardous Substances, pollution or protection of the environment,
including Laws relating to: (i) on-site or off-site contamination; (ii) occupational
health and safety; (iii) chemical Substances or products; (iv) Releases
of pollutants, contaminants, chemicals or other industrial, toxic or
radioactive Substances or Hazardous

 

15

 

Substances into the environment; and (v) the
manufacture, processing, distribution, use, treatment, storage, transport or
handling of Hazardous Substances.

 

“Equity Interests” means,
as to any Person, all shares, interests, rights, participations or other
equivalents of capital stock of (or other ownership or profit interests or
units in) such Person and/or any warrants, options or other rights for purchase
or acquisition from such Person of any of the foregoing.

 

“Equity Issuance” means
any issuance by any Person to any other Person of any Equity Interests in such
first mentioned Person.

 

“Equivalent Cdn. $ Amount” means, on any
day with respect to any amount of U.S. Dollars, the equivalent amount of
Canadian Dollars determined by using the quoted spot rate at which the Agent’s
principal office in Toronto offers to provide Canadian Dollars in exchange for
U.S. Dollars in Toronto at 12:00 noon (Toronto time) on such day.

 

“Equivalent U.S. $ Amount” means, on any
day with respect to any amount of Canadian Dollars, the equivalent amount of
U.S. Dollars determined by using the quoted spot rate at which the Agent’s
principal office in Toronto offers to provide U.S. Dollars in exchange for
Canadian Dollars in Toronto at 12:00 noon (Toronto time) on such day.

 

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA Affiliate” means, with respect to
any Borrower, any corporation which is a member of the same controlled group of
corporations as such Borrower or any trade or business which is under common
control with such Borrower, within the meaning of Section 414 of the Code.

 

“ERISA Companies” means, with respect to
any Borrower, such Borrower and its ERISA Affiliates; and “ERISA Company” means
any one of such ERISA Companies.

 

“Event of Default” has the meaning
specified in Section 9.1.

 

16

 

“Existing Revolving Agreement”
means the existing amended and restated revolving credit agreement dated as of October 13,
2000, as amended, among (inter alia)
IPSCO, other borrowers, the Agent and various lenders.

 

“Face Amount” means, in respect of: (i) a
Bankers’ Acceptance or BA Equivalent Note, the amount payable to the holder
thereof on its maturity; and (ii) a Letter, the maximum amount payable to
the Beneficiary thereunder.

 

“Federal Funds Rate”
means, for any particular day, the variable rate of interest per annum equal to
the weighted average rates on overnight federal funds transactions with members
of the Federal Reserve System arranged by Federal Funds brokers as published
for such day (or, if such day is not a Business Day, for the next preceding
Business Day) by the Federal Reserve Bank of New York, or if such rate is not
so published for any day which is a business day, the average of the quotations
for such day on such transactions received by the Agent from three federal
funds brokers of recognized standing selected by it.

 

“Fees” means any and all fees payable by
a Borrower pursuant to this Agreement or any Ancillary Agreement, including the
Standby Fee and the Agency Fee.

 

“Financial Quarter” means, in relation
to a Borrower, each period of 3 consecutive months beginning on the first day
of the first month of such Borrower’s Financial Year.

 

“Financial Year” means, in relation to a
Borrower, its financial year.

 

“Floating Rate” means, for any
particular day, the sum of (A) the Prime Rate and (B) the Applicable
Margin.

 

“Floating Rate Advance” means an Advance denominated in Canadian
Dollars which bears interest based on the Floating Rate.

 

“GAAP” means, at any time, generally
accepted accounting principles which are in effect from time to time in Canada
as established by the Canadian Institute of Chartered Accountants, or any
successor Person, at such time.

 

17

 

“Governmental Entity” means any: (i) multinational,
federal, provincial, state, municipal, local or other government, governmental
or public department, central bank, court, commission, board, bureau, agency or
instrumentality, domestic or foreign; (ii) any subdivision, agent,
commission, board, or authority of any of the foregoing; or (iii) any
quasi-governmental or private body exercising any regulatory, expropriation or
taxing authority under or for the account of any of the foregoing.

 

“Guarantees” means the IPSCO Guarantee,
the IPSCO Saskatchewan Guarantee, the IPSCO Steel Guarantee, the IPSCO
Enterprises Guarantee, the IPSCO A.L. Guarantee and the IPSCO A.I. Guarantee
and any other Subsidiary Guarantees; and “Guarantee”
means any one of such Guarantees.

 

“Guarantor” means (i) each
Person executing and delivering a Guarantee, (ii) each Wholly-Owned
Material Subsidiary that is not a Borrower, and (iii) such other Persons
as IPSCO may from time to time designate by notice in writing to the Agent and
the Lenders.

 

“Hazardous Substance” means any
Substance which is or is deemed to be, alone or in any combination, hazardous,
hazardous waste, toxic, a pollutant, a deleterious substance, a contaminant or
a source of pollution or contamination under any Environmental Law, whether or
not such Substance is defined as hazardous under the Environmental Law.

 

“Hedging Transaction” means any interest rate swap, basis swap, forward rate transaction,
currency hedging or swap transaction, cap transaction, floor transaction,
collar transaction or other similar transaction, whether with respect to
interest rates, currencies, commodities or otherwise, or any option with
respect to such a transaction or combination of any such transactions.

 

“Hedging Liabilities”
means any amounts, determined at a particular time, in relation to any Person,
with respect to all Hedging Transactions entered into by such Person, equal to
the net amount, if any, such Person would be required to pay as liquidation or
termination payments under all such Hedging Transactions if all such Hedging
Transactions were liquidated or terminated at such time, giving effect to the
amounts payable or receivable under each such Hedging Transaction.

 

18

 

“Houston Lease Obligation”
means the obligations owing from time to time pursuant to the master lease
agreement dated June 26, 2001 and related equipment schedules between
IPSCO Texas Inc., as lessee, and LaSalle National Leasing Corporation, as
lessor, pursuant to which IPSCO Texas Inc. leased from LaSalle National Leasing
Corporation certain steel manufacturing equipment located at its coil
processing facility in Houston, Texas.

 

“Income Tax Expense”
means, on a consolidated basis, for any Person for any period, without
duplication, the aggregate of all taxes paid or payable by such Person based on
the income, capital or business of such Person for such period.

 

“Interest Period” means, for each LIBOR
Advance, a period which commences: (i) in the case of the initial Interest
Period, on the date such Advance is made or converted from another Type of
Advance or Accommodation; and (ii) in the case of any subsequent Interest
Period, on the last day of the immediately preceding Interest Period, and which
ends, in either case, on the day selected by the Borrower in the applicable
Borrowing Notice or Election Notice in accordance with this Agreement.  The duration of each Interest Period shall,
subject to the Agent’s right to restrict such Interest Period, be 1, 2, 3, 6 or
12 months, unless the last day of an Interest Period would otherwise occur on a
day other than a Business Day, in which case the last day of such Interest
Period shall be extended to occur on the next Business Day or if such extension
would cause the last day of such Interest Period to occur in the next calendar
month, the last day of such Interest Period shall occur on the preceding
Business Day.

 

“Investment” means any
direct or indirect advance, loan or other extension of credit (other than in
the ordinary course of business) or capital contribution to (by means of
transfers of property to others, or payments for property for the account or
use of others, or otherwise), or assumption of debt in connection with the
acquisition of, or purchase or other acquisition of any shares, equity
interests, indebtedness, bonds, notes or other securities of, or all or
substantially all of the Assets and/or business of, any Person, including
acquisitions by amalgamation or other forms of merger.  For greater certainty, “Investment” means and
includes the portion of any Investment satisfied in whole or in part by
assumption of debt or other liabilities.

 

“IPSCO” means IPSCO Inc.

 

19

 

“IPSCO A.I.” means IPSCO Steel (Alabama)
Inc., a corporation incorporated under the laws of the State of Alabama, a
Wholly-Owned Subsidiary of IPSCO.

 

“IPSCO A.L.” means IPSCO
Alabama Ltd. a limited partnership organized under the laws of the State of
Alabama, a Wholly-Owned Subsidiary of IPSCO.

 

“IPSCO A.I. Guarantee” means the
guarantee agreement, substantially in the form of Schedule C hereto, to be
made by IPSCO A.I. in favour of the Agent, for the benefit of the Lenders, in
respect of all present and future indebtedness of IPSCO to the Agent and the
Lenders under the Credit Documents.

 

“IPSCO A.L. Guarantee” means the
guarantee agreement, substantially in the form of Schedule C hereto, to be
made by IPSCO A.L. in favour of the Agent, for the benefit of the Lenders, in
respect of all present and future indebtedness of IPSCO to the Agent and the
Lenders under the Credit Documents.

 

“IPSCO Consolidated” means, collectively and on a consolidated basis, IPSCO and each of
its Consolidated Subsidiaries, and where the context requires, IPSCO and each
of its Consolidated Subsidiaries on an individual basis.

 

“IPSCO Enterprises” means IPSCO
Enterprises Inc., a corporation incorporated under the laws of the State of
Delaware, a Wholly-Owned Subsidiary of IPSCO.

 

“IPSCO Enterprises Guarantee” means the
guarantee agreement, substantially in the form of Schedule C hereto, to be
made by IPSCO Enterprises in favour of the Agent, for the benefit of the
Lenders, in respect of all present and future indebtedness of IPSCO to the
Agent and the Lenders under the Credit Documents.

 

“IPSCO Guarantee” means the guarantee
agreement, substantially in the form of Schedule C hereto, to be made by
IPSCO in favour of the Agent, for the benefit of the Lenders, in respect of all
present and future indebtedness to the Agent and the Lenders under the Credit
Documents of each Wholly-Owned Subsidiary of IPSCO which (i) is a Borrower
that is initially a party to this Agreement or (ii) which executes an
Assumption Agreement in order to become a Borrower and which has not executed
and delivered a Release Agreement.

 

20

 

“IPSCO Saskatchewan” means IPSCO
Saskatchewan Inc., a corporation incorporated under the laws of Canada, a
Wholly-Owned Subsidiary of IPSCO.

 

“IPSCO Saskatchewan Guarantee” means the
guarantee agreement, substantially in the form of Schedule C hereto, to be
made by IPSCO Saskatchewan in favour of the Agent, for the benefit of the
Lenders, in respect of all present and future indebtedness of IPSCO to the
Agent and the Lenders under the Credit Documents.

 

“IPSCO Steel” means IPSCO Steel Inc., a
corporation incorporated under the laws of the State of Delaware, a
Wholly-Owned Subsidiary of IPSCO.

 

“IPSCO Steel Guarantee” means the
guarantee agreement, substantially in the form of Schedule C hereto, to be
made by IPSCO Steel in favour of the Agent, for the benefit of the Lenders, in
respect of all present and future indebtedness of IPSCO to the Agent and the
Lenders under the Credit Documents.

 

“Issue” means an issue of a Letter by a
Lender pursuant to Article 5.

 

“Issue Date” has the meaning specified
in Subsection 5.2(1).

 

“Issue Fee” means, with respect to each Letter issued hereunder, the amount
equal to the Applicable Margin multiplied by the aggregate Face Amount of the
Letter, calculated on the basis of the term of the Letter and a year of 365
days or 366 days in the case of a leap year.

 

“Issue Notice” has the meaning specified
in Subsection 5.2(1).

 

“Issuing Lender” means (i) with
respect to a Canadian Borrower, The Toronto-Dominion Bank, in its capacity as
issuer of Letters hereunder, and (ii) with respect to a U.S. Borrower,
Toronto Dominion (Texas) LLC, in its capacity as issuer of Letters hereunder.

 

“Laws” means all statutes, codes,
ordinances, decrees, rules, regulations, municipal by-laws, judicial or
arbitral or administrative or ministerial or departmental or regulatory
judgments, orders, decisions, rulings or awards, policies or guidelines having
the force of law, or any provisions of the foregoing, including general principles
of common and civil law and equity,

 

21

 

binding on or affecting the Person referred to in the
context in which such word is used; and “Law” means any
one of the foregoing.

 

“Lenders” means the Canadian Lenders and
the U.S. Lenders, and “Lender” means
any of the Lenders.

 

“Lender Groups” means:  (i) The Toronto-Dominion Bank and
Toronto Dominion (Texas) LLC; (ii) JPMorgan Chase Bank, N.A., Toronto
Branch and JPMorgan Chase Bank, N.A.; (iii) Royal Bank of Canada and Royal
Bank of Canada, acting through a New York Branch; (iv) Bank of America
N.A., by its Canada Branch and Bank of America, N.A.; (v) ABN AMRO Bank
N.V., Canada Branch and ABN AMRO Bank N.V.; (vi) Wells Fargo Bank,
National Association; (vii) The Bank of Nova Scotia and The Bank of Nova
Scotia, by its Atlanta Agency; (viii) Bank of Montreal and Bank of
Montreal, Chicago Branch; (ix) Fifth Third Bank (Chicago); and (x) any
assignee of a Lender Group or any substitute Lender Group; in each case which
has delivered an Assignment Agreement, and “Lender Group”
means any one of the Lender Groups.

 

“Lender Group Commitment” means, at any
particular time, with respect to a particular Lender Group, the amount set
forth in Schedule B hereto as the Lender Group Commitment of such Lender
Group under the Credit Facility, as the same may be reduced or increased from
time to time pursuant to this Agreement.

 

“Letter” means a commercial letter of
credit, a stand-by letter of credit or a letter of guarantee (each of which is
a “Type” of Letter) issued or to be issued
by a Lender for the account of the Borrower pursuant to Article 5 and in
such form as such Lender may from time to time approve.

 

“LIBOR” means: (i) for each
Interest Period for each LIBOR Advance made to a Canadian Borrower, the rate
for deposits in U.S. $ for a period comparable to such Interest Period which is
quoted on the Telerate screen (Page 3750) as of 11:00 a.m. (London
time) two Business Days before the first day of such Interest Period, or if the
Telerate screen (Page 3750) is not available, as quoted by such other
official reporting service as reasonably determined by the Agent; and (ii) for
each Interest Period for each LIBOR Advance made to a U.S. Borrower, the

 

22

 

rate obtained by dividing (x) the rate for deposits in
U.S. $ for a period comparable to such Interest Period which is quoted on the
Telerate screen (page 3750) as of 11:00 a.m. (London time) two
Business Days before the first day of such Interest Period, by (y) the
remainder of 1.0 minus the Reserve Percentage.

 

“LIBOR Advance” means an Advance bearing
interest as provided in Section 3.3(1)(d).

 

“LIBOR Rate” means the interest rate per
annum equal to LIBOR, plus the Applicable Margin.

 

“Loss” means any loss whatsoever,
whether direct or indirect, including expenses, costs, damages, judgments,
penalties, fines, charges, claims, demands, liabilities, loss of profits,
interest, and any and all legal fees and disbursements, on a solicitor and his
own client basis.

 

“Maintenance Capital Expenditures”
means, for any period for IPSCO Consolidated, the aggregate capital
expenditures paid or payable by such Persons during such period for the
maintenance of fixed assets with a useful life of one year or more.

 

“Majority Lenders” means, at any time,
such group of Lender Groups whose Lender Group Commitments aggregate at least
662/3% of the aggregate of the Lender Group Commitments of all the
Lender Groups at such time.  If, at such
time, the Commitment has been terminated, then Majority Lenders shall mean such
group of Lender Groups whose Outstandings aggregate at least 662/3%
of the Total Outstandings of all the Lender Groups.

 

“Material Adverse Effect” means a
material adverse effect (or a series of adverse effects, none of which is
material in and of itself but which, cumulatively, result in a material adverse
effect) on: (i) the business, operations, Assets or financial condition of
IPSCO Consolidated, measured as a whole; or (ii) the ability of IPSCO, or
the ability of any other Borrower with the assistance of IPSCO, to observe,
perform or comply with any of its payment obligations under this Agreement or
any other Credit Document to which such Borrower is a party; or (iii) the
validity or enforceability of any of the Credit Documents or the rights and
remedies of the Agent or any of the Lenders under any of the Credit Documents.

 

23

 

“Material Subsidiary” means, at any
time:  (i) any Consolidated
Subsidiary of IPSCO having Tangible Assets in excess of 5% of Consolidated
Tangible Assets or having Revenue in excess of 5% of Consolidated Revenue,
determined at the end of the most recently completed Financial Quarter of IPSCO
based on the financial statements of IPSCO Consolidated delivered pursuant to
Sections 8.1(1)(a) and 8.1(1)(b) and reflected in the Compliance
Certificate delivered pursuant to Section 8.1(1)(d) for the most
recently completed Financial Quarter; and (ii) any Consolidated Subsidiary
of IPSCO designated by notice in writing given by IPSCO to the Agent to be a “Material
Subsidiary”; provided that, any such Consolidated Subsidiary so designated as a
“Material Subsidiary” shall at all times thereafter remain a “Material
Subsidiary” for the purposes of this Agreement unless otherwise agreed to by
the Borrowers and the Majority Lenders.

 

“Maturity Date” means November 19,
2007.

 

“Moody’s” means Moody’s
Investor Service, Inc. and includes any successor rating agency to Moody’s,
and where reference is made herein to a rating category of Moody’s, such rating
category shall include the equivalent corresponding rating category used by any
such successor rating agency.

 

“Multiemployer Plan” shall mean any U.S.
Plan which is a “Multiemployer Plan” (as such term is defined in Section 4001(a)(3) of
ERISA).

 

“Net Available Equity Issuance
Proceeds” means, with respect to any Equity Issuances to Persons
other than (i) IPSCO, (ii) any of its Consolidated Subsidiaries, or (iii) directors,
officers, employees or other independent contractors of any of IPSCO
Consolidated under applicable director, executive or employee compensation
plans of IPSCO Consolidated, whether private or public, the net amount equal to
the aggregate amount received in cash (including any cash received by way of
deferred advance or instalment but only as and when such cash is so received)
in connection with such Equity Issuance, less the reasonable fees, commissions
and other out-of-pocket expenses (as evidenced by supporting documentation
provided to the Agent upon request therefore) incurred or paid for any Borrower
or Subsidiary in connection with such Equity Issuance.

 

24

 

“Non-BA Lender” means a Canadian Lender
which is not permitted by applicable Law or customary market practices to
create a Bankers’ Acceptance for the purposes of subsequent sale.

 

“Non-Capitalized Lease” means any lease
of Assets employed or utilized in the businesses of IPSCO Consolidated and
having an original term of one year or more (inclusive of all renewal terms),
under which the obligation to make rental payments does not constitute a
Capitalized Lease Obligation.

 

“Non-Capitalized Lease Obligation” means
any rental obligation relating to a Non-Capitalized Lease.

 

“Notice” means any claim, citation,
directive, request for information, statement of claim, notice of investigation
or other similar communication from any Person.

 

“Original Currency” has the meaning
specified in Section 10.6(1).

 

“Other Currency” has the meaning
specified in Section 10.6(1).

 

“Outstandings” means, with respect to
any Lender at any time, an amount calculated in U.S. Dollars at such time equal
to the sum of: (i) the aggregate principal amount of all outstanding
Advances by such Lender (in the case of Advances in currencies other than U.S.
Dollars, the Equivalent U.S. $ Amount will apply for purposes of this
calculation); (ii) the Equivalent U.S. $ Amount of the aggregate Face
Amount of all outstanding Bankers’ Acceptances stamped or BA Equivalent Notes
purchased by such Lender; and (iii) the aggregate Face Amount of all
Letters issued by any Lender at such time.

 

“Owner Trustee” means the trustee under the trust
agreement made in contemplation of the Bank One Lease between First Chicago
Leasing Corporation, as settlor and beneficiary, and State Street Bank and
Trust Company of Connecticut, National Association, as trustee, creating IPSCO
Trust No. 2000-1.

 

“Payment Account” means such account or
accounts maintained by the Agent at the Canadian Account Branch in respect of
the Canadian Borrowers and at the U.S. Account Branch 

 

25

 

in respect of the U.S. Borrowers, as the Agent from time to time
notifies the Lenders and the relevant Borrowers.

 

“Permitted
Encumbrances” means, with respect to any Person, any one or more of
the following:

 

(a)                                  any Encumbrance resulting from security given
to a public utility or Governmental Entity when required by such utility or
Governmental Entity in connection with the operation of the business of such
Person;

 

(b)                                 any Encumbrance resulting from the deposit of
cash or securities in connection with contracts (other than Agreements for
Borrowed Money), tenders or expropriation proceedings, or to secure worker’s
compensation, surety appeal bonds or costs of litigation when required by Law,
and public and statutory obligations;

 

(c)                                  any Encumbrance, payment of which has been
provided for by the depositing with the Agent of an amount in cash, or the
obtaining of a surety bond satisfactory to the Agent in its absolute
discretion, sufficient in either case to pay or discharge the same and which
deposit or bond the Agent is authorized to use or draw upon for that purpose;

 

(d)                                 carriers’, warehousemen’s, mechanics’,
material-men’s, repairmen’s or other similar Encumbrances arising in the
ordinary course of business which are not overdue for a period of more than 30
days or which are being contested at the time by the Person in good faith by
proper legal proceedings if: (i) adequate reserves with respect thereto are
maintained on the books of such Person, if required in accordance with GAAP;
and (ii)  to the extent that such
Encumbrances relate to Assets that are material to the business of the Person,
such Encumbrances do not materially interfere with the use of such Assets by
the Person or involve any immediate danger of the sale, forfeiture or loss of
such Assets;

 

26

 

(e)                                  covenants restricting or prohibiting access to
or from real property abutting on controlled access highways, which do not
adversely impair in any material respect the use of the real property concerned
in the operation of the business conducted on such real property;

 

(f)                                    Encumbrances affecting real property of the
Person which are leasehold or license interests and relating to real property
that is not otherwise required in the conduct of the business of such Person;

 

(g)                                 Encumbrances affecting real property of the
Person which are: (i) title defects, encroachments or irregularities of a minor
nature; or (ii) restrictions, easements, rights-of-way, servitudes or other
similar rights in land (including, without restriction, rights of way and
servitudes for railways, sewers, drains, gas and oil pipelines, gas and water
mains, electric light and power and telephone or telegraph or cable television
conduits, poles, wires and cables) granted to or reserved by other Persons, and
in each case to the extent that such Encumbrances relate to real property that
is material to the business of the Person, such Encumbrances do not materially
interfere with the use of such real property by the Person;

 

(h)                                 Encumbrances existing on the date hereof and
disclosed in Schedule E only to the extent such Encumbrances conform to their
description in Schedule E, including the Encumbrances resulting from the Bank
One Lease Documentation, the Houston Lease Obligation and the St. Paul Lease
Obligation covering the real and personal property that is the subject thereof,
as such property is more particularly described in Schedule E hereto;

 

(i)                                     Encumbrances for Debt or Hedging Liabilities,
provided that the aggregate principal amount of the underlying Debt and Hedging
Liabilities secured by all such Encumbrances, together with the aggregate
principal amount of the underlying Debt secured by any and all Encumbrances of
the type referred to in clause (l) of this definition, but not including any
amount owing in respect of

 

27

 

Encumbrances of the type
referred to in clauses (c), (d), (h), (k), (p) or (q) of this definition, does
not exceed U.S. $25,000,000 at any time;

 

(j)                                     Encumbrances for taxes, assessments or
governmental charges or levies not at the time due and delinquent or the
validity of which is being contested at the time by the Person in good faith by
proper legal proceedings if: (i) adequate reserves with respect thereto are
maintained on the books of such Person, if required in accordance with GAAP;
and (ii) to the extent that such Encumbrances relate to Assets that are
material to the business of the Person, such Encumbrances do not materially
interfere with the use of such Assets by the Person or involve any immediate
danger of the sale, forfeiture or loss of such Assets;

 

(k)                                  Encumbrances resulting from any judgment
rendered or Claim filed against the Person which the Person shall be contesting
in good faith by proper legal proceedings if: (i) adequate reserves with
respect thereto are maintained on the books of such Person, if required in
accordance with GAAP; and (ii) to the extent that such Encumbrances relate to
Assets that are material to the business of the Person, such Encumbrances do
not materially interfere with the use of such Assets by the Person or involve
any immediate danger of the sale, forfeiture or loss of such Assets;

 

(l)                                     subject to the monetary limitation set out in
clause (i) of this definition, Purchase Money Mortgages;

 

(m)                               the reservations, limitations, provisos and
conditions, if any, expressed in any original grants of real property from the
Crown;

 

(n)                                 the right reserved to or vested in any
Governmental Entity by any statutory provision, or by the terms of any lease,
licence, franchise, grant or permit of the Person, to terminate any such lease,
license, franchise, grant or permit or to require annual or other payments as a
condition to the continuance thereof;

 

28

 

(o)                                 undetermined or inchoate Encumbrances arising
in the ordinary course of business which have not at such time been filed
pursuant to Law against the Person or which relate to obligations not due or
delinquent;

 

(p)                                 Encumbrances in favour of any Credit Party
permitted by this Agreement;

 

(q)                                 Encumbrances for Debt on Assets of any Person
existing at the time such Person is acquired or merged with or into or
consolidated with IPSCO or any of the other Credit Parties (and not created in
anticipation or contemplation thereof) provided that the aggregate principal
amount of the underlying Debt secured by all such Encumbrances does not exceed
U.S.$100,000,000; and

 

(r)                                    zoning and building by-laws and ordinances,
municipal by-laws, state or provincial laws, and regulations, which do not
adversely affect in any material respect the use of real property concerned in
the operation of the business conducted on such real property.

 

“Permitted Investments” means:

 

(a)                                  Cash Equivalents; or

 

(b)                                 demand deposits with the Agent or any Lender;
or

 

(c)                                  investments in securities of trade debtors or
customers received pursuant to any order made in connection with a plan of
compromise, arrangement or reorganization or similar arrangement upon the
bankruptcy or insolvency of such trade debtors or customers; or

 

(d)                                 stock, obligations or securities received by a
Borrower or a Subsidiary in settlement of debts created in the ordinary course
of business and owing to a Borrower or Subsidiary in satisfaction of judgements;
or

 

(e)                                  redemptions or repurchases by IPSCO of common
shares of IPSCO effected in accordance with applicable securities laws and
stock exchange requirements, provided that the aggregate number of common
shares so redeemed or 

 

29

 

repurchased in any 12 month
period does not exceed 5% of the issued and outstanding common shares at the
commencement of such period; or

 

(f)                                    such other investments approved in advance by
the Agent, upon direction from Majority Lenders, in their sole discretion,
acting reasonably.

 

“Person”
means an individual, partnership, corporation, limited or unlimited liability
company, trust, unincorporated association, joint venture or other entity or
Governmental Entity, and pronouns have a similarly extended meaning.

 

“Prime Rate”
means, for any day, the greater of: (i) the annual rate of interest expressed
as a percentage per annum on the basis of a 365 or 366 day year, as the case
may be, which the principal office of the Agent in Toronto, Ontario quotes,
publishes and refers to as its “prime rate” and which is its reference rate of
interest for commercial loans made by it in Canada in Canadian Dollars; and
(ii) the rate for Canadian Dollar Bankers’ Acceptances having a term of one
month that appears on the Reuters Screen CDOR Page at 10:00 a.m. (Toronto
time), plus 0.75%, adjusted automatically with each quoted, published or
displayed change in such rate, all without necessity of any notice to a
Borrower or any other Person.

 

“Pro Rata Share”
means, at any particular time: (i) with respect to a particular Lender, (A)
when used with respect to an Accommodation to a Canadian Borrower, the ratio of
the Lender Group Commitment of the Lender Group of such Lender at such time to
the aggregate of the Lender Group Commitments of all the Canadian Lender Groups
at such time and (B) when used with respect to an Accommodation to a U.S.
Borrower, the ratio of the Lender Group Commitment of the Lender Group of such
Lender at such time to the aggregate of the Lender Group Commitments of all the
Lender Groups at such time; and (ii) when used with respect to a particular
Lender Group, or in a context other than that referred to in clause (i)(A), the
ratio of the Lender Group Commitment of a Lender Group at such time to the
aggregate of the Lender Group Commitments of all the Lender Groups at such
time.

 

“Purchase
Money Mortgage” means, with respect to any Person, any Encumbrance
(including any Encumbrances in respect of Capitalized Leases) charging tangible
personal property acquired by such Person, which is granted or assumed by such
Person or which arises

 

30

 

by operation of Law substantially concurrently with and for the purpose
of financing the acquisition of such property or to secure the unpaid purchase
price thereof, in each case where: (i) the principal amount secured by such
Encumbrance is not in excess of 75% of the cost to such Person of the Asset
acquired; and (ii) such Encumbrance extends only to the tangible personal
property acquired and the proceeds therefrom.

 

“Release”
when used as a verb includes release, spill, leak, emit, deposit, discharge,
leach, migrate or dispose into the environment and the term “Release” when used
as a noun has a correlative meaning.

 

“Release
Agreement” means an agreement in the form of Schedule M hereto which
may be delivered by any Borrower that executes an Assumption Agreement to
become a Borrower hereunder, but, for certainty, may not be delivered by any
Borrower that is party to this Agreement at Closing. For greater certainty, if
a Borrower executes a Release Agreement, and such Borrower is also a Material
Subsidiary that, pursuant to Section 8.2(1) or other provisions of this
Agreement, has been or would have been (but for the fact that such Material
Subsidiary was a Borrower that had already executed a Subsidiary Guaranty)
required to execute and deliver a Subsidiary Guarantee, then the execution and
delivery of a Release Agreement by such Borrower shall release such Borrower
only from its obligations under this Agreement, and its Subsidiary Guarantee
shall remain in place and, in that regard, appropriate amendments shall be made
to the form of agreement at Schedule M hereto to reflect the limited extent of
any such release.

 

“Rental Expense” means, for any period, the aggregate amount of
rental payments paid or payable by IPSCO Consolidated during such period in
respect of the rental of real or personal property under any lease with an
original term (including renewal terms) of one year or more. For greater
certainty, “Rental Expense” is intended to include all such rental payments
that are properly characterized as expenses on an income statement for leases
which have an original term (including renewal terms) of one year or more in
term.

 

“Reserve Percentage” means
the percentage which is in effect from time to time under Regulation D of the
Board of Governors of the Federal Reserve System, as such regulation may be
amended from time to time, as the maximum reserve requirement applicable with
respect to

 

31

 

Eurocurrency liabilities (as that term is defined in Regulation D),
whether or not any U.S. Lender has any such Eurocurrency liabilities subject to
such reserve requirement at that time.

 

“Revenue”
means, for any period and with respect to any Person, the revenue of such
Person for such period, excluding any revenue derived from intercompany
transactions with any other Person the accounts of which are or should, in accordance
with GAAP, be consolidated with those of such first-mentioned Person in its
consolidated financial statements for such period.

 

“Sale-Leaseback Transaction” means, with respect to any Person,
any direct or indirect arrangement entered into pursuant to which such Person
transfer or causes the transfer of any Asset to another Person and leases such
Assets back from such Person.

 

“St. Paul Lease Obligation” means the obligations owing from
time to time pursuant to the master lease agreement dated December 20, 2000 and
related equipment schedules between IPSCO Minnesota Inc., as lessee and Bank
One Leasing Corporation, as lessor, pursuant to which IPSCO Minnesota Inc.
leased from the Bank One Leasing Corporation certain steel manufacturing
equipment located at its coil processing mill in St. Paul, Minnesota.

 

“S & P” means Standard and Poor’s Ratings Services, a
division of The McGraw-Hill Companies and includes any successor rating agency
to S & P, and where reference is made herein to a rating category of S
& P, such rating category shall include the equivalent corresponding rating
category used by any such successor rating agency.

 

“Standby Fee” has the meaning specified in Section 2.9.

 

“Subsidiary”
means, at any time, as to any Person, any corporation or other Person, if at
such time the first mentioned Person owns, directly or indirectly, more than
50% of the Equity Interests in such other Person entitled ordinarily to vote in
the election of the board of directors of, or Persons performing similar
functions for, such other Person.

 

“Subsidiary
Guarantee” means the guarantee agreement, substantially in the form
of Schedule C hereto, to be made by each Wholly-Owned Subsidiary of IPSCO which
(i) is a Borrower that is initially a party to this Agreement, (ii) executes an
Assumption Agreement in order to become a Borrower and which has not executed
and delivered a Release Agreement, or

 

32

 

(iii) receives Assets from a Borrower and is required to execute and
deliver a guarantee agreement pursuant to Section 8.2(2) of this Agreement, in
each case in favour of the Agent, for the benefit of the Lenders, in respect of
all present and future indebtedness of IPSCO to the Agent and the Lenders under
the Credit Documents.

 

“Substance”
means any substance, waste, liquid, gaseous or solid matter, fuel,
micro-organism, sound, vibration, ray, heat, odour, radiation, energy vector,
plasma and organic or inorganic matter.

 

“Syndication
Agent” means JPMorgan Chase Bank, N.A., in its capacity as
syndication agent, and its successors and assigns in such capacity.

 

“Tangible
Assets” means, in respect of any Person, the gross book value as
shown by the accounting books and records of such Person of all its Assets,
less: (i) the net book value of all its licences, patents, patent applications,
copyrights, trademarks, trade or brand names, goodwill, non-compete agreements
or organizational expenses and other like intangibles; (ii) unamortized Debt
discount and expense; (iii) all reserves for depreciation, obsolescence,
depletion and amortization of its Assets excluding reserves for Assets in
clause (i) above; and (iv) all other proper reserves for Assets which in
accordance with GAAP should be provided in connection with the business
conducted by such Person.

 

“Taxes” shall have the meaning specified in Section 10.12(a).

 

“Total
Outstandings” means, at any time with respect to the Credit
Facility, the aggregate amount in U.S. Dollars of all Outstandings under the
Credit Facility at such time, calculated by reference to the Equivalent U.S. $
Amount in the case of Outstandings in currencies other than U.S. Dollars.

 

“U.S. Account
Branch” means the branch of the Agent at which a U.S. Borrower
maintains its U.S. Dollar account from time to time, and at which the Agent
maintains its Payment Account for U.S. Borrowers from time to time, as the
Agent from time to time notifies the U.S. Borrowers.

 

33

 

“U.S. Base
Rate” means, for any particular day: (i) in respect of a U.S. Base
Rate Advance made in Canada to a Canadian Borrower, the sum of (A) the greater
of: (x) the rate which the principal office of the Agent in Toronto, Ontario
announces from time to time as its reference rate of interest for loans in U.S.
Dollars to Canadian Borrowers; and (y) 0.75% above the Federal Funds Rate, in
each case adjusted automatically with each change in such rate all without the
necessity of any notice to a Borrower or any other Person, plus (B) the
Applicable Margin; and (ii) in respect of a U.S. Base Rate Advance made in the
United States to a U.S. Borrower, the variable rate of interest per annum equal
to the U.S. Prime Rate for such day, plus the Applicable Margin.

 

“U.S. Base
Rate Advance” means an Advance denominated in U.S. Dollars bearing
interest based on the U.S. Base Rate.

 

“U.S.
Borrower” means any Borrower formed under the laws of the United
States of America, any State thereof or the District of Columbia.

 

“U.S. Dollars”
and “U.S. $” means lawful money of the
United States of America.

 

“U.S. Lender” means the Lenders specified as U.S. Lenders in
Schedule B and any Assignee of a U.S. Lender that has delivered an Assignment
Agreement, and “U.S.  Lender” means any one of the U.S. Lenders.

 

“U.S. Lender Groups” means, at any particular time, those
Lender Groups that do not include a Canadian Lender.

 

“U.S.  Plan” shall
mean any “employee pension benefit plan” (as such term is defined in Section 3
of ERISA) which is or has been established or maintained, or to which
contributions are or have been made, by IPSCO or any ERISA Affiliate.

 

“U.S. Prime
Rate” means, for any particular day, the greater of: (i) the
variable rate of interest per annum, calculated on the basis of a year of 365
days or 366 days in the case of a leap year, equal to the rate of interest per
annum announced by the Agent in New York for such day as its prime rate for
U.S. Dollar loans made by it in the United States to U.S. borrowers; and (ii)

 

34

 

0.75% above the Federal Funds Rate, in each case adjusted automatically
with each change in such rate all without the necessity of any notice to a
Borrower or any other Person.

 

“Voting Stock”
means, with respect to any Person, any securities or other ownership interests
in such Person having ordinary voting power to elect a majority of the board of
directors or persons performing similar functions for such Person (irrespective
of whether at the time securities of any other class or classes shall have or
might have voting power by reason of the happening of any contingency).

 

“Wholly-Owned
Material Subsidiary” means, at any time and with respect to IPSCO or
any Material Subsidiary, any Material Subsidiary 100% of all of the Equity
Interests (including Voting Stock, but excluding only directors’ qualifying
shares) of which is owned, directly or indirectly, by one or more of IPSCO or
such first mentioned Material Subsidiary or by IPSCO’s or such first mentioned
Material Subsidiary’s other Wholly-Owned Material Subsidiaries, at such time.

 

“Wholly-Owned
Subsidiary” means, at any time and with respect to IPSCO or any
Subsidiary, any Subsidiary 100% of all of the Equity Interests (including
Voting Stock, but excluding only directors’ qualifying shares) of which is
owned, directly or indirectly, by one or more of IPSCO or such first-mentioned
Subsidiary or by IPSCO’s or such first-mentioned Subsidiary’s other
Wholly-Owned Subsidiaries, at such time.

 

1.2                               Interpretation.

 

This Agreement shall be
interpreted in accordance with the following:

 

(a)                                  words denoting the singular include the plural
and vice versa and words denoting any gender include all genders;

 

(b)                                 headings shall not affect the interpretation of
this Agreement;

 

(c)                                  references to dollars, unless otherwise
specifically indicated, shall be references to Canadian Dollars;

 

35

 

(d)                                 the word “including” shall mean “including
without limitation” and “includes” shall mean “includes without limitation”;

 

(e)                                  the expressions “the aggregate”, “the total”, “the
sum” and expressions of similar meaning shall mean “the aggregate (or total or
sum) without duplication”;

 

(f)                                    in the computation of periods of time, unless
otherwise expressly provided, the word “from” means “from and including” and
the words “to” and “until” mean “to but excluding”; and

 

(g)                                 except to the extent otherwise defined or
stipulated herein, all accounting terms and accounting calculations or
determinations shall be construed or determined in accordance with GAAP and,
where expressed in the context of IPSCO Consolidated, such calculations or
determinations shall be made on a consolidated basis. To the extent that there
are any changes in GAAP from time to time, the financial statements required to
be delivered pursuant to this Agreement shall be prepared, and all calculations
made for the purposes of this Agreement shall be made, by the application of
GAAP, as changed from time to time. To the extent that GAAP does not change
from time to time, GAAP may be applied on a basis that is not consistent with
the application of GAAP for previous Financial Years of IPSCO Consolidated;
provided that, without the prior written consent of the Majority Lenders, all
calculations made for the purposes of determining compliance with the
provisions of this Agreement shall be made by the application of GAAP applied
on a basis consistent with the most recent audited financial statements of
IPSCO Consolidated previously delivered to the Lenders.

 

1.3                               Other Credit Documents.

 

The provisions of Section 1.2
shall apply to the interpretation of all Credit Documents unless specifically
otherwise indicated.

 

36

 

1.4                               Severability.

 

If any provision of this
Agreement or any other Credit Document is, or becomes, illegal, invalid or
unenforceable, such provision shall be severed from this Agreement or such
other Credit Document and be ineffective to the extent of such illegality,
invalidity or unenforceability. The remaining provisions hereof or thereof
shall be unaffected by such provision and shall continue to be valid and
enforceable.

 

1.5                               Entire Agreement.

 

This Agreement supersedes all
prior agreements, understandings, negotiations and discussions, whether oral or
written, of the parties relating to the subject matter hereof and entered into
prior to the date of this Agreement, other than the Agency Fee Agreement.

 

1.6                               Waiver.

 

No failure on the part of the
Agent or any of the Lenders to exercise, and no delay in exercising, any right under
this Agreement or any other Credit Document shall operate as a waiver of such
right; nor shall any single or partial exercise of any right under this
Agreement or any other Credit Document preclude any other or further exercise
thereof or the exercise of any other right; nor shall any waiver of one
provision be deemed to constitute a waiver of any other provision (whether or
not similar). No waiver of any of the provisions of this Agreement or any other
Credit Document shall be effective unless it is in writing duly executed by the
waiving party.

 

1.7                               Governing Law.

 

(1)                                  This Agreement and all of the other Credit
Documents shall be governed by and interpreted in accordance with the Laws of
the Province of Ontario and the Laws of Canada applicable therein which apply
to contracts made and to be performed entirely in Ontario; provided that the
parties agree that the Subsidiary Guarantees may, in the sole discretion of the
Agent, be stated to be governed by and interpreted in accordance with the laws
of any other jurisdiction which would be a more appropriate jurisdiction in the
circumstances.

 

37

 

(2)                                  The parties hereby irrevocably attorn and
submit to the non-exclusive jurisdiction of the courts of Ontario with respect
to any matter arising under or related to the Agreement or any other Credit
Document; provided that, with respect to the Subsidiary Guarantees which are
stated to be governed by the laws of any other jurisdiction, the parties agree
to attorn and submit to the non-exclusive jurisdiction of the courts of such
other jurisdiction.

 

1.8                               Incorporation of Schedules.

 

The following schedules
attached hereto shall, for all purposes hereof, be incorporated in and form an
integral part of this Agreement:

 

	
  Schedule A

  	
   

  	
  Form of Assumption Agreement

  
	
   

  	
   

  	
   

  
	
  Schedule B

  	
   

  	
  Lender Groups and Commitments

  
	
   

  	
   

  	
   

  
	
  Schedule C

  	
   

  	
  Form of Guarantee

  
	
   

  	
   

  	
   

  
	
  Schedule D

  	
   

  	
  Form of Draft

  
	
   

  	
   

  	
   

  
	
  Schedule E

  	
   

  	
  Permitted Encumbrances

  
	
   

  	
   

  	
   

  
	
  Schedule F

  	
   

  	
  Applicable Margin

  
	
   

  	
   

  	
   

  
	
  Schedule G

  	
   

  	
  Form of Borrowing Notice

  
	
   

  	
   

  	
   

  
	
  Schedule H

  	
   

  	
  Form of Election Notice

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
   

  	
  Form of BA Issuance Notice

  
	
   

  	
   

  	
   

  
	
  Schedule J

  	
   

  	
  Form of Issue Notice

  
	
   

  	
   

  	
   

  
	
  Schedule K

  	
   

  	
  Addresses for Notice

  
	
   

  	
   

  	
   

  
	
  Schedule L

  	
   

  	
  Form of Compliance Certificate

  
	
   

  	
   

  	
   

  
	
  Schedule M

  	
   

  	
  Form of Release Agreement

  
	
   

  	
   

  	
   

  
	
  Schedule N

  	
   

  	
  Proceedings

  
	
   

  	
   

  	
   

  
	
  Schedule O

  	
   

  	
  Non-qualified Plans

  
	
   

  	
   

  	
   

  
	
  Schedule P

  	
   

  	
  Bank One Lease Obligation

  
	
   

  	
   

  	
   

  
	
  Schedule Q

  	
   

  	
  Restrictive Agreements

  

 

38

 

	
  Schedule R

  	
   

  	
  Form of Assignment Agreement

  
	
   

  	
   

  	
   

  
	
  Schedule S

  	
   

  	
  Existing Letters of Credit/Letters of Guarantee

  

 

1.9                               Conflicts.

 

If a conflict or inconsistency
exists between a provision of this Agreement and a provision of any of the
other Credit Documents or any part thereof, then the provisions of this
Agreement shall prevail.

 

ARTICLE
2

CREDIT FACILITY

 

2.1                               Credit Facility.

 

Each of the Lenders severally,
but not jointly, agrees, on the terms and conditions of this Agreement, to make
available to a Borrower that Lender’s Pro Rata Share of the Credit Facility by
making such Accommodations to a Borrower as may be requested by a Borrower in
accordance with this Agreement.

 

2.2                               Available Accommodations.

 

(1)                                  Each of the Lenders shall, on the terms and
conditions of this Agreement, make its Pro Rata Share of the following
Accommodations available under the Credit Facility as follows:

 

(a)                                  to a Canadian Borrower:  (i) Floating Rate Advances, U.S. Base Rate
Advances and LIBOR Advances on the occasion of any Borrowing; (ii) in the case
of a BA Lender, Bankers’ Acceptances or, in the case of a Non-BA Lender, BA
Equivalent Notes, on the occasion of any BA Issuance; and (iii) Letters
denominated in U.S. Dollars or Canadian Dollars on the occasion of any
Issue;  and

 

(b)                                 to a U.S. Borrower; (i) U.S. Base Rate Advances
and LIBOR Advances on the occasion of any Borrowing; and (ii) Letters
denominated in U.S. Dollars on the occasion of any Issue.

 

39

 

provided that for all purposes
of this Agreement and notwithstanding any other provision hereof:  (i) (A) only the Canadian Lenders shall make
their Pro Rata Share of the Accommodations contemplated in Section 2.2(1)(a) to
the Canadian Borrowers, and (B) only the Canadian Borrowers shall repay the
Outstandings in respect of the Accommodations made to them pursuant to Section
2.2(1)(a) and all accrued and unpaid interest thereon to the Canadian Lenders
through remitting payments to the appropriate Payment Account, as communicated
to the Canadian Borrowers by the Agent from time to time; and (ii) (A) only the
U.S. Lenders shall, subject to Section 2.2(2), make their Pro Rata Share of the
Accommodations contemplated in Section 2.2(1)(b) to the U.S. Borrowers, and (B)
only the U.S. Borrowers shall repay the Outstandings in respect of the
Accommodations made to them pursuant to Section 2.2(1)(b) and all accrued and
unpaid interest thereon to the U.S. Lenders through remitting payments to the
appropriate Payment Account, as communicated to the U.S. Borrowers by the Agent
from time to time.

 

(2)                                  For certainty, no U.S. Lender Group shall make
Accommodations to Canadian Borrowers. So long as any U.S. Lender Group or its
Assignee consists only of a U.S. Lender, then with respect to any Accommodation
to a U.S. Borrower, the Agent shall calculate each U.S. Lender’s Pro Rata Share
of such Accommodation based on the relative Lender Group Commitments of all
Lender Groups at the time of such Accommodation. If such calculation reveals
that the Lender Groups other than the U.S. Lender Groups are not required to
make available any part of such Accommodation because doing so would cause them
to exceed their Lender Group Commitments, then the applicable U.S. Lender
Groups shall, on the terms and conditions of this Agreement and so long as an
appropriate portion of the Lender Group Commitment of such U.S. Lender Groups
remains available, make the remaining portion of any such Accommodation to such
U.S. Borrower, with the intent being that the Borrowers shall have the full
amount of the Commitment available to them even though Accommodations made to
U.S. Borrowers may, as a result of this Section 2.2(2), not be made by the U.S.
Lenders in accordance with the Pro Rata Shares of their respective Lender
Groups.

 

40

 

2.3                               Commitments and Facility Limits.

 

(1)                                  The Borrowers shall at all times cause (i) the
Total Outstandings of the Lenders under the Credit Facility to be no greater
than the Commitment and (ii) the aggregate amount in U.S. Dollars of all
Outstandings of a Lender Group under the Credit Facility calculated by
reference to the Equivalent U.S. $ Amount in the case of Outstandings in
currencies other than U.S. Dollars, to be no greater than the Lender Group
Commitment of such Lender Group, it being acknowledged that the Borrowers shall
not be in Default, or required to take any corrective action, under this
Section 2.3(1) if this provision is violated solely by reason of a Lender being
a Defaulting Lender under Section 3.1(2) and other Lenders being Contributing
Lenders under Section 3.1(2).

 

(2)                                  Any portion of the Commitment which is not
utilized by the Borrowers on Closing may be utilized from time to time
thereafter on the terms and conditions of this Agreement.

 

(3)                                  All Advances, Bankers’ Acceptances, BA
Equivalent Notes and Letters requested hereunder shall be made available to a
Borrower in accordance with Article 3, 4 and 5, respectively.

 

2.4                               Use of Proceeds.

 

The Borrowers shall use the
proceeds of the Accommodations under the Credit Facility for general corporate
purposes, including in respect of working capital and for capital expenditures,
acquisitions and investments permitted in accordance with the terms of this
Agreement, and toward financing the construction and operation of additional
manufacturing and processing facilities; provided, however, that a Borrower
shall not be entitled to use the proceeds of the Accommodations under the
Credit Facility for the purposes of a take-over bid by such Borrower or in
which such Borrower is involved, in respect of which the board of directors or
comparable body of the target Person has not recommended acceptance of such
take-over bid to the shareholders or comparable owners of the target Person.

 

41

 

2.5                               Repayment of Facilities.

 

Unless demand is earlier made
pursuant to Section 9.1, the Borrowers shall repay, and there shall become due
and payable on the Maturity Date, the Outstandings and all accrued and unpaid
interest thereon.

 

2.6                               Mandatory Repayments.

 

(1)                                  If, on any day, the aggregate amount in U.S.
Dollars of all Outstandings of a Lender Group under the Credit Facility,
calculated by reference to the Equivalent U.S. $ Amount in the case of
Outstandings in currencies other than U.S. Dollars, exceeds the Lender Group
Commitment of such Lender Group for any reason other than a Lender being a
Defaulting Lender under Section 3.1(2) and other Lenders being Contributing
Lenders under Section 3.1(2), the Borrowers shall on that day:  (i) repay Borrowings; or (ii) make a payment
to the Agent and irrevocably authorize and direct the Agent to apply such
payment as a repayment of any LIBOR Advance to any Borrower on the last day of
the Interest Period applicable thereto; or (iii) make a payment to the Agent
and irrevocably authorize and direct the Agent to apply such payment as a
repayment of the Borrowers’ reimbursement obligation in respect of any BA
Issuance or Issue, on the next contract maturity date; or (iv) make a repayment
referred to in clause (i), a payment referred to in (ii) and/or a payment
referred to in clause (iii), in all cases so that the aggregate amount in U.S.
$ of all Outstandings of a Lender Group under the Credit Facility, calculated
by reference to the Equivalent U.S. $ Amount in the case of Outstandings in
currencies other than U.S. Dollars, after the repayment referred to in clause
(i), and less the amount of any payments held by the Agent pursuant to clauses
(ii) and (iii), will not exceed the Lender Group Commitment of such Lender
Group.

 

(2)                                  If, on any day, the Total Outstandings of the
Borrowers to the Lenders under the Credit Facility exceed the Commitment, the
Borrowers shall on that day: (i) repay Borrowings; or (ii) make a payment to
the Agent and irrevocably authorize and direct the Agent to apply such payment
as a repayment of any LIBOR Advance to any Borrower on the last day of the
Interest Period applicable thereto; (iii) make a payment to the Agent and
irrevocably authorize and direct the Agent to apply such payment as a
prepayment of the

 

42

 

Borrowers’ reimbursement
obligation in respect of any BA Issuance, on the next contract maturity date;
or (iv) make a repayment referred to in clause (i), a payment referred to in
clause (ii) and/or a payment referred to in clause (iii), in all cases so that
the Total Outstandings under the Credit Facility after the repayment referred
to in clause (i), and less the amount of any payments held by the Agent
pursuant to clauses (ii) and (iii), will not exceed the Commitment.

 

2.7                               Cancellation of Undrawn Portion
of Commitment.

 

(1)                                  IPSCO may, subject to the provisions of this
Agreement, reduce the amount of the Commitment under the Credit Facility, in
whole or in part, without penalty or premium but subject, where applicable, to
unwinding or redeployment costs to be charged to IPSCO, upon at least 30 days’
prior written notice to the Agent stating the proposed date of such permanent
reduction, the aggregate principal amount of the reduction; and if such notice
is given, the Borrowers shall, on the date specified in IPSCO’s notice, pay the
Agent for the account of the relevant Lenders in accordance with such notice
the amount, if any, by which the Outstandings under the Credit Facility exceed
the proposed reduced amount of the Commitment and pay to the Agent for the
account of the relevant Lenders all interest on the excess amount accrued to
the date of such reduction. Each partial reduction of the Commitment shall be
in a minimum aggregate principal amount of U.S. $5,000,000 and in an integral
multiple of U.S. $100,000. Each partial reduction shall reduce the maximum
Lender Group Commitment of each Lender Group pro rata based on the Lender Group
Commitments of all the Lender Groups at such time.

 

(2)                                  A Borrower may not pursuant to this Section
prepay: (i) a LIBOR Advance except on the last day of the Interest Period
applicable thereto; or (ii) the amount of any BA Issuance, except on the
contract maturity date for the relevant Bankers’ Acceptance or BA Equivalent
Note.

 

(3)                                  The Credit Facility shall revolve and no
payment under the Credit Facility shall, of itself, reduce the Commitment.

 

43

 

2.8                               Additional Commitment.

 

(1)                                  At any time and from time to time following the
Closing, IPSCO may, at its sole option, by notice in writing (the “Request
Notice”) to the Agent, request that the Commitment be increased by an amount
not to exceed U.S. $50,000,000 (the “Commitment
Increase Amount”), provided that no Lender Group shall be under any
obligation to increase the amount of its Lender Group Commitment or participate
in any Commitment Increase Amount. Any Request Notice delivered pursuant to
this Section 2.8(1) shall specify (a) the requested Commitment Increase Amount;
and (b) the effective date for such Commitment Increase Amount, which date
shall not be less than 21 nor more than 180 days following the date of receipt
of such Request Notice by the Agent. A request that the Lender Groups increase
their Lender Group Commitment shall be made on a pro rata basis to the
respective Lender Groups based on the proportion that the Lender Group
Commitment of each such Lender Group bears to the Lender Group Commitment of
all Lender Groups at such time. Upon receipt of the aforesaid Request Notice by
the Agent, the Agent shall, as soon as reasonably practicable, by written
notice (the “Lender Group Notice”)
to each Lender Group, notify them of the Request Notice, and advise each such
Lender Group of its Pro Rata Share of the requested Commitment Increase Amount
and of each such Lender Group’s right to elect to commit to more than its Pro
Rata Share of such requested Commitment Increase Amount should it choose to do
so.

 

(2)                                  Each Lender Group shall provide notice in
writing (a “Response Notice”) to
the Agent as to whether it wishes to participate and to increase its respective
Pro Rata Share of the Commitment Increase Amount within 10 days of delivery by
the Agent of the Lender Group Notice. If any Lender Group does not provide its
Response Notice within such 10 day period, such Lender Group shall be deemed to
have refused to participate in the Commitment Increase Amount. Not more than 2
Business Days following (a) the last day for receipt by the Agent of each such
Response Notice; or (b) if all such relevant Lender Groups have provided such
Response Notice, the day on which the last of such Response Notices shall have
been received by the Agent, the Agent shall advise IPSCO and each such Lender
Group whether each such Lender Group has consented to participate in the
requested Commitment Increase Amount, or has refused or is deemed to

 

44

 

have refused (by virtue of its
failure to deliver the Response Notice as aforesaid) to participate in such
requested Commitment Increase Amount, and the aggregate amount by which all
such Lender Groups have agreed to increase their respective Lender Group
Commitments in respect thereof.

 

(3)                                  Subject to, and as provided for in Section
2.8(5), in the event that:

 

(a)                                  the Commitment Increase Amount has been
accepted by all of the Lender Groups in an amount not less than each applicable
Lender Groups’ Pro Rata Share thereof, the Lender Group Commitment of each such
Lender Group shall be increased by an amount equal to their respective Pro Rata
Shares of such Commitment Increase Amount; or

 

(b)                                 the Commitment Increase Amount has been
accepted by some, but not all, of the applicable Lender Groups, (i) with
respect to each such consenting Lender Group, the relevant Lender Group
Commitment of each such Lender Group shall be increased by an amount equal to
the amount of such Commitment Increase Amount stipulated in the respective
Response Notices delivered by such consenting Lender Groups as the amount of
the Commitment Increase Amount which such applicable Lender Group has agreed to
assume, provided that if the aggregate amount of such accepted Commitment
Increase Amounts exceeds the requested Commitment Increase Amount, then each
such consenting Lender Group shall have its respective Lender Group Commitment
increased by an amount equal to that portion of the Commitment Increase Amount
that the Lender Group Commitment of each such consenting Lender Group bears to
the aggregate Lender Group Commitments of all such consenting Lender Groups but
in no event in excess of the amount of the Commitment Increase Amount agreed to
be assumed by the respective consenting Lender Group in its Response Notice;
and (ii) with respect to all non-consenting Lender Groups, the relevant Lender
Group Commitment of all such non-consenting Lender Groups shall not be
increased.

 

(4)                                  If the full amount of the Commitment Increase
Amount is not assumed by the consenting Lender Groups in accordance with
Section 2.8(3), then IPSCO may seek and arrange for

 

45

 

one or more other financial
institutions to provide the balance of such Commitment Increase Amount,
provided that the Agent (and for greater certainty, not any other existing
Lenders or Lender Groups) shall have the right, acting reasonably, to approve
of any one or more of such other financial institutions, and participation by
any one or more of such other financial institutions shall be subject to the
terms of Section 2.8(5).

 

(5)                                  Any increase in the Commitment is subject to
the conditions precedent that (a) the Borrowers, the Guarantors, the Lenders
and any lender that is not theretofore a Lender, shall have executed and
delivered any documentation reasonably required to evidence such increase in
the Commitment hereunder and, in the case of a lender not theretofore a Lender,
the addition of such lender as a Lender and party to this Agreement, all in
form and substance satisfactory to the Agent and acknowledged by the Agent and
each Borrower and Guarantor; (b) all representations and warranties contained
in Article 7 shall be true and correct in all material respects on the date
that such Commitment Increase Amount is to take effect other than those
representations and warranties which by their terms are stated to be made as of
a specific date, which representations and warranties shall be true and correct
as of such specific date; (c) the amount of any such Commitment Increase Amount
shall be not less than U.S. $10,000,000 and shall not cause the aggregate
Commitment to exceed U.S. $200,000,000; (d) IPSCO Consolidated shall be in
compliance with all financial covenants set out in Section 8.3 hereof; and (e)
no Default or Event of Default shall have occurred and be continuing as of the
date that the Commitment Increase Amount is to take effect and the initial
Accommodation in respect thereof.

 

(6)                                  Upon satisfaction of all of the terms and
conditions of this Section 2.8, including Section 2.8(5), from and after the
effective date for the Commitment Increase Amount, each existing Lender Group
and any additional lender approved to act as a Lender shall have their Lender
Group Commitments adjusted to reflect their respective shares of the Commitment
Increase Amount, or such other lender shall become a Lender Group Commitment as
provided for above and shall have all rights and obligations of the Lender with
respect to its Lender Group Commitment.

 

46

 

2.9                               Standby Fee.

 

IPSCO shall pay to the Agent
for the benefit of the Lenders, a fee (the “Standby Fee”) equal to the
Applicable Margin, calculated on the basis of a year of 365 days or 366 days in
the case of a leap year, of the average daily difference between the Commitment
and the Total Outstandings under the Credit Facility, calculated daily in U.S.
Dollars and payable in U.S. Dollars quarterly in arrears on the third Business
Day of the calendar quarter following the calendar quarter for which such
Standby Fee is payable, and so long as such Commitment shall be undrawn.

 

2.10                        Agency Fee.

 

Upon the Closing and on each
anniversary of such date thereafter so long as the Commitment shall be
available to be drawn, IPSCO shall pay to the Agent, in advance, the agency fee
(the “Agency Fee”) stipulated in the Agency Fee Agreement. Each such payment is
non-refundable and fully earned when due.

 

2.11                        Evidence of Debt and
Determination of Interest Rates and Fees.

 

(1)                                  The indebtedness of the Borrowers in respect of
all Accommodations hereunder shall be, absent manifest error, rebuttably
presumed to be correctly evidenced by the account records maintained by the
Agent. The failure of the Agent to correctly record any amount or date shall
not, however, affect the obligation of the Borrowers to pay amounts due
hereunder to the Agent or any of the Lenders in accordance with this Agreement.

 

(2)                                  Wherever the determination of any interest rate
or fee payable pursuant to this Agreement in respect of any Accommodation
hereunder may by its terms be dependent upon the calculation of any financial
ratio, the financial ratio shall be, absent manifest error, rebuttably presumed
to be correctly evidenced by the amount of such financial ratio as stated in
the Compliance Certificate delivered to the Agent for the most recently
completed Financial Quarter. The application by the Agent of such stated
financial ratio in the calculation of any such interest rate or fee shall not,
however, affect the obligation of the Borrowers to pay amounts of interest or
fees due hereunder to the Agent or any of the Lenders on the basis of the
actual amount of any such financial ratio in accordance

 

47

 

with the terms of this
Agreement. Subject to Section 2.11(3), all changes of interest or fees based on
changes to any financial ratio shall be effective on the first Business Day of
the third calendar month following the most recently completed Financial
Quarter.

 

(3)                                  If the Borrowers fail to deliver a Compliance
Certificate to the Agent within the time period specified in Section 8.1(1)(d),
then, whenever the determination of any interest rate or fee payable pursuant
to this Agreement is dependent on the calculation of a financial ratio that
would otherwise be the subject of Compliance Certificate, the financial ratio
that will be determinative of such interest rate or fee will be deemed to be
the financial ratio that results in the highest interest rate or fee payable
pursuant to this Agreement, in all cases, until the Compliance Certificate is
delivered to the Agent, following which the financial ratios prima facie
evidenced thereby shall thereafter be determinative of interest rates or fees
payable pursuant to this Agreement.

 

2.12                        Adjustment of Total Pro Rata
Shares

 

It is the intention of the
parties that the ultimate credit risk and exposure of any Lender Group in
respect of the Credit Facility be in accordance with each Lender Group’s Pro
Rata Share of the Commitment hereunder. Accordingly, upon the Total
Outstandings becoming due and payable hereunder, the Agent shall allocate the
Total Outstandings among the Lender Groups so that each Lender Group bears its
respective Pro Rata Share of the Total Outstandings. Without limiting the
generality of the foregoing, if at any time after the Credit Facility has been
terminated, the Total Outstandings are not borne by the Lender Groups in
accordance with their respective Pro Rata Shares, then each Lender Group that
holds Outstandings in excess of its Pro Rata Share (the “Surplus Lender Group”)
shall, as of the date of termination of the Credit Facility, sell to each
Lender Group that has deficit Outstandings relative to its Pro Rata Share (the “Deficit
Lender Group”), and the Deficit Lender Groups shall purchase from the Surplus
Lender Groups for cash, at par, without representation or warranty from or
recourse to the Surplus Lender Groups, an interest in such of the Outstandings
from the Surplus Lender Groups so as to result in the percentage of the Total
Outstandings from each Lender Group being equal to the correct Pro Rata Share
of each such Lender Group, provided that (i) all interest and fees payable on
Accommodations shall be for the account of the Surplus Lender Group (or the

 

48

 

applicable member thereof) that originally extended such Accommodation
or issued or participated in any related Letters, Bankers’ Acceptances or BA
Equivalent Notes, as the case may be, until the date on which the amount of the
Outstandings is purchased by the Deficit Lender Group, and (ii) if any purchase
of Outstandings required to be made pursuant to this provision is not made on
the date of termination of the Credit Facility, then at the time that such
purchase is actually completed, the Deficit Lender Group shall be required to
pay to the Surplus Lender Group, to the extent not paid to the Surplus Lender
Group by the applicable Borrower in accordance with the terms of this
Agreement, interest on the principal amount of the Outstandings required to be
purchased for each day from and including the day upon which such purchase of
the Outstandings was required to be completed to but excluding the date of
actual payment by the Deficit Lender Group of such Outstandings, at the rate
equal to the Floating Rate, calculated daily.

 

ARTICLE
3

LOAN ADVANCES

 

3.1                               The Advances.

 

(1)                                  Each of the Lenders severally, but not jointly,
agrees, on the terms and conditions of this Agreement, to make Advances to a
Borrower under the Credit Facility on the Closing or thereafter from time to
time, on any Business Day prior to the Maturity Date. Each Lender shall,
subject to Section 2.2(2), make
available to the Agent its Pro Rata Share of the principal amount of each
Advance in the appropriate currency, prior to 11:00 a.m. (Toronto time) on the
date of the Advance. Unless the Agent has been notified by a Lender at least 2
Business Days prior to the date of an Advance that such Lender will not make
available to the Agent its Pro Rata Share of such Advance (or, in the case of a
U.S. Lender Group, its share of such Advance, if such share is other than its
Pro Rata Share), the Agent may assume that such Lender has made such portion of
the Advance available to the Agent on the date of the Advance in accordance
with the provisions hereof and the Agent may, in reliance upon such assumption,
make available to the Borrower on such date a corresponding amount. If the
Agent has made such assumption, to the extent such Lender shall not have so
made its Pro Rata Share of the Advance (or, in the case of a U.S. 

 

49

 

Lender Group, its share of
such Advance, if such share is other than its Pro Rata Share) available to the
Agent, such Lender agrees to pay to the Agent, forthwith on demand, such
Lender’s Pro Rata Share of the Advance (or, in the case of a U.S. Lender Group,
its share of such Advance, if such share is other than its Pro Rata Share) and
all reasonable costs and expenses incurred by the Agent in connection
therewith, together with interest thereon at the rate payable hereunder by the
Borrower in respect of such Advance for each day from the date such amount is
made available to the Borrower until the date such amount is paid or repaid to
the Agent; provided, however, that notwithstanding such obligation, if such
Lender fails so to pay, the Borrower shall repay such amount to the Agent
forthwith after demand therefor by the Agent, together with interest thereon at
the rate payable hereunder by the Borrower in respect of such Advance for each
day from the date such amount is made available to the Borrower until the date
such amount is paid or repaid to the Agent. The amount payable by each Lender
to the Agent pursuant to this Section 3.1(1) shall be set forth in a
certificate delivered by the Agent to such Lender and the Borrower (which certificate
shall contain reasonable details of how the amount payable is calculated) and
shall constitute prima facie evidence of such amount payable. If such Lender
makes the payment to the Agent required herein, the amount so paid shall
constitute such Lender’s Pro Rata Share of the Advance (or, in the case of a
U.S. Lender Group, its share of such Advance, if such share is other than its
Pro Rata Share) for purposes of this Agreement and shall entitle such Lender to
all rights and remedies against the Borrower in respect of such Advance. The
failure of any Lender to make available to the Agent its Pro Rata Share of an
Advance (or, in the case of a U.S. Lender Group, its share of such Advance, if
such share is other than its Pro Rata Share) shall not relieve any other Lender
of its obligation hereunder to make available to the Agent its Pro Rata Share
of the Advance (or, in the case of a U.S. Lender Group, its share of such
Advance, if such share is other than its Pro Rata Share) on the date thereof.

 

(2)                                  If any Lender fails to make available to the
Agent its Pro Rata Share of any Advance (or, in the case of a U.S. Lender
Group, its share of such Advance, if such share is other than its Pro Rata
Share) as required (such Lender in this Section called the “Defaulting Lender”)
and the Agent has not made the Advance to the Borrower pursuant to Section

 

50

 

3.1(1), the Agent shall
forthwith give notice of such failure by the Defaulting Lender to the relevant
Borrower and the other Lenders and such notice shall state that any Lender may
make available to the Agent all or any portion of the Defaulting Lender’s Pro
Rata Share of such Advance (or, in the case of a U.S. Lender Group, its share
of such Advance, if such share is other than its Pro Rata Share) (but in no
event shall any other Lender or the Agent be obligated to do so) in the place
of the Defaulting Lender. If more than one Lender gives notice that it is
prepared to make funds available in the place of a Defaulting Lender in such
circumstances and the aggregate of the funds which such Lenders (in this
Section 3.1(2) collectively called the “Contributing Lenders” and individually
called the “Contributing Lender”) are prepared to make available exceeds the
amount of the Advance which the Defaulting Lender failed to make, then each
Contributing Lender shall be deemed to have given notice that it is prepared to
make available its Pro Rata Share of such Advance based on the Contributing
Lenders’ relative Lender Group Commitments in such circumstances. If any
Contributing Lender makes funds available in the place of a Defaulting Lender
in such circumstances, then the Defaulting Lender shall pay to any Contributing
Lender making the funds available in its place, forthwith on demand, any amount
advanced on its behalf, together with interest thereon at the rate payable
hereunder by the Borrower in respect of such Advance for each day from the date
of Advance to the date of payment, against payment by the Contributing Lender
making the funds available of all interest received in respect of the Advance
from the Borrower. In addition to such interest, the Borrower shall pay all
amounts owing by the Borrower to the Defaulting Lender hereunder to the Agent
for the account of the Contributing Lenders until such time as the Defaulting
Lender pays to the Agent for the account of the Contributing Lenders all
amounts advanced by the Contributing Lenders on behalf of the Defaulting
Lender.

 

(3)                                  Each Borrowing shall consist of one or more
Types of Advances made to a Borrower on the same day and, in the case of LIBOR
Advances, having the same Interest Period. Each Type of Advance shall be in the
aggregate minimum amount and in an integral multiple of the amount set forth
below:

 

51

 

(a)                                  a Floating Rate Advance shall
be in an aggregate amount not less than Cdn. $5,000,000 and in an integral
multiple of Cdn. $100,000;

 

(b)                                 a U.S. Base Rate Advance
shall be in an aggregate amount not less than U.S. $5,000,000 and in an
integral multiple of U.S. $100,000; and

 

(c)                                  a LIBOR Advance shall
be in an aggregate amount not less than U.S. $5,000,000 and in an integral
multiple of U.S. $100,000, provided that a Borrower may not select a LIBOR
Advance if the making of such LIBOR Advance would result in the Borrowers
having in excess of ten LIBOR Advances outstanding at any one time.

 

(4)                                  Until repaid in full or converted in accordance
with this Agreement, each Advance shall be (i) the Type of Advance specified in
the applicable Borrowing Notice or Election Notice; or (ii) if no Borrowing
Notice or Election Notice is applicable, the Type of Advance specified in
Sections 3.3(1)(a) and 3.3(1)(b).

 

3.2                               Procedure for Borrowing.

 

Each Borrowing shall be made
on notice (a “Borrowing Notice”) given by a Borrower to the Agent not later
than 12:00 noon (Toronto time), in the case of: (i) a Floating Rate Advance or
a U.S. Base Rate Advance, at least 2 Business Days prior to the date of the
proposed Borrowing; and (ii) a LIBOR Advance, at least 3 Business Days prior to
the date of the proposed Borrowing, which Borrowing Notice shall be irrevocable
and binding on the Borrower delivering such Borrowing Notice. Each Borrowing
Notice for Accommodations to be made to U.S. Borrowers must be issued
concurrently to the Agent and to Toronto Dominion (Texas) LLC at the addresses
set out in Schedule K hereto and, upon receipt of a Borrowing Notice, the Agent
shall promptly forward a copy thereof to the relevant Lenders. Each Borrowing Notice
shall be in substantially the form of Schedule G hereto (or shall be made by
telephone confirmed promptly in writing, providing the same information as
would be contained in Schedule G hereto) and shall specify: (i) the requested
date of such Borrowing; (ii) the Type of Advances comprising such Borrowing;
(iii) the aggregate amount of such Borrowing; and (iv) in the case of a LIBOR
Advance, the initial Interest Period applicable to such Advance. Upon
fulfilment of the applicable conditions

 

52

 

set forth in Article 6: (i) the Agent will, in the case of a Canadian
Borrower, make such funds available to the Canadian Borrower in immediately
available funds by crediting or causing the crediting of its Borrower’s
Canadian Dollar Account or Borrower’s U.S. Dollar Account, as applicable; or
(ii) the Agent will, in the case of a U.S. Borrower, make such funds available
to the Borrower in immediately available funds by crediting or causing the
crediting of its Borrower’s U.S. Dollar Account. A Borrower shall not in any
Borrowing Notice select an Interest Period which conflicts with the definition
of Interest Period specified in Section 1.1 or with the repayments provided in
Section 2.5.

 

3.3                               Interest on Advances.

 

(1)                                  Each Advance shall bear interest at the rate
applicable to such Type of Advance determined in accordance with this Section:
(i) in the case of a Floating Rate Advance or U.S. Base Rate Advance, from and
including the date such Advance is made or converted from another Type of
Advance or Accommodation, as applicable, to but excluding the date on which
such Advance is repaid in full or is converted to another Type of Advance or
Accommodation in accordance with this Agreement; and (ii) in the case of a LIBOR
Advance, from and including the first day of the applicable Interest Period to
but excluding the last day of such Interest Period. Subject to Section 3.3(2)
and 10.2, each Advance shall bear interest, and such interest shall be
calculated and payable, in the following manner:

 

(a)                                  Floating Rate Advances. A Floating Rate Advance shall bear interest
at a rate per annum equal at all times to the Floating Rate in effect from time
to time. Such interest shall be calculated (but not compounded) daily and payable
monthly in arrears on the third Business Day of each month following the month
for which such interest is payable and on the Maturity Date.

 

(b)                                 U.S. Base Rate Advances to
Canadian Borrowers. A U.S.
Base Rate Advance to a Canadian Borrower shall bear interest at a rate per
annum equal at all times to the U.S. Base Rate in effect from time to time. Such
interest shall be calculated (but not compounded) daily and payable monthly in
arrears on the third Business

 

53

 

Day of each month following
the month for which such interest is payable and on the Maturity Date.

 

(c)                                  U.S. Base Rate Advances to U.S.
Borrowers. A U.S. Base Rate
Advance to a U.S. Borrower shall bear interest at a rate per annum equal at all
times to the U.S. Base Rate in effect from time to time. Such interest shall be
calculated (but not compounded) daily and payable monthly in arrears on the
third Business Day of each month following the month for which such interest is
payable and on the Maturity Date.

 

(d)                                 LIBOR Advances. A LIBOR Advance shall bear interest at a rate
per annum equal at all times during each Interest Period for such LIBOR Advance
to the LIBOR Rate for such Interest Period. Such interest shall be calculated
(but not compounded) daily and payable: (i) on the last day of each three month
period in each Interest Period and on the last day of each Interest Period; and
(ii) on the date such LIBOR Advance becomes due and payable in full.

 

(2)                                  With each announced change in any of the variable
rates of interest used as a component for determining any rate of interest
payable under this Agreement, there shall be a corresponding change in the
applicable rate of interest payable under this Agreement based on the change in
such variable rate, all without necessity of prior notice thereof to any
Borrower or to any other Person.

 

3.4                               Conversions and Elections
Regarding Types of Advances and Interest Rates.

 

(1)                                  Advances may be converted from time to time
from one Type to another, at the election of a Borrower or automatically in
accordance with the provisions of this Section. A Borrower may from time to
time elect (i) to convert any Advances to another Type or change the type of
interest rate applicable thereto; (ii) to have any LIBOR Advance continued as
such Type of Advance by electing an additional Interest Period; or (iii) in the
case of a Canadian Borrower, to change the currency of any Advances or convert
any Advances to Bankers’ Acceptances or BA Equivalent Notes, subject in each
case to the provisions of Sections 3.1(3) and 3.5 and to the following
provisions:

 

54

 

(a)                                  Floating Rate Advances. A Canadian Borrower may elect to convert a
Floating Rate Advance as of any Business Day to a LIBOR Advance or a U.S. Base
Rate Advance or a Bankers’ Acceptance (or BA Equivalent Note).

 

(b)                                 U.S. Base Rate Advance. A Borrower may elect to convert a U.S. Base
Rate Advance as of any Business Day to a LIBOR Advance or, in the case of a
Canadian Borrower, to a Floating Rate Advance or a Bankers’ Acceptance (or BA
Equivalent Note).

 

(c)                                  LIBOR Advance. A Borrower may elect, effective on the last
day of the then current Interest Period applicable thereto: (i) to convert a
LIBOR Advance to a U.S. Base Rate Advance or, in the case of a Canadian
Borrower, to a Floating Rate Advance or a Bankers’ Acceptance (or BA Equivalent
Note); or (ii) to have such LIBOR Advance continued as such Type of Advance for
an additional Interest Period. If a Borrower has made no such election, on the
expiry of the then current Interest Period, such LIBOR Advance shall be
automatically converted to a U.S. Base Rate Advance, effective on the last day
of such Interest Period.

 

(2)                                  Each such election shall be made on notice (an “Election
Notice”) given by a Borrower to the Agent not later than 12:00 noon (Toronto
time): (i) in the case of an election to convert an Advance to, or continue an
Advance as, a LIBOR Advance at least 3 Business Days before the effective date
of such election; and (ii) in the case of an election to convert an Advance to
a Floating Rate Advance, a U.S. Base Rate Advance or a Bankers’ Acceptance (or
BA Equivalent Note), at least 2 Business Days before the effective date of such
election. Each Election Notice shall be substantially in the form of Schedule H
hereto (or shall be made by telephone promptly confirmed in writing providing
the same information as would be contained in Schedule H hereto) and shall
specify, with respect to the outstanding Advances to which such Election Notice
applies: (i) if the Type of such Advance is to be converted in whole or in
part, the amount of such Advance to be converted, the new Type of Advance
selected, the effective date of such conversion and, if the new Type of Advance
selected is a LIBOR Advance, the duration of the initial

 

55

 

Interest Period applicable
thereto; or (ii) if such Advance is a LIBOR Advance which is to continue as
such Type of Advance for an additional Interest Period in whole or in part, the
amount of such Advance to be continued, the duration of the additional Interest
Period and the date on which such Interest Period is to begin. A Borrower shall
not in any Election Notice select an Interest Period which conflicts with the
definition of Interest Period specified in Section 1.1 or with the repayments
provided for in Section 2.5. In cases where a Canadian Borrower wishes to
convert a Type of Advance to Bankers’ Acceptances or BA Equivalent Notes, the
Election Notice shall be accompanied by a BA Issuance Notice issued in
accordance with Section 4.2. If the amount of any Advance cannot be converted
to an aggregate Face Amount of Bankers’ Acceptances and BA Equivalent Notes
which may be drawn as Bankers’ Acceptances and BA Equivalent Notes under this
Agreement, then the amount which cannot be so converted shall, subject to
Section 3.1(3)(a), thereafter continue to be outstanding as a Floating Rate
Advance.

 

(3)                                  Any conversion of an Advance under this Section
shall not constitute a repayment under Section 2.5 or 2.6.

 

3.5          Circumstances Requiring Floating Rate Pricing.

 

If the Lenders or any one or
more of them determine in good faith, and the Agent notifies the Borrowers
that: (i) by reason of circumstances affecting financial markets inside or
outside Canada, deposits of U.S. Dollars are unavailable to the Lenders or any
one or more of them; (ii) adequate and fair means do not exist for ascertaining
the applicable interest rate on the basis provided in the definition of LIBOR
or U.S. Base Rate, as the case may be; (iii) the making or continuation of any
U.S. Dollar Advances has been made impracticable (x) by the occurrence of a
contingency (other than a mere increase in rates payable by the Lenders or any
one or more of them to fund the Advances) which materially adversely affects
the funding of the Credit Facility at any interest rate computed on the basis
of the LIBOR or the U.S. Base Rate, as the case may be, or (y) by reason of a
change since the date of this Agreement in any applicable Law or in the
interpretation thereof by any Governmental Entity which affects the Lenders or
any one or more of them or any relevant financial market and which results in
the LIBOR or the U.S. Base Rate, as the case may be, no longer representing the
effective cost to the Lenders or any one or more of 

 

56

 

them of deposits in such market for a relevant Interest Period or for
Advances outstanding as U.S. Base Rate Advances; or (iv) any change since the
date of this Agreement to any present Law, or any future Law, or any change
since the date of this Agreement therein or in the interpretation or
application thereof by any Governmental Entity, has made it unlawful for the
Lenders or any one or more of them to make or maintain or to give effect to its
obligation in respect of U.S. Dollar Advances as contemplated hereby, then,

 

(a)                                  the right of a Borrower to select any affected
Type of U.S. Dollar Advance shall be suspended until the affected Lenders
determine that the circumstances causing such suspension no longer exist and
the Agent so notifies the Borrowers;

 

(b)                                 if any affected Type of U.S. Dollar Advance is
not yet outstanding, any applicable Borrowing Notice shall be cancelled and the
Advance requested shall not be made;

 

(c)                                  if any LIBOR Advance is already outstanding at
any time when the rights of a Borrower to select LIBOR Advances is suspended,
it and all other LIBOR Advances in the same Borrowing shall, if such Borrower
has the right to select U.S. Base Rate Advances at such time, become U.S. Base
Rate Advances on the last day of the then current Interest Period applicable
thereto (or on such earlier date as may be required to comply with any
applicable Law) or, if such Borrower does not have the right to select U.S.
Base Rate Advances at such time and such Borrower is a Canadian Borrower, such
LIBOR Advance shall become a Floating Rate Advance on the last day of the then
current Interest Period applicable thereto (or on such earlier date as may be
required to comply with any applicable Law) in a principal amount equal to the
Equivalent Cdn. $ Amount of such LIBOR Advance determined on the date on which
such Advance becomes denominated in Canadian Dollars; and

 

(d)                                 if any relevant U.S. Dollar Advance is already
outstanding at any time when the right of a Canadian Borrower to select U.S. Dollar
Advances is suspended, it and all other U.S. Dollar Advances included in the
same Borrowing shall become a Floating Rate Advance: (i) in the case of a LIBOR
Advance, on the last day of the

 

57

 

then current Interest Period
applicable thereto (or on such earlier date as may be required to comply with
any applicable Law); and (ii) in the case of a U.S. Base Rate Advance,
immediately, in a principal amount equal, in each case, to the Equivalent Cdn.
$ Amount of the related U.S. Dollar Advance determined on the date on which
such Advance becomes denominated in Canadian Dollars.

 

ARTICLE
4

BANKERS’ ACCEPTANCES

 

4.1          Acceptances and Drafts.

 

Each of the Canadian Lenders
severally agrees on the terms and conditions of this Agreement:  (i) if such Canadian Lender is a BA
Lender,  to create acceptances (“Bankers’
Acceptances”) by stamping Drafts of a Canadian Borrower under the Credit
Facility; or (ii) if such Canadian Lender is a Non-BA Lender, to purchase BA
Equivalent Notes of such Canadian Borrower under the Credit Facility, in each
case on the Closing or thereafter from time to time on any Business Day at
least one month prior to the Maturity Date, which Drafts have an aggregate Face
Amount equal to such Canadian Lender’s Pro Rata Share of the total
Accommodation being made by way of Bankers’ Acceptances or BA Equivalent Notes,
except that, if the Face Amount of a Bankers’ Acceptance in the case of a BA
Lender, or the Face Amount of a BA Equivalent Note, in the case of a Non-BA
Lender, would not be an integral multiple of Cdn. $100,000, such Face Amount
shall be increased or reduced by the Agent in its sole discretion and in
accordance with normal market practices, to the nearest integral multiple of
Cdn. $100,000. Bankers’ Acceptances shall be created through the stamping of
Drafts by a BA Lender upon a Canadian Borrower paying the BA Stamping Fee,
which shall be deducted by each BA Lender from the proceeds it receives from
the sale of such Bankers’ Acceptances. BA Equivalent Notes shall be purchased
by each Non-BA Lender upon a Canadian Borrower paying the BA Stamping Fee,
which shall be deducted by each Non-BA Lender from the purchase price it pays
for such BA Equivalent Notes. In each case, following deduction of the BA
Stamping Fee, each BA Lender and Non-BA Lender will remit the net proceeds to
the Agent and the Agent shall credit such net proceeds to the appropriate
Borrower’s Canadian Dollar Account. The Total Outstandings after any BA
Issuance shall not exceed the Commitment.

 

58

 

4.2          Procedure for BA Issuance.

 

(1)                                  Each BA Issuance shall be made on notice (a “BA
Issuance Notice”) given not later than 12:00 noon (Toronto time) at least 2
Business Days prior to the date of the proposed BA Issuance by a Canadian
Borrower to the Agent. Each BA Issuance Notice shall be in substantially the
form of Schedule I hereto (or shall be made by telephone confirmed promptly in
writing, providing the same information as would be contained in Schedule I
hereto) and shall specify: (i) the requested date for such BA Issuance (the “BA
Issuance Date”); (ii) the aggregate Face Amount of Drafts to be stamped and BA
Equivalent Notes to be purchased in Canadian Dollars; and (iii) the contract
maturity date for such Drafts and BA Equivalent Notes.

 

(2)                                  Upon receipt of a BA Issuance Notice, the Agent
shall be responsible for making all necessary arrangements with each of the
Canadian Lenders with respect to the stamping of Bankers’ Acceptances and the
purchasing of BA Equivalent Notes in the manner contemplated in this Article 4.

 

(3)                                  The BA Lenders shall purchase any of the
Bankers’ Acceptances, and the Non-BA Lenders shall purchase any of the BA
Equivalent Notes, pursuant to Section 4.5. The Agent shall as soon as practical
deliver to a Canadian Borrower that requests a BA Issuance a notice confirming
the sale of Bankers’ Acceptances and BA Equivalent Notes and specifying the net
proceeds derived therefrom.

 

4.3          Form of Drafts.

 

(1)                                  Each Draft presented by a Canadian Borrower for
stamping by a BA Lender and each BA Equivalent Note presented by a Canadian
Borrower for purchase by a Non-BA Lender: (i) shall be in a Face Amount of not
less than Cdn. $5,000,000 and in an integral multiple of Cdn. $100,000; (ii)
shall be dated the date of BA Issuance; (iii) shall mature and be payable by
such Canadian Borrower on a Business Day which occurs approximately one, two,
three, six or nine months after the BA Issuance Date and on or prior to the
Maturity Date; and (iv) in the case of a Draft, be substantially in the form of
Schedule D hereto.

 

59

 

(2)                                  Each Canadian Borrower hereby renounces, and
shall not claim, any days of grace for the payment of any Bankers’ Acceptances
or BA Equivalent Notes.

 

4.4                               Stamping of Drafts.

 

Not later than 12:00 noon
(Toronto time) on the BA Issuance Date specified for a BA Issuance, each
Canadian Lender that is a BA Lender: (i) shall complete one or more Drafts
dated the date of such BA Issuance in an aggregate Face Amount equal to its Pro
Rata Share of the amount of such BA Issuance and with the maturity date
specified by the Canadian Borrower in its BA Issuance Notice; (ii) shall stamp
the Drafts; and (iii) shall purchase the Bankers’ Acceptance(s) thereby created
in the manner provided in Section 4.5.

 

4.5                               Purchase of Bankers’ Acceptances
and BA Equivalent Notes.

 

(1)                                  The purchase price of any Bankers’ Acceptances
and BA Equivalent Notes purchased by a Canadian Lender shall be calculated
based on the BA Reference Discount Rate applicable to such Canadian Lenders on
the BA Issuance Date for such Bankers’ Acceptances and BA Equivalent Notes. The
purchase price for any Bankers’ Acceptances and BA Equivalent Notes purchased
by a Canadian Lender shall be paid and satisfied by the Canadian Lender making
payment to the Agent for the account of the appropriate Canadian Borrower of
the net proceeds thereof, following the deduction of the BA Stamping Fee by
such Canadian Lender, on the BA Issuance Date.

 

(2)                                  Bankers’ Acceptances purchased by a BA Lender
hereunder may be held by it for its own account until maturity or sold by it at
any time prior thereto in the relevant market therefor in Canada, in such BA
Lender’s sole discretion.

 

4.6          Reimbursement at Contract Maturity Date.

 

(1)                                  A Canadian Borrower shall pay to the Agent for
the account of each Canadian Lender in same day funds, and there shall become
due and payable at 11:00 a.m. (Toronto time) on the contract maturity date for
each Bankers’ Acceptance or BA Equivalent Note, an amount in Canadian Dollars
equal to the Face Amount of such Bankers’ Acceptance stamped or BA Equivalent
Note purchased by such Canadian Lender. A Canadian

 

60

 

Borrower shall make each
payment hereunder in respect of Bankers’ Acceptances or BA Equivalent Notes by
deposit of the required funds to the Payment Account.

 

(2)                                  If any Canadian Borrower fails to pay the
Canadian Lenders pursuant to Section 4.6(1), such Canadian Borrower shall be
deemed to have issued a Borrowing Notice in respect of a Floating Rate Advance
to be made on the contract maturity date, for an amount equivalent to the
unpaid amount due and payable to the Canadian Lenders in respect of such Bankers’
Acceptance or BA Equivalent Note and the Floating Rate Advance shall bear
interest: (i) for the first three days from the maturity date, or until such
earlier date as a Borrowing Notice is given in accordance with Section 3.2
(including in accordance with the period for notice set forth in Section 3.2),
at a per annum rate of interest equal to 115% of the Floating Rate; and (ii)
thereafter at a per annum rate of interest equal to the Floating Rate, in each
case until such amount is paid in full.

 

4.7          Repayments.

 

Except as required by Section
2.6 or 9.1, no repayment of Bankers’ Acceptances or BA Equivalent Notes shall
be made by a Canadian Borrower to a Canadian Lender prior to the contract
maturity date of such Bankers’ Acceptances as have been created or BA
Equivalent Notes as have been purchased by such Canadian Lender. If a Canadian
Borrower shall repay any Bankers’ Acceptances stamped or BA Equivalent Notes
purchased by a Canadian Lender as required by Section 2.6 or 9.1, then (unless
such repayment has been rescinded or otherwise is required to be returned by
such Lender for any reason), as between that Canadian Borrower and such
Canadian Lender, such Canadian Lender shall thereafter be solely responsible
for the payment of the Face Amount of such Bankers’ Acceptances as have been
stamped or BA Equivalent Notes as have been purchased by such Canadian Lender
to the holder or holders thereof in accordance with the terms thereof.

 

4.8          Circumstances Making Bankers’ Acceptances Unavailable.

 

If the Canadian Lenders or any
one or more of them (other than a Non-BA Lender) determine in good faith, and
the Agent notifies the Canadian Borrowers, that by reason of circumstances
affecting the money market there is no market for Bankers’ Acceptances, then
the right of a Canadian Borrower to request a BA Issuance shall be suspended
until the Canadian

 

61

 

Lenders or any one or more of them determines that the circumstances
causing such suspension no longer exist and the Agent so notifies the Canadian
Borrowers. Any BA Issuance Notice which is outstanding at the time of such
notice by the Canadian Lenders or any one or more of them (other than a Non-BA
Lender) shall be deemed to be a Borrowing Notice requesting a Floating Rate
Advance in a principal amount equal to the requested Face Amount in such BA
Issuance Notice.

 

4.9          Presigned Draft Forms.

 

To enable a BA Lender to stamp
Bankers’ Acceptances or complete Drafts in the manner specified in this Article
4, each Canadian Borrower hereby authorizes each BA Lender to complete, sign
and endorse Drafts on its behalf in handwritten form or by facsimile or
mechanical signature or otherwise and, once so completed, signed and endorsed,
to accept them as a Bankers’ Acceptance under this Agreement in accordance with
the provisions hereof. Drafts so completed, signed and endorsed and negotiated
on behalf of a Canadian Borrower by any BA Lender shall
bind such Borrower as fully and effectively as if so performed by an authorized
officer of such Borrower. Each Draft of a Bankers’ Acceptance completed, signed
or endorsed by a BA Lender shall
mature on the last day of the period selected by such Borrower with respect
thereto. A Canadian Borrower may also supply such BA Lender with such number of
Drafts as such BA Lender may reasonably request,
duly endorsed and executed on behalf of the applicable Canadian Borrower by any
one or more of its officers in accordance with the applicable Canadian Borrower’s
required signing authorities as evidenced by the then current borrowing by-law
and resolution, certified copies of which have been delivered to the Agent and
the BA Lender. Each BA Lender shall exercise
such care in the custody and safekeeping of Drafts as it would exercise in the
custody and safekeeping of similar property owned by it. The signatures of such
officers may be mechanically reproduced in facsimile and Drafts and Bankers’
Acceptances bearing such facsimile signatures shall be binding upon the
applicable Canadian Borrower as if they had been manually signed by such
officers. Notwithstanding that any of the individuals whose manual or facsimile
signature appears on any Draft or as one of such officers may no longer hold
office at the date thereof or at the date of its acceptance by a BA Lender
hereunder or at any time thereafter, any Draft or Bankers’ Acceptance so signed
shall be valid and binding upon the applicable Canadian Borrower. A BA Lender
shall not be liable for its

 

62

 

failure to stamp a Bankers’ Acceptance as required hereunder if the
cause of such failure is, in whole or in part, due to the failure of a Canadian
Borrower to provide Drafts, duly endorsed and executed on behalf of such
Canadian Borrower, on a timely basis.

 

ARTICLE
5

LETTERS

 

5.1          Letter Commitment

 

The Issuing Lender agrees on
the terms and conditions of this Agreement to issue Letters denominated in
Canadian Dollars or U.S. Dollars under the Credit Facility for the account of a
Borrower on the date of Closing and thereafter from time to time, but not prior
to the Closing, on any Business Day prior to the Maturity Date, which Letters
shall be issued by the Issuing Lender in its name and on its own behalf in
accordance with Section 5.2. The aggregate Face Amount of all Letters
issued from time to time shall not exceed U.S. $60,000,000. Letters shall be
issued by the Issuing Lender upon a Borrower paying the Issue Fee into the
Payment Account. The Total Outstandings after any Issue shall not exceed the
Commitment. Unless the Agent otherwise notifies the Borrowers in writing prior
to the issue thereof, all Letters shall be subject to the Uniform Customs and
Practice for Documentary Credits promulgated by the International Chamber of
Commerce, being Publication No. 500, as amended or replaced from time to time.

 

5.2          Procedure for Issue.

 

(1)                                  Each Issue shall be made on notice (an “Issue
Notice”) given by a Borrower to the Agent not later than 12:00 noon (local time
at the place of Issue) at least 5 Business Days prior to the Issue Date. The
Issue Notice shall be in substantially the form of Schedule J hereto (or
shall be made by telephone promptly confirmed in writing, providing the same
information as would be contained in Schedule J hereto), and shall
specify: (i) the requested date of Issue (the “Issue Date”); (ii) the Type of
Letter; (iii) the aggregate Face Amount and currency of the Letter; (iv) the
expiration date of the Letter; (v) the name and address of the Beneficiary; and
(vi) the purpose of the Letter. No Letter shall be issued in favour of a
Beneficiary that is a bank, trust company or other financial

 

63

 

institution without the
consent of the Issuing Lender if the Letter is to be used for a purpose that is
not otherwise permitted by the terms of this Agreement.

 

(2)                                  Upon receipt of an Issue Notice, the Agent
shall forthwith notify the Issuing Lender of the proposed Issue Date and shall
otherwise deal with such Issue Notice in the manner specified in this Article 5.

 

(3)                                  A Borrower shall not request in the Issue
Notice a maturity date for a Letter which would: (i) be subsequent to the
Maturity Date; or (ii) conflict, in the opinion of the Agent, with the
repayments provided for in Sections 2.5 or 2.6.

 

5.3          Form of Letters.

 

(1)                                  Each Letter: (i) shall be for a Face Amount of
not greater than the U.S. Dollar amount of the Commitment available for
purposes of requesting the Issue of such Letter; (ii) shall be dated the Issue
Date; (iii) shall have an expiration date on a Business Day, which expiration
date shall be not more than 364 days after the Issue Date and, provided that if
the expiration date of a Letter would exceed the Maturity Date, the applicable
Borrower must post with the Issuing Lender cash collateral or letters of credit
from financial institutions acceptable to the Agent equal to the full Face
Amount of such Letter no later than one (1) Business Day prior to the Maturity
Date; and (iv) shall comply with the definition of Letter.

 

(2)                                  No Letter shall require payment against a
conforming draft to be made thereunder on the same Business Day upon which such
draft is presented, if such presentation is made after 11:00 a.m. (Toronto
time) on such Business Day.

 

(3)                                  Prior to the date of Issue, the Borrower shall
specify a precise description of the documents and the verbatim
text of any certificate to be presented by the Beneficiary which, if presented
by the Beneficiary, would require the Issuing Lender to make payment under the
Letter. The Issuing Lender may require changes in any such documents or
certificate.

 

64

 

5.4          Reimbursement of Amounts Drawn Under Letters of Credit.

 

(1)                                  The Borrower shall reimburse the Issuing Lender
for, and there shall become due and payable at 11:00 a.m. (Toronto time)
on the date specified by a Beneficiary as a drawing date under a Letter, an
amount in same day funds equal to the amount to be drawn by such Beneficiary
under such Letter in the currency in which such Letter is payable. The Borrower
shall make such reimbursement payment by depositing the amount of such payment
to the Payment Account of the Agent and the Agent shall forthwith pay such
amount to the Issuing Lender.

 

(2)                                  If the Issuing Lender makes any payment under
any Letter issued at the request of a Borrower and such Borrower shall not have
reimbursed the Issuing Lender for such amount pursuant to Section 5.4(1):
(i) the Issuing Lender shall thereafter notify the Agent of such failure and
such notification shall be deemed to have been a request by the Borrower for
the Agent to make a Floating Rate Advance or a U.S. Base Rate Advance, as the
case may be, under the Credit Facility on the date of such request in an amount
equal to the amount of such drawing; and (ii) each of the Lenders shall, on the
date of such drawing, make its Pro Rata Share of such
Advance under the Credit Facility and apply the proceeds thereof to the
reimbursement of the Issuing Lender for the amount of such drawing.

 

(3)                                  The obligations of the Borrowers to the Issuing
Lender in respect of all Letters shall rank pari passu with
the obligations of the Borrowers for all other Accommodations.

 

5.5          Issue Fees.

 

(1)                                  A Borrower shall pay to the Issuing Lender: (i)
a fee equal to 0.125% multiplied by the aggregate Face Amount of each Letter
issued hereunder (the “LC Fronting Fee”), in payment of, inter alia
its administrative charges for issuing and administering to the Letter, payable
in arrears on the third Business Day of the calendar month following the month
during which the applicable Letter was issued; and (ii) an Issue Fee for the
period during which each Letter is outstanding. Such Issue Fees shall be
payable in the currency in which such Letter is payable. Such Issue Fees shall
be calculated on the basis of the Face Amount of the applicable Letter,
calculated daily on the basis of a term to maturity

 

65

 

of such Letter and a year of
365 days or 366 days in the case of a leap year, and shall be payable quarterly
in arrears on the third Business Day following the end of the Financial Quarter
during which the applicable Letter is issued and continuing quarterly
thereafter on the same day of the month of each consecutive Financial Quarter
for which such Issue Fee is payable. Upon receipt of any Issue Fee, the Issue
Fee shall be paid by the Issuing Lender to the Agent and the Agent shall
distribute such amount to all Lenders in accordance with their respective Pro
Rata Shares. The Borrowers hereby acknowledge and agree that any Issue Fees
paid by them with respect to any Letter shall not be refunded or rebated in
whole or in part, whether or not any amount is drawn under any Letter and
whether or not such Letter continues to be outstanding for its stated term.

 

5.6          Risk of Letters of Credit.

 

(1)                                  In determining whether to pay under a Letter,
the Issuing Lender shall be responsible only to determine that the documents
and certificates required to be delivered under such Letter have been delivered
and that they comply on their face with the requirements of such Letter.

 

(2)                                  The obligation of the Borrower to reimburse the
Issuing Lender for amounts paid by it under any Letter shall be unconditional
and irrevocable and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including:

 

(a)                                  any lack of validity or enforceability of any
Letter;

 

(b)                                 the existence of any claim, set-off, defence or
other right which such Borrower may have at any time against a Beneficiary or
any transferee of any Letter (or any Persons for whom any such Beneficiary or
transferee may be acting), the Agent, the Issuing Lender or any other Person,
whether in connection with the Credit Documents, the transactions contemplated
therein or any other transaction (including any underlying transaction between
the Borrower and the Beneficiary under such Letter);

 

66

 

(c)                                  any draft, demand, certificate or any other
document presented under the Letter proving to be forged, fraudulent or invalid
in any respect or any statement therein being untrue or inaccurate in any
respect;

 

(d)                                 payment by the Issuing Lender under the Letter
against presentation of a demand, draft or certificate or other document which
does not comply with the terms of the Letter, provided that such payment does
not constitute gross negligence of or wilful misconduct by the Issuing Lender;

 

(e)                                  any other circumstance or happening whatsoever,
which is similar to any of the foregoing; or

 

(f)                                    the fact that a Default or an Event of Default
shall have occurred and be continuing.

 

As between the Borrower, the
Agent and the Lenders, the Borrower assumes all risks of the acts and omissions
of, or misuse of any Letter by the Beneficiary of such Letter. The Issuing
Lender shall not have any responsibility for (i) the form, validity, accuracy,
genuineness or legal effect of any document submitted by any Person in
connection with the application for and issuance of any Letter, even if it
should in fact prove to be in any or all respects invalid, inaccurate,
fraudulent or forged; (ii) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign such Letter or
the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason; (iii) errors,
omissions, interruptions or delays in transmission or delivery of any messages,
by mail, cable, telegraph, telex or otherwise, whether or not they are in
cipher; (iv) errors in interpretation of technical terms; (v) any loss or delay
in the transmission or otherwise of any document required in order to make a
drawing under any Letter or of the proceeds thereof; (vi) the misapplication by
the Beneficiary of any Letter or the proceeds of any drawing under any Letter;
and (vii) any consequences arising from causes beyond the control of the
Issuing Lender, including any actions by any Governmental Entity. None of
clauses (i) through (vii) of this paragraph shall affect, impair, or prevent
the vesting of any of the Issuing Lender’s rights or powers hereunder. Any
action taken or omitted by the Issuing Lender under or in connection with any
Letter or the related

 

67

 

certificates, if taken or omitted in good
faith, shall not put the Issuing Lender under any resulting liability to the
Borrower provided that the Issuing Lender acts without gross negligence.

 

5.7          Repayments.

 

(1)                                  If a Borrower shall be required to repay the
Accommodations pursuant to Sections 2.6 or 9.1, then the Borrower shall
pay to the Issuing Lender, to the extent required pursuant thereto and in the
amount provided therein, the Issuing Lender’s contingent liability in respect
of the Letters outstanding hereunder on behalf of such Borrower. The Borrower
shall also repay, to the extent required pursuant thereto and in the amount
provided therein, the Issuing Lender’s contingent liability in respect of any
Letter which is the subject matter of any order, judgment, injunction or other
such determination (a “Judicial Order”) restricting payment by the Issuing
Lender under and in accordance with such Letter or extending the Issuing Lender’s
liability under such Letter beyond the expiration date stated therein. Payment
in respect of any Letter shall be due in the currency in which such Letter is
stated to be payable (the “Letter Currency”).

 

(2)                                  The Issuing Lender shall with respect to each
Letter, upon the later of:

 

(a)                                  the date on which any final and non-appealable
order, judgment or other such determination has been rendered or issued either
terminating the applicable Judicial Order or permanently enjoining the Issuing
Lender from paying under such Letter; and

 

(b)                                 the earlier of (i) the date on which either (y)
the original counterpart of such Letter is returned to the Issuing Lender for
cancellation or (z) the Issuing Lender is released by the Beneficiary from any
further obligations in respect thereof; and (ii) the expiry (to the extent
permitted by any applicable Law) of such Letter;

 

pay to the Borrower an amount in the applicable
Letter Currency equal to the difference between the amount paid to the Issuing
Lender pursuant to Subsection 5.7(1) and the amounts paid by the Issuing Lender
under such Letter.

 

68

 

5.8          Indemnity

 

Each Lender hereby agrees to
indemnify the Issuing Lender, rateably according to its Pro Rata
Share, from and against any and all Losses and Claims of any kind or nature
whatsoever which may be imposed on, incurred by, or asserted against the
Issuing Lender in any way relating to or arising out of any Issue by the
Issuing Lender, except where the Issuing Lender has acted with gross negligence
or wilful misconduct.

 

5.9          Existing Letters.

 

As at the date of Closing, the
Borrowers, the Agent and the Lenders acknowledge that the letters of credit
and/or letters of guarantee set forth in Schedule S hereto are issued
outstanding under and pursuant to the Existing Revolving Agreement, having been
issued by The Toronto-Dominion Bank as issuing bank on behalf of the lenders
thereunder. From and including the date of Closing, each such letter of credit
or letter of guarantee shall be deemed for all purposes to have been issued as
a Letter hereunder by the Issuing Lender in accordance with the provisions of
this Article 5. The Canadian Borrowers and the U.S. Borrowers, as the case may
be, shall pay the Issue Fees with respect to each such Letter deemed to have
been issued hereunder, calculated on the basis of the letter of credit fees
provided for in the Existing Revolving Agreement from and including the last
date for which such letter of credit fees had been paid in respect of such
letters of credit and/or letters of guarantee under the Existing Revolving
Agreement to but not including the date of Closing, and calculated on the basis
of the Issue Fee provided for in respect of Letters under this Agreement from
and including the date of Closing and continuing thereafter. If necessary,
appropriate adjustments shall be made between the Borrowers and the Lenders to
ensure that the Borrowers are not required to make duplicate payments of issue
fees in respect of such Letters under this Article 5 previously paid under the
Existing Revolving Agreement in respect of the existing letters of credit
and/or letters of guarantee set forth in Schedule S hereto.

 

69

 

ARTICLE
6

CONDITIONS OF LENDING

 

6.1          Conditions Precedent to Effectiveness of this Agreement.

 

The effectiveness of this Agreement
is subject to the following conditions to be fulfilled or performed at or prior
to the Closing, which conditions are for the exclusive benefit of the Agent and
the Lenders and may be waived in whole or in part by the Agent with the
unanimous approval of the Lenders in their sole discretion:

 

(1)                                  Deliveries. The Agent shall have received on behalf of
the Agent and all Lenders at or prior to the Closing the following, each dated
such date (or another date satisfactory to the Agent), in form and substance
satisfactory to the Agent and its counsel, each acting reasonably:

 

(a)                                  a copy of the audited consolidated financial
statements of IPSCO Consolidated for their most recently completed Financial
Year and the unaudited financial statements of IPSCO Consolidated for their
most recently released Financial Quarter;

 

(b)                                 concurrently with the annual statements
provided pursuant to Subsection 6.1(1)(a) above, a schedule detailing all
Consolidated Subsidiaries of IPSCO which includes, without limitation, a breakdown
of the ownership, the Revenue and Assets of each Consolidated Subsidiary, and
the percentage that such Revenue and Assets bears to the Consolidated Revenue
and Consolidated Assets of IPSCO Consolidated for their most recently completed
Financial Year; and

 

(c)                                  a Compliance Certificate of the Chief Financial
Officer of IPSCO based on the financial statements of IPSCO Consolidated for
the Financial Quarter ending September 30, 2004.

 

(2)                                  Agency Fee Agreement. The Agent shall have received the Agency Fee
Agreement executed by IPSCO.

 

70

 

(3)                                  Payment of Fees and Expenses. The Agent shall have received payment of that
portion of the Agency Fee due on Closing, and IPSCO shall have paid all
expenses, including legal expenses, incurred by the Agent in connection with
this Agreement and the other Credit Documents.

 

(4)                                  Compliance with Environmental
Laws. The Agent shall have
received evidence, satisfactory to it in its sole discretion, that IPSCO and
its Subsidiaries are in compliance with all Environmental Laws, the
non-compliance with which, singly or in the aggregate, would have a Material
Adverse Effect.

 

(5)                                  Termination of Revolving Credit
Agreement:  The Agent shall have received from the
Borrowers party thereto an irrevocable notice and direction to terminate the
Existing Revolving Agreement, and from any Borrower or Borrowers, a Borrowing
Notice requesting an Advance to be paid directly to the Agent in its capacity
as agent under such agreement in an amount sufficient to pay in full all
amounts, if any, owing thereunder.

 

(6)                                  No Material Adverse Effect. The Agent shall have received a certificate
from the Chief Financial Officer of IPSCO, satisfactory to the Agent in its
sole discretion, that no event, condition or circumstance has arisen or is
likely to arise which would have a Material Adverse Effect.

 

(7)                                  Confirmation of Debt Ratings. The Lenders shall have received confirmation
of minimum senior debt ratings for IPSCO of BB (stable) from S&P and of Ba3
(stable) from Moody’s.

 

(8)                                  Due Diligence. The Agent and the Lenders shall have
completed and be satisfied with their due diligence, in their sole discretion,
including being satisfied with all environmental, legal, accounting and tax
matters affecting the Borrowers and all Material Subsidiaries, a 3 year
financial forecast for IPSCO Consolidated, and all matters disclosed by any
information provided to the Agent or the Lenders in connection with any
requests for information or documents made by the Agent or the Lenders.

 

71

 

(9)                                  Representations and Warranties. The representations and warranties in Article
7 shall be true and correct other than those representations and warranties
which by their terms are stated to be made as of a specific date, which
representations and warranties shall be true and correct as of such specific
date.

 

6.2          Conditions Precedent to initial Accommodations.

 

The obligation of the Lenders
or any one or more of them to make its initial Accommodation to a Borrower that
is a party to this Agreement on Closing, is subject to the following conditions
being fulfilled or performed at or prior to the time of the initial
Accommodation to that Borrower, which conditions are for the exclusive benefit of
the Agent and the Lenders and may be waived in whole or in part by the Agent
with the unanimous approval of the Lenders in their sole discretion:

 

(1)                                  Deliveries. The Agent shall have received on behalf of
the Agent and all Lenders, at or prior to the time of the initial Accommodation
to such Borrower the following, each dated such day (or another day
satisfactory to the Agent), in form and substance satisfactory to the Agent and
its counsel, each acting reasonably:

 

(a)                                  certified copies of: (i) the charter documents
and the by-laws of such Borrower; (ii) the resolutions of the board of
directors (or comparable body), or any duly authorized committee thereof, of
such Borrower authorizing such Borrower to avail itself of the Accommodations
and to enter into this Agreement and the other Credit Documents to which such
Borrower is a party and the completion of all transactions contemplated
hereunder and thereunder; and (iii) all other instruments evidencing necessary
corporate action of such Borrower and of required Authorizations, if any, with
respect to such matters;

 

(b)                                 certified copies of:  (i) the charter documents and the by-laws of
each Wholly-Owned Material Subsidiary that is not a Borrower and which is
providing a Subsidiary Guarantee; (ii) the resolutions of the board of
directors (or comparable body), or any duly authorized committee thereof, of
each such Wholly-Owned Material Subsidiary authorizing each such Wholly-Owned
Material Subsidiary to

 

72

 

enter into its respective
Subsidiary Guarantee and the other Credit Documents, if any, to which such
Wholly-Owned Material Subsidiary is or may be a party and the completion of all
transactions contemplated hereunder and thereunder; and (iii) all other instruments
evidencing necessary corporate action of such Wholly-Owned Material Subsidiary
and of required Authorizations, if any, with respect to such matters;

 

(c)                                  certificates of the Secretary or an Assistant
Secretary of such Borrower certifying the names and true signatures of its
officers authorized to sign this Agreement and the other Credit Documents to
which such Borrower is a party;

 

(d)                                 a certificate of status, compliance, good
standing or like certificate with respect to such Borrower issued by appropriate
government officials of its jurisdiction of formation;

 

(e)                                  a legal opinion of counsel to such Borrower, in
form and substance satisfactory to the Lenders confirming the due
authorization, execution, validity and enforceability of this Agreement, and
the Ancillary Agreements to which such Borrower is a party, as well as such
other matters as counsel to the Agent may reasonably request;

 

(f)                                    in the case of IPSCO, an IPSCO Guarantee in
respect of each Borrower other than IPSCO;

 

(g)                                 in the case of each Borrower other than IPSCO
and of each Wholly-Owned Material Subsidiary that is not a Borrower, a
Subsidiary Guarantee from each such Borrower and each such Wholly-Owned
Material Subsidiary, it being acknowledged by each such Borrower and each such
Wholly-Owned Material Subsidiary delivering a Subsidiary Guarantee that:  (i) the Borrowers and such Wholly-Owned
Material Subsidiaries are operated as part of one consolidated business entity
and are directly dependent upon each other for and in connection with their
respective business activities and their respective financial resources; and
(ii) each such Borrower and each such Wholly-Owned Material Subsidiary

 

73

 

has received and continues to
receive direct and indirect economic and financial benefits from the provision
of Accommodations to the Borrowers; and

 

(h)                                 if required by any Lender, a grid promissory
note from such Borrower with a maximum aggregate principal amount equal to the
Lender Group Commitment of the Lender Group that includes such Lender.

 

(2)                                  Proceedings. All proceedings to be taken in connection
with the transactions contemplated by this Agreement and any other Credit
Document shall be satisfactory in form and substance to the Agent acting reasonably,
and the Agent shall have received copies of all such instruments and other
evidence as it may reasonably request in order to establish the consummation of
such transactions and the taking of all proceedings in connection therewith.

 

(3)                                  Documentation. The Agent shall have received such Credit
Documents as may be otherwise required by the Agent in accordance with the
terms of this Agreement, all in form and substance satisfactory to the Agent
and the Lenders.

 

(4)                                  Other Conditions. The conditions set forth in Sections 6.1 and
6.3 shall have been fulfilled or performed.

 

6.3          Conditions Precedent to all Accommodations.

 

At any time, the obligation of
the Lenders or any one or more of them to make an Accommodation and the right
of a Borrower to deliver an Accommodation Notice shall be subject to the
conditions, which conditions are for the exclusive benefit of the Agent and the
Lenders and may, in the case of Sections 6.3(1) and 6.3(4), be waived in whole
or in part by the Agent with the unanimous approval of the Lenders and, in the
case of Sections 6.3(2) and 6.3(3), be waived in whole or in part by the Agent
with the approval of the Majority Lenders, in each case in their sole
discretion, that on the date of each such Accommodation, and after giving effect
thereto and to the application of proceeds therefrom:

 

(1)                                  Facility Limits. The Total Outstandings under the Credit
Facility shall not exceed the Commitment.

 

74

 

(2)                                  Defaults or Events of Default. No Default or Event of Default has occurred
and is continuing.

 

(3)                                  Representations and Warranties. The representations and warranties in Article
7, other than those expressly stated to be made as of a specific date, shall be
true and correct in all material respects on the date of each such
Accommodation as if made on and as of such date.

 

(4)                                  Payment of Expenses. The Agent shall have received payment of all
expenses, including legal expenses, incurred by the Agent in connection with
this Agreement and the Ancillary Agreements.

 

(5)                                  No Material Adverse Effect. No event, condition or circumstance has
arisen which would, or could reasonably be expected to, have a Material Adverse
Effect.

 

(6)                                  Compliance with Financial
Covenants. In the case of an
Accommodation requested at any time at which the Borrowers have not yet
delivered to the Agent a Compliance Certificate as required by Section
8.1(1)(d) in respect of the Financial Quarter immediately preceding the date of
request for such Accommodation, there is no reasonable expectation that the
Borrowers will not be in compliance with all of the covenants in Section 8.3 at
the end of such immediately preceding Financial Quarter.

 

6.4          Conditions Precedent to Initial Accommodations to
Additional Borrowers.

 

When any Borrower executes an
Assumption Agreement to become party to this Agreement and avail itself of the
Credit Facility, the obligation of the Lenders or any one or more of them to
make an Accommodation and the right of such Borrower to deliver an
Accommodation Notice shall be subject to the conditions, which conditions are
for the exclusive benefit of the Agent and the Lenders and may be waived in
whole or in part by the Agent with the unanimous approval of the Lenders that,
at or prior to the time of the initial Accommodation to such Borrower:

 

(1)                                  Deliveries. The Agent shall have received on behalf of
the Agent and all Lenders, an IPSCO Guarantee in respect of such Borrower, a
Subsidiary Guarantee by such

 

75

 

Borrower, the documentation
contemplated in each of Sections 6.2(1)(a) through 6.2(1)(e) with respect to
such Borrower, such IPSCO Guarantee and such Subsidiary Guarantee, together
with a written acknowledgement by such Borrower that:

 

(a)                                  such Borrower is operated as part of one
consolidated business entity with the other Borrowers, and all Borrowers are
directly dependent upon each other for and in connection with their respective
business activities and their respective financial resources; and

 

(b)                                 such Borrower has received and continues to
receive direct and indirect economic and financial benefits from the provision
of Accommodations to the Borrowers,

 

and, if required by any Lender, a promissory note contemplated by
Section 6.2(1)(h).

 

(2)                                  Other Conditions. The conditions set forth in Section 6.3 shall
have been fulfilled or performed.

 

ARTICLE
7

REPRESENTATIONS AND WARRANTIES

 

7.1          Representations and Warranties.

 

To induce the Agent and each
of the Lenders to enter into this Agreement and to make Accommodations
available hereunder, each of the Borrowers jointly and severally represents and
warrants to the Agent and each of the Lenders that:

 

(a)                                  Status and Power:  Such
Borrower is an entity duly formed and organized and validly subsisting under
the laws of its jurisdiction of formation and has full power and authority to
own its Assets and to carry on its business as now conducted. Such Borrower has
obtained all Authorizations required in respect of its operations, the absence
of any of which would have a Material Adverse Effect, and such Borrower is not
in default, and has received no notice of any Claim (other than Claims that are
permitted hereunder) or default, with respect to any such Authorizations which
would have a Material Adverse Effect.

 

76

 

(b)                                 Authorization:  Such
Borrower has full power and authority and full legal right to enter into and
perform its obligations under this Agreement and all Ancillary Agreements to
which it is a party and to obtain Accommodations hereunder, and such Borrower
has taken all action necessary to be taken by it to authorize such acts.

 

(c)                                  Enforceability of Agreement:  This
Agreement and each Ancillary Agreement to which such Borrower is a party
constitute legal, valid and binding obligations of such Borrower, enforceable
against it in accordance with their respective terms, subject only to any
limitation under applicable Laws relating to: (i) bankruptcy, insolvency,
reorganization, moratorium or creditors’ rights generally; and (ii) the
discretion that a court may exercise in the granting of equitable remedies.

 

(d)                                 Compliance with Other Instruments:  The
consummation of the transactions herein contemplated and the compliance with
the terms, conditions and provisions of this Agreement and any of the Ancillary
Agreements to which such Borrower is a party will not conflict with or result
in a breach of or constitute a default under any of the terms, conditions or
provisions of (i) the certificate of incorporation, other constating documents
or by-laws of such Borrower, or (ii) any agreement or instrument to which such
Borrower is a party or by which it is bound, except in the case of any such
conflict, breach or default of any such other agreement or instrument which
would not have a Material Adverse Effect or result in the creation or
imposition of any Encumbrance upon any Assets of any Borrower which is not a
Permitted Encumbrance.

 

(e)                                  No Event of Default:  No
Default or Event of Default has occurred and is continuing nor has any event or
condition occurred which, with the giving of notice or passage of time, or
both, would constitute a default under any Agreement for Borrowed Money (other
than this Agreement) to which any Borrower or any Subsidiary is a party, which
default could reasonably be expected to have a Material Adverse Effect.

 

77

 

(f)                                    Restrictive Documents:  Such
Borrower is not subject to any certificate of incorporation, constating
document or by-law restriction, any Law, any Claim (other than Claims that are
permitted hereunder), any contract or instrument, any Encumbrance or any other
restriction of any kind or character which would be contravened, breached or
violated by such Borrower by virtue of the execution, delivery, performance or
observance of any of the terms of this Agreement or any of the Ancillary
Agreements to which such Borrower is a party,
if the result of such contravention, breach or violation would have
a Material Adverse Effect.

 

(g)                                 Environmental:  Such
Borrower and its Subsidiaries:

 

(1)                                  to the knowledge of such Borrower, are not in
violation of any Environmental Laws, 
where such violations, singly, or in the aggregate, would have a
Material Adverse Effect;

 

(2)                                  are not the subject of any pending, or to the
knowledge of such Borrower, threatened actions, suits, proceedings, orders or
Notices from any Person relating to a Release into the environment or
workplace, the use, handling, transportation or storage of any Hazardous
Substance in any of its operations or any Hazardous Substance in any other
respect (except proceedings of a character normally incidental to the kind of
business conducted by such Borrower or any Subsidiary of such Borrower) which,
singly or in the aggregate, if adversely determined, would have a Material
Adverse Effect; and

 

(3)                                  have no knowledge of any past, unremedied,
violations of any Environmental Laws affecting their business, operations or
Assets, where such violations,
singly or in the aggregate, would have a Material Adverse Effect.

 

(h)                                 Financial Statements:  The
financial statements delivered to the Agent and the Lenders pursuant to this
Agreement fairly present the consolidated financial

 

78

 

position of IPSCO Consolidated
as at the dates thereof and the consolidated results of the operations of IPSCO
Consolidated for the periods covered thereby and have been prepared by such
Borrower in accordance with GAAP (subject, in the case of interim statements,
to normal year-end audit adjustments). All financial, business and outlook
projections provided to the Agent and the Lenders, or any of them, under or in
connection with this Agreement were prepared in good faith based on assumptions
which, at the time of preparation thereof, were believed to be reasonable and
are believed to be reasonable estimates of the prospects of the businesses
referred to therein.

 

(i)                                     Carrying on Business:  Such
Borrower and its Subsidiaries are qualified to carry on business in all
jurisdictions in which the Assets owned or leased by them or the nature of the
activities carried on by them make such qualification necessary, except to the
extent that the non-qualification would not and could not reasonably be
expected to have a Material Adverse Effect. Such
Borrower and its Subsidiaries have all required permits, licenses and other
authorizations required to own their respective Assets and to carry on the
business in which they are engaged and all such permits, licenses and
authorizations are in good standing, except to the extent that the absence
thereof would not and could not reasonably be expected to have a Material
Adverse Effect.

 

(j)                                     No Defaults:  No
Default or Event of Default has occurred and is continuing.

 

(k)                                  Actions, Proceedings, etc.:  There
are no actions, suits, arbitration or administrative proceedings or industrial
or labour disputes outstanding or, to the knowledge of such Borrower after
having made reasonable inquiry, pending or threatened, against any such
Borrower or its Subsidiaries which, in any case would or could reasonably be
expected to have a Material Adverse Effect except as set out in Schedule N
hereto.

 

(l)                                     No Material Adverse Effect:  Since
December 31, 2003, no event or circumstance has occurred and no fact has become
known to it that would, or could reasonably be expected to, have a Material
Adverse Effect.

 

79

 

(m)                               Insurance:  Such
Borrower and its Subsidiaries maintain appropriate insurance coverage,
including, business interruption insurance, that satisfies the covenants and
conditions of the Credit Documents concerning insurance coverage.

 

(n)                                 Title to Assets: Such Borrower and its Subsidiaries have good
title to all personal or moveable Assets and good and marketable title or leasehold
title (as the case may be), to all real or immoveable Assets or leasehold
interests therein owned or leased by it, free and clear from any Encumbrance,
other than any Permitted Encumbrances, and no Person has any agreement with it
or right to acquire an interest in any such Assets except for such Assets that
such Borrower or its Subsidiaries is permitted to sell in accordance with the
terms of this Agreement.

 

(o)                                 Taxes and Withholdings:  Such
Borrower and its Subsidiaries have in a timely manner filed all tax returns,
elections, filings and reports required by Law to be filed by them and such
returns, elections, filings and reports are true, complete and correct in all
material respects. Such Borrower and its Subsidiaries have paid, or reserved in
their financial statements, all taxes which are due and payable, and have paid
all assessments and reassessments and all other taxes, governmental charges,
withholdings, penalties and fines due and payable by it other than those (i)
which are not overdue by more than 5 Business Days, or (ii) if overdue by more
than 5 Business Days, which are being contested in good faith and for which
applicable reserves have been set aside by such Borrower or the applicable
Subsidiary in accordance with GAAP.

 

(p)                                 Compliance with Laws. Such Borrower and its Subsidiaries are in
compliance with all applicable Laws, except in the instance that the
application or construction of any such Law is being contested in good faith by
appropriate proceedings diligently conducted and pursued and, the
non-compliance with which would not, or could not reasonably be expected to,
have a Material Adverse Effect.

 

(q)                                 Canadian Plans and Canadian
Welfare Plans:  Except for accruals in the ordinary course of
business, all contributions required under applicable Law have

 

80

 

been made to any Canadian
Plans and Canadian Welfare Plans to which any of the Borrowers or their
Subsidiaries are party, and there are no unfunded liabilities in respect of such
plans that are not in compliance with applicable Laws. During the 12
consecutive month period prior to the date of Closing, no steps have been taken
to terminate any such aforementioned plan and no contribution failure has
occurred with respect to any such plans, in either case if such termination or
contribution failure could reasonably be expected to give rise to any
Encumbrance under any applicable Law.

 

(r)                                    Labour Matters:  There
are no strikes or other work stoppages initiated by employees against such
Borrower or any of its Subsidiaries pending or, to the knowledge of such
Borrower, threatened against such Borrower or any of its Subsidiaries which
would, or could reasonably be expected to, have a Material Adverse Effect. There
are no complaints under any labour, workplace, employment or similar laws
against such Borrower or any of its Subsidiaries or, to the knowledge of such
Borrower, threatened to be filed with any Governmental Entity based on, arising
out of, in connection with, or otherwise relating to the business of such
Borrower or any of its Subsidiaries which would, or could reasonably be
expected to, have a Material Adverse Effect. Such Borrower and each of its
Subsidiaries are in compliance with the terms and conditions of all collective
bargaining agreements and all other labour agreements, if any, except for any
such non-compliance which would not, or could not reasonably be expected to,
have a Material Adverse Effect.

 

(s)                                  No Margin Stock:  Such
Borrower and its Subsidiaries do not own or have any present intention of
acquiring any “margin stock” as defined in Regulation U (12 CFR Part 221, as
amended) of the Board of Governors of the Federal Reserve System (herein called
“Margin Stock”). None of the proceeds of any Accommodation will be used,
directly or indirectly, for the purpose of purchasing or carrying any Margin
Stock or maintaining, reducing or retiring any indebtedness which was
originally incurred to purchase or carry any Margin Stock, or to extend credit
to others for the purpose of purchasing or carrying any

 

81

 

Margin Stock, or for any other
purpose which might constitute this transaction a “purpose credit” within the
meaning of such Regulation U. Neither such Borrower nor any agent acting on its
behalf has taken or will take any action which might cause this Agreement or
any of the Ancillary Agreements to violate, or be inconsistent with, Regulation
U or Regulation X (12 CFR Part 224, as amended) or any other regulation of the
Board of Governors of the Federal Reserve System or to violate, or be
inconsistent with, the Securities Exchange Act of
1934, as amended, in each case as in effect now or as the same may
hereafter be in effect.

 

(t)                                    ERISA Matters:  Each
of the ERISA Companies is in compliance with all applicable provisions of ERISA
and the regulations and published interpretations thereunder with respect to
all U.S. Plans and the entering into of this Agreement and the Ancillary
Agreements does not constitute a prohibited transaction under ERISA (or the
applicable Borrower is otherwise exempt therefrom). No accumulated funding
deficiency (as defined in Section 302 of ERISA and Section 412 of the Code),
whether or not waived, exists with respect to any U.S. Plan. No liability to the
Pension Benefit Guaranty Corporation (“PBGC”) has been or is expected to be
incurred with respect to any U.S. Plan, and no contribution failure has
occurred with respect to any U.S. Plan sufficient to give rise to a lien under
Section 302(f) of ERISA. No ERISA Company has incurred or expects to incur any
withdrawal liability under Title IV of ERISA with respect to any Multiemployer
Plan. Each of the non-qualified Plans referred to in Schedule O attached hereto
is treated under ERISA as unfunded and is maintained for a select group of
management or highly compensated employees.

 

(u)                                 No Other Material Facts:  Except
for financial, business and outlook projections which have been provided in
writing to the Agent and the Lenders (as to which no representation or warranty
is made except as provided in Section 7.1(h)), none of this Agreement or any of
the Credit Documents or any certificate or statement in writing which has been
supplied by or on behalf of any of the Borrowers in connection with this
Agreement contains any untrue statement of a material fact,

 

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or omits any statement of a
material fact necessary in order to make the statements contained herein or
therein not misleading. There is no fact known to any of the Borrowers which
has not been disclosed to the Agent and the Lenders in writing and which would
have, or could reasonably be expected to have, a Material Adverse Effect.

 

Each of the representations and warranties contained in this Section 7.1
shall be deemed to be continually repeated by the relevant Borrowers at the
time and date of each Accommodation.

 

7.2          Survival of Representations and Warranties.

 

All of the representations and
warranties of the Borrowers contained in Section 7.1 shall survive the
execution and delivery of this Agreement and shall continue in full force and
effect until all amounts owing hereunder have been repaid and the Credit
Facility has been terminated notwithstanding any investigation made at any time
by or on behalf of the Agent or any of the Lenders.

 

7.3          No Representations by Lenders.

 

No representation, warranty or
other statement made by the Agent or any one or more of the Lenders in respect
of the Credit Facility or any Accommodation made hereunder shall be binding on
such Person unless made by it in writing as a specific amendment to this
Agreement.

 

ARTICLE
8

COVENANTS OF THE BORROWER

 

8.1          Affirmative Covenants.

 

So long as any amount owing
hereunder remains unpaid or the Lenders have any Commitment under this Agreement,
and unless the Agent on behalf of the Majority Lenders shall otherwise consent,
each of the Borrowers jointly and severally agrees with the Agent and the
Lenders that it shall:

 

(1)                                  Financial Reporting and
Deliveries. Cause to be
delivered to the Agent the following documents, in form and substance
satisfactory to the Agent, acting reasonably:

 

83

 

(a)                                  as soon as available and in any event within 60
days after the end of each Financial Quarter of IPSCO: (i) the unaudited
consolidated financial statements of IPSCO Consolidated as of the end of each
such Financial Quarter (other than the fourth Financial Quarter) in accordance
with GAAP, including a balance sheet, statement of income and retained earnings
and a statement of changes in cash position; and (ii) the unaudited
non-consolidated financial statements of each of the Borrowers as of the end of
each such Financial Quarter in accordance with GAAP, including a balance sheet,
statement of income and retained earnings and a statement of changes in cash
position, and in each case for the period commencing at the end of the previous
Financial Year and ending with the end of such Financial Quarter, and setting
forth in comparative form the figures for the corresponding Financial Quarter
and the corresponding portion of the previous Financial Year, all certified as
to consistency (or exceptions therefrom) by the Chief Financial Officer of
IPSCO;

 

(b)                                 promptly upon receipt thereof, a copy of each
management letter or report submitted to the board of directors (or any
committee thereof) of IPSCO from IPSCO’s independent auditors in connection
with any annual, interim or special audit made by them of the books of IPSCO or
any of its Consolidated Subsidiaries, where such letters or reports relate to
any matter which could have a Material Adverse Effect;

 

(c)                                  as soon as available and in any event within
120 days after the end of each Financial Year of IPSCO, a copy of the audited
consolidated financial statements of IPSCO Consolidated for such Financial Year
reported on by IPSCO’s independent auditors;

 

(d)                                 concurrently with each delivery of its
quarterly financial statements and annual financial statements as provided
above (and within 60 days after the end of its fourth Financial Quarter in each
Financial Year), a Compliance Certificate of the Chief Financial Officer of
IPSCO, which Compliance Certificate shall include, without limitation, (i)
calculations of the financial covenants specified in Section

 

84

 

8.3 of this Agreement, and
(ii) where delivered in relation to the annual statements, a schedule detailing
all Consolidated Subsidiaries of IPSCO which includes, without limitation, a
breakdown of the ownership, the Revenue and Assets of each Consolidated
Subsidiary, and the percentage that such Revenue and Assets bears to the
Consolidated Revenue and Consolidated Assets of IPSCO Consolidated for their
most recently completed Financial Year;

 

(e)                                  as soon as available and in any event no later
than 180 days prior to the first day of each Financial Year, an annual
financial forecast for the ensuing Financial Year and the next following
Financial Year of IPSCO and its Subsidiaries, including a budget for each such
Financial Year, and setting forth financial projections for the Borrowers on a
consolidated basis, which shall include a projected income statement, projected
balance sheet, projected statement of changes in funds and estimates of capital
expenditures, all broken down quarterly, and otherwise in detail acceptable to
the Agent and Lenders; and

 

(f)                                    as soon as available and in any event within 60
days of the end of each Financial Quarter of IPSCO, an asset coverage report
outlining the accounts receivable and inventory of IPSCO Consolidated which are
not subject to any Encumbrance and outlining the Total Outstandings under the
Credit Facility.

 

(2)                                  Additional Reporting and
Deliveries. Cause to be
delivered to the Agent the following documents, in form and substance satisfactory
to the Agent:

 

(a)                                  as soon as possible and in any event within
five days after the (i) occurrence of each Default or Event of Default, or (ii)
the occurrence of any event or condition which, with the giving of notice or
passage of time, or both, may constitute a default under (A) any Agreement for
Borrowed Money (other than this Agreement) to which such Borrower, any other
Borrower or any other Credit Party is a party, or (B) any Agreement for
Borrowed Money (other than this Agreement) to which any Subsidiary of IPSCO
(other than any Borrower or any other Credit Party) is a party where the result
of such default would have a Material Adverse Effect, a statement of the Chief
Financial Officer of such

 

85

 

Borrower
setting forth the details of such Default, Event of Default or other event or
condition, and the action which such Borrower proposes to take or has taken
with respect thereto;

 

(b)                                 as soon as possible and in any event within five days after the determination
thereof, notice of all liabilities, including contingent liabilities (as
defined by GAAP), arising as a result of any non-compliance by such Borrower or
any of its Subsidiaries with any Environmental Law, where the reasonably
anticipated aggregate liabilities caused by such non-compliance would exceed 1%
of Consolidated Tangible Net Worth, together with the details of such
non-compliance;

 

(c)                                  promptly after the occurrence thereof, notice of any action, suit,
dispute, arbitration, proceeding, labour or industrial grievance or other
circumstance affecting any Borrower or any of their Subsidiaries, the result of
which if determined adversely would, or could reasonably be expected to, have a
Material Adverse Effect, together with copies of the details of such actions,
suits, disputes, arbitrations, proceedings, grievances or other circumstances,
and all reasonable information requested by any of the Lenders concerning the
status thereof.

 

(d)                                 promptly upon the occurrence thereof, notice of any action taken by
any other lender to such Borrower, any other Borrower or any Subsidiary to
recover amounts owing to such lender; and

 

(e)                                  promptly upon the occurrence thereof, notice of any circumstance or
event which would, or could reasonably be expected to, have a Material Adverse
Effect.

 

(3)                                  Pay Amounts. Pay all
amounts of principal, interest, fees, costs and expenses owing hereunder by
such Borrower on the dates, at the times and at the places specified in this
Agreement or under any other Credit Document to which such Borrower is a party.

 

(4)                                  Ranking. Ensure, and
cause each Credit Party to ensure, that the Claims of the Agent and the Lenders
against such Borrower or Credit Party under this Agreement or a 

 

86

 

Subsidiary
Guarantee, as the case may be, will rank in priority to, or pari passu
with, the Claims of all other Persons against such Borrower or such Credit
Party (other than any Claims permitted hereunder to rank in priority to the
Claims of the Agent and the Lenders).

 

(5)                                  Existence. Preserve
and maintain, and cause each of its Subsidiaries to preserve and maintain, its
existence, rights (charter and statutory), agreements, licenses, permits,
authorizations, operations, contracts, franchises and other arrangements, the
loss of which existence, rights, agreements, licences, permits, authorizations,
operations, franchises or other arrangements would have a Material Adverse
Effect.

 

(6)                                  Compliance with Laws, etc. Comply, and cause each of its Subsidiaries to comply, with the
requirements of all Laws, including Environmental Laws and the requirement not
to act in a manner which is oppressive or unfairly prejudicial to or unfairly
disregards the interests of any security holder, creditor, director or officer,
the non-compliance with which would have a Material Adverse Effect.

 

(7)                                  Payment of Taxes and Claims. Pay and discharge, and cause each of its Subsidiaries to pay and
discharge, before the same shall become delinquent: (i) all taxes,
assessments and governmental charges or levies imposed upon it or upon its
Assets, unless and for so long as such Borrower or its applicable Subsidiary is
disputing diligently, in good faith and by proper legal proceedings, the
amount, nature or existence of such taxes, assessments or governmental charges
or levies; and (ii) all lawful Claims which, if unpaid, might by Law
become an Encumbrance upon its Assets, in each case except for any such tax,
assessment, charge or Claim which would result in an Encumbrance which is a Permitted
Encumbrance or for which the failure to pay and discharge would not, or could
not reasonably be expected to, have a Material Adverse Effect.

 

(8)                                  Visitation and Inspection. At any reasonable time or times, permit the Agent, or its
authorized representatives, full and reasonable access to the premises of IPSCO
and each of its Subsidiaries, and to all business, financial and computer
records of IPSCO and each of its Subsidiaries, which might, in the reasonable
opinion of the Agent, be considered to be relevant to any of the terms and
conditions of any of the Credit Documents, and to 

 

87

 

take copies
thereof, and to discuss the business, affairs, finances and accounts of, and
the compliance with the terms of this Agreement by, IPSCO and each of its
Subsidiaries with the officer appointed as (or performing the functions of) the
Chief Financial Officer of IPSCO and each of its Subsidiaries.

 

(9)                                  Condition of Assets. Keep,
and cause each of its Subsidiaries to keep, its Assets (except for land and
buildings, machinery and equipment which are obsolete or surplus to the
requirements of IPSCO Consolidated) in good repair, working order and condition
(reasonable wear and tear excepted) and, from time to time, make all needed and
proper renewals, replacements, additions and improvements thereto.

 

(10)                            Insurance. Maintain in
respect of itself, and each of its Subsidiaries, or cause each of its
Subsidiaries to maintain directly, insurance coverage with financially sound
and reputable insurers in such forms and amounts and against such risks as are
customary for Persons with established reputations engaged in the same or a
similar business and owning and operating similar Assets, and from time to time
upon request by the Agent, provide the Agent with a certificate of insurance
evidencing that all such insurance is in full force and effect at such time.

 

(11)                            Security and Covenant Structure. If at any time after the Closing, a Borrower or Credit Party shall
enter into or become a party to any instrument or agreement (including by way
of merger, amalgamation or otherwise), including any amendment or modification
of any such instruments or agreements in existence as of the date hereof,
relating to or amending any provisions applicable to any of its Debt or Hedging
Liabilities which in the aggregate, together with any related Debt, exceeds
U.S. $35,000,000, which instruments or agreements include provisions relating
to Encumbrances in relation to Assets, covenants or defaults, in each case not
substantially provided for the benefit of the Agent and the Lenders in this
Agreement or the Credit Documents or provisions which IPSCO reasonably
determines are materially more favourable to the lender or lenders thereunder
than those provided for the benefit of the Agent and the Lenders in this
Agreement or the Credit Documents, then the Borrowers shall promptly so advise
the Agent and the Lenders. Thereupon, if the Agent or the 

 

88

 

Majority
Lenders shall request, upon notice to the Borrowers, the Agent and the Lenders
shall, as soon as reasonably practical, enter into an amendment to this
Agreement or an additional agreement and such other Credit Documents as may be
reasonably required (as the Agent may request), providing for
substantially the same Encumbrances, covenants and defaults as those provided
for in such instrument or agreement to the extent required and as may be
selected by the Agent.

 

(12)                            Reporting. Provide the
Agent and the Lenders with such additional information and financial data as
the Agent may reasonably request from time to time.

 

(13)                            Further Assurances. At
its cost and expense, upon request of the Agent, duly execute and deliver or
cause to be duly executed and delivered to the Agent such further instruments
and do and cause to be done such further acts as may be necessary or
proper in the reasonable opinion of the Agent to carry out more effectually,
but without expanding, the provisions and purposes of the Credit Documents.

 

8.2                               Negative
Covenants.

 

So long as any amount owing hereunder
remains unpaid or any of the Lenders has any Commitment under this Agreement,
and unless the Agent on behalf of the Majority Lenders shall otherwise consent,
each of the Borrowers jointly and severally agrees with the Agent and the
Lenders that it shall not:

 

(1)                                  Encumbrances. Create,
incur, assume or suffer to exist, or permit any of its Subsidiaries to create,
incur, assume or suffer to exist, any Encumbrance on any of its Assets other
than Permitted Encumbrances.

 

(2)                                  Disposal of Assets. Dispose
of, or permit any of its Subsidiaries to Dispose of, any of its Assets
(including any Disposition of any Debt of, or any Equity Interests in, a
Borrower or any Subsidiary otherwise permitted in accordance with Section 8.2(3) or
any Disposition otherwise permitted in accordance with Sections 8.2(5) or
8.2(6)), except for: (a) any Disposition of inventory in the ordinary
course of business or of surplus or obsolete land and buildings, machinery and
equipment; (b) any Disposition to a Credit Party, provided that such
Credit Party has executed and delivered a Subsidiary Guarantee 

 

89

 

and the
documentation contemplated in each of Sections 6.2(1)(a) through
6.2(1)(e), (c) (i) in any four consecutive Financial Quarters, any
Dispositions of Assets not greater than U.S. $285,000,000.00 in the aggregate,
and (ii) during the period commencing on the date of this Agreement and
ending on the Maturity Date, any Dispositions of Assets not greater than U.S.
$475,000,000.00 in the aggregate (in each case, including any Disposition
otherwise permitted in accordance with Section 8.2(6), but excluding any
Disposition otherwise permitted in clauses (a) and (b) of this Section 8.2(2));
and (d) any Disposition of a Permitted Investment of the type specified in
clauses (a), (b), (c), (d) or (f) of the definition of Permitted
Investments as part of the normal course treasury management operations of
IPSCO and in consideration for cash or Cash Equivalents of like value.

 

(3)                                  Shares and Debt.

 

(a)                                  Dispose of, or permit any of its Subsidiaries to Dispose of, any
Debt of, or any Equity Interests in, such Borrower or any Subsidiary, except
for: (i) any Disposition of any Debt of, or any Equity Interests in, any
Borrower or any Subsidiary, to a Credit Party; and (ii) any Disposition of
all of the Debt of, and all Equity Interests in, any Subsidiary (other than a
Borrower) as an entirety if all of the Assets of such Subsidiary would
otherwise be permitted to be Disposed of in accordance with Section 8.2(2).

 

(b)                                 Issue, or permit any of its Wholly-Owned Subsidiaries to issue, any
Equity Interests (other than IPSCO), except to a Credit Party.

 

(4)                                  Guarantees and Indemnities. Guarantee or indemnify, or permit any of its Subsidiaries to
guarantee or indemnify, any Debt or Hedging Liabilities of any other Person at
any time (other than any Debt or Hedging Liabilities of a Credit Party), except
to the extent that: (a) any such guarantee or indemnity is granted in the
ordinary course of, or otherwise in furtherance of, the business of such
Borrower or such Subsidiary; and (b) all such guarantees and indemnities
outstanding at such time would not result in liability to the Borrowers and their
Subsidiaries in excess of U.S. $20,000,000 in the aggregate at such time.

 

90

 

(5)                                  Non-Capitalized Lease Obligations/Sale-Leaseback
Transactions. Create or incur, or permit any of its
Subsidiaries to create or incur, any Non-Capitalized Lease Obligation, or
effect any Sale-Leaseback Transactions, at any time, except to the extent that:
(a) any such Non-Capitalized Lease Obligation is entered into in the
ordinary course of, or otherwise in furtherance of, the ordinary course of
business of such Borrower or such Subsidiary; and (b) the fair market
value of the Assets of the Borrowers (another than real property and office
leases) and their Subsidiaries subject to all outstanding Non-Capitalized
Leases plus the aggregate lease commitments in respect of real property and
office leases at such time, determined on the basis of the fair market value of
such Assets or lease commitments at the inception of such Non-Capitalized
Leases or real property leases, would not exceed U.S. $60,000,000 in the
aggregate at such time; and (c) the aggregate level of lease payments to
be made in any calendar year in respect of all Non-Capitalized Lease
Obligations and Sale-Leaseback Transactions, including the lease payments to be
made in such calendar year in respect of the Bank One Lease Obligation, shall
not exceed U.S. $30,000,000. Notwithstanding the immediately preceding
sentence, (i) each of the Bank One Lease Obligation, the St. Paul Lease
Obligation and the Houston Lease Obligation shall be permitted and shall not be
subject to the restrictions set out in clauses (a) and (b) in this Section 8.2(5) (but
shall be subject to the restriction set out in clause (c) in this Section 8.2(5));
and (ii) Non-Capitalized Lease Obligations and Sale-Leaseback Transactions
entered into between Credit Parties shall be permitted and shall not be subject
to the restrictions set out in clauses (a), (b) and (c) in this Section 8.2(5).

 

(6)                                  Mergers, Etc. (a) Consolidate
with or merge into any other Person; (b) permit any other Person to
consolidate with or merge into such Borrower or any of its Subsidiaries
(except, in the case of a transaction involving a Credit Party in which the
Credit Party remains a Credit Party); (c) directly or indirectly, Dispose
of all, or substantially all, of the undertaking and Assets of such Borrower or
any of its Subsidiaries as an entirety (except as permitted in Section 8.2(2)(b) or
(c); or (d) permit itself, or any of its Subsidiaries to, (i) acquire
Equity Interests of any other Person such that such Person becomes a Subsidiary
of such Borrower or (ii) directly or indirectly, purchase or otherwise
acquire all, or substantially all, of the undertaking and Assets of any Person
as 

 

91

 

an entirety or
any existing business (whether existing as a separate entity, subsidiary,
division, unit or otherwise) of any Person (except as permitted in Section 8.2(13)(b) or
(c)).

 

(7)                                  Restrictive Agreements. Enter into, or suffer to exist, or permit any of its Subsidiaries to
enter into, or suffer to exist, any contract or agreement (including any
amendment or addition to the constating documents of such Borrower or
Subsidiary), or any transaction that has a substantially similar effect, that
imposes restrictions on the ability of such Borrower or any Subsidiary to:

 

(a)                                  pay principal, interest, dividends or other distributions (except in
the case of dividends or distributions payable by IPSCO); or

 

(b)                                 grant Encumbrances over its accounts receivable and inventory to
secure payment of amounts owing in respect of the Credit Facility, provided
that this restriction shall not apply to those contracts or agreements
described in Schedule “Q”, to the extent such contracts or agreements
impose such restrictions as at the date hereof.

 

(8)                                  Transactions and Insiders. Directly or indirectly purchase, acquire or lease any Assets from,
or Dispose any Assets to, or permit any of its Subsidiaries to purchase,
acquire or lease any Assets from, or Dispose any Assets to (or enter into any
transaction that has a substantially similar effect to any of the foregoing),
any shareholder, director, officer, agent or employee of such Borrower or such
Subsidiary, or any Person not acting at arm’s length to any one or more of such
Persons, except: (a) for any such purchase, acquisition or Disposition at
prices and on terms not less favourable to such Borrower or such Subsidiary
than those which could reasonably be expected to have been obtained in an arm’s-length
transaction with a non-affiliated third party; (b) for any such purchases,
acquisitions or Dispositions by the Borrowers and the Subsidiaries not
exceeding U.S. $10,000,000 in the aggregate, calculated to include all such
purchases, acquisitions or Dispositions from the date of execution of this
Agreement to and including the time of any such purchase, acquisition or
Disposition, but excluding all such purchases, acquisitions or Dispositions
otherwise permitted by Section 8.2(8)(a), (c) or (d); (c) for 

 

92

 

any such
purchase, acquisition or Disposition to a Credit Party; (d) for any
Non-Capitalized Lease Obligation entered into between Credit Parties.

 

(9)                                  Change in Business. Discontinue
any of its businesses or change the nature of its business or engage in any
other business, or permit any of its Subsidiaries to discontinue any of its
businesses or change the nature of its business or engage in any other business
if, as a result thereof, the general nature of the businesses which would then
be engaged in collectively by IPSCO and its Subsidiaries would be substantially
different from the general nature of the businesses engaged in collectively by
IPSCO and its Subsidiaries at the date hereof.

 

(10)                            Reporting Currency. Fail
to report its financial results in U.S. Dollars.

 

(11)                            Bank One Lease Documentation. Amend, modify, waive, or change any of the terms of the Bank One
Lease Documentation in a manner that might: 
(a) give rise to a Material Adverse Effect; or (b) otherwise
impair the rights of the Agent and the Lenders under any of the Credit
Documents, in either case without the prior written consent of the Agent on
behalf of the Lenders.

 

(12)                            Capital Expenditures. Incur, on a consolidated basis, in any calendar year, capital
expenditures exceeding U.S. $190,000,000.00 in the aggregate.

 

(13)                            Investments. Make
any Investments, or permit any of its Subsidiaries to make any Investments,
except for: (a) Permitted Investments; (b) Investments by one Credit
Party in any other Credit Party; (c) Investments in and to Persons other
than Credit Parties, at any time not exceeding 7.5% of Consolidated Tangible
Net Worth in the aggregate at such time; and (d) (i) in any four
consecutive Financial Quarters, Investments not greater than U.S.
$285,000,000.00 in the aggregate (ii) during the period commencing on the
date of this Agreement and ending on the Maturity Date, Investments not greater
than U.S. $475,000,000.00 in the aggregate.

 

93

 

8.3                               Financial
Covenants.

 

So long as any amount owing hereunder
remains unpaid or any of the Lenders has any Commitment under this Agreement,
and unless the Agent on behalf of the Majority Lenders shall otherwise consent,
each of the Borrowers jointly and severally agrees that it shall not:

 

(1)                                  Permit, at any time, the ratio of Consolidated Current Assets to
Consolidated Current Liabilities to be less than 1.0:1.

 

(2)                                  Permit, at any time, Consolidated Tangible Net Worth to be less
than: (i) U.S. $750,000,000; plus (ii) 50% of the cumulative
Consolidated Net Income (expressed in U.S. Dollars) for the period from July 1, 2004
to the last day of the most recently completed Financial Quarter; plus; (iii) 75%
of the Net Available Equity Issuance Proceeds for the period from July 1,
2004 to the last day of the most recently completed Financial Quarter, provided
that, when determining the cumulative Consolidated Net Income for any period
for the purposes of this Section 8.3(3), the Consolidated Net Income for
any Financial Quarter shall be deemed to be zero if it is a negative amount.

 

(3)                                  Permit, at any time, the ratio of Consolidated Debt (less
unrestricted cash and Cash Equivalents of IPSCO Consolidated) to Consolidated
Total Capitalization to exceed: (a) 0.35:1 for each Financial Quarter
ending prior to or on June 30, 2005; (b) 0.325:1 for each Financial
Quarter ending after June 30, 2005 and prior to or on December 31, 2005
and (c) 0.30:1 for each Financial Quarter ending after December 31, 2005.

 

(4)                                  Permit, at any time, the ratio of Consolidated Free Cash Flow to
Consolidated Fixed Charges to be less than: (a) 1.25:1 for each Financial
Quarter ending prior to or on September 30, 2005; and (b) 1.5:1 for
each Financial Quarter ending after September 30, 2005.

 

94

 

(5)                                  Permit, at any time (i) the Tangible Assets of the Borrowers
and the Guarantors which are Wholly-Owned Subsidiaries to comprise less than
90% of the Consolidated Tangible Assets of IPSCO Consolidated, or (ii) the
Revenue of the Borrowers and the Guarantors which are Wholly-Owned Subsidiaries
to comprise less than 90% of the Consolidated Revenue of IPSCO Consolidated, in
each case measured on a trailing 12 month basis.

 

ARTICLE 9

EVENTS OF DEFAULT

 

9.1                               Events
of Default.

 

If any of the following items (each an “Event
of Default”) shall occur and be continuing:

 

(a)                                  a Borrower shall fail to pay when due any portion of the
Outstandings or interest due hereunder;

 

(b)                                 a Borrower shall fail to pay when due any Fees or other amounts due
hereunder and such failure shall remain unremedied for three Business Days
after such Borrower has knowledge of the non-payment thereof;

 

(c)                                  any representation or warranty or certification made or deemed to be
made by a Borrower, (or any director or officer thereof) in connection with
this Agreement or any other Credit Document delivered to the Agent or any one
or more of the Lenders shall prove to have been incorrect in any material
respect when made or deemed to be made;

 

(d)                                 a Borrower shall fail to perform or observe the financial
covenants contained in Section 8.3 or any of the covenants contained in
Sections 2.4 or 8.2;

 

(e)                                  a Borrower shall fail to perform or observe any other term,
covenant or agreement contained in this Agreement (excluding, for greater
certainty, the covenants referred to in Section 9.1(d)) or any other
Credit Document on its part to be performed or observed and such failure
shall remain unremedied for 10 Business Days after any Credit Party becoming
aware of such failure, or if such failure is 

 

95

 

capable of
being remedied and such Borrower is diligently taking all necessary steps to
remedy such failure, for an additional 10 Business Days from the expiry of the
first-mentioned 10 Business Day period;

 

(f)                                    with respect to any Debt or Hedging Liabilities of a Borrower or any
of its Subsidiaries under any other Agreement for Borrowed Money: (i) such
Borrower or Subsidiary shall fail to pay any principal, interest or other
amount in an aggregate amount in excess of Cdn. $5,000,000 (or the Equivalent
U.S. $Amount) when such amount becomes due and payable (whether by scheduled
maturity, required repayment, acceleration, demand or otherwise) and such failure
shall continue after any applicable grace period specified in such Agreement
for Borrowed Money (unless such failure has been waived and written notice of
such waiver has been provided to Agent prior to the expiration of any
applicable grace period); or (ii) any other event shall occur and shall
continue after any applicable grace period specified in such Agreement for
Borrowed Money (unless such failure has been waived and written notice of such
waiver has been provided to Agent prior to the expiration of any applicable
grace period), if the effect of such event is to accelerate, or to permit the
acceleration of, the maturity of Debt or Hedging Liabilities in an aggregate
amount in excess of Cdn. $5,000,000 (or the Equivalent U.S. $Amount);

 

(g)                                 a Borrower or any of its Subsidiaries shall: (i) become
insolvent or generally not pay its debts as such debts become due; (ii) admit
in writing its inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors; (iii) file a notice of intention
to file a proposal under any Law relating to bankruptcy, insolvency or
reorganization or relief of creditors; (iv) institute or have instituted
against it any proceeding seeking (x) to adjudicate it a bankrupt or insolvent,
(y) any liquidation, winding-up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any Law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or (z) the entry
of an order for relief or the appointment of a receiver, trustee, custodian or
other similar official for it or for any substantial part of its Assets,
and, in the case 

 

96

 

of any such
proceeding instituted against it (but not instituted by it), such proceeding
shall remain undismissed or unstayed for a period of 30 days or any of the
actions sought in such proceeding (including the entry of an order for relief
against it or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its Assets) shall
occur; or (v) take any corporate action to authorize any of the foregoing
events;

 

(h)                                 any judgment or order for the payment of money in excess of Cdn.
$5,000,000 (or the Equivalent U.S. $Amount) shall be rendered against a
Borrower or any of its Subsidiaries and either: (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or
order and such enforcement proceedings shall not have been stayed within two
days of the commencement thereof; or (ii) there shall be any period of 30
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect;

 

(i)                                     this Agreement or any other Credit Document, or any material
provision hereof or thereof, shall at any time after execution and delivery
hereof or thereof, for any reason, cease to be a legal, valid and binding
obligation of any of the Credit Parties party thereto or ceases to be
enforceable against any such Credit Party in accordance with its terms or shall
be declared to be null and void, or the legality, validity, binding nature or
enforceability of this Agreement or any other Credit Documents, or any
provision hereof or thereof, shall be contested by any Credit Party, or any
Credit Party shall deny that it has any further liabilities or obligations
hereunder or thereunder;

 

(j)                                     any secured creditor, encumbrancer or lienor or any trustee, interim
receiver, receiver, receiver and manager, administrative receiver, agent,
bailiff or other similar official appointed by any such creditor, encumbrancer
or lienor, takes possession of or forecloses, seizes, retains, sells or
otherwise disposes of, or otherwise proceeds to enforce security over, all or a
substantial part of the Assets of any Credit Party or gives notice of its
intention to do any of the foregoing;

 

97

 

(k)                                  the occurrence of any Change of Control;

 

(l)                                     during any such time or times where the senior debt ratings of IPSCO
are not, in each case, at least equal to BBB(low) from DBRS, BBB- from S&P
and Baa3 from Moody’s, the occurrence of any event or circumstance that would,
in the reasonable determination of the Majority Lenders, reasonably be expected
to have a Material Adverse Effect; or

 

(m)                               any Borrower ceases to be a direct or indirect Wholly-Owned
Subsidiary of IPSCO;

 

then, and in any such event, no Lender shall be under
any further obligation to provide any Accommodations hereunder, and the
Majority Lenders may instruct the Agent to give written notice to the
Borrowers: (i) declaring the obligations of the Lenders or any one or more
of them to make further Accommodations terminated; and (ii) declaring the
principal amount of all outstanding Advances and an amount equal to the Face
Amount of each Bankers’ Acceptance and BA Equivalent Note and the contingent
amount of all Letters then outstanding, all costs of unwinding Bankers’
Acceptances and LIBOR Advances, all interest and Fees accrued hereunder, and
all other amounts payable under this Agreement or any other Credit Document to
be forthwith due and payable, without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by each Borrower;
and/or (iii) demanding that the Borrowers shall deposit forthwith with the
Agent in accordance with Section 9.2 for the Lenders’ benefit, cash
collateral equal to the full Face Amount at maturity of all Letters and Bankers’
Acceptances then outstanding for its account. Notwithstanding the preceding
sentence, if any Event of Default of the type described in Section 9.1(g) occurs
in respect of any Credit Party, then without prejudice to the other rights of
the Agent and the Lenders arising as a result of such Event of Default, without
any notice or action of any kind by the Agent or the Lenders, and without
presentment, demand or protest (all of which are hereby expressly waived by
each Borrower): (i) the obligations of the Lenders or any one or more of
them to make further Accommodations shall immediately terminate; and (ii) the
principal amount of all outstanding Advances and an amount equal to the Face
Amount of each Bankers’ Acceptance, BA Equivalent Note and the contingent
amount of all Letters then outstanding, all costs of 

 

98

 

unwinding Bankers’ Acceptance and LIBOR Advances, all
interest and Fees accrued hereunder, and all other amounts payable under this
Agreement or any other Credit Document shall immediately become due and
payable; and (iii) the Borrowers shall deposit forthwith with the Agent in
accordance with Section 9.2 for the Lenders’ benefit, cash collateral
equal to the full Face Amount at maturity of all Letters and Bankers’
Acceptances then outstanding for its account.

 

9.2                               Payment
of Letters, Etc.

 

Immediately upon the Total Outstandings
becoming due and payable in accordance with Section 9.1, the Borrowers
shall, without necessity of further act or evidence, be and become thereby
unconditionally obligated to deposit forthwith with the Agent for the benefit
of the Issuing Lender and each other applicable Lender, cash collateral equal
to the full Face Amount at maturity of all Letters and Bankers’ Acceptances
then outstanding for its account and the Borrowers hereby unconditionally
promise and agree to deposit with the Agent immediately upon such demand cash
collateral in the amount so demanded. The Borrowers authorize the Lenders, or
any of them, to debit their accounts with the amount required to pay such
Letters and to pay such Bankers’ Acceptances notwithstanding that such Bankers’
Acceptances may be held by the Lenders or any of them, in their own right
at maturity. Amounts paid to the Agent pursuant to such demand in respect of
Bankers’ Acceptances and Letters shall be applied against, and shall reduce, pro rata among the Lenders to the extent
of the amounts paid to the Agent in respect of Bankers’ Acceptances and
Letters, respectively, the obligations of the Borrowers to pay amounts then or
thereafter payable under Bankers’ Acceptances and Letters, respectively, at the
times amounts become payable thereunder.

 

9.3                               Expense
of Lender.

 

Upon the occurrence of any Default or Event
of Default which has not been waived and is continuing, the Agent may take
any action the Majority Lenders consider advisable in their sole discretion to
remedy the effect of such Default or Event of Default. All expenses, costs and
charges incurred by or on behalf of the Agent in connection with: (i) any
remedial action taken pursuant to this Section; or (ii) any obligation of
the Borrowers to the Agent or any one or more of the Lenders hereunder or under
any other Credit Documents, including all reasonable fees, 

 

99

 

court costs, receiver’s or agent’s remuneration and
other expenses shall be added to and form a part of the Total
Outstandings.

 

9.4                               Remedies
Cumulative.

 

The rights and remedies of the Lenders
under the Credit Documents are cumulative and are in addition to and not in
substitution for any rights or remedies provided by Law. Any single or partial
exercise by the Lenders of any right or remedy for a default or breach of any
term, covenant, condition or agreement contained herein or in any other Credit
Documents shall not be deemed to be a waiver of or to alter, effect or
prejudice any other right or remedy or other rights or remedies to which the
Lenders may be lawfully entitled for the same default or breach. Any
waiver by the Lenders of the strict observance, performance or compliance with
any term, covenant, condition or agreement contained herein or in any other
Credit Documents, and any indulgence granted by the Lenders shall be deemed not
to be a waiver of any subsequent default or breach.

 

ARTICLE 10

PAYMENTS, COMPUTATIONS AND INDEMNITY

 

10.1                        Timing of
Payments under this Agreement, etc.

 

(1)                                  Unless otherwise expressly provided in this Agreement, each Borrower
shall make any payment required to be made by it to the Agent by depositing the
amount of such payment in the appropriate Payment Account not later than 11:00 a.m.
(Toronto time) on the date such payment is due.

 

(2)                                  Unless otherwise expressly provided in this Agreement, the Agent
shall make any Accommodation or other payment to a Borrower hereunder by crediting
or causing the crediting of its Borrower’s Canadian Dollar Account or the
Borrower’s U.S. Dollar Account, as the case may be, with the amount of
such Accommodation not later than 2:00 p.m. (Toronto time) on the date
such Accommodation is to be made.

 

100

 

(3)                                  Each Borrower hereby authorizes the Agent, if and to the extent
payment owed to the Agent by such Borrower is not made when due hereunder, to
charge from time to time against such Borrower’s accounts with the Agent any
amount so due.

 

(4)                                  Unless otherwise expressly provided in this Agreement, each Lender
shall make any payment required to be made by it to the Agent hereunder by
depositing the amount of such payment in the Payment Account not later than
12:00 noon (Toronto time) on the date such payment is due.

 

10.2                        Payments on
Non-Business Days.

 

Whenever any payment hereunder shall be
stated to be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of interest. If any such extension would
cause payment of interest on a LIBOR Advance to be made in the next following
calendar month, such payment shall be made on the immediately preceding
Business Day.

 

10.3                        Overdue
Amounts.

 

All amounts owed by a Borrower to the Agent
or any of the Lenders which are not paid when due (whether at stated maturity,
on demand, by acceleration or otherwise) shall bear interest (both before and
after judgment), from the date on which such amount is due until such amount is
paid in full, payable on demand, at a rate per annum equal at all times, in the
case of amounts payable in Canadian Dollars, to the rate per annum payable in
respect of Floating Rate Advances plus 2% per annum and, in the case of amounts
payable in U.S. Dollars, to the rate per annum payable in respect of U.S. Base
Rate Advances plus 2% per annum.

 

10.4                        Application
of Payments and Optional Prepayments.

 

(1)                                  All amounts received by the Agent from or on behalf of a Borrower
pursuant to Article 10 in respect of any contingent liability of the Agent
or any of the Lenders which has not yet become due or expired: (i) shall,
unless otherwise provided in this Agreement, be held by the Agent in trust
until such liability becomes due or expires, whichever is earlier; and (ii) shall
be applied at such time firstly, in reduction of such liability, to the extent
it has become due, and secondly, in accordance with Section 10.4(2).

 

101

 

(2)                                  All amounts received by the Agent from or on behalf of a Borrower
and not previously applied pursuant to this Agreement shall be applied by the
Agent as follows:

 

(a)                                  first, in reduction of such Borrower’s obligation to pay any unpaid
interest accrued on the principal amount of Advances or on any other amount
owing hereunder;

 

(b)                                 second, in reduction of such Borrower’s obligation to pay any Fees
which are due and owing, and any costs, expenses or Losses referred to in Section 10.6
or 10.7;

 

(c)                                  third, in reduction of such Borrower’s obligation to pay any amounts
due and owing on account of any unpaid principal amount of Advances which is
due and owing;

 

(d)                                 fourth, in reduction of such Borrower’s obligation to pay any other
unpaid Outstandings which are due and owing;

 

(e)                                  fifth, in reduction of any other obligation of such Borrower under
this Agreement; and

 

(f)                                    sixth, to such Borrower or such other Persons as may lawfully
be entitled to the remainder, or as any court of competent jurisdiction may otherwise
direct.

 

10.5                        Computations
of Interest and Fees.

 

(1)                                  All computations of interest shall be made by the Agent according to
its practice daily, taking into account the actual number of days (including
the first day but excluding the last day) occurring in the period for which
such interest is payable pursuant to Section 3.3, and: (i) if based
on the Floating Rate or the U.S. Base Rate in Canada or the United States, on
the basis of a year of 365 days or 366 days in the case of a leap year; or (ii) if
based on LIBOR, on the basis of a year of 360 days. Upon determination of the
rates of interest applicable to any Accommodation hereunder, the Agent shall
notify the Borrower and the Lenders of such rate.

 

102

 

(2)                                  All computations of Fees shall be made by the Agent on the basis of
a year of 365 days or 366 days in the case of a leap year taking into account
the actual number of days (including the first day but excluding the last day)
occurring on the period for which such Fees are payable.

 

(3)                                  For purposes of the Interest Act (Canada):
(i) whenever any interest or fee under this Agreement is calculated using
a rate based on a year of 360 days, such rate determined pursuant to such
calculation, when expressed as an annual rate, is equivalent to (x) the
applicable rate based on a year of 360 days, (y) multiplied by the actual
number of days in the calendar year in which the period for which such interest
or fee is calculated ends, and (z) divided by 360; (ii) the principle of
deemed reinvestment of interest shall not apply to any interest calculation
under this Agreement; and (iii) the rates of interest stipulated in this
Agreement are intended to be nominal rates and not effective rates or yields.

 

(4)                                  Notwithstanding any provision to the contrary contained in this
Agreement, in no event shall the aggregate “interest” (as defined in Section 347
of the Criminal Code, Revised Statutes of Canada, 1985, c.46 as the same may be
amended, replaced or re-enacted from time to time) payable under this Agreement
exceed the maximum amount of interest on the “Credit advanced” (as defined in
that section) under this Agreement lawfully permitted under that section and,
if any payment, collection or demand pursuant to this Agreement in respect of “interest”
(as defined in that section) is determined to be contrary to the provisions of
that section, such payment, collection or demand shall be deemed to have been
made by mutual mistake of the applicable Borrower and the Agent and the amount
of such payment or collection shall be refunded to such Borrower. For purposes
of this Agreement, the effective annual rate of interest shall be determined in
accordance with generally accepted actuarial practices and principles over the
term the Credit Facility is outstanding on the basis of annual compounding of
the lawfully permitted rate of interest and, in the event of dispute, a
certificate of a Fellow of the Canadian Institute of Actuaries appointed by the
Agent will be conclusive for the purposes of such determination.

 

103

 

(5)                                  Each determination by the Agent of an amount of interest or Fees
payable by the Borrower hereunder or of any amount payable by the Agent or any
one or more of the Lenders shall be rebuttably presumed to be correct for all
purposes absent manifest error.

 

10.6                        Judgment
Currency.

 

(1)                                  If, for the purposes of obtaining judgment in any court, it is
necessary to convert any sum due or owing hereunder or under any other Credit
Document to the Agent or any one or more of the Lenders in any currency (the “Original
Currency”) into another currency (the “Other Currency”), the parties hereto
agree, to the fullest extent that they may effectively do so, that the
rate of exchange used shall be that at which in accordance with normal banking
procedures the Agent could purchase the Original Currency with the Other
Currency on the Business Day preceding that on which final judgment is granted.

 

(2)                                  The obligations of a Borrower in respect of any sum due in the
Original Currency from it to the Agent or any one or more of the Lenders under
any of the Credit Documents shall, notwithstanding any judgment in any Other
Currency, be discharged only to the extent that on the Business Day following
receipt by the Lender of any sum adjudged to be so due in such Other Currency,
the Agent may in accordance with normal banking procedures purchase the
Original Currency with such Other Currency. If the amount of the Original
Currency so purchased is less than the sum originally due or owing to the Agent
or any one or more of the Lenders in the Original Currency, such Borrower
shall, as a separate obligation and notwithstanding any such judgment,
indemnify the Agent or such Lender against such Loss, and if the amount of the
Original Currency so purchased exceeds the sum originally due or owing to the
Agent or any one or more of the Lenders in the Original Currency, the Agent or
such Lender shall remit such excess to such Borrower.

 

10.7                        Costs and
Expenses.

 

Each Borrower shall, whether or not the
transactions hereby contemplated are consummated, pay all reasonable costs and
expenses of the Agent and each of the Lenders in connection with the
preparation, execution, delivery or enforcement of, and refinancing, 

 

104

 

renegotiation or restructuring of this Agreement and
any other Credit Documents. The Agent has the sole discretion to select legal
counsel to act for the Agent at the Borrowers’ expense.

 

10.8                        Indemnity
for Change in Circumstances.

 

(1)                                  If: (i) any change in Law, or any change in the interpretation
or application by any Governmental Entity of any Law occurring or becoming
effective after the date hereof; or (ii) any compliance by the Agent or
any of the Lenders with any direction, request or requirement (whether or not
having the force of Law) of any Governmental Entity made or becoming effective
(if not made prior to the date hereof) after the date hereof in either case
shall have the effect of causing Loss to the Agent or any of the Lenders by:

 

(a)                                  increasing the cost to the Agent or any of the Lenders of performing
its obligations under this Agreement or in respect of any Advance, Bankers’
Acceptance, BA Equivalent Note or Letter (including the costs of maintaining
any capital, reserve or special deposit requirements in connection therewith);

 

(b)                                 requiring the Agent or any of the Lenders to maintain or allocate
any capital or additional capital or affecting its allocation of capital in
respect of its obligations under this Agreement or in respect of any Advance,
Bankers’ Acceptance, BA Equivalent Note or Letter;

 

(c)                                  reducing any amount payable to the Agent or any of the Lenders under
this Agreement or in respect of any Advance, Bankers’ Acceptance, BA Equivalent
Note or Letter by any amount it deems material (other than a reduction
resulting from a higher rate of income tax or other special tax relating to the
Agent’s or any Lender’s income in general); or

 

(d)                                 causing the Agent or any of the Lenders to make any payment or to
forego any return on, or calculated by reference to, any amount received or
receivable by the Agent or such Lender under this Agreement in respect of any
Advance, Bankers’ Acceptance, BA Equivalent Note or Letter;

 

105

 

then the Agent or such Lender may give notice to
the Borrowers specifying the nature of the event giving rise to such Loss and
the Borrowers shall, on demand by the Agent or such Lender, pay such amounts as
the Agent or such Lender may specify to be necessary to compensate the
Agent or such Lender for any such Loss incurred after the date of such notice. A
certificate as to the amount of any such Loss, submitted in good faith by the
Agent or a Lender to the Borrowers shall be conclusive and binding for all
purposes absent manifest error.

 

(2)                                  If any Lender in any Lender Group (the “Affected Lender Group”)
seeks additional compensation pursuant to Section 10.8(1), then IPSCO may indicate
to the Agent in writing that it desires to replace the Affected Lender Group
with one or more of the other Lender Groups, and the Agent shall then forthwith
give notice to the other Lender Groups that any Lender Groups may, in the
aggregate, acquire all (but not part) of the Lender Group Commitment of the
Affected Lender Group and acquire all (but not part) of the rights and
obligations of all the Lenders in the Affected Lender Group under each of the
other Credit Documents (but in no event shall any other Lender Group or the
Agent be obligated to do so). If one or more Lender Groups (collectively, the “Assenting
Lender Groups” and, individually, an “Assenting Lender Group”) have given
notice to the Agent that they wish to acquire all (but not part) of the Lender
Group Commitment of the Affected Lender Group hereunder, then each Assenting
Lender Group shall acquire its Pro Rata Share (based on the relative Lender
Group Commitments of the Assenting Lender Groups) of such Lender Group
Commitment, and the rights and obligations of all the Lenders in each such
Assenting Lender Group under this Agreement and under each of the other Credit
Documents shall be increased by its respective Pro Rata Share (based on the
relative Lender Group Commitments of the Assenting Lender Groups) of the Lender
Group Commitment of the Affected Lender Group, on a date mutually acceptable to
the Assenting Lender Groups and the Affected Lender Group. On such date, the
Agent shall give notice to each of the Assenting Lender Groups and the
Borrowers setting out the amount of the Lender Group Commitment of the Affected
Lender Group and the amount of the Outstandings of all of the Lenders in the
Affected Lender Group to be acquired by the Assenting Lender Groups and each of
the Assenting Lender Groups shall deposit with the Agent an amount equal to its
Pro Rata Share of, and the Agent shall pay 

 

106

 

to the
Affected Lender Group, the Outstandings of the Affected Lender Group in the
manner agreed to by the Assenting Lender Groups and the Affected Lender Group,
together with all interest accrued thereon, and all other amounts owing to the
Affected Lender Group hereunder and, upon such payment, the Affected Lender
Group shall cease to be a “Lender Group” and each Lender within such Assenting
Lender Group shall cease to be a “Lender” for purposes of this Agreement and,
in each case, shall no longer have any obligations hereunder. Upon the
assumption of the Lender Group Commitment of the Affected Lender Group by one
or more Assenting Lender Groups, Schedule B hereto shall be deemed to be
amended to increase the Lender Group Commitment of each such Assenting Lender
Group by the amount of such assumption.

 

10.9                        Indemnity
Relating to Accommodations.

 

Upon notice from the Agent or any Lender to
a Borrower (which notice shall be accompanied by a detailed calculation of the
amount to be paid by such Borrower), such Borrower shall pay to the Agent or
such Lender such amount or amounts as will compensate the Agent or such Lender
for any loss, cost or expense incurred by it: 
(i) in the liquidation or redeposit of any funds acquired by such
Lender to fund or maintain any portion of a LIBOR Advance as a result of (A) the
failure of such Borrower to borrow or make repayments on the date specified
under this Agreement or in any notice from such Borrower to the Agent, or (B) the
repayment or prepayment of any amounts on a day other than the payment dates
prescribed herein; or (ii) with respect to any Bankers’ Acceptance, BA
Equivalent Note or Letter, arising from any Claim, and including legal fees and
disbursements, respecting the collection of amounts owing by such Borrower
hereunder in respect of such Bankers’ Acceptance, BA Equivalent Note or Letter
or the enforcement of the Agent’s or such Lender’s rights hereunder in respect
of such Bankers’ Acceptance, BA Equivalent Note or Letter, including legal
proceedings attempting to restrain the Agent or such Lender from paying any
amount under such Bankers’ Acceptance, BA Equivalent Note or Letter. Any such
loss, cost or expense may be computed as though the applicable Lender
acquired deposits in the London interbank market or otherwise employed specific
deposits to fund the applicable Accommodation whether or not such Lender
actually did so.

 

107

 

10.10                 Indemnity for
Transactional and Environmental Liability.

 

(1)                                  Each Borrower hereby agrees to indemnify, exonerate and hold the
Agent and each Lender and each of their respective officers, directors,
employees, agents and other representatives (collectively, the “Indemnified
Parties”) free and harmless from and against any and all claims, demands,
actions, causes of action, suits, losses, costs (including all documentary,
recording, filing, mortgage or stamp taxes or duties), charges, liabilities and
damages, and expenses in connection therewith (irrespective of whether such
Indemnified Party is a party to the action for which such indemnification
hereunder is sought), and including legal fees and disbursements (collectively,
in this Section 10.10(1), the “Indemnified Liabilities”), paid, incurred
or suffered by, or asserted against, the Indemnified Parties or any of them
for, with respect to, or as a direct or indirect result of: (i) any
transaction financed or to be financed in whole or in part, directly or
indirectly, with the proceeds of any Accommodation obtained hereunder; or (ii) the
execution, delivery, performance or enforcement of this Agreement or any
Ancillary Agreement, except for such Indemnified Liabilities that a court of
competent jurisdiction determines arose on account of the relevant Indemnified
Party’s gross negligence or wilful misconduct.

 

(2)                                  Without limiting the generality of the indemnity set out in Section 10.10(1),
each Borrower hereby further agrees to indemnify, exonerate and hold the
Indemnified Parties free and harmless from and against any and all claims,
demands, actions, causes of action, suits, losses, costs, charges, liabilities
and damages, and expenses in connection therewith, including legal fees and
disbursements (collectively in this Section 10.10(2), the “Indemnified
Liabilities”) paid, incurred or suffered by, or asserted against, the
Indemnified Parties or any of them for, with respect to, or as a direct or
indirect result of: (i) the presence on or under, or the Release from, any
Assets of a Borrower or any of its Subsidiaries of any Hazardous Substance; or (ii) the
breach or violation of any Environmental Law, regardless of whether caused by,
or within the control of, a Borrower or any of its Subsidiaries, except for
such Indemnified Liabilities that a court of competent jurisdiction determines
arose on account of the relevant Indemnified Party’s gross negligence or wilful
misconduct.

 

108

 

(3)                                  All obligations provided for in this Section 10.10 shall not be
reduced or impaired by any investigation made by or on behalf of the Agent or
any of the Lenders.

 

(4)                                  Each Borrower hereby agrees that, for the purposes of effectively
allocating the risk of loss placed on such Borrower by this Section 10.10,
the Agent and each of the Lenders shall be deemed to be acting as the agent or
trustee on behalf of and for the benefit of its officers, directors and agents.

 

(5)                                  If, for any reason, the obligations of a Borrower pursuant to this Section 10.10
shall be unenforceable, such Borrower agrees to make the maximum contribution
to the payment and satisfaction of each obligation that is permissible under
Law, except to the extent that a court of competent jurisdiction determines
such obligations arose on account of the gross negligence or wilful misconduct
of any Indemnified Party.

 

(6)                                  The Agent and the Lenders agree to provide IPSCO with notice of any
action, or the proposed settlement of any action, that may give rise to
any Indemnified Liabilities (as defined in either Section 10.10(1) or
(2)); provided that, the failure to give any such notice as aforesaid shall not
affect the obligations of the Borrowers to the Indemnified Parties in
accordance with the terms of this Agreement.

 

10.11                 Survival of
Indemnities.

 

The provisions of Sections 10.8, 10.9 and
10.10 shall survive the termination of this Agreement and the repayment of all
Outstandings. Each Borrower acknowledges that neither its obligation to
indemnify, nor any actual indemnification by it of, the Agent or any of the
Lenders hereunder in respect of legal fees and disbursements shall in any way
affect the confidentiality or privilege relating to any information
communicated by the Agent or any Lender to its counsel.

 

10.12                 Taxation on
Payments.

 

Each Borrower hereby agrees:

 

(a)                                  that any and all payments made by such Borrower under or pursuant to
any of the Credit Documents shall be made free and clear of, and without
deduction for, any and all present or future taxes, levies, imposts,
deductions, charges, fees, duties or 

 

109

 

withholding or
other charges of any nature imposed by any taxing authority, and all
liabilities with respect thereto, imposed by any jurisdiction as a consequence
or result of any action taken by such Borrower, including the making of any
payment under or pursuant to any of the Credit Documents, excluding, in the
case of the Agent or any Lender, taxes imposed on its income or capital taxes
or receipts and franchise taxes (all such non-excluded taxes, levies, imposts,
deductions, charges, fees, duties, withholdings and liabilities being
hereinafter referred to as “Taxes”). If a Borrower shall be required by Law to
deduct any Taxes from or in respect of any sum payable to the Agent or any
Lender hereunder or pursuant to any of the other Credit Documents, the sum
payable to the Agent or Lender, as the case may be, shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 10.12) the Agent
or such Lender, as the case may be, receives an amount equal to the sum it
would have received had no such deductions been made;

 

(b)                                 to indemnify and hold harmless the Agent and each Lender for the
full amount of Taxes and for any incremental Taxes due to such Borrower’s
failure to remit to the Agent and the Lenders the required receipts or other
required documentary evidence or due to such Borrower’s failure to pay any
Taxes when due to the appropriate taxing authority (including any Taxes imposed
by any taxing authority on amounts payable under this Section 10.12) paid
by the Agent or any Lender, as the case may be, and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto, whether or not such Taxes were correctly or legally assessed. The
Agent or any Lender who pays any Taxes shall promptly notify such Borrower of
such payment and, if such payment was made pursuant to an incorrect or illegal
assessment, shall reasonably cooperate with such Borrower, at the expense of
such Borrower, in any dispute of such assessment. Payment pursuant to this
indemnification shall be made within 14 days from the date the Agent or such
Lender, as the case may be, makes written demand therefor; and

 

110

 

(c)                                  that without prejudice to the survival of any other agreement of
such Borrower hereunder, the agreements and obligations of such Borrower
contained in this Section shall survive the repayment of the Outstandings
hereunder and the termination of this Agreement.

 

ARTICLE 11

MISCELLANEOUS

 

11.1                        Notices,
etc.

 

(1)                                  All Notices provided for in this Agreement or in the other Credit
Documents shall be in writing and shall be delivered by courier to an officer
or other responsible employee of the addressee or sent by facsimile, charges
prepaid, at or to the applicable addresses or facsimile numbers, as the case may be,
set opposite the party’s name in Schedule K hereto or at or to such other
address or addresses or facsimile number or numbers as any party hereto may from
time to time designate to the other parties in such manner. Any communication
which is delivered by courier as aforesaid shall be deemed to have been validly
and effectively given on the date of such delivery if such date is a Business
Day and such delivery was made during normal business hours of the recipient;
otherwise, it shall be deemed to have been validly and effectively given on the
Business Day next following such date of delivery. Any communication which is
transmitted by facsimile as aforesaid shall be deemed to have been validly and
effectively given on the date of transmission if such date is a Business Day
and such transmission was made during normal business hours of the recipient;
otherwise, it shall be deemed to have been validly and effectively given on the
Business Day next following such date of transmission.

 

(2)                                  Each Accommodation Notice and any notice of a prepayment shall be
irrevocable and binding on the Borrower delivering the same. With respect to
any Accommodation Notice, the Agent may act upon the basis of telephonic
notice believed by it in good faith to be from a Borrower prior to receipt of
an Accommodation Notice. In the event of conflict between the Agent’s record of
the applicable terms of any Accommodation and such Accommodation Notice, the
Agent’s record shall prevail and each Borrower hereby 

 

111

 

irrevocably
waives its rights, if any, to dispute the terms of such Accommodation absent
manifest error.

 

11.2                        Public
Announcements and Exchange of Information.

 

(1)                                  Except as required by Law or by any stock exchange, none of the
parties hereto shall issue any press release or make any other public statement
or announcement relating to, connected with or arising out of this Agreement or
the matters contained herein, without obtaining the prior written approval of
the other parties hereto to the contents and the manner of presentation and
publication thereof.

 

(2)                                  The Agent or any Lender may deliver a copy of any financial
statement or any other information relating to the business, Assets or
condition (financial or otherwise) of IPSCO or any of its Subsidiaries or of
any Borrower or any of its Subsidiaries which may be furnished to it under
this Agreement or otherwise to the others.

 

11.3                        Time of the
Essence.

 

Time shall be of the essence of this
Agreement.

 

11.4                        Third Party
Beneficiaries.

 

Each party hereto intends that this
Agreement shall not benefit or create any right or cause of action in or on
behalf of any Person, other than the parties hereto, the other Persons
contemplated in Section 10.10 and any Wholly-Owned Subsidiary of IPSCO
that executes and delivers an Assumption Agreement to the Agent, and no Person,
other than the parties hereto, the other Persons contemplated in Section 10.10
and any Wholly-Owned Subsidiary of IPSCO that executes and delivers an
Assumption Agreement to the Agent, shall be entitled to rely on the provisions
hereof in any action, suit, proceeding, hearing or other forum.

 

11.5                        Enurement.

 

This Agreement shall enure to the benefit
of and be binding upon the parties hereto and any Person becoming a party to
this Agreement through the procedure set out in Section 11.8. This
Agreement shall be binding upon any successors and assigns and enure to the
benefit of any permitted successors and assigns.

 

112

 

11.6                        Counterparts.

 

This Agreement may be executed in one
or more counterparts, each of which shall be deemed an original and all of
which, taken together, shall constitute one and the same instrument.

 

11.7                        Knowledge.

 

Where any representation or warranty
contained in this Agreement or any other Credit Document is expressly qualified
by reference to the knowledge of a Borrower, or where any other reference is
made herein or in any Ancillary Agreement to the knowledge of a Borrower, it
shall be deemed to refer to the knowledge of each of the Borrowers. Each
Borrower confirms that it has made due and diligent inquiry of those of its
officers, agents and senior employees (including appropriate officers, agents
and senior employees of each other Borrower) as it considers necessary as to
the matters that are the subject of such representations, warranties or
references.

 

11.8                        Assignments
and Participations.

 

(1)                                  Except as provided in this Section, none of the rights or
obligations hereunder shall be assignable or transferable by any party without
the prior written consent of the other parties.

 

(2)

 

(a)                                  Any Lender may, subject to the terms of this Section 11.8(2), (i) without
the consent of IPSCO or any other Borrower, grant participations in all or any part of
the Credit Facility to one or more Persons (each a “Participant”); or (ii) assign
all or any part of its interest in the Credit Facility to one or more
Persons (excluding any Person that is a natural person) (each an “Assignee”);
provided that (x) no such Participant shall be entitled to receive any greater
payment, on a cumulative basis, pursuant hereto than the Lender which granted
such participation would have been entitled to, and (y) so long as no Default
of Event of Default has occurred and is continuing at the time of such
assignment, no assignment to an Assignee under clause (ii) may be
made (except to any existing Lender, an 

 

113

 

Affiliate of a
Lender or an Approved Fund) without the prior written consent of IPSCO, which
consent shall not be unreasonably withheld or delayed.

 

(b)                                 Notwithstanding any other provision of this Agreement, each Lender
agrees that it shall not assign any portion of its rights and obligations under
this Agreement, including any portion of its Commitment, to any Assignee
(except to any existing Lender, an Affiliate of a Lender or an Approved Fund)
without the prior written consent of the Agent and the Issuing Lender, such
consent not to be unreasonably withheld.

 

(c)                                  No assignment by a Lender of its Commitment hereunder shall be for
an amount less than $5,000,000 unless the Commitment of such Lender at the time
of such assignment is less than that amount and the entirety of its Commitment
is disposed of. The parties to each such assignment shall execute and deliver
an Assignment Agreement to the Issuing Lender for its consent and to the Agent,
for its consent and recording in the Register (as defined below). After such
execution, delivery, consent and recording (i) the Assignee thereunder
shall be a party to this Agreement and, to the extent that rights and
obligations hereunder have been assigned to it, have the rights and obligations
of a Lender hereunder, and (ii) the assigning Lender thereunder shall, to
the extent that rights and obligations hereunder have been assigned by it
pursuant to such Assignment Agreement, relinquish its rights and be released
from its obligations under this Agreement, other than obligations in respect of
which it is then in default and liabilities arising from its actions prior to
the assignment. In the case of an Assignment Agreement covering all or the
remaining portion of an assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto.

 

(d)                                 The Agent shall maintain at its address referred to herein a copy of
each Assignment Agreement delivered to and acknowledged by it and a register
for recording the names and addresses of the Lenders and the Lender Group
Commitment of each Lender from time to time (the “Register”). The entries in 

 

114

 

the Register
shall be conclusive and binding for all purposes, absent manifest error. The
Borrowers, the Agent, each of the Lenders and each of the other Credit Parties may treat
each person whose name is recorded in the Register as a Lender hereunder for
all purposes of this Agreement, and need not recognize any person as a Lender
unless it is recorded in the Register as a Lender. The Register shall be available
for inspection by the Borrowers or any Lender at any reasonable time and from
time to time upon reasonable prior notice. Upon its receipt of an Assignment
Agreement executed by an assigning Lender and an Assignee and approved by the
Agent, the Issuing Lender and IPSCO, if applicable, the Agent shall, if the
Assignment Agreement has been completed and is in the required form with
such immaterial changes as are acceptable to the Agent:

 

(i)                             record the information contained therein in the Register; and

 

(ii)                          give prompt notice thereof to the Borrowers and the other Lenders,
and provide them with an updated version of Schedule B.

 

(e)                                  The Agent or any Lender may deliver a copy of any financial
statement or any other information relating to the business, Assets or
condition (financial or otherwise) of IPSCO or any of its Subsidiaries or of
any Borrower or any of its Subsidiaries which may be furnished to it under
this Agreement or otherwise to any Participant or Assignee or any prospective
Participant or Assignee; provided that each such delivery is made on the
understanding that the information contained therein is confidential in nature.

 

(f)                                    Without limitation of its obligations hereunder, each Borrower
shall, at its sole cost and expense, give such certificates, acknowledgements
and further assurances in respect of this Agreement and the Credit Facility as
any Lender may reasonably require in connection with any participation or
assignment pursuant to this Section.

 

(g)                                 In the case of any grant of any participation to any Participant, no
such Participant shall become a Lender and:

 

115

 

(i)                                     the Lender’s obligations under this Agreement (including its
Commitment) shall remain unchanged;

 

(ii)                                  the Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations;

 

(iii)                               the Borrowers, the Agent and the other Lenders shall continue to
deal solely and directly with the Lender in connection with the Lender’s rights
and obligations under this Agreement; and

 

(iv)                              no Participant shall have any right to approve any amendment or
waiver of any provision of this Agreement, or any consent to any departure by
any Person therefrom; provided that, for greater certainty, the foregoing shall
not limit or restrict a Lender from agreeing with its Participant that such
Lender will not, without the consent of such Participant, consent to any
amendment or waiver in respect of any matter described in Sections 12.14(b)(i) to
(viii) of this Agreement that affects such Participant.

 

(h)                                 The Lender effecting, or the Assignee receiving, an assignment in
accordance with this Section 11.8 shall pay a processing fee of Cdn.$3,500
to the Agent and any purported assignment by a Lender shall not be effective
until such processing fee is paid.

 

11.9                        Non-Merger.

 

Except as otherwise expressly provided in
this Agreement, the covenants, representations and warranties of the parties
contained in this Agreement and the other Credit Documents shall not merge on
and shall survive the Closing and the making of any Accommodation, and
notwithstanding such closing or Accommodation, or any investigation made by or
on behalf of any party, shall continue in full force and effect. Neither
Closing nor the making of any Accommodation shall prejudice any right of one
party against any other party in respect of anything done or omitted hereunder
or under any of the other Credit Documents or in respect of any right to
damages or other remedies.

 

116

 

11.10                 Right to Combine
and Set-Off.

 

Upon the occurrence and during the
continuance of any Event of Default, the Agent or any one or more of the
Lenders is hereby authorized at any time and from time to time, to the fullest
extent permitted by Law, to combine, set-off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by the Agent or such Lender to or for the
credit or the account of any Borrower with or against any and all of the
obligations of such Borrower or any other Borrower now or hereafter existing
under any of the Credit Documents, irrespective of whether or not the Agent or
such Lender shall have made any demand under any of the Credit Documents and
although such obligations may be unmatured. The Agent or Lender agrees
promptly to notify each Borrower after any such combination or set-off and
application made by the Agent or Lender; provided that the failure to give such
notice shall not affect the validity of such combination or set-off and
application. The rights of the Agent and the Lenders under this Section are
in addition to other rights and remedies (including other rights of combination
and set-off) which the Agent and the Lenders may have.

 

11.11                 Certificates and
Opinions.

 

Whenever the delivery of a certificate or
opinion is a condition precedent to the taking of any action by the Agent under
any of the Credit Documents, the truth and accuracy of the facts and opinion
stated in such certificate or opinion shall in each case be conditions
precedent to the right of the Borrowers to have such action taken, and each
statement of fact contained therein shall be deemed to be a representation and
warranty of the Borrowers for the purpose of this Agreement.

 

11.12                 Permitted
Encumbrances.

 

The designation of any Encumbrance as a
Permitted Encumbrance is not, and shall not be deemed to be, an acknowledgement
by the Agent or any of the Lenders that any such Encumbrance is valid and
enforceable or entitles the holder of such Encumbrance to any priority over any
of the Assets of the Borrowers or any of their Subsidiaries.

 

117

 

11.13                 USA Patriot Act.

 

Each Lender hereby notifies the Borrowers
that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L107-56 (signed into law October 26,
2001)) (the “Patriot Act”), it is required to obtain, verify and record
information that identifies the Borrowers which information includes the name
and address of each of the Borrowers, and other information that will allow the
Lenders to identify the Borrowers in accordance with the Patriot Act.

 

ARTICLE 12

THE AGENT

 

12.1                        Appointment
and Authorization of Agent.

 

Each Lender hereby appoints and authorizes,
and hereby agrees that it will require any assignee of any of its interest in
the Credit Documents (other than the holder of a participation in its interest
herein or therein) to appoint and authorize, the Agent to take such actions as
agent on its behalf and to exercise such powers under the Credit Documents as
are delegated to the Agent by such Lender by the terms hereof, together with
such powers as are reasonably incidental thereto. Neither the Agent nor any of
its directors, officers, employees or agents shall be liable to any of the
Lenders for any action taken or omitted to be taken by it or them under the
Credit Documents or in connection therewith, except for its own gross
negligence or wilful misconduct, and each Lender hereby acknowledges that the
Agent is entering into the provisions of this Article 12 on its own behalf
and as agent and trustee for its directors, officers, employees and agents.

 

12.2                        Interest
Holders.

 

The Agent may treat each Lender set
forth in Schedule B hereto as the holder of all of the interests of such
Lender under the Credit Documents unless it has received an instrument of
assumption with respect to all or any part thereof.

 

118

 

12.3                        Consultation
with Counsel.

 

The Agent may consult with legal
counsel selected by it as counsel for the Agent and shall not be liable for any
action taken or not taken or suffered by it in good faith and in accordance
with the advice and opinion of such counsel.

 

12.4                        Documents.

 

The Agent shall not be under any duty to
the Lenders to examine, enquire into or pass upon the validity, effectiveness
or genuineness of the Credit Documents or any instrument, document or
communication furnished pursuant to or in connection with the Credit Documents,
and the Agent shall, as regards the Lenders, be entitled to assume that the
same are valid, effective and genuine, have been signed or sent by the proper
parties and are what they purport to be.

 

12.5                        Agent as
Lender.

 

With respect to those portions of the
Credit Facility made available by it, the Agent shall have the same rights and
powers under the Credit Documents as any other Lender and may exercise the
same as though it were not the Agent. The Agent and its affiliates may accept
deposits from, lend money to, act as agent for any Persons lending money to and
generally engage in any kind of business with any Borrower and its affiliates
and Persons doing business with any Borrower and any of its affiliates as if it
were not the Agent, and without any obligation to account to the Lenders
therefor and the Agent may exercise its rights and powers with respect
thereto as though it were not the Agent.

 

12.6                        Responsibility
of Agent.

 

The duties and obligations of the Agent to
the Lenders under the Credit Documents are only those expressly set forth
therein. The Agent shall not have any duty to the Lenders to investigate
whether a Default or an Event of Default has occurred. The Agent shall, as
regards the Lenders, be entitled to assume that no Default or Event of Default
has occurred and is continuing unless the Agent has actual knowledge or has
been notified by a Borrower of such fact or has been notified by a Lender that
such Lender considers that a Default or Event of Default has occurred and is
continuing, such notification to specify in detail the nature thereof.

 

119

 

12.7                        Action by
Agent.

 

The Agent shall be entitled to use its
discretion with respect to exercising or refraining from exercising any rights
which may be vested in it on behalf of the Lenders by and under this
Agreement; provided, however, that the Agent shall not exercise any rights
under Section 9.1 or under the Guarantees or expressed to be on behalf of
or with the approval of the Majority Lenders without the request, consent or
instructions of the Majority Lenders. Furthermore, any rights of the Agent
expressed to be on behalf of or with the approval of the Majority Lenders shall
be exercised by the Agent upon the request or instructions of the Majority
Lenders. The Agent shall incur no liability to the Lenders under or in respect
of any of the Credit Documents with respect to anything which it may do or
refrain from doing in the reasonable exercise of its judgment or which may seem
to it to be necessary or desirable in the circumstances, except for its gross
negligence or wilful misconduct. The Agent shall in all cases be fully
protected in acting or refraining from acting under any of the Credit Documents
in accordance with the instructions of the Majority Lenders (or, when expressly
required by any Credit Document, all the Lenders), and any action taken or failure
to act pursuant to such instructions shall be binding on all Lenders. In
respect of any notice by or action taken by the Agent hereunder, the Borrowers
shall at no time be obligated to enquire as to the right or authority of the
Agent to so notify or act.

 

12.8                        Notice of
Events of Default.

 

In the event that the Agent shall acquire
actual knowledge or shall have been notified of any Default or Event of
Default, the Agent shall promptly notify the Lenders and shall take such action
and assert such rights under Section 9.1 of this Agreement and under the
Credit Documents as the Majority Lenders shall request in writing and the Agent
shall not be subject to any liability by reason of its acting pursuant to such
request. If the Majority Lenders shall fail for 5 Business Days after receipt
of the notice of any Default or Event of Default to request the Agent to take
such action or to assert such rights under any of the Credit Documents in
respect of such Default or Event of Default, the Agent may, but shall not be
required to, and subject to subsequent specific instructions from the Majority
Lenders, take such action or assert such rights (other than rights under Section 9.1
of this Agreement and other than giving an express waiver of any Default or any
Event of Default) as it deems in its discretion to be advisable for the 

 

120

 

protection of the Lenders except that, if the Majority
Lenders have instructed the Agent not to take such action or assert such
rights, in no event shall the Agent act contrary to such instructions unless
required by Law to do so.

 

12.9                        Responsibility
Disclaimed.

 

Except for the Agent’s gross negligence or
wilful misconduct, the Agent shall not be under any liability or responsibility
whatsoever as agent hereunder:

 

(a)                                  to any Borrower or any other Person as a consequence of any failure
or delay in the performance by, or any breach by, any Lender or Lenders of any
of its or their obligations under any of the Credit Documents;

 

(b)                                 to any Lender or Lenders as a consequence of any failure or delay in
performance by, or any breach by, any Borrower of any of its obligations under
any of the Credit Documents; or

 

(c)                                  to any Lender or Lenders for any statements, representations or
warranties in any of the Credit Documents, or in any other documents
contemplated thereby, or in any other information provided pursuant to any of
the Credit Documents, or in any other documents contemplated thereby, or for
the validity, effectiveness, enforceability or sufficiency of any of the Credit
Documents, or in any other document contemplated thereby.

 

12.10                 Indemnification.

 

The Lenders jointly and severally agree to
indemnify the Agent (to the extent not reimbursed by the Borrowers) from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any nature
whatsoever which may be imposed on, incurred by or asserted against the
Agent in any way relating to or arising out of any of the Credit Documents, or
any other document contemplated thereby, or any action taken or omitted by the
Agent under any of the Credit Documents, or any document contemplated thereby,
except that no Lender shall be liable to the Agent for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, 

 

121

 

expenses or disbursements resulting from the gross
negligence or wilful misconduct of the Agent; provided that the aggregate
liability of any Lender under this Section 12.10 shall be limited to its
Lender Group’s Pro Rata Share of the aggregate liability of all the Lender
Groups under this Section 12.10.

 

12.11                 Credit Decision.

 

Each Lender represents and warrants to the
Agent that:

 

(a)                                  in making its decision to enter into this Agreement and to make its
Pro Rata Share of the Credit Facility available to the Borrowers, it is
independently taking whatever steps it considers necessary to evaluate the
financial condition and affairs of the Borrowers and that it has made an
independent credit judgment without reliance upon any information furnished by
the Agent; and

 

(b)                                 so long as any portion of the Credit Facility is being utilized by
any Borrower, it will continue to make its own independent evaluation of the
financial condition and affairs of the Borrowers.

 

12.12                 Successor Agent.

 

Subject to the appointment and acceptance
of a successor Agent as provided in this Section 12.12, the Agent: (i) may resign
at any time by giving 30 days written notice thereof to the Lenders; or (ii) may be
removed by the Majority Lenders at any time when any action taken or omitted to
be taken by it under the Credit Documents or in connection therewith was taken
or omitted to be taken in a manner which was grossly negligent or exhibited
wilful misconduct. Upon any such resignation or removal, the Majority Lenders
and, prior to a Default, with the prior written consent of IPSCO (not to be
unreasonably withheld), shall have the right to appoint a successor Agent who
shall be one of the Lenders unless none of the Lenders wishes to accept such
appointment. If no successor Agent shall have been so appointed and shall have
accepted such appointment by the time of such resignation or removal, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent which
shall be a bank organized under the laws of Canada which has combined capital
and reserves in excess of $250,000,000 and has an office in Toronto. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, 

 

122

 

such successor Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges, duties and obligations
of the retiring or removed Agent (other than in its capacity as a Lender) and
the retiring or removed Agent shall be discharged from its duties and
obligations hereunder (other than in its capacity as a Lender). After any
retiring or removed Agent’s resignation or removal hereunder as the Agent, the
provisions of this Article 12 shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting
as the Agent.

 

12.13                 Delegation by
Agent.

 

With the prior approval of the Majority
Lenders, the Agent shall have the right to delegate any of its duties or
obligations hereunder as Agent to any affiliate of the Agent so long as the
Agent shall not thereby be relieved of such duties or obligations.

 

12.14                 Waivers and
Amendments.

 

(a)                                  Subject to Sections 12.14(b) and (c), any term, covenant or
condition of any of the Credit Documents may only be amended with the
consent of the Borrowers who are party thereto and the Majority Lenders or
compliance therewith by the Borrowers may be waived (either generally or
in a particular instance and either retroactively or prospectively) by the
Majority Lenders and in any such event the failure to observe, perform or
discharge any such covenant, condition or obligation, so amended or waived
(whether such amendment is executed or such consent or waiver is given before
or after such failure), shall not be construed as a breach of such covenant,
condition or obligation or as a Default or Event of Default.

 

(b)                                 Notwithstanding Section 12.14(a), without the prior written
consent of each Lender, no such amendment or waiver shall apply if a Credit
Document expressly requires the written consent of all Lenders, or if any such
amendment or waiver shall:

 

123

 

(i)                                     increase the amount of the Credit Facility or the amount of the
Lender Group Commitment of any Lender Group, or alter the terms of Section 2.2;

 

(ii)                                  extend the term of the Credit Facility or amend the provisions of
this Agreement dealing with the types of Accommodations available hereunder;

 

(iii)                               extend the time for the payment of the interest on the
Accommodations, forgive any portion of principal thereof, reduce the stated
rate of interest thereon or amend the requirement of pro rata application of
all amounts received by the Agent in respect of the Credit Facility;

 

(iv)                              change the percentage of the Lenders’ requirement to constitute the
Majority Lenders or otherwise amend the definition of Majority Lenders;

 

(v)                                 reduce the stated amount of any Fees to be paid pursuant to this
Agreement;

 

(vi)                              permit any subordination of the indebtedness hereunder;

 

(vii)                           release or amend any of the Guarantees, in whole or in part; or

 

(viii)                        alter the terms of this Section 12.14.

 

(c)                                  Without the prior written consent of the Agent, no amendment to or
waiver of any provision of this Agreement to the extent it affects the rights
or obligations of the Agent shall be effective.

 

124

 

12.15                 Determination by
Agent Presumed to be Correct.

 

Any determination to be made by the Agent
on behalf of or with the approval of the Lenders or the Majority Lenders under
this Agreement shall be made by the Agent in good faith and, if so made, shall
be rebuttably presumed to be correct.

 

12.16                 Remittance of
Payments.

 

Forthwith after the withdrawal from the
Payment Account by the Agent of any payment of principal, interest, fees or
other amounts for the benefit of the Lenders pursuant to this Agreement or
forthwith after receipt of amounts received pursuant to the Guarantees, the
Agent shall, subject to Sections 2.2(2), 3.1(2) and 10.8(2), remit to each
Lender, in immediately available funds, such Lender’s Pro Rata Share of such
payment; provided that if the Agent, on the assumption that it will receive, on
any particular date, a payment of principal (including a prepayment), interest,
fees or other amount hereunder, remits to each Lender its Pro Rata Share of
such payment and the applicable Borrower fails to make such payment, each of
the Lenders agrees to repay to the Agent, forthwith on demand, to the extent
that such amount is not recovered from the applicable Borrower on demand, the
amount of the payment made to it pursuant to this Section, together with
interest thereon at the rate payable hereunder by such Borrower in respect of
such amount for each day from the date such amount is remitted to the Lenders
until the date such amount is paid or repaid to the Agent, the exact amount of
the repayment required to be made by the Lenders pursuant to this Section to
be as set forth in a certificate delivered by the Agent to each Lender, which
certificate shall constitute prima facie evidence of such amount of repayment.

 

12.17                 Redistribution of
Payment.

 

If any Lender shall exercise any right of
counter-claim, set-off or banker’s lien or similar right with respect to the
Assets of any Borrower or if under any applicable bankruptcy, insolvency or
other similar law it receives a secured claim the security for which is a debt
owed by it to any Borrower, it shall apportion the amount thereof
proportionately between:

 

125

 

(a)                                  amounts outstanding at such time owed by such Borrower to such
Lender under this Agreement, which amounts shall be applied in accordance with
this Agreement; and

 

(b)                                 amounts otherwise owed to it by such Borrower.

 

If a Lender shall, through the exercise of a right, or
the receipt of a secured claim described above or otherwise, receive payment of
a portion of the aggregate amount of principal and interest due to it hereunder
which is greater than the proportion received by any other Lender in respect of
the aggregate amount of principal and interest due in respect of the Credit
Facility (having regard to the respective Outstandings of the Lenders), the
Lender receiving such proportionately greater payment shall purchase a
participation (which shall be deemed to have been done simultaneously with receipt
of such payment) in that portion of the aggregate Outstandings of the other
Lender or Lenders so that the respective receipts shall be pro rata to their
respective participation in the Outstandings; provided, however, that if all or
part of such proportionately greater payment received by such purchasing
Lender shall be recovered by a Borrower, such purchase shall be rescinded and
the purchase price paid for such participation shall be returned by such
selling Lender or Lenders to the extent of such recovery, but without interest.
Such Lender shall exercise its rights in respect of such claim in a manner
consistent with the rights of the Lenders entitled under this Section 12.17
to share in the benefits of any recovery on such claims. If any Lender does any
act or thing permitted by this Section 12.17, it shall promptly provide
copies of such particulars to the other Lenders.

 

12.18                 Distribution of
Notices.

 

Within five Business Days (or such shorter
time as may be expressly required by this Agreement) of receipt by the
Agent of any material notice or other material document which is delivered to
the Agent hereunder, the Agent shall provide a copy of such notice or other
document to each of the Lenders.

 

[REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK]

 

126

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their respective officer thereunto duly authorized, on the date first above
written.

 

 

	
   

  	
   

  	
  IPSCO INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ David S. Sutherland

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IPSCO SASKATCHEWAN INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ John W. Comrie

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IPSCO STEEL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ David S. Sutherland

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IPSCO ENTERPRISES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ David S. Sutherland

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
						

 

S1

 

	
   

  	
   

  	
  IPSCO ALABAMA LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ David S. Sutherland

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IPSCO STEEL (ALABAMA) INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ David S. Sutherland

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE TORONTO-DOMINION BANK, as

  Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Wayne M. Shipto

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JPMORGAN CHASE BANK, N.A., as 

  Syndication Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Jeffrey Coleman

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
						

 

S2

 

	
   

  	
   

  	
  THE TORONTO-DOMINION BANK, 

  as Lender to Canadian Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Gary Nevison

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Illegible Signature

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JPMORGAN CHASE BANK, N.A., 

  TORONTO BRANCH as Lender to Canadian 

  Borrowers 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Jeffrey Coleman

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ROYAL BANK OF CANADA, as Lender to 

  Canadian Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Mark Beck

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA N.A., BY ITS 

  CANADA BRANCH, as Lender to Canadian 

  Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Nelson Lam

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
						

 

S3

 

	
   

  	
   

  	
  ABN AMRO BANK N.V., CANADA 

  BRANCH, as Lender to Canadian Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Lawrence J. Maloncy

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Yvon Jeghers

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NOVA SCOTIA, as Lender to 

  Canadian Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ James J. Rhee

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Anastasia Kotsidis

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF MONTREAL, as Lender to 

  Canadian Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Sean Gallaway

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TORONTO DOMINION (TEXAS) LLC, 

  as
  Lender to U.S. Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Illegible Signature

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Illegible Signature

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
						

 

S4

 

	
   

  	
   

  	
  JPMORGAN CHASE BANK, N.A., 

  as
  Lender to U.S. Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Jeffrey Coleman

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ROYAL BANK OF CANADA, ACTING 

  THROUGH A NEW YORK BRANCH, as 

  Lender to the U.S. Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Illegible Signature

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A., as Lender to the 

  U.S. Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Sharon Burks Horns

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ABN AMRO BANK N.V., as Lender to the 

  U.S. Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Lawrence J. Maloney

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Yvon Jeghers

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
						

 

S5

 

	
   

  	
   

  	
  WELLS FARGO BANK, NATIONAL 

  ASSOCIATION, as Lender to the U.S. 

  Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Charles W. Reed

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Kathleen M. Savard

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE BANK OF NOVA SCOTIA, BY ITS 

  ATLANTA AGENCY, as Lender to the U.S. 

  Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ William E. Zarrett

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF MONTREAL, CHICAGO 

  BRANCH, as Lender to the U.S. Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Illegible Signature

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FIFTH THIRD BANK (CHICAGO), as 

  Lender to the U.S. Borrowers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Todd Ritz

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Lynn Durning

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
						

 

S6

 

SCHEDULE A

 

FORM OF ASSUMPTION
AGREEMENT

 

THIS AGREEMENT made the • day of •, 2000.

 

	
  TO:

  	
  The Toronto-Dominion Bank, as agent (the “Agent”)

  
	
   

  	
   

  
	
  AND TO:

  	
  JPMorgan Chase Bank, N.A., as syndication agent (the
  “Syndication Agent”)

  
	
   

  	
   

  
	
  AND TO:

  	
  The Toronto-Dominion Bank, JPMorgan Chase Bank,
  N.A., Toronto Branch, Royal Bank of Canada, Bank of America N.A., by its
  Canada Branch, ABN AMRO Bank, N.V., Canada Branch, The Bank of Nova Scotia,
  Bank of Montreal, Toronto Dominion (Texas) LLC, JPMorgan Chase Bank, N.A.,
  Royal Bank of Canada, acting through a New York Branch, Bank of America,
  N.A., ABN AMRO Bank N.V., Wells Fargo Bank, National Association, The Bank of
  Nova Scotia, by its Atlanta Agency, Bank of Montreal, Chicago Branch, and
  Fifth Third Bank (Chicago) (the “Lenders”)

  

 

WHEREAS IPSCO Inc. (“IPSCO”), IPSCO Saskatchewan Inc., IPSCO Steel Inc.,
IPSCO Enterprises Inc., IPSCO Alabama Ltd., IPSCO Steel (Alabama) Inc., the
Agent, the Syndication Agent and the Lenders entered into a Revolving Credit
Agreement dated as of the 19th day of November, 2004 (as amended, supplemented,
restated or replaced from time to time, the “Revolving Credit Agreement”);

 

AND WHEREAS the Revolving Credit Agreement contemplates Wholly-Owned
Subsidiaries of IPSCO qualifying for Accommodations pursuant to the Revolving
Credit Agreement;

 

AND WHEREAS the undersigned is a Wholly-Owned Subsidiary of IPSCO and is
desirous of securing Accommodations pursuant to the Revolving Credit Agreement;

 

AND WHEREAS the Revolving Credit Agreement provides that the undersigned must,
as a pre-condition to obtaining any Accommodation, execute an Assumption
Agreement 

 

 

pursuant to which it assumes all rights, obligations
and liabilities of a Borrower under the Revolving Credit Agreement;

 

NOW THEREFORE THIS
AGREEMENT WITNESSES that in consideration of
the covenants herein contained and the mutual covenants contained in the
Revolving Credit Agreement, the undersigned hereby agrees as follows:

 

1.                                       Definitions. In this Agreement, unless otherwise provided, all capitalized terms
shall have the meanings ascribed thereto in the Revolving Credit Agreement.

 

2.                                       Assumption of Obligations. The undersigned hereby undertakes and agrees to assume, perform and
discharge all duties, obligations, covenants and agreements of a Borrower in
accordance with the terms contained in the Revolving Credit Agreement and to be
bound by the terms of the Revolving Credit Agreement in all respects as if it
were a signatory thereto.

 

3.                                       Successors and Assigns. The terms of this Agreement shall be binding upon the undersigned
and its successors and assigns and shall enure to the benefit of the Agent, the
Syndication Agent, the Lenders, the undersigned and their respective successors
and permitted assigns.

 

4.                                       Governing Law.
This Agreement shall be governed by and construed in accordance with the Laws
of the Province of Ontario and the Laws of Canada applicable therein.

 

IN WITNESS WHEREOF this Agreement has been duly executed.

 

 

	
   

  	
   

  	
  •

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signing Officer

  
						

 

2

 

SCHEDULE B

 

LENDER GROUPS AND
COMMITMENTS

 

	
   

  	
   

  	
  Lender Group

  	
   

  	
  Canadian Lenders

  	
   

  	
  U.S. Lenders

  	
   

  	
  Lender Group

  Commitment

  	
   

  
	
  1.

  	
   

  	
  The
  Toronto-Dominion Bank and Toronto Dominion (Texas) LLC

  	
   

  	
  The
  Toronto-Dominion Bank

  	
   

  	
  Toronto
  Dominion (Texas) LLC

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  22,000,000

  	
   

  
	
  2.

  	
   

  	
  JPMorgan
  Chase Bank, N.A., Toronto Branch and JPMorgan Chase Bank, N.A.

  	
   

  	
  JPMorgan
  Chase Bank, N.A., Toronto Branch

  	
   

  	
  JPMorgan
  Chase Bank, N.A.

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  22,000,000

  	
   

  
	
  3.

  	
   

  	
  Royal Bank
  of Canada and Royal Bank of Canada, acting through a New York Branch

  	
   

  	
  Royal Bank
  of Canada

  	
   

  	
  Royal Bank
  of Canada, acting through a New York Branch

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  18,000,000

  	
   

  
	
  4.

  	
   

  	
  Bank of
  America N.A., by its Canada Branch and Bank of America, N.A.

  	
   

  	
  Bank of
  America N.A., by its Canada Branch

  	
   

  	
  Bank of
  America, N.A.

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  18,000,000

  	
   

  
	
  5.

  	
   

  	
  ABN AMRO
  Bank N.V., Canada Branch and ABN AMRO Bank N.V.

  	
   

  	
  ABN AMRO
  Bank N.V., Canada Branch

  	
   

  	
  ABN AMRO
  Bank N.V.

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  18,000,000

  	
   

  
	
  6.

  	
   

  	
  Wells Fargo
  Bank, National Association

  	
   

  	
   

  	
   

  	
  Wells Fargo
  Bank, National Association

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  14,000,000

  	
   

  
	
  7.

  	
   

  	
  The Bank of
  Nova Scotia and The Bank of Nova Scotia, by its Atlanta Agency

  	
   

  	
  The Bank of
  Nova Scotia

  	
   

  	
  The Bank of
  Nova Scotia, by its Atlanta Agency

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  14,000,000

  	
   

  
	
  8.

  	
   

  	
  Bank of
  Montreal and Bank of Montreal, Chicago Branch

  	
   

  	
  Bank of
  Montreal

  	
   

  	
  Bank of
  Montreal, Chicago Branch

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  14,000,000

  	
   

  
	
  9.

  	
   

  	
  Fifth Third
  Bank (Chicago)

  	
   

  	
   

  	
   

  	
  Fifth Third
  Bank (Chicago)

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  U.S.

  	
   

  	
  $

  	
  150,000,000

  	
   

  
														

 

 

SCHEDULE C

 

FORM OF GUARANTEE

 

GUARANTEE

 

THIS GUARANTEE made the
• day of •, 2000..

 

BY:

 

•, a [corporation incorporated]
under the laws of the

 

(herein called the “Guarantor”)

 

- in favour of -

 

THE TORONTO-DOMINION BANK, a Canadian chartered bank, as agent for the Lenders (as defined
below) under the Credit Agreement (as defined below)

 

(herein called the “Agent”)

 

WHEREAS (the “Debtor”), a [corporation incorporated]
under the laws of •, is or will
become indebted, liable and obligated to the Agent and certain lenders (the “Lenders”)
pursuant to a revolving credit agreement (as amended, supplemented, restated or
replaced from time to time, the “Credit Agreement”) dated as of the 19th day of
November, 2004, among IPSCO Inc. (“IPSCO”), IPSCO Saskatchewan Inc., IPSCO Steel
Inc., IPSCO Enterprises Inc., IPSCO Alabama Ltd., IPSCO Steel (Alabama) Inc.,
such other Borrowers as become parties thereto from time to time, the Agent,
the Syndication Agent and the Lenders;

 

 

AND WHEREAS the Guarantor and the Debtor are operated as part of one
consolidated business entity and are directly dependant upon each other for and
in connection with their respective business activities and their respective
financial resources;

 

AND WHEREAS the Guarantor has received and continues to receive direct economic
and financial benefits from the Obligations (as defined below) incurred under
the Credit Agreement by the Debtor and from the Guarantor’s Liabilities (as
defined below) incurred under this Guarantee by the Guarantor, and the
incurrence of the Obligations and the Guarantor’s Liabilities is in the best
interests of the Guarantor;

 

[AND WHEREAS the Debtor
provides financial assistance to the Guarantor as needed from time to time and
provides working capital and other financial support to the Guarantor on an
ongoing basis;] [Note:  This recital will
only be in the Subsidiary Guarantees.]

 

AND WHEREAS the Guarantor has agreed to enter into this Guarantee for the
purpose of guaranteeing all of the Obligations, and acknowledges its entry into
this Guarantee is an inducement to the Agent and the Lenders to make certain
Accommodations (as defined in the Credit Agreement) available to [both] the Debtor [and the Guarantor]
and whereby the Guarantor will derive substantial direct and indirect economic
financial benefits from the provision of such Accommodations;

 

NOW THEREFORE THIS
AGREEMENT WITNESSES that, in consideration
of the foregoing and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Guarantor hereby covenants
and agrees with the Agent, on its own behalf and as agent for the Lenders, as
follows:

 

1.                                       Defined Terms

 

Capitalized terms used and not otherwise
defined herein shall have the meanings ascribed thereto in the Credit
Agreement.

 

2

 

2.                                       Guarantee

 

(a)                                  The Guarantor hereby unconditionally, and jointly and severally with
all other guarantors, if any, guarantees to the Agent, on its own behalf and as
agent for the Lenders, as and by way of a continuing guarantee, the due, prompt
and complete payment, performance and satisfaction of all obligations,
indebtedness and liabilities of the Debtor to the Agent and the Lenders under
or in connection with the Credit Documents, including (without limitation) all
obligations, indebtedness and liabilities of the Debtor for all Accommodations
made to it under the Credit Agreement and any obligations of the Debtor under
any Guarantee executed by the Debtor, and whether present or future, direct or
indirect, absolute or contingent, matured or not, wheresoever and howsoever
incurred and any ultimate unpaid balance thereof, and in any currency, and
whether incurred prior to, at the time of or subsequent to the execution hereof
(collectively called the “Obligations”), including all such amounts which would
become due but for the operation of the automatic stay under Section 362(a) of
the United States Bankruptcy Code, 11 U.S.C. 362(a), and the operation of
Sections 502(b) and 506(b) of the United States Bankruptcy Code, 11
U.S.C. 502(b) and 506(b), provided, however, that the Guarantor shall be
liable under this Guarantee only for the maximum amount of such liability that
can be hereby incurred without rendering this Guarantee voidable under
applicable law relating to fraudulent conveyance or fraudulent transfer and not
for any greater amount.

 

(b)                                 The Guarantor hereby acknowledges receipt of complete communication
of all the terms and conditions of the Credit Documents and consents to and
approves the same. This Guarantee and all of the debts, liabilities and
obligations hereunder (collectively, the “Guarantor’s Liabilities”) shall take
effect and be binding upon the Guarantor notwithstanding, and shall not be
discharged nor shall the Guarantor’s liability hereunder be affected by, any
defect, irregularity or informality in or omission from the Credit Documents
nor by any legal limitation, disability, incapacity or want of any borrowing
powers of or by the Debtor or any legal limitation (whether statutory or otherwise)
affecting the Agent’s or the 

 

3

 

Lenders’
rights against the Debtor or want of authority of any director, manager,
official or other person appearing to be acting for the Debtor in any matter in
respect of the Obligations, and in any such event, all amounts in respect of
the Obligations shall be recoverable by the Agent from the Guarantor as sole
and principal debtor and shall be paid to the Agent on demand with interest at
the interest rates borne by the respective Obligations plus 2% per annum (such
rates herein referred to as the “Interest Rate”) calculated monthly in arrears.

 

(c)                                  Without prejudice to or in any way limiting, lessening, releasing,
discharging, mitigating, impairing or affecting the Guarantor’s Liabilities and
without obtaining the consent of or giving notice to the Guarantor, the Agent
and the Lenders may deal with the Debtor in respect of the Obligations as
the Agent and the Lenders may see fit, and whether or not such dealings
are in breach (intentional, negligent or otherwise) of the Agent’s or the
Lenders’ agreements (express or implied) with the Debtor, and, without limiting
the generality of the foregoing, the Agent and the Lenders may: vary or amend
any terms and conditions of the Credit Documents (except for the terms and
conditions of this Guarantee); grant time, renewals, extensions, indulgences,
releases and discharges to, and accept compositions from, or otherwise deal
with the Debtor and others as the Agent and the Lenders may see fit;
renew, vary or determine any accommodation given to the Debtor; hold over,
renew, modify or release any security or guarantee now or hereafter held from
the Debtor, the Guarantor or any other person in respect of the Obligations;
and grant time or indulgence to the Debtor or any other person. The Agent and
the Lenders may take security (which herein includes, without limitation,
other guarantees) from the Debtor, the Guarantor or others, abstain from taking
or perfecting such security or vary, exchange, renew, discharge, give up,
realize on, in whole or in part, or otherwise deal with such security as the
Agent and the Lenders may see fit, and may apply all moneys at any
time received from the Debtor or others or from security toward such part of
the Obligations as the Agent and the Lenders deem desirable. No such action or
failure to take action whether occurring before or after demand for 

 

4

 

payment and no
loss in respect of any security received by the Agent and the Lenders from the
Debtor, the Guarantor or others, whether occasioned by the fault of the Agent
and the Lenders or otherwise, shall in any way affect, limit or lessen the
Guarantor’s Liabilities, provided however, that the Agent and the Lenders shall
be entitled to receive only one satisfaction of the Obligations in full. Further,
the Guarantor’s Liabilities shall in no way be lessened, limited, released,
discharged, mitigated, impaired or affected by any assignment of the
Obligations by any trustee, receiver, custodian or liquidator of the Debtor, or
by any consent which the Agent and the Lenders may give to such an
assignment. The Agent and the Lenders may maintain all of any of the
Accommodations (or any part thereof) to the Debtor notwithstanding such
determination or calling in and the Guarantor’s liability in respect of the
amount due from the Debtor at the date when the determination or calling in
takes effect shall remain regardless of any subsequent dealings between the
Agent, the Lenders and the Debtor.

 

(d)                                 This Guarantee shall be a continuing guarantee, shall be additional
to any other guarantee or security now or hereafter held by the Agent and the
Lenders from the Guarantor or any other guarantor(s) in respect of the Obligations
and shall be and continue in full force irrespective of the legality, validity
or enforceability of any provision of the Credit Documents until each and every
of the Guarantor’s Liabilities shall have been fully paid, performed and
satisfied or until this Guarantee shall be terminated as hereinafter provided. The
Guarantor expressly acknowledges that it is not a co-guarantor with any other
guarantor of any or all of the Obligations and at all times shall be liable
hereunder separately from such guarantor(s). This Guarantee shall not be
considered as released or satisfied by any intermediate payment or satisfaction
of the whole or any part of the Obligations but shall be a continuing
guarantee and shall remain in force until the Credit Documents are cancelled
and released to the Debtor by the Agent and the Lenders.

 

(e)                                  The Guarantor has not taken and will not take without the prior
written consent of the Agent any security from the Debtor in connection with
this Guarantee and any 

 

5

 

security so
taken shall be held in trust for the Agent, on its own behalf and as agent for
the Lenders, and as security for the Guarantor’s Liabilities.

 

(f)                                    The Guarantor agrees that all acknowledgments or admissions by the
Debtor as to the amount of any of the Obligations or any judgment determining
such amount obtained by the Agent and the Lenders against the Debtor shall be
conclusive proof against the Guarantor as to the amount of such Obligation
absent manifest error. The Guarantor shall be bound by the amount of any
Obligation settled between the Agent, on its own behalf and as agent for the
Lenders, and the Debtor and if an Obligation has not been so settled
immediately before demand for payment thereof under this Guarantee the amount
of any Obligation stated by the Agent shall be accepted by the Guarantor as
conclusive evidence (absent manifest error) of the amount of the Obligation
which at the date of such demand is due by the Debtor to the Agent, on its own
behalf and as agent for the Lenders, but remains unpaid by the Debtor to the
Agent, on its own behalf and as agent for the Lenders.

 

(g)                                 The Guarantor’s Liabilities shall not be released, discharged,
limited or in any way otherwise affected by anything done, omitted, suffered or
permitted by the Agent, on its own behalf and as agent for the Lenders, or any
Lender, in connection with the Debtor, the Obligations or the Guarantor’s
Liabilities or any security held by the Agent and the Lenders to secure payment
or performance of any of the Obligations or Guarantor’s Liabilities, and all of
the Guarantor’s Liabilities shall remain in full force and effect until each
has been fully performed and satisfied or this Guarantee shall have been
terminated as herein provided. Without limiting in any way the generality of
the foregoing, the Guarantor’s Liabilities shall not be released, discharged,
limited or in any way otherwise affected by:

 

(i)                  any cessation or
termination from any cause whatsoever, whether by consent or by operation of
law, by virtue of the statute of limitations or otherwise, of the Obligations;

 

6

 

(ii)               any change in the
membership or constitution of the Debtor and/or the Guarantor or the
amalgamation, consolidation or other reorganization or termination of the
Debtor and/or the Guarantor or of their respective businesses or affairs or a
winding up, dissolution or liquidation of the business or affairs of the Debtor
and/or the Guarantor, any change in the status, control or ownership of the
Debtor and/or the Guarantor, whether voluntary or otherwise or any change in
the name of the Debtor and/or the Guarantor;

 

(iii)            any transfer, sale,
conveyance, lease, mortgage, charge, pledge, encumbrance of or other dealing
with the property, assets and undertaking of the Debtor and/or the Guarantor;

 

(iv)           any voluntary or
involuntary participation by the Debtor and/or the Guarantor in any settlement
or composition for the benefit of its creditors, either through liquidation,
receivership, bankruptcy, arrangement or otherwise;

 

(v)              the Debtor and/or the
Guarantor becoming insolvent or bankrupt or subject to the provisions of the Bankruptcy Act (Canada) or any successor legislation or the
United States Bankruptcy Code, 11 U.S.C., or any failure of the Agent, the
Lenders or any of them to file or enforce a claim in respect of such insolvency
or bankruptcy;

 

(vi)           the Agent, the Lenders or
any of them failing to take, perfect or maintain any security for the
Obligations;

 

(vii)        any extension, renewal or
other modification of the time for payment or performance of any of the
Guarantor’s Liabilities or any of the Obligations or any other indulgences,
compromises, arrangements or forbearance granted or accepted in respect thereof
or any delay by the Agent, the Lenders or any of them in enforcing the terms
of, or any waiver by the 

 

7

 

Agent, the Lenders or any of them of any default
under, the Credit Documents;

 

(viii)     the realization or enforcement of
any security now or hereafter held by or granted to the Agent and the Lenders
by the Debtor or others to secure payment and performance of any of the
Obligations or any of the Guarantor’s Liabilities or any other act or thing in
respect of any such security given through any rights or defences which the
Guarantor may otherwise have, by subrogation, reimbursement,
indemnification or otherwise, against the Agent, the Lenders or any of them or
otherwise whereby such security may be diminished, destroyed or otherwise
adversely affected by any such action and even though recourse may not
thereafter be had against the Debtor for any deficiency;

 

(ix)             the releasing or
discharging or modification of any security now or hereafter held by or granted
to the Agent and the Lenders to secure payment or performance of the Guarantor’s
Liabilities or any of the Obligations or the giving or acceptance of notice of
cancellation or limitation of any guarantee by any other guarantor(s) of any or
all of the Obligations or any release of such guarantor by the Agent, the
Lenders or any of them;

 

(x)                the Agent, the Lenders
or any of them failing to pursue any recourse which may otherwise be
available, whether by deficiency judgment or otherwise; or

 

(xi)             any other act, omission,
thing or circumstance which would or might, but for this provision, constitute
a legal or equitable discharge or defence of a surety.

 

(h)                                 The Guarantor hereby waives:

 

8

 

(i)                  all requirements, if
any, of demand, presentment, diligence, protest, notice of dishonour and notice
of acceptance and other notices of every kind or nature including, without
limiting the generality of the foregoing, notice of the existence, creation or
incurring of any new or additional indebtedness or obligation or of any action
or inaction on the part of the Debtor, the Agent, the Lenders or any of
them or any other Person whatsoever; and

 

(ii)               any duty on the part of
the Agent, the Lenders or any of them to disclose to the Guarantor any facts
which the Agent, the Lenders or any of them may now or hereafter know and
which the Agent, the Lenders or any of them has reason to believe is known by
any officer or director of the Debtor, regardless of whether the Agent, the
Lenders or any of them has reason to believe any such fact materially increases
the risk beyond that which any Guarantor intends to assume or whether the
Agent, the Lenders or any of them has reason to believe that any such fact is
unknown to any Guarantor or whether the Agent, the Lenders or any of them has a
reasonable opportunity to communicate any such fact to the Guarantor, it being
understood and agreed that the Guarantor is fully responsible for being and
keeping fully informed.

 

(i)                                     The Guarantor’s Liabilities hereunder shall not be released,
discharged, reduced, limited or otherwise affected by any right or alleged
right of set-off, counterclaim, appropriation or application of any claim or
demand that the Debtor may have or may allege to have against the
Agent, the Lenders or any of them or any other person.

 

(j)                                     In the event of a liquidation, dissolution, winding-up or bankruptcy
of the Debtor or other distribution of the assets of the Debtor (whether
voluntary or otherwise) or in the event that the Debtor shall make an
arrangement or composition or proposal with or to its creditors, the rights of
the Agent, on its own behalf and as agent for the Lenders, shall not be
affected or impaired by the omission of the Agent, the Lenders or any of them
to prove their claim or to prove their full claim 

 

9

 

and the Agent
and the Lenders may prove such claim as the Agent and the Lenders deem fit
and the Agent and the Lenders may refrain from proving any claim and in
the discretion of the Agent and the Lenders they may value as they deem
fit or refrain from valuing any security held by the Agent and the Lenders
without in any way lessening, releasing, reducing or otherwise affecting the
Guarantor’s Liabilities and until all the Obligations have been fully paid,
performed and satisfied, the Agent, on its own behalf and as agent for the
Lenders, shall have the right to receive all dividends or other payments in
respect thereof until the Guarantor’s Liabilities have been fully performed and
satisfied and the Guarantor shall continue to be liable to the Agent, on its
own behalf and as agent for the Lenders, hereunder until all the Guarantor’s
Liabilities shall have been fully paid, performed and satisfied.

 

(k)                                  The Guarantor authorizes the Agent, the Lenders or any of them to
apply any credit balance to which it may be entitled in its accounts with
such person or any amount otherwise payable by the Agent, the Lenders or any of
them to it (in any currency) in satisfaction of any sum herein payable by it
hereunder to the fullest extent permitted by law. The Guarantor shall make all
payments to be made by it hereunder regardless of any defence or counterclaim
based on a rule, law or policy which is now or hereafter promulgated by any
Governmental Entity which may adversely affect its obligations to make or
the right of the Agent, on its own behalf and as agent for the Lenders, to
receive such payment.

 

(l)                                     The Guarantor agrees that if it shall: (i) become insolvent or
generally not pay its debts as such debts become due; (ii) admit in
writing its inability to pay its debts generally, or make a general assignment
for the benefit of creditors; (iii) file a notice of intention to file a
proposal under any Law relating to bankruptcy, insolvency or reorganization or
relief of creditors; (iv) institute or have instituted against it any
proceeding seeking (x) to adjudicate it a bankrupt or insolvent, (y) any
liquidation, winding-up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any Law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or (z) the entry of an order
for

 

10

 

 

relief or the appointment of a receiver, trustee,
custodian or other similar official for it or for any substantial part of
its Assets, and, in the case of any such proceeding instituted against it (but
not instituted by it), such proceeding shall remain undismissed or unstayed for
a period of 30 days or any of the actions sought in such proceeding (including
the entry of an order for relief against it or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of
its Assets) shall occur; or (v) take any action to authorize any of the
foregoing events, and if any of such foregoing events shall occur at a time
when any of the Obligations may not then be due and payable, the Guarantor
will pay to the Agent, on its own behalf and as agent for the Lenders,
forthwith the full amount which would be payable hereunder by the Guarantor if
all such Obligations were then due and payable.

 

3.                                       Representations and Warranties

 

The Guarantor hereby makes the following representations and warranties
to the Agent which shall survive the execution and delivery of this Guarantee:

 

(a)                                  this Guarantee has been duly authorized, executed and delivered by
the Guarantor and constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms;

 

(b)                                 all of the recitals hereto are in all respects true and correct;

 

(c)                                  the Guarantor is duly [incorporated]
and validly subsisting under the laws of its jurisdiction of [incorporation] and has adequate and
sufficient power and authority to enter into this Guarantee;

 

(d)                                 [the Guarantor is a direct or indirect
Wholly-Owned Subsidiary of IPSCO;]

 

(e)                                  the execution and delivery of this Guarantee by the Guarantor, and
the performance of its obligations hereunder, do not conflict with or result in
a breach of or constitute a default under any of the terms, conditions or
provisions of the certificate of incorporation, constating documents or by-laws
of the Guarantor or

 

11

 

any agreement or instrument to which the Guarantor is
a party or by which it is bound; and

 

(f)                                    the execution of this Guarantee is to the benefit of the Guarantor
and the Guarantor has a material interest in securing the Obligations guaranteed
hereunder.

 

4.                                       Default and Enforcement

 

(a)                                  In the event that any Event of Default under the Credit Agreement
has occurred or is occurring, the Agent shall be entitled, notwithstanding any
contrary arrangement with the Debtor, to demand from the Guarantor immediate
payment and performance of all the Obligations. Forthwith upon such demand, the
Guarantor shall immediately pay, perform and satisfy in full all of the
Guarantor’s Liabilities. All amounts payable by the Guarantor to the Agent
hereunder shall bear interest commencing on the date of such demand at the
Interest Rate payable both before and after demand, default and judgment.

 

(b)                                 If the Guarantor shall fail forthwith after such demand to pay,
satisfy and perform the Guarantor’s Liabilities, the Agent, on its own
behalf and as agent for the Lenders, may, in its absolute and sole discretion,
proceed with the enforcement of the rights given pursuant hereto and/or any
security given by the Guarantor for the Guarantor’s Liabilities and/or the
Obligations and/or to exercise any right or remedy provided by law or equity to
recover from the Guarantor such amounts as the Guarantor may be liable to
pay hereunder. Without limitation of the foregoing, the Agent may proceed
to enforce such rights prior to, contemporaneously with or after any action
taken in respect of any security given to the Agent, the Lenders or any of them
by the Debtor or the Guarantor. The Agent shall not be bound or obligated to
take any action or legal proceeding against or demand payment from or otherwise
exhaust its recourse against the Debtor or to take any action or to do any
other matter or thing or to proceed against any guarantor or any other person
liable for any of the Obligations, or to

 

12

 

pursue any other remedy available to the Agent before
being entitled to require the Guarantor to pay, perform and satisfy the
Guarantor’s Liabilities in full.

 

(c)                                  Any payment made to or moneys received by the Agent pursuant to the
provisions hereof may be applied by the Agent to any portions of the
Obligations in such order as the Agent, in its sole discretion, may determine.

 

(d)                                 The Agent may waive in writing any default of the Guarantor
hereunder upon such terms and conditions as the Agent may determine,
provided that no such waiver shall extend to or be taken in any manner
whatsoever to affect any subsequent default or the rights resulting therefrom. The
exercise of or partial exercise of any right of the Agent hereunder shall not
preclude the further exercise thereof, and the same shall continue in full
force and effect until each and every one of the Guarantor’s Liabilities shall
have been fully performed and satisfied or until this Guarantee is terminated
as herein provided.

 

(e)                                  This Guarantee shall apply to the ultimate balance owing by the
Debtor to the Agent, the Lenders or any of them in respect of the Obligations
and until such balance has been paid in full the Guarantor shall not be
entitled to share in any security held or money received by the Agent, the
Lenders or any of them on account of that balance or to stand in the place of
the Agent, the Lenders or any of them in respect of any security or money nor
until such balance has been paid in full shall the Guarantor take any step to
enforce any right or claim against the Debtor in respect of any monies paid by
the Guarantor to the Agent hereunder or exercise any rights as surety in
competition with the Agent. Any moneys paid by or recovered from the Guarantor
hereunder shall be deemed to be paid in discharge of the Guarantor’s
Liabilities, but not in discharge of the Obligations, and in an event of any
such payment by or recovery from the Guarantor, the Guarantor hereby assigns
any rights with respect to or arising from such payment or recovery (including,
without limitation, any right of subrogation) to the Agent until the Agent has
received payment and satisfaction in full of all of the Obligations.

 

13

 

5.                                       Taxation on Payments

 

The Guarantor hereby agrees:

 

(a)                                  that any and all payments made by the Guarantor under or pursuant to
this Guarantee shall be made free and clear of, and without deduction for, any
and all present or future taxes, levies, imposts, deductions, charges, fees,
duties or withholding or other charges of any nature imposed by any taxing
authority, and all liabilities with respect thereto, imposed by any
jurisdiction as a consequence or result of any action taken by the Guarantor,
including the making of any payment under or pursuant to this Guarantee,
excluding, in the case of the Agent, the Lenders or any of them, taxes imposed
on their net income or capital taxes or receipts and franchise taxes (all such
non-excluded taxes, levies, imposts, deductions, charges, fees, duties,
withholdings and liabilities being hereinafter referred to as “Taxes”). If the
Guarantor shall be required by Law to deduct any Taxes from or in respect of
any sum payable to the Agent or any Lender hereunder, the sum payable to the
Agent or such Lender shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 5) the Agent or such Lender receives an amount equal to
the sum it would have received had no such deductions been made;

 

(b)                                 to indemnify the Agent, on its own behalf and as agent for the
Lenders, and the Lenders, for the full amount of Taxes and for any incremental
Taxes due to the Guarantor’s failure to remit to the Agent or any Lender the
required receipts or other required documentary evidence or due to the
Guarantor’s failure to pay any Taxes when due to the appropriate taxing
authority (including any Taxes imposed by any taxing authority on amounts
payable under this Section 5) paid by the Agent, the Lenders or any of
them, and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto, whether or not such Taxes were correctly or
legally assessed. The Agent or any Lender which pays any Taxes shall promptly
notify the Guarantor of the payment of such Taxes and,

 

14

 

if such payment was made pursuant to an incorrect or
illegal assessment, shall reasonably cooperate with the Guarantor, at the
expense of the Guarantor, in any dispute of such assessment. Payment pursuant
to this indemnification shall be made within 14 days from the date the Agent or
any Lender makes written demand therefor; and

 

(c)                                  that without prejudice to the survival of any other agreement of the
Guarantor hereunder, the agreements and obligations of the Guarantor contained
in this Section 5 shall survive the repayment of the Guarantor’s
Liabilities and the termination of this Guarantee.

 

6.                                       General

 

(a)                                  Responsibility

 

The Guarantor acknowledges and confirms that it is relying solely on
its own knowledge and has made all necessary and desirable investigations in
connection with the making of this Guarantee.

 

(b)                                 Termination

 

The Guarantor’s Liabilities herein shall be terminated upon the indefeasible
payment, performance and satisfaction in full of all of the Obligations and
Guarantor’s Liabilities and the termination of the Commitment. Upon the
termination of the Guarantor’s Liabilities hereunder in accordance with the
foregoing, the Agent shall, at the expense of the Guarantor, execute such
release and discharge of the Guarantor’s Liabilities as the Guarantor
reasonably requires.

 

(c)                                  Indemnity

 

The Guarantor hereby indemnifies and holds harmless the Agent, on its
own behalf and on behalf of the Lenders, against any damage or loss of
whatsoever nature which the Agent or any one or more of the Lenders may sustain
arising out of or in connection with the enforcement, cancellation or
invalidity for any reason of any of the Credit Documents except to the extent
of

 

15

 

any damage or
loss that a court of competent jurisdiction determines arose on account of the
gross negligence or wilful misconduct of the Person sustaining such damage or
loss.

 

 

(d)                                 Judgment Currency

 

(i)                                     If,
for the purposes of obtaining judgment in any court, it is necessary to convert
any sum due or owing hereunder to the Agent in any currency (the “Original
Currency”) into another currency (the “Other Currency”), the parties hereto
agree, to the fullest extent that they may effectively do so, that the
rate of exchange used shall be that which in accordance with normal banking
procedures the Agent can purchase the Original Currency with the Other Currency
on the Business Day preceding that on which final judgment is granted.

 

(ii)                                  The
obligations of the Guarantor in respect of any of the Guarantor’s Liabilities
due in the Original Currency from it to the Agent under this Guarantee shall,
notwithstanding any judgment in any Other Currency, be discharged only to the
extent that on the Business Day following receipt by the Agent of any sum
adjudged to be so due in such Other Currency, the Agent may in accordance
with normal banking procedures purchase the Original Currency with such Other
Currency. If the amount of the Original Currency so purchased is less than the
sum originally due or owing to the Agent hereunder in the Original Currency,
the Guarantor shall, as a separate obligation and notwithstanding any such
judgment, indemnify the Agent against such Loss, and if the amount of the
Original Currency so purchased exceeds the sum originally due or owing to the
Agent in the Original Currency, the Agent hereunder shall remit such excess to
the Guarantor.

 

(e)                                  Protest

 

The Guarantor hereby waives presentment, notice of dishonour and
protest of any promissory note, bill of exchange, cheque or other negotiable
instrument or bill of sale made,

 

16

 

drawn,
accepted, endorsed or discounted or to be made, drawn, accepted, endorsed or
discounted by the Guarantor and/or the Debtor and hereby agrees that the
Guarantor’s Liabilities in respect of any such instrument shall not in any way
be affected by any failure to present or to give notice of dishonour or to
protest as aforesaid.

 

(f)                                    Settlements

 

Any settlement or discharge between the Guarantor and the Agent shall
be conditional upon no security or payment to the Agent, the Lenders or any of
them by the Debtor or any other person being avoided or reduced by virtue of
any provisions or enactments relating to bankruptcy or liquidation of the
Debtor or such other person and the Agent, on its own behalf and as agent for
the Lenders, shall be entitled subsequently to recover from the Guarantor the
value or amount by which any such security or payment shall have been avoided
or reduced as aforesaid as if such settlement or discharge had not occurred.

 

(g)                                 Modifications

 

No modification or waiver of any provision of this Guarantee shall in
any event be effective, unless the same shall be in writing and duly executed
by the parties hereto and then such modification or waiver shall be effective
only in the specific instance and for the purpose for which given.

 

(h)                                 Rights Cumulative

 

All rights and remedies of the Agent set out in this Guarantee will be
cumulative and no right or remedy contained herein is intended to be exclusive
but each will be in addition to every other right or remedy contained herein or
in the other Credit Documents or in any other security now or hereafter taken,
held or acquired by the Agent, the Lenders or any of them as security for the
Obligations. The taking of a judgment or judgments with respect to any of the
Guarantor’s Liabilities will not operate as a merger of any of the covenants
contained in this Guarantee.

 

17

 

(i)                                     Waiver

 

Any breach by the Guarantor of any of the provisions contained in this
Guarantee, or any default by the Guarantor in the observance or performance of
any covenant or condition required to be observed or performed by the Guarantor
hereunder, may only be waived by the Agent in writing, provided that no
such waiver by the Agent will extend to or be taken in any manner to affect any
subsequent breach or default or the rights resulting therefrom.

 

(j)                                     Agent as Attorney

 

The Guarantor hereby irrevocably appoints the Agent and any person
designated by the Agent after an Event of Default under the Credit Agreement to
sign, execute or do any deeds, documents, transfers, demands, assignments,
assurances, consents or things that the Guarantor is required to sign, execute
or do hereunder and, after the happening of any such Event of Default, to
commence, continue or defend any proceedings authorized to be taken hereunder
and generally to use the name of the Guarantor in the exercise of all or any of
the powers hereby conferred on the Agent.

 

(k)                                  Further Assurances

 

The Guarantor will do, execute, acknowledge and deliver, or cause to be
done, executed, acknowledged and delivered, such further acts, deeds,
mortgages, transfers and assurances as the Agent may reasonably require
for the purpose of effecting the intention of this Guarantee.

 

(l)                                     Notice

 

All Notices provided for in this Guarantee shall be in writing and
shall be delivered by courier to an officer or other responsible employee of
the addressee or sent by facsimile, charges prepaid, at or to the applicable
addresses or facsimile numbers, as the case may be, set out beneath the
name of the addressee on the signature page hereto or at or to such other
address or addresses or facsimile number or numbers as any party hereto may from
time to time designate to the other parties in such manner. Any communication
which is delivered by courier as aforesaid shall be deemed to have been validly
and effectively given on the date of such delivery if such date is a Business
Day and such delivery was made during normal business hours of the

 

18

 

recipient;
otherwise, it shall be deemed to have been validly and effectively given on the
Business Day next following such date of delivery. Any communication which was
transmitted by facsimile as aforesaid shall be deemed to have been validly and
effectively given on the date of transmission if such date is a Business Day
and such transmission was made during normal business hours of the recipient;
otherwise, it shall be deemed to have been validly and effectively given on the
Business Day next following such date of transmission.

 

(m)                               Binding Effect and Assignments

 

This Guarantee shall be binding on the Guarantor and its successors and
shall enure to the benefit of the Agent and its successors and assigns. The
Guarantor shall not assign any or all of its rights or obligations hereunder. The
Agent may assign any and all of its rights under this Guarantee in
accordance with the terms of the Credit Agreement.

 

(n)                                 Severability

 

If any provision hereof is held to be illegal, invalid or unenforceable
in any jurisdiction, such provision shall be deemed to be severed from the
remainder of this Guarantee with respect only to such jurisdiction and to the
extent of such illegality, invalidity or unenforceability. The remaining
provisions of this Guarantee shall not be affected by such severed provision
and shall continue to be valid and enforceable.

 

(o)                                 Interpretation

 

All grammatical changes in gender, tense and number required to give
meaning to any provision herein shall be deemed to be made. References to “this
Guarantee”, “hereunder”, “hereof”, “herein”, “hereto” and like references are
to this entire agreement, including without limitation, all postponement and
assignment provisions, and not to any particular article, section or other
subdivision of this Guarantee. The insertion of headings in this Guarantee is
for convenience of reference only and will not affect the construction or
interpretation of this Guarantee.

 

19

 

(p)                                 Governing Law

 

This Guarantee and all documents delivered pursuant hereto shall be governed
by and interpreted in accordance with the laws of the [•]. The Guarantor hereby irrevocably
attorns and submits to the non-exclusive jurisdiction of the courts of the [•] with respect to any matter arising under
or relating to this Guarantee.

 

(q)                                 Time

 

Time will in all respects be of the essence of this Guarantee and no
extension or variation of this Guarantee or any obligation hereunder will
operate as a waiver of this provision.

 

(r)                                    Counterparts

 

This Guarantee may be executed in one or more counterparts each of
which shall constitute an original and binding agreement.

 

(s)                                  Receipt of Copy

 

The Guarantor acknowledges having received a signed copy of this
Guarantee.

 

IN
WITNESS WHEREOF the Guarantor has executed
this Guarantee on the date first above written.

 

	
   

  	
  •

  	
   

  
	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signing Authority

  
	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signing Authority

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADDRESS OF GUARANTOR:

  
	
   

  	
   

  
	
   

  	
  •

  
						

 

20

 

	
  ADDRESS OF AGENT:

  	
   

  	
   

  
	
  The
  Toronto-Dominion Bank

  	
   

  	
   

  
	
  Royal
  Trust Tower

  	
   

  	
   

  
	
  77
  King Street West

  	
   

  	
   

  
	
  18th
  Floor

  	
   

  	
   

  
	
  Toronto,
  Ontario

  	
   

  	
   

  
	
  M5K
  1A2

  	
   

  	
   

  

 

	
  Attention:

  	
   

  	
  Wayne
  M. Shiplo

  
	
   

  	
   

  	
  Vice-President,
  Loan Syndications

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  (416)
  982-5535

  

 

21

 

SCHEDULE D

 

FORM OF DRAFT

 

BANKERS’ ACCEPTANCE

 

 

	
   

  	
   

  	
  B.A.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DUE
  DATE:

  

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TERM
  IN DAYS

  	
   

  	
  BRANCH
  DOMICILE

  	
   

  	
  ISSUE
  DATE

  	
   

  

 

ON                            
WITHOUT GRACE, FOR VALUE RECEIVED, PAY TO THE ORDER OF THE UNDERSIGNED, THE SUM
OF $                         
DOLLARS

[•]

[•]

[•]

TO:                            [Insert name of Canadian Lender]

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  

 

 

SCHEDULE E

 

I.                                         ENCUMBRANCES PERMITTED UNDER CLAUSE (H) OF THE DEFINITION OF
PERMITTED ENCUMBRANCES

 

IPSCO
INC.

 

1.                                       Security Interest registered by
Finning International Inc. at the Alberta Personal Property Registry in a Big
Joe Straddle Truck as registration number 98111716480.

 

2.                                       Security Interest registered by
Finning International Inc. at the Alberta Personal Property Registry in a Cat
950G Wheel Loader as registration number 00011904950.

 

3.                                       Security Interest registered by
Finning International Inc. at the Alberta Personal Property Registry in a Cat
950G Wheel Loader as registration number 00011905031.

 

4.                                       Security Interest registered by
Finning International Inc. at the Alberta Personal Property Registry in a Cat
950G Wheel Loader as registration number 00072409402.

 

5.                                       Security Interest registered by
Finning International Inc. and Caterpillar Financial Services Limited at the
Alberta Personal Property Registry in a 2000 Caterpillar 950G Wheel Lo Motor
Vehicle as registration number 01031624339.

 

6.                                       Security Interest registered by GE
VFS Canada Limited Partnership at the Alberta Personal Property Registry in all
goods which are telephone systems, telephones, voice mail devices, together
with all replacements and substitutions thereof and all parts, accessories,
accessions and attachments thereto and all proceeds as registration number
02073021947.

 

7.                                       Security Interest registered by
Finning International Inc. and Caterpillar Financial Services Limited at the
Alberta Personal Property Registry in a 2002 Caterpillar 950G Wheel Lo Motor
Vehicle as registration number 02091010179.

 

8.                                       Security Interest registered by
Finning International Inc. and Caterpillar Financial Services Limited at the
Alberta Personal Property Registry in a 2002 Caterpillar 950G Wheel Lo Motor
Vehicle as registration number 03011503459.

 

9.                                       Security Interest registered by
Finning International Inc. and Caterpillar Financial Services Limited at the
Alberta Personal Property Registry in a 2002 Caterpillar 950G Wheel Lo Motor
Vehicle as registration number 03011503533.

 

10.                                 Security Interest registered by
Finning International Inc. and Caterpillar Financial Services Limited at the
Alberta Personal Property Registry in a 2003 Caterpillar 950G II Wheel Motor
Vehicle as registration number 03040107553.

 

11.                                 Security Interest registered by
Praxair Canada Inc. at the Alberta Personal Property Registry in bulk cryogenic
storage tanks used for the storage, filling and delivery of

 

 

industrial and medical gases
and all related equipment, accessories, parts, components and attachments as
registration number 03093003915.

 

12.                                 Security Interest registered by
Finning International Inc. and Caterpillar Financial Services Limited at the
Alberta Personal Property Registry in a 2004 Caterpillar 950G Wheel Lo Motor
Vehicle as registration number 04030220414.

 

13.                                 Security Interest registered by
Finning International Inc. at the Alberta Personal Property Registry in a 2003
Caterpillar 950 II Wheel Motor Vehicle as registration number 04092314618.

 

14.                                 Consignment Agreement registered
by Noranda Sales Corporation Ltd. and Placer Development Ltd. at the
Saskatchewan Personal Property Registry as registration number 100303857
regarding inventories of molybdic oxide, a steel alloy, maintained in storage
in Regina and paid for as drawn out of storage dated 15 July 1986.

 

15.                                 Security Interest registered by
Telecom Leasing Canada (TLC) Limited at the Saskatchewan Personal Property
Registry as registration number 114258381 regarding telecommunications
equipment lease #3004398.

 

16.                                 Security Interest registered by De
Lage Landen Financial Services Canada Inc. at Saskatchewan Personal Property
Registry as registration number 120604045 regarding all goods supplied before
or hereafter by the secured party, and all accessories and accessions thereto
and all replacements or substitutions for such goods. (Note: registration
relates to certain postage mailing equipment supplied by the secured party,
although not specified in the collateral description).

 

17.                                 Security Interest registered by
Compaq Financial Services Canada Corporation at Saskatchewan Personal Property
Registry as registration number 118303219 regarding any and all equipment
tangible and intangible and all proceeds therefore leased pursuant to Lease No. 69028.

 

18.                                 Security Interest registered by
Hewlett-Packard Financial Services Canada Company at Saskatchewan Personal
Property Registry as registration number 118619513 regarding any and all
equipment tangible and intangible and all proceeds therefore leased pursuant to
Lease No. 69028.

 

19.                                 Security Interest registered by
Danka Canada Inc. at Saskatchewan Personal Property Registry as registration
number 115902292 regarding all goods supplied by the secured party to IPSCO
Inc. (Note: registration relates to certain copiers supplied by the secured
party to offices of IPSCO Inc. in Surrey, Calgary, Red Deer, Regina and
Toronto, although not specified in the collateral description).

 

20.                                 Security Interest registered by
Danka Canada Inc. at Saskatchewan Personal Property Registry as registration
number 115902488 regarding all goods supplied by the secured party to IPSCO
Inc. (Note: registration relates to certain copiers supplied by the secured

 

2

 

party to offices of IPSCO
Inc. in Surrey, Calgary, Red Deer, Regina and Toronto, although not specified
in the collateral description).

 

21.                                 Security Interest registered by
Danka Canada Inc. at Saskatchewan Personal Property Registry as registration
number 115909511 regarding all goods supplied by the secured party to IPSCO
Inc. (Note: registration relates to certain copiers supplied by the secured
party to offices of IPSCO Inc. in Surrey, Calgary, Red Deer, Regina and
Toronto, although not specified in the collateral description).

 

22.                                 Security Interest registered by
Danka Canada Inc. at Saskatchewan Personal Property Registry as registration
number 115909553 regarding all goods supplied by the secured party to IPSCO
Inc. (Note: registration relates to certain copiers supplied by the secured
party to offices of IPSCO Inc. in Surrey, Calgary, Red Deer, Regina and
Toronto, although not specified in the collateral description).

 

IPSCO
SASKATCHEWAN INC.

 

23.                                 Security Interest registered by
GMAC Leaseco Limited at Saskatchewan Personal Property Registry as registration
number 118599763 in a 2002 Chev Avalanche serial number 3GNEK13T32G322391.

 

IPSCO
ENTERPRISES INC.

 

24.                                 Security Interest registered by Ameritech Credit Corporation against
IPSCO Enterprises Inc. with the Secretary of State for Delaware dated June 4,
2003 regarding all telecommunications and data equipment provided to the IPSCO
Enterprises Inc. by the secured party.

 

25.                                 Security Interest registered by Ameritech Credit Corporation against
IPSCO Enterprises Inc. with the Secretary of State for Delaware dated January 19,
2004 regarding all telecommunications and data equipment provided to the IPSCO
Enterprises Inc. by the secured party.

 

26.                                 Security Interest registered by Canon Financial Services Inc.
against IPSCO Enterprises Inc. with the Secretary of State for Illinois dated May 9,
2000 regarding copier Model IR550 Serial Number NNT05745.

 

27.                                 Security Interest registered by Canon Financial Services Inc.
against IPSCO Enterprises Inc. with the Secretary of State for Illinois dated May 9,
2000 regarding copier Model IR550 Serial Number NNT06242.

 

28.                                 Security Interest registered by Ameritech Credit Corporation against
IPSCO Enterprises Inc. with the Secretary of State for Illinois dated May 25,
2000 regarding all telecommunications and data equipment provided to the IPSCO
Enterprises Inc by the secured party under Lease No. 091-0023535-000.

 

3

 

29.                                 Security Interest registered by Canon Financial Services Inc.
against IPSCO Enterprises Inc. with the Secretary of State for Illinois dated September 18,
2000 regarding copier Model IR400 Serial Number NQG17552.

 

30.                                 Security Interest registered by Canon Financial Services Inc.
against IPSCO Enterprises Inc. with the Secretary of State for Illinois dated September 22,
2000 regarding copier Model 9000DL Serial Number DYS36493.

 

31.                                 Security Interest registered by First Security Bank, NA against
IPSCO Enterprises Inc. with the Secretary of State for Illinois dated October 13,
2000 regarding all equipment provided pursuant the Bank One Lease Documentation
(as defined in the Credit Agreement).

 

IPSCO STEEL INC.

 

32.                                 Security Interest registered by Canon Financial Services, Inc.
against IPSCO Steel Inc. with the Secretary of State for Iowa dated December 8,
1999 in 1 copier model #NP6551.

 

33.                                 Security Interest registered by Canon Financial Services, Inc.
against IPSCO Steel Inc. with the Secretary of State for Iowa dated December 27,
1999 in 1 copier model #IR600.

 

34.                                 Security Interest registered by North American Refractories Co.
against IPSCO Steel Inc. with the Secretary of State for Iowa dated January 14,
2000 in refractory brick, mixes, and supplies.

 

35.                                 Security Interest registered by Bobcat Financial Services against
IPSCO Steel Inc. with the Secretary of State for Iowa dated August 23,
2000 in 2 Melroe Skid Steer Loaders.

 

36.                                 Security Interest registered by Canon Financial Services, Inc.
against IPSCO Steel Inc. with the Secretary of State for Iowa dated June 13,
2001 in 2 copiers model #IR330S and 2 copiers model #LC3170.

 

37.                                 Security Interest registered by First Security Bank, NA against
IPSCO Steel Inc. with the Secretary of State for Iowa dated October 13,
2000 regarding all equipment provided pursuant the Bank One Lease Documentation
(as defined in the Credit Agreement).

 

38.                                 Security Interest registered by First Security Bank, NA against
IPSCO Steel Inc. with the Secretary of State for Delaware dated October 13,
2000 regarding all equipment provided pursuant the Bank One Lease Documentation
(as defined in the Credit Agreement).

 

39.                                 Security Interest registered by Textron Financial Corp. against
IPSCO Steel Inc. with the Secretary of State for Delaware dated October 15,
2001 in a copier Model IR5000 Serial Number MPL51181.

 

40.                                 Security Interest registered by Canon Financial Services Inc.
against IPSCO Steel Inc. with the Secretary of State for Delaware dated June 2,
2003 regarding copier Model IR3300 Serial Number MPH37259, Model IR3300 Serial
MPH46887, Model IR5000

 

4

 

Serial number MPL51, Model L7301 Serial Number
UZT05349, Model L7391 Serial Number UZT05350.

 

41.                                 Security Interest registered by Canon Financial Services Inc.
against IPSCO Steel Inc. with the Secretary of State for Delaware dated August 4,
2003 regarding copier Model IR400 Serial Number NQG17552.

 

42.                                 Security Interest registered by Canon Financial Services Inc.
against IPSCO Steel Inc. with the Secretary of State for Delaware dated January 28,
2004 regarding copier Model IR3300 Serial Number MPH59870.

 

43.                                 Security Interest registered by Canon Financial Services Inc.
against IPSCO Steel Inc. with the Secretary of State for Delaware dated May 14,
2004 regarding copier Model IR3300 Serial Number MPH64241.

 

44.                                 Security Interest registered by Canon Financial Services Inc.
against IPSCO Steel Inc. with the Secretary of State for Delaware dated June 4,
2004 regarding copier Model IR5020i Serial Number JCM04213.

 

IPSCO STEEL (ALABAMA) INC.

 

45.                                 Security Interest registered by Thompson Tractor Co., Inc.
against IPSCO Steel (Alabama) Inc., with the Secretary of State for Alabama
dated July 27, 2000 in one Caterpillar Model 3516 Generator Set, Serial
Number 6HN00940.

 

46.                                 Security Interest registered by Thompson Tractor Co. Inc. against
IPSCO Steel (Alabama) Inc. with the Secretary of State for Alabama dated February 4,
2004 in one Caterpillar DP40K Lift Truck, Serial Number AT19C00551.

 

47.                                 Security Interest registered by American Equipment Leasing against
International Mill Service Inc. and IPSCO Steel (Alabama) Inc. with the
Secretary of State for Alabama dated January 30, 2001 in one 1994
Caterpillar 980F Wheel Loader EROPS, Serial Number 3HK01179, one HS Hot Slag
Bucket with five yard capacity, and four new 26.5 x 25 solid rubber tires.

 

48.                                 Security Interest registered by General Electric Capital Corp.
against International Mill Service Inc. and IPSCO Steel (Alabama) Inc. with the
Secretary of State for Alabama dated March 15, 2001 in one new Terex
TFC45-LSX Steel Handler, Serial Number 3384.

 

49.                                 Security Interest registered by American Equipment Leasing against
International Mill Service Inc. and IPSCO Steel (Alabama) Inc. with the
Secretary of State for Alabama dated March 16, 2001 in one new Liebherr
R-984C – HDEW Hydraulic Scrap Crane.

 

50.                                 Security Interest registered by Fuchs Systems Inc. against IPSCO
Steel (Alabama) Inc. with the Secretary of State for Alabama dated August 4,
2003 in spare parts for Electric Arc Furnaces and Ladle Melting Furnaces.

 

5

 

51.                                 Security Interest registered by Vesuvius USA Corporation against
IPSCO Steel Alabama Inc. with the Secretary of State for Alabama dated June 28,
2002 in the Contractor Equipment consisting of all SEM-85 tube change systems,
all tundish car equipment and all LV80 ladle slide gate systems supplied by the
Grantor to the Grantee’s Steel Mill Site, together with all mechanical
equipment, components, parts, materials and related support equipment, and any
and all equipment of any and every kind belonging to the Grantor and used at
the Grantee’s Steel Mill Site in connection with the Grantor’s performance of
its obligations set forth in the Services Agreement, whether now owned or
hereafter acquired, and all additions, accessions and attachments thereto and
substitutions therefore, and all proceeds of the conversion of any of the
foregoing into cash or liquidated claims.

 

52.                                 Security Interest registered by Thompson Tractor Co. Inc. against
IPSCO Steel Alabama Inc. with the Secretary of State for Alabama dated June 14,
2004 in one Crown PW3520-60, Serial Number 6AA205284.

 

IPSCO
TUBULARS INC.

 

53.                                 Security Interest registered by
The CIT Group/Equipment Financing, Inc. against IPSCO Tubulars Inc., with
the Secretary of State for Delaware as registration number 21960297 regarding
one Taylor TE800L Diesel Lift Truck SN: 30278 equipped with integral coil ram.

 

54.                                 Security Interest registered by
FCC Equipment Financing, Inc. against IPSCO Tubulars Inc., with the
Secretary of State for Delaware as registration number 21994304 regarding one
Taylor TE800L Diesel Lift Truck SN: 30278 equipped with integral coil ram.

 

55.                                 Security Interest registered by
FCC Equipment Financing, Inc. against IPSCO Tubulars Inc., with the
Secretary of State for Delaware as registration number 22008773 regarding one
New Taylor TE800L Diesel Lift Truck SN: 30278 equipped with integral coil ram.

 

56.                                 Security Interest registered by The
CIT Group/Equipment Financing, Inc. against IPSCO Tubulars Inc., with the
Secretary of State for Delaware as registration number 22167850 regarding one
New Taylor TE800L Diesel Lift Truck NS: 30278 equipped with integral coil ram.

 

57.                                 Security Interest registered by
Canon Financial Services, Inc. against IPSCO Tubulars Inc., with the
Secretary of State for Delaware as registration number 31760399 regarding one
graphic quality, Model IRC 3200, Serial # MSK00358.

 

58.                                 Security Interest registered by
Canon Financial Services Inc. against IPSCO Tubulars Inc. with the Secretary of
State for Nebraska as registration number 9901122569 regarding one copier model
IR330, serial #NQJ44557.

 

6

 

IPSCO
TEXAS INC.

 

59.                                 Security Interest registered by
Lasalle National Leasing Corporation against IPSCO Texas Inc. with the Secretary of
State for Delaware as registration number 10688627 regarding the equipment
relating to the Houston Lease Obligation (as defined in the Credit Agreement).

 

60.                                 Security Interest registered by
Firstcapital Bank, SSB against IPSCO Texas Inc., with the Secretary of State
for Delaware as registration number 11395024 regarding the equipment relating
to the Houston Lease Obligation (as defined in the Credit Agreement).

 

II.                                     DESCRIPTION OF PROPERTY SUBJECT TO THE BANK ONE LEASE DOCUMENTATION

 

Real
Property Description

 

A portion of
the Southeast Quarter of the Southeast Quarter of Section 10, and a
portion of the Southwest Quarter of the Southwest Quarter of Section 11,
all being in Township 77 North, Range 1 East of the 5th Principal Meridian,
Muscatine, County, Iowa, which portion is more particularly described as
follows:

 

Commencing at
the Northeast Corner of Section 10, Township 77 North, Range 1 East of the
5th Principal Meridian, Muscatine, County, Iowa, and for the purpose of this
legal description the north line of said Section 10 is assumed to bear N88
57’49”E;  Thence S00o43’20”E, along the
East Line of said Section, 4619.75 feet; 
Thence S89o16’40”W, 19.21 feet, to the Northwest Corner of the existing
plant facilities known as Caster, which is the Point of Beginning of the
facilities herein described;  Thence
N69o57’02”E, along the exterior sheeting line of the existing structure, 102.49
feet, to the existing structure corner; 
Thence S19o59’00”E, along the exterior sheeting line of the existing
structure, 105.21 feet, to the existing structure corner;  Thence N70o01’42”E, along the exterior
sheeting line of the existing structure, 247.89 feet, to the existing structure
corner;  Thence S19o59’18”E, along the
exterior sheeting line of the existing structure, 72.12 feet, to its intersection with
the easterly projection of the northerly sheeting line of the northerly wall of
the Caster Run-out Building;  Thence
S69o51’54”W, along said northerly sheeting line, 99.27 feet;  Thence S20o22’40”E, 85.30 feet, to its intersection with
the exterior sheeting face of the southerly wall of said Caster Run-out
Building;  Thence S70o08’24”W, along said
exterior wall, 148.87 feet to its intersection with the exterior sheeting
face of the easterly Caster wall at the northeast corner of the Caster Service
Building;  Thence S20o00’18”E, along said
exterior sheeting face, 98.41 feet to the Northwest Corner of the LMF Vault;  Thence N70o01’37”E, 31.96 feet to the
Northeast Corner thereof;  Thence S20o07’07”E,
35.09 feet, to the Southeast Corner thereof; 
Thence S70o01’37”W, 32.03 feet to the Southwest Corner thereof;  Thence S20o00’18”E, along the exterior
sheeting face of the easterly wall of the Caster and Melt Shop facilities,
185.30 feet, to the Northwest Corner of the EAF Vault;  Thence N70o06’21”E, along the northerly line
thereof and its northeasterly projection thereof, 62.35 feet to the Northwest
Corner of the Alloy Storage Building; 
Thence N69o54’07”E, along the northerly line of said Alloy Storage
Building, 137.72 feet to the Northeast Corner thereof;  Thence S20o05’53”E, 40.81 feet, to the
Southeast Corner thereof;  Thence S69o54’07”W,
105.43 feet to

 

7

 

the Southwest
Corner thereof;  Thence S20o05’53”E,
along the southeasterly projection of the exterior sheeting face of the
southwesterly wall of said Alloy Storage Building, 12.93 feet, to its intersection with
the northeasterly projection of the southerly wall of said EAF Vault;  Thence S69o54’39”W, along said southerly
wall, 43.79 feet;  Thence S20o05’21”E,
3.11 feet;  Thence S69o54’39”W, 19.54
feet;  Thence S19o05’28”E, 29.83
feet;  Thence S70o54’32”W, 30.94 feet to
a point on the exterior sheeting face of the easterly wall of the Melt
Shop;  Thence S20o00’18”E, along said
exterior wall sheeting, 21.06 feet; 
Thence N70o22’27”E, 66.33 feet; 
Thence S20o58’46”E, 41.59 feet; 
Thence S70o02’09”W, 67.04 feet, to a point on the exterior sheeting face
of the easterly wall of the Melt Shop; 
Thence S20o00’18”E, along said sheeting face, 16.04 feet, to the
southeast corner thereof;  Thence S70o01’00”W,
along the sheeting face of the southerly wall of said Melt Shop, 92.89 feet, to
a point of intersection with the overhead appurtenant hardware for the
existing Lime Silos;  Thence S20o01’53”E,
100.11 feet;  Thence S69o58’07”W, 32.00
feet;  Thence N20o01’53”W, 225.82
feet;  Thence S69o58’07”W, 15.25
feet;  Thence N20o01’53”W, 42.00
feet;  Thence N69o58’07”E, 26.92
feet;  Thence N20o01’53”W, 171.71
feet;  Thence N69o58’07”E, 10.83 feet, to
a point on the westerly sheeting face of the Melt Shop Facilities;  Thence N20o01’53”W, 407.29 feet, along said
westerly face of the Melt Shop and Caster Shop Facilities, 407.29 feet, to the
Point of Beginning. Said Structure as defined contains 130,989 square feet.

 

Equipment
List for the IPSCO Montpelier Steel Works Melting and Casting Operation

 

1                                         MELT SHOP

 

1.1                               EAF

 

1.1.1                        Furnace Data

 

1.1.1.1                                     Number of Furnaces: 2 - twin shell

1.1.1.2                                     Furnace type:  Eccentric
bottom tapping (EBT) for slag free tapping

1.1.1.3                                     Slag Control:  Fast back tilt
with 27 ton heel for slag free tapping

1.1.1.4                                     Heat Size: 150 tons

1.1.1.5                                     Design Production Rate: 164 tons per hour

1.1.1.6                                     Design Tap to Tap time: 55 minutes

1.1.1.7                                     Water cooled electrode arms and bus tubes.

1.1.1.8                                     Air cooled aluminium Anode bus tubes.

1.1.1.9                                     Water cooled current controlled bottom electrode (Anode) assemblies
for each furnace consisting of four (4) water cooled electrodes
interconnected by a buss tube network.

1.1.1.10                               Upper electrode (power transfer medium) swing 80 degrees, from shell
to shell (total of 160 degree swing).

1.1.1.11                               Lower shell diameter: 24’-0”

1.1.1.12                               28 inch electrode diameter, expandable to 32”

1.1.1.13                               Upper Shell type: Open Cage

1.1.1.14                               Upper Shell diameter: 24’-6”

1.1.1.15                               Scrap volume: 4200 cubic feet

 

8

 

1.1.1.16                               Furnace Sidewall and roof type: Water cooled tubular

1.1.1.17                               15 degree maximum tap tilting, 10 degree maximum slag tilting

1.1.1.18                               2 charges per heat, 100 degree roof swing

1.1.1.19                               Automatic alloy additions by Fairfield Engineering

 

1.1.2                        Electrical
Energy, (Tamini Transformer and Ansaldo Rectifiers and Reactors)

 

1.1.2.1                                     2 x 70 MVA transformers, 34.5 KV primary voltage

1.1.2.2                                     766 V maximum secondary voltage

1.1.2.3                                     140 KA maximum secondary current

1.1.2.4                                     105 MW of power supplied to melt scrap.

1.1.2.5                                     Oil to water heat exchangers

1.1.2.6                                     990 VAC maximum secondary voltage

1.1.2.7                                     Thyristor bridge type rectifiers with deionized water cooling
system, producing 12 pulse DC

1.1.2.8                                     4 - water cooled 150 micro henries in line DC Reactors for current
surge control.

1.1.2.9                                     Associated disconnect switch, vacuum switch, potential transformers,
ground switch and Kirk Key safety system.

 

1.1.3                        Chemical
Energy (per shell)

 

1.1.3.1                                     8 “oxy-fuel” (oxygen-natural gas) burners (1 door, 1 sump, and 6
sidewall mounted) supply 45 MW of total power

1.1.3.2                                     1 super sonic oxygen lance (at door) supplying 5600 SCFM of oxygen
injection, with two (2) auxiliary lances for lime and carbon injection
(for foamy slag generation)

1.1.3.3                                     Post combustion oxygen in carbon lance.

 

1.2                               LIME / CARBON SYSTEM

 

1.2.1                        Storage silos, conveyor system and scrap bucket loading system for
lime loading into scrap buckets.

1.2.2                        Carbon injection storage and loading system to auxiliary lances at
furnace doors.

 

1.3                               ALLOY ADDITIONS SYSTEM

 

1.3.1                        Automatic alloy loading system consisting of exterior loading
hopper, bucket elevator, storage hopper loading conveyor (exterior), storage
hoppers (interior), ladle loading weigh and conveying system.

1.3.2                        Auxiliary alloy system (manual) consisting on alloy bins (mezzanine
floor) payloader fed.

 

9

 

1.4                               LADLE CARS

 

1.4.1                        1 - 265 ton capacity ladle transfer car, with electromagnetic cable
powered travelling drive, and two (2) weighing saddles and load cells for
ladle and heat weight measurements

 

1.5                               LADLES

 

1.5.1                        9 - Production ladles

1.5.2                        1 - Emergency ladle

 

1.6                               LADLE SLIDE GATES

 

1.6.1                        8 - Hydraulically operated slide gate assemblies to control the flow
of steel from ladle bottom to tundish at Caster.

 

1.7                               LADLE STANDS

 

1.7.1                      3 vertical “stacking” stands at LMF

1.7.2                      1 vertical stands for ladle dryers

1.7.3                      3 horizontal stands for ladle pre-heaters

1.7.4                      1 horizontal stand for refractory tear out

1.7.5                      3 vertical stands for ladle refractory rebuild

 

1.8                               LADLE PREHEATERS

 

1.8.1                      3 horizontal pre-heaters

1.8.2                      1 vertical pre-tapping pre-heaters

1.8.3                      2 vertical dryers, for refractory dry out after relines

1.8.4                      Fuelled with natural gas and oxygen

1.8.5                      2200 degree preheating temperature

 

1.9                               LMF

 

1.9.1                      Furnace Data

 

1.9.1.1                          Twin station, capable of processing two (2) heats
simultaneously

1.9.1.2                          Heating rate of 7 degrees per minute

1.9.1.3                          2 Metallurgical and 1 heating roofs, water cooled

1.9.1.4                          Mono-arm electrode mast arm

1.9.1.5                          Spill pits capable of containing entire heat

1.9.1.6                          18” electrode diameter

1.9.1.7                          32” electrode pitch minimizes refractory wear

1.9.1.8                          Powder injection system to inject Calcium Silicon for improved
castability, inclusion modification and “clean” steel

1.9.1.9                          “cored wire” injection system for backup of powder injection system

 

10

 

1.9.2                      Electrical
Energy

 

1.9.2.1                          25 MVA transformer, 34.5 KV primary voltage

1.9.2.2                          390 V maximum secondary voltage

1.9.2.3                          Up to 19.8 MW of power supplied to increase / maintain temperature
for casting

 

1.9.3 Argon Stirring

 

1.9.3.1                          Homogenization of temperature and chemistry

1.9.3.2                          Slag / metal mixing, for desulfurization

1.9.3.3                          Inclusion flotation for “clean” steel

1.9.3.4                          2 porous plugs in ladle bottoms, 1 in use, 1 backup

1.9.3.5                          1 “top lance” through LMF roof for backup

 

1.10                        CRANES

 

1.10.1                  1 - 250 ton Meltshop
/ Caster ladle AC crane with 80 ton main auxiliary hoist and 10 ton secondary
auxiliary hoist, cab operated.

1.10.2                1- 250 ton Meltshop
Charging Crane, AC, remote and cab operated with 120 ton main auxiliary hook
and 10 ton secondary auxiliary hook.

1.10.3                1-350 ton
Caster/Meltshop DC crane, cab operated with 75 ton main auxiliary hook and 25
ton secondary auxiliary hook.

1.10.4                1 - 3 ton wall mounted
travelling jib crane for ladle slide gate repair

1.10.5                1 - 5 ton wall mounted
travelling jib crane for ladle reline and repair

1.10.6                 - 2 ton monorail hoist for Meltshop EAF
hydraulic room

1.10.7                1 - 2 ton monorail
hoist for LMF hydraulic room

1.10.8                1 - 10 ton monorail
hoist for Meltshop Alloy Storage

 

1.11                        PROCESS CONTROL

 

1.11.1                  Chem Lab

 

1.11.1.1 Steel chemistry analysis, including oxygen,
nitrogen and hydrogen

1.11.1.2 Slag chemistry analysis

1.11.1.3 Pneumatic tube system for sample transport
from both the EAF and LMF

 

1.11.2                EAF / LMF Sampling
Equipment

 

1.11.2.1 Temperature measurement

1.11.2.2 Oxygen measurement

1.11.2.3 Carbon measurement

1.11.2.4 Aluminium measurement

1.11.2.5 Hydrogen measurement (LMF only)

 

11

 

1.11.3                Automation

 

1.11.3.1                    “touch screen” human-machine interface

1.11.3.2                    Level 1- equipment function control

1.11.3.3                    Level 2- production schedule handling, scrap mix control, heat
tracking, delay tracking, event tracking, material addition calculations,
chemistry specification tracking, equipment life tracking, and reporting

 

2                                         CONTINUOUS SLAB CASTER

 

2.1                               LADLE CAR

 

2.1.1                    Two (2) single ladle capacity cars, mechanically linked
together to operate as a twin ladle car.

2.1.2                    Each car is self-propelled and rides on rails attached to the
casting platform. Cars can be de-linked and operate independently if necessary.

 

2.2                               TUNDISH CARS

 

2.2.1                    2 - tundish cars, of welded steel fabrication, self propelled and
rides on rails attached to the casting platform.

2.2.2                    Each car transfers a tundish from the off line, preheat position to
the required casting position, as well as the emergency dump position if
necessary.

2.2.3                    Maximum weight capacity is 55 tons, including tundish, tundish
cover, refractory and molten steel.

2.2.4                    Two (2) drives per car, traverse speed of 100 feet per minute.

2.2.5                    Tundish lifting is accomplished with hydraulic cylinders activating
on a lifting / weighing bridge/load cell assembly.

 

2.3                               TUNDISH AND TUNDISH COVER

 

2.3.1                      8 - tundishes consisting of box shaped rectangular reinforced steel
plate vessels, refractory lined and tapered to aid in skull removal.

2.3.2                      Liquid steel capacity is 25.6 tons with overflow at 28.8 tons.

2.3.3                      Full tundish weight, including cover is 54.9 tons.

2.3.4                      4 - tundish covers , consisting of two (2) removable sections,
refractory lined.

 

2.4                               CASTING PLATFORM EQUIPMENT

 

2.4.1                    2 - Tundish stopper rod flow control equipment, hydraulically
operated, with automatic level control and emergency shut off mechanism. Controls
flow of steel from tundish to mold.

2.4.2                    2 - Tundish preheat stations at the tundish park position.

2.4.3                    2 - Tundish nozzle preheat stations at the tundish park position.

 

12

 

2.5                               MOLD

 

2.5.1                      3 - Narrow mold cassettes

2.5.2                      4 - Wide mold cassettes

2.5.3                      3 - Mold tables

2.5.4                      Vertical, straight mold vs. curved to improve slab inner quality

2.5.5                      Copper plated steel, water cooled.

2.5.6                      Manual width - 48” to 120”

2.5.7                      Hydraulic “Resonance Mold” - Hydraulically operated leaf spring
design for oscillation

2.5.8                      Oscillation range "1-3 mm, with dynamic wave for and frequency adjustment ability. Frequency
range 60-360 cycles per minute.

2.5.9                      Mold level detection uses a 18.8 mCurie Cobalt 60 source providing
about " 5 mm accuracy.

2.5.10                Electromagnetic
Brake

2.5.10.1         Reduces
mold turbulence

2.5.10.2         Reduces
inclusion entrapment

2.5.10.3         Reduces
the potential for breakout

2.5.10.4         Electromagnetic
field strength 4000 gauss

 

2.6                               STRAND GUIDE - SEGMENTS

 

2.6.1                      4 - Segment A0”. Acts as bending segment to initiate the curve in
the shell after exiting from the straight mold. This segment is supported on
trunnion mounts attached to the mold frame. Segment includes split rolls with
center supports air/mist spray cooling headers and nozzles. Segment can be
exchanged attached to the mold above.

2.6.2                      15* - Segments A1” thru A8”. Supported on the “Segment Carrier
Frames”, and removed via the overhead crane on “Segment Removal Guide Rails”,
each segment consists of

2.6.2.1                                                               Top Frame roll support

2.6.2.2                                                               Bottom Frame rolls support

2.6.2.3                                                               Side frames

2.6.2.4                                                               6 top rolls, 6 bottom rolls

2.6.2.5                                                               1 top drive roll, 1 bottom drive roll

2.6.2.6                                                               4 drive roll units with gear box, universal joint, couplings and
base frame

2.6.2.7                                                               Hydraulic clamping cylinders

2.6.2.8                                                               Machine cooling system

2.6.2.9                                                               Air-Mist cooling system

2.6.2.10                                                         Hydraulic piping

2.6.2.11                                                         Lubrication piping

 

13

 

* Note:         3 -                                   Segment #1

8 - Segment #2-6

2 - Segment #7

2 - Segment #8

 

2.6.3                        Machine Drives

 

2.6.3.1                                                               28 DC drive motors, 14 top and 14 bottom on segments 2-8

2.6.3.2                                                               Segments 2 & 3 have brakes to hold the starter bar and
strand if cast is stopped

2.6.3.3                                                               Strand tracking is done with measuring rolls or drive motor encoder

 

2.7                               STARTER BAR

 

2.7.1                      1 - Link type starter bar used to begin each casting sequence. Starter
bar consisting of head assemblies, 6” thick and varying in width from 48” to
120” (5 different range widths with shim plates), attached to a series of
hinged links, providing the flexibility of the starter bar system to be
threaded into the casting machine.

2.7.2                      1 - Starter bar storage cage. Utilized to place and/or remove the
starter bar from the slab run out table. Starter bar is stored immediately
adjacent to the slab run out table after the torch cut area.

 

2.8                               RUN OUT TABLES

 

2.8.1                        1 - Torch approach table immediately after the last segment (#8)

2.8.2                        1 - Stationary torch cutting table.

2.8.3                        1 - Slab run out table, from torch table to charge table of reheat
furnace.

 

2.9                               SLAB QUENCH SYSTEM

 

2.9.1                        Pump,
filtering, piping and nozzle system starting at the caster scale pit, designed
to quickly cool the exterior surface of the cast slab to the desired
metallurgical temperature for certain grades prior to charging into the reheat
furnace.

 

2.10                        TORCH CUTTING MACHINE

 

2.10.1                  1 - Torch cutting machine with sample cutting ability. Torch machine
consists of a car mounted motor operated variable speed dual pair torch
assembly. One pair of torches are utilized for normal slab separation cuts and
the second set is utilized in combination with the first set to make sample
cuts of the slab for metallurgical analysis. Slab length is measured by
measuring roll. Upon signal from the PLC control, the torch car is lowered onto
the moving slab to commence the separation or sample cuts.

 

14

 

This method assures accurate cuts regardless of speed
or changes of speed of the cast slab.

 

2.10.2                1
- Sample removal system to bring the 3” sample cuts off line for further
removal by crane or mobile vehicle to the metallurgical lab for analysis.

 

2.11                        SLAB DEBURRING DEVICE

 

2.11.1                1
- Deburring mechanism for removing the burr that forms on the lower slab edges
following the torch cutting process. Deburrer consists of a series of
shearing blocks seated in a water cooled beam. The shear blocks are
individually actuated up and down by pneumatic cylinder ensuring a positive
Deburring along the entire slab cut edge.

 

2.12                        MISCELLANEOUS CASTER EQUIPMENT

 

2.12.1                Tundish Tilting Stand

 

2.12.1.1                                                       Hydraulically operated tilting stand to invert a tundish after the
casting in order to remove the remaining steel skull and refractories. Stand is
equipped with a tilting frame supporting the tundish, rolling track wheels for
frame rotation and horizontal movement over a dump pit, and a hydraulic ram
system for positive deskull through the shroud hole.

 

2.12.2                  Tundish Drying and Set down Stand

 

2.12.2.1                                                       Located in the maintenance aisle, the stand is utilized for thorough
drying of the tundish linings. Station includes two air-natural gas fired
burners mounted on pivoting supports.

 

2.12.3                  Tundish Reline and Setting Stands

 

2.12.3.1                                                       Four (4) station tundish set down maintenance and reline stand,
complete with maintenance access platform

2.12.3.2                                                       One (1) Tundish setting stand

 

2.12.4                  Tundish Lifting Rig

 

2.12.4.1                                                       Specifically designed to properly handle the weight and load
arrangement of the tundish to be utilized by overhead cranes.

 

15

 

2.12.5                  Tundish Transfer Car

 

2.12.5.1                                                       Self propelled, rail supported, structural steel car designed to
support and transport a tundish between the casting and maintenance bays.

 

2.12.6                  Mold Alignment and Test Stand

 

2.12.6.1                                                       Critically aligned stand to serve the following functions:

 

1.12.6.1.1                                                Mold cooling water leak test

1.12.6.1.2                                                Spray water test for foot rolls and nozzle alignment

1.12.6.1.3                                                Mold width and taper adjustment

1.12.6.1.4                                                Mold assembly

1.12.6.1.5                                                Mold alignment

 

2.12.7                  Mold Storage Stand

 

2.12.7.1                                                       3 - Storage stands for storing spare mold assemblies

 

2.12.8                  Quick Change Alignment Stand

 

2.12.8.1                                                       Utilized for checking the alignment of the quick change unit
consisting of mold and segment A0”.

 

2.12.9                  Quick Change Set down Stand

 

2.12.9.1                                                       Stand for temporary storage of the built up QC assembly.

 

2.12.10  Quick Change Lifting
Rig

 

2.12.10.1                                                   2 - Rigs and 2 - set down stands for rigs, specifically designed for
the simultaneous lifting of the mold and segment A0”

 

2.13                        CENTRALIZED LUBRICATION SYSTEM

 

2.13.1                  Automatic dual line
grease lubrication system including automatic timing controls, distribution
blocks to properly distribute lubricants and indicating devices to display
operation.

 

2.14                        CENTRALIZED HYDRAULIC SYSTEMS

 

2.14.1                  Hydraulic system
utilizing fire resistant fluid to actuate the following components:

 

2.14.1.1                                                         Ladle shroud manipulator

2.14.1.2                                                         Tundish car lift

 

16

 

2.14.1.3                                                         Tundish skewing on car

2.14.1.4                                                         Segment frame clamping

2.14.1.5                                                         Driven upper rolls of segments

2.14.1.6                                                         Deburrer system

 

2.15                        COMPRESSED AIR SYSTEM

 

2.15.1                  Air Mist System

 

2.15.1.1                                                       4 - 2200 SCFM at 100 psig single stage rotary screw type air
compressors.

 

2.15.2                  Plant Air System

 

2.15.2.1                                                       3 - 1250 SCFM at 100 psig single stage rotary screw type air
compressors.

2.15.2.2                                                       Air dryer complete with oil mist eliminator, prefilter and after
filter.

2.15.2.3                                                       Miscellaneous moisture traps.

 

2.16                        STEAM EXHAUST SYSTEM

 

2.16.1                        Ductwork, 2 -
fans, discharge stacks and duct supports necessary for the ejection of steam
created by the air mist cooling system on the hot slab.

 

2.17                        PROCESS CONTROL

 

2.17.1                  Automation

 

1.17.1.1                                                       “touch screen” human-machine interface

1.17.1.2                                                       Level 1- equipment function control

1.17.1.3                                                       Level 2- production schedule handling, steel grade and heat
file handling, slab length cutting, slab identification, slab quality
evaluation, casting speed calculation, slab and tundish down counters,
archiving of historical data, spray control, slab disposition and report
generation.

 

2.18                        STARTER BAR STRAND MONITOR

 

2.18.1                  Provides detailed analysis of roll data including:

 

2.18.1.1                                                       Roll gap

2.18.1.2                                                       Bearing free-functioning efficiency

2.18.1.3                                                       Roll rotation indicator

2.18.1.4                                                       Radius indicator

 

17

 

2.19                        MOLD STICKER DETECTION SYSTEM

 

2.19.1                  Utilizing mold broad
and narrow face mounted thermocouples, temperatures of the coppers are
monitored. Computer control evaluates temperature trends and temperature
differentials to accurately predict the onset of “stickers” which are the main
cause of “strand breakouts”. System reaction slows the cast speed so that “stickers”
can be healed to avoid breakouts.

 

2.20                        CRANES AND LIFTING DEVICES

 

2.20.1                  1 - 90 ton Caster maintenance crane, remote operated with 15 ton
auxiliary hook.

2.20.2                  2 - 2 ton monorail hoists for caster segment drive removal

2.20.3                  1 - 5 ton monorail hoist for caster hydraulic room

2.20.4                  1 - 5 ton tundish maintenance traveling wall jib crane

2.20.5                  1 - 25 ton Caster runout maintenance crane, remote operated

2.20.6                  1 - 1 ton caster sample handling tong

2.20.7                  1 - 25 ton caster slab tong

 

3                                         LADLE RELINE EQUIPMENT

 

3.1                               LADLE RELINE EQUIPMENT

 

3.1.1                        3 position ladle reline stands and platforming for all required
ladle reline

3.1.2                        1 - Vertical ladle dryer for initial dryout of ladle refractory
prior to ladle in service and preheat.

 

4
                                      SPARE PARTS

 

Spare Parts as are required to be maintained
pursuant to the Bank One Lease Documentation.

 

18

 

SCHEDULE F

 

APPLICABLE MARGIN

 

To be based on
IPSCO’s ratio of Consolidated Debt:Consolidated EBITDA or on the “Utilization
Rate”, as applicable, as follows:

 

	
  (1)

  Consolidated

  Debt:Consolidated

  EBITDA

  	
   

  	
  (2)

  Floating Rate

  &/or

  USBR

  (bps)

  	
   

  	
  (3)

  BA, Letters &/or

  LIBOR

  (bps)

  	
   

  
	
  <1.0x

  	
   

  	
  25.0

  	
   

  	
  125.00

  	
   

  
	
  > = 1.0, <1.5x

  	
   

  	
  75.0

  	
   

  	
  175.00

  	
   

  
	
  > =1.5, <2.0x

  	
   

  	
  100.0

  	
   

  	
  200.0

  	
   

  
	
  > = 2.0, < 2.5x

  	
   

  	
  125.0

  	
   

  	
  225.0

  	
   

  
	
  > = 2.5, < 3.0x

  	
   

  	
  150.0

  	
   

  	
  250.00

  	
   

  
	
  > = 3.0x

  	
   

  	
  200.0

  	
   

  	
  300.00

  	
   

  

 

	
  Utilization
  Rate

  (% of Total Outstandings/Commitment)

  	
   

  	
  Standby Fee

  	
   

  
	
  <
  = 33%

  	
   

  	
  LIBOR
  Applicable Margin x 0.40

  	
   

  
	
  >
  33%, < = 66%

  	
   

  	
  LIBOR
  Applicable Margin x 0.35

  	
   

  
	
  >
  66%

  	
   

  	
  LIBOR
  Applicable Margin x 0.30

  	
   

  

 

 

SCHEDULE G

 

FORM OF BORROWING NOTICE

 

[Date]

 

	
  The
  Toronto-Dominion Bank, as Agent

  	
   

  
	
  Royal Trust Tower

  	
   

  
	
  77 King Street West, 18th Floor

  	
   

  
	
  Toronto, Ontario M5K 1A2

  	
   

  

 

	
  Attention:

  	
   

  	
  Vice
  President, Loan Syndications – Agency

  
	
  Facsimile:

  	
   

  	
  (416)
  982-5535

  

 

Dear Sirs:

 

The undersigned, [insert name of Borrower]
(the “Borrower”), refers to the Revolving Credit Agreement dated as
of the 19th day of November, 2004 (as amended, supplemented, restated or
replaced from time to time, the “Credit Agreement”), the terms defined therein
being used herein as therein defined,) among IPSCO Inc., IPSCO Saskatchewan
Inc., IPSCO Steel Inc., IPSCO Enterprises Inc., IPSCO Alabama Ltd., IPSCO Steel
(Alabama) Inc., such other Borrowers as become parties thereto from time to
time, The Toronto-Dominion Bank, as agent, JPMorgan Chase Bank, N.A., as
syndication agent, and The Toronto-Dominion Bank, JPMorgan Chase Bank, N.A.,
Toronto Branch, Royal Bank of Canada, Bank of America N.A., by its Canada
Branch, ABN AMRO Bank N.V., Canada Branch, The Bank of Nova Scotia, Bank of
Montreal, Toronto Dominion (Texas) LLC, JPMorgan Chase Bank, N.A., Royal Bank
of Canada, acting through a New York Branch, Bank of America, N.A., ABN AMRO
Bank N.V., Wells Fargo Bank, National Association, The Bank of Nova Scotia, by
its Atlanta Agency, Bank of Montreal, Chicago Branch, and Fifth Third Bank
(Chicago), as lenders, and hereby gives you notice pursuant to Section 3.2
of the Credit Agreement that the Borrower hereby requests a Borrowing under the
Credit Agreement, and in that connection sets forth below the information
relating to such Borrowing (the “Proposed Borrowing”) as required by Section 3.2
of the Credit Agreement:

 

(i)                                     The
Business Day of the Proposed Borrowing is [•], [•].

 

 

(ii)                                  The
aggregate amount of the Proposed Borrowing is [insert
currency, amount].

 

(iii)                               The
Type of Advance is a [Floating Rate Advance] or
[LIBOR Advance]  or [U.S.
Base Rate Advance].

 

(iv)                              The
initial Interest Period for the LIBOR Advance is [•].*

 

The undersigned certifies as follows:

 

(a)                                  the representations and warranties made in Article 7 of the
Credit Agreement, other than those expressly stated to be made as of a specific
date, are true and correct on and as of the date hereof with the same force and
effect as if such representations and warranties had been made on and as of the
date hereof, but subject to the same qualifications as may be contained in Article 7
of the Credit Agreement;

 

(b)                                 No Default or Event of Default has occurred and is continuing on the
date hereof or will result from the Proposed Borrowing requested herein;

 

(c)                                  The undersigned will immediately notify you if it becomes aware of
the occurrence of any event which would mean that the statements in the
immediately preceding paragraphs (a) or (b) would not be true if made
on the date of the Proposed Borrowing;

 

(d)                                 All conditions precedent set out in Section 6.3 [and Section 6.2 and Section 6.4]
of the Credit Agreement have been fulfilled;

 

2

 

*  Omit clause (iv) if the Advance is not a
LIBOR Advance.

 

	
   

  	
  Yours
  truly,

  
	
   

  	
   

  
	
   

  	
  [Insert name of Borrower]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

3

 

SCHEDULE H

 

FORM OF ELECTION NOTICE

 

[Date]

 

	
  The
  Toronto-Dominion Bank, as Agent

  
	
  Royal Trust Tower

  
	
  77 King Street West, 18th Floor

  
	
  Toronto, Ontario M5K 1A2

  

 

	
  Attention:

  	
   

  	
  Vice
  President, Loan Syndications – Agency

  
	
  Facsimile:

  	
   

  	
  (416)
  982-5535

  

 

Dear Sirs:

The undersigned, [insert name of Borrower]
(the “Borrower”), refers to the Revolving Credit Agreement dated as of the 19th
day of November, 2004 (as amended, supplemented, restated or replaced from time
to time, the “Credit Agreement”), the terms defined therein being used herein
as therein defined) among IPSCO Inc., IPSCO Saskatchewan Inc., IPSCO Steel
Inc., IPSCO Enterprises Inc., IPSCO Alabama Ltd., IPSCO Steel (Alabama) Inc.,
such other Borrowers as become parties thereto from time to time, The
Toronto-Dominion Bank, as agent, JPMorgan Chase Bank, N.A., as syndication
agent, and The Toronto-Dominion Bank, JPMorgan Chase Bank, N.A., Toronto
Branch, Royal Bank of Canada, Bank of America N.A., by its Canada Branch, ABN
AMRO Bank N.V., Canada Branch, The Bank of Nova Scotia, Bank of Montreal,
Toronto Dominion (Texas) LLC, JPMorgan Chase Bank, N.A., Royal Bank of Canada,
acting through a New York Branch, Bank of America, N.A., ABN AMRO Bank N.V.,
Wells Fargo Bank, National Association, The Bank of Nova Scotia, by its Atlanta
Agency, Bank of Montreal, Chicago Branch, and Fifth Third Bank (Chicago), as
lenders, and hereby gives you notice pursuant to Section 3.4 of the Credit
Agreement that the Borrower hereby [elects to convert
Advances from one Type to another] or [elects to convert Advances to Bankers’ Acceptances  or BA Equivalent Notes] or [elects an
additional Interest Period for certain  LIBOR
Advances], and in that connection sets forth below the information
relating to such election as required by Section 3.4 of the Credit
Agreement:

 

 

(v)                                 The
Business Day on which the conversion from [one Type of Advance to
another]  [one type of Advance to a
Bankers’ Acceptance or BA  Equivalent Note]
is to be made is [•], [•].*

 

(vi)                              The Type
of Advance to be converted is [insert amount, currency
and  Type of Advance].*

 

(vii)                           The new [Type of Advance] selected is [•].*

 

(viii)                        The initial
Interest Period for the LIBOR Advance is [•].**

 

(ix)                                The
LIBOR Advance which is to be continued as a LIBOR Advance is [specify amount].***

 

(x)                                   The
current Interest Period for such LIBOR Advance expires on [specify
date].***

 

(xi)                                The
additional Interest Period selected for such LIBOR Advance is [•].***

 

The undersigned certifies as follows:

 

(a)                                  the representations and warranties made in Article 7 of the
Credit Agreement, other than those expressly stated to be made as of a specific
date, are true and correct on and as of the date hereof with the same force and
effect as if such representations and warranties had been made on and as of the
date hereof, but subject to the same qualifications as may be contained in Article 7
of the Credit Agreement;

 

(b)                                 No Default or Event of Default has occurred and is continuing on the
date hereof or will result from the Accommodation(s) requested herein;

 

(c)                                  The undersigned will immediately notify you if it becomes aware of
the occurrence of any event which would mean that the statements in the
immediately

 

2

 

preceding paragraphs (a) or (b) would
not be true if made on the date of the proposed Accommodation;

 

(d)                                 All conditions precedent set out in Section 6.3 [and Section 6.2  and Section 6.4] of the Credit
Agreement have been fulfilled;

 

* and **        Omit
clauses (i), (ii), (iii) and (iv) if the election does not involve a
conversion of a Type of Advance.

 

**                   Omit
clause (iv) if the conversion of Type of Advance does not involve a
conversion to a LIBOR Advance.

 

***                Omit
clauses (v), (vi) and (vii) if the election does not involve the
selection of an additional Interest Period for a LIBOR Advance.

	
   

  	
  Yours
  truly,

  
	
   

  	
   

  
	
   

  	
  [Insert name of Borrower]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

3

 

SCHEDULE I

 

FORM OF BA ISSUANCE NOTICE

 

[Date]

 

	
  The
  Toronto-Dominion Bank, as Agent

  
	
  Royal Trust Tower

  
	
  77 King Street West, 18th Floor

  
	
  Toronto, Ontario M5K 1A2

  

 

	
  Attention:

  	
   

  	
  Vice
  President, Loan Syndications – Agency

  
	
  Facsimile:

  	
   

  	
  (416)
  982-5535

  

 

Dear Sirs:

 

The undersigned, [insert name of Canadian
Borrower] (the “Borrower”), refers to the Revolving Credit Agreement
dated as of the 19th day of November, 2004 (as amended, supplemented, restated
or replaced from time to time, the “Credit Agreement”), the terms defined
therein being used herein as therein defined) among IPSCO Inc., IPSCO
Saskatchewan Inc., IPSCO Steel Inc., IPSCO Enterprises Inc., IPSCO Alabama
Ltd., IPSCO Steel (Alabama) Inc., such other Borrowers as become parties
thereto from time to time, The Toronto-Dominion Bank, as agent, JPMorgan Chase
Bank, N.A., as syndication agent, and The Toronto-Dominion Bank, JPMorgan Chase
Bank, N.A., Toronto Branch, Royal Bank of Canada, Bank of America N.A., by its
Canada Branch, ABN AMRO Bank N.V., Canada Branch, The Bank of Nova Scotia, Bank
of Montreal, Toronto Dominion (Texas) LLC, JPMorgan Chase Bank, N.A., Royal
Bank of Canada, acting through a New York Branch, Bank of America, N.A., ABN
AMRO Bank N.V., Wells Fargo Bank, National Association, The Bank of Nova
Scotia, by its Atlanta Agency, Bank of Montreal, Chicago Branch, and Fifth
Third Bank (Chicago), as lenders, and hereby gives you notice pursuant to Section 4.2
of the Credit Agreement that the Borrower hereby requests a BA Issuance under
the Credit Agreement, and in that connection sets forth below the information
relating to such BA Issuance (the “Proposed BA Issuance”) as required by Section 4.2
of the Credit Agreement:

 

(i)                                     The
Business Day of the Proposed BA Issuance is [•], [•].

 

(ii)                                  The
aggregate Face Amount of Drafts to be accepted is [insert
amount in  Canadian Dollars].

 

 

(iii)                               The
contract maturity date for such Drafts is (  
) days.

 

(iv)                              The
serial numbers of the Drafts to be accepted are [•].*

 

(v)                                 The
name(s) of the purchaser(s) of such Drafts is (are) [•].*

 

(vi)                              The
proceeds to be received by the Borrower for such Drafts is [•].*

 

The undersigned certifies as follows:

 

(a)                                  the representations and warranties made in Article 7 of the
Credit Agreement, other than those expressly stated to be made as of a specific
date, are true and correct on and as of the date hereof with the same force and
effect as if such representations and warranties had been made on and as of the
date hereof, but subject to the same qualifications as may be contained in Article 7
of the Credit Agreement;

 

(b)                                 No Default or Event of Default has occurred and is continuing on the
date hereof or will result from the Proposed BA Issuance requested herein;

 

(c)                                  The undersigned will immediately notify you if it becomes aware of
the occurrence of any event which would mean that the statements in the
immediately preceding paragraphs (a) or (b) would not be true if made
on the date of the Proposed BA Issuance;

 

(d)                                 All conditions precedent set out in Section 6.3 [and Section 6.2  and Section 6.4] of the Credit
Agreement have been fulfilled;

 

*                                         Omit clauses (iv), (v) and (vi) if the Lender is
purchasing the Bankers’ Acceptances.

 

	
   

  	
  Yours
  truly,

  
	
   

  	
   

  
	
   

  	
  [Insert name of Canadian Borrower]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

2

 

SCHEDULE J

 

FORM OF ISSUE NOTICE

 

[Date]

 

	
  The
  Toronto-Dominion Bank, as Agent

  
	
  Royal Trust Tower

  
	
  77 King Street West, 18th Floor

  
	
  Toronto, Ontario M5K 1A2

  

 

	
  Attention:

  	
   

  	
  Vice
  President, Loan Syndications – Agency

  
	
  Facsimile:

  	
   

  	
  (416)
  982-5535

  

 

Dear Sirs:

 

The undersigned, [insert name of Borrower]
(the “Borrower”), refers to the Revolving Credit Agreement dated as of the 19th
day of November, 2004 (as amended, supplemented, restated or replaced from time
to time, the “Credit Agreement”), the terms defined therein being used herein
as therein defined, among IPSCO Inc., IPSCO Saskatchewan Inc., IPSCO Steel
Inc., IPSCO Enterprises Inc., IPSCO Alabama Ltd., IPSCO Steel (Alabama) Inc.,
such other Borrowers as become parties thereto from time to time, The Toronto
Dominion Bank, as agent, JPMorgan Chase Bank, N.A., as syndication agent, and
the Toronto-Dominion Bank, JPMorgan Chase Bank, N.A., Toronto Branch, Royal
Bank of Canada, Bank of America N.A., by its Canada Branch, ABN AMRO Bank N.V.,
Canada Branch, The Bank of Nova Scotia, Bank of Montreal, Toronto Dominion
(Texas) LLC, JPMorgan Chase Bank, N.A., Royal Bank of Canada, acting through a
New York Branch, Bank of America, N.A., ABN AMRO Bank N.V., Wells Fargo Bank,
National Association, The Bank of Nova Scotia, by its Atlanta Agency, Bank of
Montreal, Chicago Branch, and Fifth Third Bank (Chicago), as lenders, and
hereby gives you notice pursuant to Section 5.2 of the Credit Agreement
that the Borrower hereby requests an Issue under the Credit Agreement, and in
that connection sets forth below the information relating to such Issue (the “Proposed
Issue”) as required by Section 5.2 of the Credit Agreement:

 

(i)                                     The
Business Day of the Proposed Issue is [•], 20[•].

 

(ii)                                  The
Type of Letter is [•].

 

 

(iii)                               The
aggregate Face Amount and currency of the Letter is [insert
amount and currency].

 

(iv)                              The
expiration date of the Letter is [•].

 

(v)                                 The
name and address of the Beneficiary of the Letter is [•].

 

(vi)                              The
purpose of the Letter is [•].

 

The undersigned certifies as follows:

 

(a)                                  the representations and warranties made in Article 7 of the
Credit Agreement, other than those expressly stated to be made as of a specific
date, are true and correct on and as of the date hereof with the same force and
effect as if such representations and warranties had been made on and as of the
date hereof, but subject to the same qualifications as may be contained in Article 7
of the Credit Agreement;

 

(b)                                 No Default or Event of Default has occurred and is continuing on the
date hereof or will result from the Proposed Issue requested herein;

 

(c)                                  The undersigned will immediately notify you if it becomes aware of
the occurrence of any event which would mean that the statements in the
immediately preceding paragraphs (a) or (b) would not be true if made
on the date of the Proposed Issue;

 

(d)                                 All conditions precedent set out in Section 6.3 [and Section 6.2  and Section 6.4] of the Credit
Agreement have been fulfilled;

	
   

  	
  Yours
  Truly,

  
	
   

  	
   

  
	
   

  	
  [Insert name of Borrower]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

2

 

SCHEDULE K

 

ADDRESSES FOR NOTICE

 

	
  AGENT

  	
   

  	
  SYNDICATION AGENT

  
	
   

  	
   

  	
   

  
	
  To:  The Toronto-Dominion Bank

  	
   

  	
  To:  JPMorgan Chase Bank, N.A.

  
	
  Royal Trust
  Tower

  	
   

  	
  BCE Place

  
	
  77 King Street
  West, 18th Floor

  	
   

  	
  161 Bay Street

  
	
  Toronto,
  Ontario M5K 1A2

  	
   

  	
  Suite 4240

  
	
   

  	
   

  	
  P.O. Box 613

  
	
  Attention:                 Wayne M. Shiplo

  	
   

  	
  Toronto, Ontario M5J 2S1

  
	
  Vice President, Loan

  	
   

  	
   

  
	
  Syndications – Agency

  	
   

  	
  Attention:                 Jeffrey S. Coleman

  
	
  Facsimile:                    (416) 982-5535

  	
   

  	
  Fax No.:                             (416) 363-7574

  
	
   

  	
   

  	
   

  
	
  And
  in the case of Borrowing Notices issued in respect of Accommodations to be
  made to U.S. Borrowers, to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Toronto Dominion (Texas) LLC

  	
   

  	
   

  
	
  c/o The Toronto-Dominion Bank

  	
   

  	
   

  
	
  77 King Street West, 18th Floor

  	
   

  	
   

  
	
  Toronto, Ontario M5K 1A2

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:                 Wayne M. Shiplo

  	
   

  	
   

  
	
  Vice-President, Loans

  	
   

  	
   

  
	
  Syndications – Agency

  	
   

  	
   

  
	
  Fax No.                                (416) 982-5535

  	
   

  	
   

  

 

	
  CANADIAN LENDERS

  	
   

  	
  U.S. LENDERS OR AFFILIATES

  
	
   

  	
   

  	
   

  
	
  To:  The Toronto-Dominion Bank

  	
   

  	
  To:  Toronto Dominion (Texas) LLC

  
	
  Investment
  Banking – Corporate Credit

  	
   

  	
  c/o  The
  Toronto-Dominion Bank

  
	
  66 Wellington Street West

  	
   

  	
  The Toronto-Dominion Bank Tower

  
	
  T.D. Tower, 8th Floor

  	
   

  	
  66 Wellington Street West, 8th Floor

  
	
  Toronto, Ontario M5K 1A2

  	
   

  	
  Toronto, Ontario M5K 1A2

  
	
   

  	
   

  	
   

  
	
  Attention:                 Gary Nevison

  	
   

  	
  Attention:                 Gary Nevison

  
	
  Vice-President, Corporate Credit

  	
   

  	
  Vice-President, Corporate Credit

  
	
  Fax No.:                             (416) 944-5630

  	
   

  	
  Fax No.:                             (416) 944-5630

  

 

 

	
  CANADIAN LENDERS

  	
   

  	
  U.S. LENDERS OR AFFILIATES

  
	
   

  	
   

  	
   

  
	
  To:  JPMorgan
  Chase Bank, N.A.,

  	
   

  	
  To:  JPMorgan Chase Bank, N.A.

  
	
  Toronto Branch

  	
   

  	
  Mail Code IL1-0556

  
	
  BCE Place, 161
  Bay Street

  	
   

  	
  1 Bank One Plaza

  
	
  Suite 4240,
  P.O. Box 613

  	
   

  	
  Chicago, Illinois 60670

  
	
  Toronto,
  Ontario M5J 2S1

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:                 Teresita Siao

  
	
  Attention:                 Jeffrey S. Coleman

  	
   

  	
  Fax No.:                             (312) 385-7097

  
	
  Fax No.:                             (416) 363-7574

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To:  Royal Bank of Canada

  	
   

  	
  To:  Royal Bank of
  Canada, acting through a 

  
	
  Corporate Credit

  	
   

  	
  New York Branch

  
	
  200 Bay Street, Royal Bank Plaza

  	
   

  	
  One Liberty
  Plaza, 4th Floor

  
	
  5th Floor, South Tower

  	
   

  	
  New York, New
  York

  
	
  Toronto, Ontario M5J 2W7

  	
   

  	
  10006-1404

  
	
   

  	
   

  	
   

  
	
  Attention:                 Mark Beck

  	
   

  	
  Attention:                 Nigel Delph

  
	
  Fax:                                                   (416) 842-5321

  	
   

  	
  Fax No.:                             (212) 428-2319

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To:  Bank of America, N.A., Canada Branch

  	
   

  	
  To:  Bank of
  America, N.A.

  
	
  200 Front Street, West, 27th Floor

  	
   

  	
  231 South
  LaSalle Street

  
	
  Toronto, Ontario

  	
   

  	
  Mail Code IL 1-231-10-10

  
	
  M5V 3L2

  	
   

  	
  Chicago, IL
  60604

  
	
   

  	
   

  	
   

  
	
  Attention:                 Nelson Lam

  	
   

  	
  Attention:                 Sharon Burks Horos/Brian

  
	
  Fax:                                                   (416) 349-4282

  	
   

  	
  Lukehart

  
	
   

  	
   

  	
  Fax No.:                             (312) 828-6269

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
   

  
	
  231 South
  LaSalle Street

  	
   

  	
   

  
	
  Mail Code IL 1-231-10-10

  	
   

  	
   

  
	
  Chicago, IL
  60604

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:                 Sharon Burks Horos/Brian

  	
   

  	
   

  
	
  Lukehart

  	
   

  	
   

  
	
  Fax No.:                             (312) 828-6269

  	
   

  	
   

  

 

2

 

	
  CANADIAN LENDERS

  	
   

  	
  U.S. LENDERS OR
  AFFILIATES

  
	
   

  	
   

  	
   

  
	
  To:  ABN AMRO Bank N.V.,

  	
   

  	
  To:  ABN AMRO Bank
  N.V.

  
	
  Canada Branch

  	
   

  	
  540 West Madison Street

  
	
  15th Floor, TD Waterhouse Tower

  	
   

  	
  26th Floor

  
	
  79 Wellington Street West

  	
   

  	
  Chicago, Illinois 60661

  
	
  Toronto, Ontario M5K 1G8

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:                 Melanie Dziobas

  
	
   

  	
   

  	
  Fax No.:                             (312) 992-5111

  
	
  Attention:                 Lawrence J.
  Maloney/Yvon 

  	
   

  	
   

  
	
  Jeghers

  	
   

  	
   

  
	
  Fax:                                                   (416) 367-7937

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To:  The Bank of Nova Scotia

  	
   

  	
  To:  Wells Fargo
  Bank, National Association

  
	
  Corporate Banking – Industrial Products

  	
   

  	
  230 West Monroe

  
	
  40 King Street West, 62nd Floor

  	
   

  	
  Suite 2900

  
	
  Toronto, Ontario M5W 2X6

  	
   

  	
  Chicago, IL 60606

  
	
   

  	
   

  	
   

  
	
  Attention:                 Managing Director and Industry 

  	
   

  	
  Attention:                 Charles Reed/Thiplada Siddiqui

  
	
  Head

  	
   

  	
  Fax No.:                             (312) 553-4783

  
	
  Fax:                                                   (416) 866-2010

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To:  Bank of Montreal

  	
   

  	
  To:  The Bank of
  Nova Scotia, by its Atlanta 

  
	
  Investment & Corporate Banking

  	
   

  	
  Agency

  
	
  1 First Canadian Place, 4th Floor

  	
   

  	
  600 Peachtree Street N.E., Suite 2700

  
	
  Toronto, Ontario M5X 1H3

  	
   

  	
  Atlanta, Georgia 30308

  
	
   

  	
   

  	
   

  
	
  Attention:                 Sean Gallaway/Michael Johnson

  	
   

  	
  Attention:                 Managing Director

  
	
  Fax:                                                   (416) 359-7796

  	
   

  	
  Fax No.:                             (404) 888-8995

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To:  Bank of
  Montreal, Chicago Branch

  
	
   

  	
   

  	
  115 South LaSalle Street, 12th
  Floor

  
	
   

  	
   

  	
  Chicago, Illinois 60603

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:                 Bruce Pietka

  
	
   

  	
   

  	
  Fax No.:                             (312) 750-6057

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To:  Fifth Third
  Bank (Chicago)

  
	
   

  	
   

  	
  International Finance Dept.

  
	
   

  	
   

  	
  1701 Golf Road, Tower 1

  
	
   

  	
   

  	
  Suite 700, MD GRLM7C

  
	
   

  	
   

  	
  Rolling Meadows, Illinois 60008

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:                 Todd Ritz/Lynn Durning

  
	
   

  	
   

  	
  Fax No.:                             (847) 354-7130

  

 

3

 

	
  BORROWER

  
	
   

  
	
  To:  IPSCO  Inc.

  
	
  c/o IPSCO Enterprises Inc.

  
	
  650 Warrenville Road, Suite 500

  
	
  Lisle, IL 60532

  
	
   

  
	
  Attention:                 Treasurer

  
	
  Fax No.:                             (630) 810-4606

  
	
   

  
	
  To:  IPSCO Saskatchewan Inc.

  
	
  c/o IPSCO Enterprises Inc.

  
	
  650 Warrenville Road, Suite 500

  
	
  Lisle, IL 60532

  
	
   

  
	
  Attention:                 Treasurer

  
	
  Fax No.:                             (630) 810-4606

  
	
   

  
	
  To:  IPSCO Steel Inc.

  
	
  c/o IPSCO Enterprises Inc.

  
	
  650 Warrenville Road, Suite 500

  
	
  Lisle, IL 60532

  
	
   

  
	
   

  
	
  Attention:                 Treasurer

  
	
  Fax No.:                             (630) 810-4606

  
	
   

  
	
  To:  IPSCO Enterprises Inc.

  
	
  c/o IPSCO Enterprises Inc.

  
	
  650 Warrenville Road, Suite 500

  
	
  Lisle, IL 60532

  
	
   

  
	
  Attention:                 Treasurer

  
	
  Fax No.:                             (630) 810-4606

  
	
   

  
	
  To:  IPSCO Alabama Ltd.

  
	
  c/o IPSCO Enterprises Inc.

  
	
  650 Warrenville Road, Suite 500

  
	
  Lisle, IL60532

  
	
   

  
	
  Attention:                 Treasurer

  
	
  Fax No.:                             (630) 810-4606

  
	
   

  
	
  To:  IPSCO Steel (Alabama) Inc.

  
	
  c/o IPSCO Enterprises Inc.

  
	
  650 Warrenville Road, Suite 500

  
	
  Lisle, IL 60532

  
	
   

  
	
  Attention:                 Treasurer

  
	
  Fax No.:                             (630) 810-4606

  

 

4

 

	
  BORROWER

  	
   

  
	
   

  
	
  with a copy:

  
	
   

  
	
  To:  IPSCO Enterprises Inc., Legal Department

  
	
  650 Warrenville Road, Suite 500

  
	
  Lisle, IL 60532

  
	
   

  
	
  Attention:                 General Counsel

  
	
  Fax No.:                             (630) 810-4602

  

 

5

 

SCHEDULE L

 

FORM OF COMPLIANCE CERTIFICATE

 

	
  TO:

  	
   

  	
  The
  Toronto-Dominion Bank, as Agent

  
	
   

  	
   

  	
  Royal Trust Tower

  
	
   

  	
   

  	
  77 King Street West, 18th Floor

  
	
   

  	
   

  	
  Toronto, Ontario M5K 1A2

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:                                         Vice President, Loan Syndications – Agency

  
	
   

  	
   

  	
  Facsimile:                                            (416) 982-5535

  

 

Reference is made to a revolving credit agreement dated as of the 19th
day of November, 2004 (as amended, supplemented, restated or replaced from time
to time, the “Credit Agreement”) among IPSCO Inc., IPSCO Saskatchewan Inc.,
IPSCO Steel Inc., IPSCO Enterprises Inc., IPSCO Alabama Ltd., IPSCO Steel
(Alabama) Inc., such other Borrowers as become parties thereto from time to
time, The Toronto-Dominion Bank, as agent, JPMorgan Chase Bank, N.A., as
syndication agent, and The Toronto-Dominion Bank, JPMorgan Chase Bank, N.A.,
Toronto Branch, Royal Bank of Canada, Bank of America N.A., by its Canada
Branch, ABN AMRO Bank N.V., Canada Branch, The Bank of Nova Scotia, Bank of
Montreal, Toronto Dominion (Texas) LLC, JPMorgan Chase Bank, N.A., Royal Bank
of Canada, acting through a New York Branch, Bank of America, N.A., ABN AMRO
Bank N.V., Wells Fargo Bank, National Association, The Bank of Nova Scotia, by
its Atlanta Agency, Bank of Montreal, Chicago Branch, and Fifth Third Bank
(Chicago) as lenders.  Capitalized terms
herein shall, unless otherwise defined, have the meanings ascribed thereto in
the Credit Agreement.

 

I,                            ,
the Chief Financial Officer of IPSCO Inc. (“IPSCO”), in such capacity and not
personally, hereby certify that:

 

1.                                       I am the duly appointed Chief Financial Officer of IPSCO and as such
I am providing this certificate for and on behalf of the Borrowers pursuant to
the Credit Agreement.

 

2.                                       I am familiar with and have examined the provisions of the Credit
Agreement including, without limitation, those of Article 7, Article 8
and Article 9 therein.

 

 

3.                                       To the best of my knowledge, information and belief, and after due
inquiry, no Default or Event of Default has occurred and is continuing as at
the date hereof.

 

4.                                       For the Financial Quarter ending [•], [•] the amounts and financial ratios referred
to in Section 8.3 of the Credit Agreement are as follows:

 

	
   

  	
   

  	
   

  	
   

  	
  Actual Amount

  	
   

  	
  Required Amount or Limit

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Consolidated
  Current Assets to Consolidated Current Liabilities

  	
   

  	
  [•]:1

  	
   

  	
  1.0:1

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Consolidated
  Debt (less unrestricted cash and Cash Equivalents) to Consolidated Total
  Capitalization

  	
   

  	
  [•]:1

  	
   

  	
  [•]:1

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Consolidated
  Tangible Net Worth

  	
   

  	
  U.S. $[•]

  	
   

  	
  U.S.
  $750,000.000 plus 50% of cumulative Consolidated Net Income and 75% of Net
  Available Equity Issuance Proceeds, in each case for the period from July 1,
  2004 to the last day of the completed Financial Quarter in respect of which
  this Compliance Certificate is being delivered.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Consolidated
  Free Cash Flow to Consolidated Fixed Charges

  	
   

  	
  [•]:1

  	
   

  	
  [•]:1

  

 

5.                                       For the Financial Quarter ending [•], [•], the ratio of Consolidated Debt to
Consolidated EBITDA is [•] and the Applicable Margin is as follows:

 

(a)                                  For the Standby Fee, [•];

 

(b)                                 For
the BA Stamping Fee Rate or Issue Fee, [•];

 

(c)                                  For
the U.S. Base Rate and Floating Rate, [•]; and

 

(d)                                 For
the LIBOR Rate, [•].

 

2

 

6.                                       As at [•], [•], the Tangible Assets of the Borrowers and
the Guarantors which are Wholly-Owned Subsidiaries is $[•] and comprise [•]% of the
Consolidated Tangible Assets of IPSCO Consolidated.  The required percentage amount of such
Tangible Assets of the Borrowers and the Guarantors which are Wholly-Owned
Subsidiaries is at least 90% of the Consolidated Tangible Assets of IPSCO
Consolidated.

 

7.                                       For the 12 month period ending [•], [•], the Revenue of the Borrowers and the
Guarantors that are Wholly-Owned Subsidiaries is $[•] and comprises
[•]% of the Consolidated Revenue of IPSCO Consolidated.  The required amount of such Revenue of the
Borrowers and Guarantors which are Wholly-Owned Subsidiaries is at least 90% of
the Consolidated Revenue of IPSCO Consolidated.

 

8.                                       The aggregate amount of unrestricted cash and Cash Equivalents for
IPSCO Consolidated for the Financial Quarter ending [•], [•] was $[•].

 

9.                                       The aggregate amount of Dispositions of Assets not otherwise
permitted under Section 8.2(2)(a), (b) or (d) for (a) the
last four Financial Quarters ending [•], [•] was $[•] and does not exceed U.S.$285,000,000; and (b) the period
commencing on the date of the Credit Agreement until and including the last day
of the Financial Quarter ending [•], [•] was $[•] and does not exceed U.S.$475,000,000.

 

10.                                 The aggregate fair market value of the Assets of the Borrowers and
their Subsidiaries subject to all outstanding Non-Capitalized Leases and the aggregate
lease commitments in respect of real property leases and office leases for the
purposes of Section 8.2(5)(b) of the Credit Agreement is $[•] and does not
exceed U.S.$60,000,000; and the aggregate level of lease payments to be made in
the current calendar year in respect of all Non-Capitalized Lease Obligations
(including in respect of the Bank One Lease Obligation) referred to in Section 8.2(5)(c) of
the Credit Agreement is $[•] and does not exceed U.S.$30,000,000.

 

11.                                 The aggregate amount of Investments not otherwise permitted under Section 8.2(13)(a) or
(b) for (a) the last four Financial Quarters ending [•], [•] was U.S.$[•] and does not
exceed U.S.$285,000,000; and (b) the period commencing on the date of the
Credit

 

3

 

Agreement until and including the last day of the
Financial Quarter ending [•], [•] was $[•] and does not exceed U.S.$475,000,000.

 

12.                                 For the current calendar year, the aggregate amount of capital
expenditures is $[•] and does not exceed U.S.$190,000,000.

 

13.                                 Appendix A attached sets out in detail the calculations of the
ratios and other amounts referred to above and all component parts thereof.

 

14.                                 For the Financial Quarter ending [•], [•], the
Bank One Lease Obligation is $[•].

 

15.                                 For the Financial Quarter ending [•], [•], the Material Subsidiaries are as
follows:  [•].

 

DATED this                      day
of                                   ,
         .

 

	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Name
  – please print)

  
	
   

  	
  Chief
  Financial Officer

  

 

4

 

SCHEDULE M

 

FORM OF RELEASE AGREEMENT

 

THIS
AGREEMENT made the [•] day of •, 200[•].

 

TO:                                                                            The Toronto-Dominion Bank, as Agent (the “Agent”)

 

AND TO:                                             JPMorgan Chase Bank, N.A., as syndication agent (the “Syndication
Agent”)

 

AND TO:                                             The Toronto-Dominion Bank, JPMorgan Chase Bank, N.A., Toronto
Branch, Royal Bank of Canada, Bank of America N.A., by its Canada Branch, ABN
AMRO Bank N.V., Canada Branch, The Bank of Nova Scotia, Bank of Montreal,
Toronto Dominion (Texas) LLC, JPMorgan Chase Bank, N.A., Royal Bank of Canada,
acting through a New York Branch, Bank of America, N.A., ABN AMRO Bank N.V.,
Wells Fargo Bank, National Association, The Bank of Nova Scotia, by its Atlanta
Agency, Bank of Montreal, Chicago Branch, and Fifth Third Bank (Chicago) (the “Lenders”)

 

WHEREAS IPSCO Inc. (“IPSCO”), IPSCO Saskatchewan Inc., IPSCO Steel Inc.,
IPSCO Enterprises Inc., IPSCO Alabama Ltd., IPSCO Steel (Alabama) Inc., the
Agent, the Syndication Agent and the Lenders entered into a Revolving Credit
Agreement dated as of the 19th day of November, 2004 (as amended, supplemented,
restated or replaced from time to time, the “Revolving Credit Agreement”);

 

AND
WHEREAS the Revolving Credit Agreement
contemplates that direct or indirect Wholly-Owned Subsidiaries of IPSCO
qualifying for Accommodations pursuant to the Revolving Credit Agreement may
execute and deliver an Assumption Agreement pursuant to which such Person
assumes all rights, obligations and liabilities of a Borrower under the
Revolving Credit Agreement;

 

AND
WHEREAS the Revolving Credit Agreement
contemplates that such a Borrower may cease to be a Borrower upon the execution
and delivery of a release agreement;

 

AND
WHEREAS the undersigned is such a Borrower
and is desirous of ceasing to be a Borrower;

 

 

NOW
THEREFORE THIS AGREEMENT WITNESSETH that in
consideration of the covenants herein contained and the mutual covenants
contained in the Revolving Credit Agreement, the undersigned hereby agrees as
follows:

 

1.                                                                                       Definitions.  In this Agreement, unless otherwise provided,
all capitalized terms shall have the meanings ascribed thereto in the Revolving
Credit Agreement.

 

2.                                                                                       Certification of Borrower.  The undersigned hereby
represents and warrants that:

 

(i)             to
the best of its knowledge, information and belief, after due enquiry, no
Default or Event of Default has occurred and is continuing as at the date
hereof; and

 

(ii)          all
amounts owing by the undersigned pursuant to the terms of the Revolving Credit
Agreement have been paid in full.

 

3.                                                                                       Release of Agent, Syndication Agent and
Lenders. 
The undersigned hereby remises and releases and forever discharges the
Agent, the Syndication Agent and the Lenders of and from any and all Claims
whatsoever which it now has or hereafter can, shall or may have for or by
reason of or arising out of or in connection with the Revolving Credit
Agreement or any of the other Credit Documents.

 

4.                                                                                       Successors and Assigns.  The terms of this Agreement
shall be binding upon the undersigned and its successors and assigns and shall
enure to the benefit of the Agent, the Lenders, the Syndication Agent, the
undersigned and their respective successors and permitted assigns.

 

5.                                                                                       Governing Law.  This Agreement shall be governed by and
construed in accordance with the Laws of the Province of Ontario and the Laws
of Canada applicable therein.

 

2

 

IN
WITNESS WHEREOF this Agreement has been duly
executed.

 

	
   

  	
  •

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Per: 

  	
   

  
	
   

  	
   

  	
  Authorized Signing Officer

  

 

3

 

SCHEDULE N

 

PROCEEDINGS

 

 

SCHEDULE O

 

NON-QUALIFIED PLANS

 

IPSCO and/or the ERISA Companies maintain
non-qualified plans for certain current and former executives.  These plans are “unfunded” under the U.S.
Internal Revenue Code.  However, IPSCO
maintains assets in the IPSCO Enterprises Inc. Executive Compensation Trust
Agreement (a so-called “Rabbi Trust”) in order to offset some or all of the
benefit liabilities under these non-qualified plans.  As of December 31, 2003, the benefit
liabilities exceeded the current value of allocable assets held by the Rabbi
Trust by approximately U.S. $947,000.

 

 

SCHEDULE P

 

BANK ONE LEASE OBLIGATION

 

	
  PERIOD

  	
   

  	
  BANK ONE LEASE
  OBLIGATION

  
	
  To
  and including December 31, 2003

  	
   

  	
  U.S. $131,387,480.00

  
	
  From January 1,
  2004 to and including June 30, 2004

  	
   

  	
  U.S. $123,747,540.00

  
	
  From July 1,
  2004 to and including December 31, 2004

  	
   

  	
  U.S. $124,418,930.00

  
	
  From January 1,
  2005 to and including June 30, 2005

  	
   

  	
  U.S. $119,829,540.00

  
	
  From July 1,
  2005 to and including December 31, 2005

  	
   

  	
  U.S. $120,597,810.00

  
	
  From January 1,
  2006 to and including June 30, 2006

  	
   

  	
  U.S. $115,607,260.00

  
	
  From July 1,
  2006 to and including December 31, 2006

  	
   

  	
  U.S. $116,484,070.00

  
	
  From January 1,
  2007 to and including June 30, 2007

  	
   

  	
  U.S. $109,306,080.00

  
	
  From July 1,
  2007 to and including December 31, 2007*

  	
   

  	
  U.S. $110,320,680.00

  

 

*First buy out
option is for U.S. $119,145,488.30 on October 13, 2007.

 

 

 

SCHEDULE Q

 

RESTRICTIVE AGREEMENTS

 

(Reference is made to Section 8.2(7) of
Credit Agreement)

 

1.                                       Separate note purchase agreements each dated as of April 1,
1994 made between IPSCO Inc. and the purchasers thereunder, providing for the
issuance of U.S. $100,000,000 principal amount of 6.94% Series A Senior
Notes Due April 1, 2004 and $100,000,000 principal amount of 7.32% Series B
Senior Notes due April 1, 2009, as amended.

 

2.                                       Trust Indenture dated as of October 10, 1996 made between IPSCO
Inc. and Montreal Trust Company, providing for the issuance of Cdn. $100,000,000
principal amount of 7.80% Debentures due 1 December, 2006.

 

3.                                       Loan Agreement dated as of June 1, 1997 made between IPSCO Inc.
and Iowa Finance Authority relating to U.S. $14,715,000 Solid Waste Disposal
Bonds, Series 1997.

 

4.                                       Bond Guaranty Agreement November 1, 1999 made by IPSCO Inc. in
favour of Norwest Bank Minnesota, National Association, as trustee pertaining
to U.S. $28,000,000 principal amount of City of Blythville, Arkansas Taxable
Industrial Development Revenue Bonds (IPSCO Enterprises Inc. Project) Series 1999.

 

5.                                       Loan Agreement dated as of May 1, 2000 made between IPSCO Inc.
and The Mobile County Industrial Development Authority relating to U.S.
$10,000,000 principal amount of The Mobile County Industrial Development
Authority Industrial Development Revenue Bonds (IPSCO Inc. Project) Series 2000.

 

6.                                       Note Agreement dated as of December 10, 1998 made between IPSCO
Saskatchewan Inc. and The Teachers’ Retirement System of Alabama, The Employees’
Retirement System of Alabama and The Judicial Retirement Fund providing for the
issuance of U.S. $100,000,000 principal amount of Incremental Rate Junior
Subordinated Notes due December 31, 2038 and Guarantee dated December 10,
1998 made by IPSCO Inc. in respect of such notes.

 

7.                                       Indenture dated as of June 18, 2003 between IPSCO Inc., the
guarantor parties thereto and Wells Fargo Bank Minnesota, N.A. providing for
the issuance of U.S. $200,000,000 8.75% Senior Notes due 2013.

 

 

SCHEDULE R

 

FORM OF ASSIGNMENT AGREEMENT

 

[see reference in Section 11.8]

 

This assignment agreement (the “Assignment Agreement”) is dated as of
the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”)
and [Insert name of Assignee] (the
“Assignee”).  Capitalized terms used but
not defined herein shall have the meanings given to them in the Credit
Agreement identified below, receipt of a copy of which is hereby acknowledged
by the Assignee.  The Standard Terms and
Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment Agreement
as if set forth herein in full.

 

For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Agent as contemplated below (i) all of the Assignor’s rights and
obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the Credit Facility
(including any Letters and Bankers’ Acceptances) and (ii) to the extent
permitted to be assigned under applicable law, all claims, suits, causes of
action and any other right of the Assignor (in its capacity as a Lender) against
any Person, whether known or unknown, arising under or in connection with the
Credit Agreement, any other documents or instruments delivered pursuant thereto
or the credit transactions governed thereby or in any way based on or related
to any of the foregoing, including contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity related to
the rights and obligations sold and assigned pursuant to clause (i) above
(the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above
being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment Agreement,
without representation or warranty by the Assignor.

 

 

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [and is an Affiliate/Approved Fund of [identify Lender] ]

  

 

3.                                       Credit Agreement:       The
Revolving Credit Agreement dated as of November 19th, 2004 among IPSCO
Inc., IPSCO Saskatchewan Inc., IPSCO Steel Inc., IPSCO Enterprises Inc., IPSCO
Alabama Ltd., IPSCO Steel (Alabama) Inc., such other borrowers as become
parties thereto from time to time, The Toronto-Dominion Bank, as Agent,
JPMorgan Chase Bank, N.A., as Syndication Agent, and The Toronto-Dominion Bank,
JPMorgan Chase Bank, N.A., Toronto Branch, Royal Bank of Canada, Bank of
America N.A., by its Canada Branch, ABN AMRO Bank N.V., Canada Branch, The Bank
of Nova Scotia, Bank of Montreal, Toronto Dominion (Texas) LLC, JPMorgan Chase
Bank, N.A. Royal Bank of Canada, acting through a New York Branch, Bank of
America, N.A., ABN AMRO Bank N.V., Wells Fargo Bank, National Association, The
Bank of Nova Scotia, by its Atlanta Agency, Bank of Montreal, Chicago Branch,
and Fifth Third Bank (Chicago), as Lenders, as the same may be amended,
supplemented, restated or replaced from time to time.

 

4.                                       Assigned Interest:

 

	
  Aggregate Amount of

  Commitment for all Lenders

  	
   

  	
  Amount of Commitment

  Assigned

  	
   

  	
  Assigned Pro Rata Share of

  Commitment(1)

  	
   

  
	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  	
   

  
									

 

Effective
Date:                         ,
20      [TO BE
INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF
ASSIGNMENT IN THE REGISTER THEREFOR.]

 

The terms set
forth in this Assignment Agreement are hereby agreed to:

 

(1) Set
forth, to at least 9 decimals, as a percentage of the Commitments of all
Lenders thereunder.

 

2

 

	
   

  	
  ASSIGNOR 

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  Per:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

	
  Consented
  to and Accepted:

  
	
   

  
	
  [NAME OF AGENT], as
  Agent

  
	
   

  
	
   

  
	
  By

  	
   

  	
   

  
	
  Title:

  
	
   

  
	
   

  
	
  [NAME OF ISSUING LENDER],
  as Issuing Lender

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Title:

  

 

3

 

	
  Consented
  to:(2)

  
	
   

  
	
  IPSCO INC.

  
	
   

  
	
   

  
	
  By

  	
   

  	
   

  
	
  Title:

  

 

(2) To be
added only if the consent of IPSCO is required by the terms of the Credit
Agreement.

 

4

 

ANNEX 1

 

[                        ](3)

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AGREEMENT

 

(1)                                  Representations and Warranties.

 

(a)                                  Assignor.  The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment Agreement and to consummate
the transactions contemplated hereby; and (b) assumes no responsibility
with respect to (i) any statements, warranties or representations made in
or in connection with the Credit Agreement or any other Credit Document, (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Credit Documents or any collateral thereunder, (iii) the
financial condition of the Borrowers, any of their Subsidiaries or Affiliates
or any other Person obligated in respect of any Credit Document or (iv) the
performance or observance by the Borrowers, any of their Subsidiaries or
Affiliates or any other Person of any of their respective obligations under any
Credit Document.

 

(b)                                 Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment Agreement and to consummate
the transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it satisfies the requirements, if any, specified in the
Credit Agreement that are required to be satisfied by it in order to acquire
the Assigned Interest and become a Lender, (iii) from and after the
Effective Date, it shall be bound by the provisions of the Credit

 

(3) Describe
Credit Agreement at option of Agent.

 

 

Agreement as a Lender thereunder and, to
the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 8.1(1) thereof,
as applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment Agreement and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance
on the Agent or any other Lender, and (b) agrees that (i) it will,
independently and without reliance on the Agent, the Assignor or any other
Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Credit Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Credit Documents are required to be performed by it as a Lender.

 

(2)                                  Payments.    From and after the Effective Date, the
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding the Effective Date and to the
Assignee for amounts which have accrued from and after the Effective Date.

 

(3)                                  General Provisions.  This Assignment shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns.  This
Assignment Agreement may be executed in any number of counterparts, which
together shall constitute one instrument. 
Delivery of an executed counterpart of a signature page of this
Assignment Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Assignment Agreement.  This Assignment Agreement shall be governed
by, and construed in accordance with, the laws of the Province of Ontario,
Canada.

 

2

 

SCHEDULE S

 

EXISTING LETTERS OF CREDIT/LETTERS OF
GUARANTEE

 

I.                                         Letters Issued on behalf of Canadian Borrowers

 

	
  L/C

  Number

  	
   

  	
  Beneficiary

  	
   

  	
  Issue Date

  	
   

  	
  Expiry

  Date

  	
   

  	
  Face Amount

  	
   

  	
  Renewal

  Clause/Cancellation

  Notice

  	
   

  
	
  G690820

  	
   

  	
  Min.
  of Environment, Surrey BC

  	
   

  	
  18-Feb-03

  	
   

  	
  04-Mar-05

  	
   

  	
  Cdn. $6,000,000.00

  	
   

  	
  Automatic
  renewal; 30 days cancellation notice

  	
   

  
	
  G691603

  	
   

  	
  Min.
  of Environment, Surrey BC

  	
   

  	
  18-Feb-03

  	
   

  	
  04-Mar-05

  	
   

  	
  Cdn. $675,000.00

  	
   

  	
  Automatic
  renewal; 30 days cancellation notice

  	
   

  
	
  S693289

  	
   

  	
  Royal
  Trust Corporation

  	
   

  	
  18-Feb-03

  	
   

  	
  04-Mar-05

  	
   

  	
  Cdn. $5,453,000.00

  	
   

  	
  Automatic
  renewal; 90 days cancellation notice

  	
   

  
	
  G094994

  	
   

  	
  La
  Salle National Leasing Corp.

  	
   

  	
  27-Jun-01

  	
   

  	
  04-Mar-05

  	
   

  	
  U.S. $3,775,000.00

  	
   

  	
  Automatic
  renewal; 60 days noticeExhibit 10.24a

 

IPSCO Inc.

2005 Form 10-K

 

FIRST
AMENDMENT TO REVOLVING CREDIT AGREEMENT made as of the 3rd
day of February, 2006.

 

AMONG:

 

IPSCO
INC. and IPSCO SASKATCHEWAN INC.

 

(collectively, the “Canadian Borrowers”)

 

- and -

 

IPSCO
STEEL INC., IPSCO ENTERPRISES INC., and IPSCO STEEL (ALABAMA) INC.

 

(collectively, the “U.S. Borrowers”)

 

(the Canadian Borrowers and the U.S. Borrowers collectively, the “Borrowers”)

 

- and -

 

THE
TORONTO-DOMINION BANK

 

(as “Agent”)

 

- and -

 

JPMORGAN
CHASE BANK, N.A.

 

(as “Syndication Agent”)

 

- and -

 

THE
TORONTO-DOMINION BANK, JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, ROYAL BANK OF
CANADA, BANK OF AMERICA, N.A., BY ITS CANADA BRANCH, ABN AMRO BANK N.V., CANADA
BRANCH, THE BANK OF NOVA SCOTIA and BANK OF MONTREAL, as Canadian Lenders,

 

(collectively, “Canadian Lenders”)

 

- and -

 

 

TORONTO
DOMINION (TEXAS) LLC, JPMORGAN CHASE BANK, N.A., ROYAL BANK OF CANADA, ACTING
THROUGH A NEW YORK BRANCH, BANK OF AMERICA, N.A., ABN AMRO BANK N.V., WELLS
FARGO BANK, NATIONAL ASSOCIATION, THE BANK OF NOVA SCOTIA, BY ITS ATLANTA
AGENCY, BANK OF MONTREAL, CHICAGO BRANCH and FIFTH THIRD BANK (CHICAGO)

 

(collectively, “U.S. Lenders”)

 

(the Canadian Lenders and the U.S. Lenders, collectively, the “Lenders”)

 

RECITALS:

 

A.                                                                                   The Borrowers, IPSCO Alabama Ltd. ( “IPSCO Alabama”), the Agent, the Syndication Agent and the
Lenders are parties to a revolving credit agreement dated as of the 19th day of
November, 2004 (such credit agreement, the “Credit
Agreement”).

 

B.                                                                                     IPSCO Alabama was dissolved and wound up
effective November 30, 2005.

 

C.                                                                                     The Borrowers have requested that the Agent and
the Lenders consent to a change to the Credit Agreement to provide for the
definition of GAAP to be based on generally accepted accounting principles
which are in effect from time to time in the United States of America instead
of those which are in effect from time to time in Canada.

 

D.                                                                                    The Agent and the Lenders have agreed to
consent to the change to the definition of GAAP requested by the Borrowers as
aforesaid on the terms and conditions set forth in this Agreement and have
agreed to amend the Credit Agreement in connection therewith as set forth in
this Agreement.

 

NOW
THEREFORE THIS AGREEMENT WITNESSES that, in consideration of
the covenants and agreements herein contained, the parties hereto agree as
follows:

 

ARTICLE 1

INTERPRETATION

 

1.1                                                                               Definitions

 

For the purposes of this
Agreement, capitalized terms that are not defined in this Agreement have the
meanings given to them in the Credit Agreement.

 

2

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

 

2.1                                                                               Confirmation

 

To induce the Agent and the Lenders to enter into this Agreement, the
Borrowers represent and warrant to each of the Agent and the Lenders that:

 

(a)                                  each of the representations and warranties set forth in the Credit
Agreement and the other Credit Documents is true and correct with the same
force and effect as if made as of the date hereof;

 

(b)                                 the execution, delivery and performance of this Agreement are all
within the corporate power and authority of the Borrowers, have been duly
authorized by all necessary action of each of such parties, and are not in
contravention of law or the terms of the certificate of incorporation, by-laws
or other constating or organizational documentation of any of such parties, or
any indenture, agreement or undertaking to which any of the Borrowers is a
party or by which any of their respective property is bound. The Borrowers have
duly executed and delivered this Agreement and this Agreement constitutes a
legal, valid and binding obligation of each such party, enforceable against
each such party by the Agent and the Lenders in accordance with its terms; and

 

(c)                                  no Default or Event of Default has occurred and is continuing under
the Credit Agreement, whether before or after giving effect to this Agreement.

 

ARTICLE 3

AMENDMENTS TO CREDIT AGREEMENT

 

3.1                                                                               Amendments

 

The parties hereto agree to amend the Credit Agreement as follows:

 

(a)                                  The definition of GAAP shall be deleted in its entirety and replaced
with the following:

 

““GAAP”
means, at any time, generally accepted accounting principles which are in
effect from time to time in the United States of America as established and
recognized by the Financial Accounting Standards Board, or any successor
Person, at such time.”

 

3

 

ARTICLE 4

MISCELLANEOUS

 

4.1                                                                               No Novations

 

Nothing in this agreement, nor in the Credit Agreement when read
together with this Agreement, shall constitute a novation, payment, re-advance,
or a reduction or termination in respect of the Total Outstandings.

 

4.2                                                                               Ratification and Confirmation of Credit Documents

 

Except as specifically amended by this Agreement, the Credit Agreement
and all other Credit Documents shall remain in full force and effect and are
hereby ratified and confirmed by the Borrowers.

 

4.3                                                                               Reservation of Rights and Remedies

 

This Agreement shall not, except as expressly provided herein, operate
as an amendment or  waiver of any right
or remedy of the Agent or the Lenders under any of the Credit Documents nor
constitute a waiver of any provision of the Credit Documents. The Agent and the
Lenders reserve all of their respective rights to proceed to enforce their
rights and remedies at any time and from time to time in connection with any
and all Defaults or Events of Default now existing or hereafter arising.

 

4.4                                                                               Reference in Credit Documents to Credit Agreement

 

Each reference in the Credit Documents to the “Credit Agreement” or any
other reference to the same effect shall mean and be a reference to the Credit
Agreement, as amended by this Agreement.

 

4.5                                                                               Fees, Costs and Expenses

 

Without limiting any provisions of the Credit Agreement, the Borrower
agrees to reimburse the Agent for all reasonable out-of-pocket fees and
expenses, including the reasonable fees and expenses of counsel, in connection
with the preparation, negotiation, execution and delivery of this Agreement and
the documents contemplated hereby.

 

4.6                                                                               Counterparts

 

This Agreement may be executed in facsimile counterparts and when
each Party has executed a counterpart, each such counterpart shall be
deemed to be an original and all of such counterparts each taken together shall
constitute one and the same agreement.

 

4.7                                                                               Credit Documents

 

This Agreement constitutes a Credit Document.

 

4

 

4.8                                                                               Governing Law

 

This Agreement is governed by, and is to be construed and interpreted
in accordance with, the laws of the Province of Ontario and the federal laws of
Canada applicable therein.

 

4.9                                                                               Effective Date

 

The amendment contained in Section 3.1 herein is effective
commencing for the Financial Year of the Borrowers ending December 31,
2005.

 

 

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INTENTIONALLY BLANK]

 

5

 

IN
WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed by their respective officer thereunto duly
authorized, on the date first above written.

 

	
   

  	
  IPSCO INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
      /s/
  Vicki L. Avril

  
	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IPSCO
  SASKATCHEWAN INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IPSCO STEEL INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IPSCO ENTERPRISES INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  

 

S1

 

	
   

  	
  IPSCO STEEL (ALABAMA) INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Vicki L. Avril

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE
  TORONTO-DOMINION BANK, as

  Agent

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Wayne N. Shiplo

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., as

  Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Jeffrey Coleman

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE TORONTO-DOMINION BANK,

  
	
   

  	
  as Lender to Canadian Borrowers

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ illegible signature

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ illegible signature

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  

 

S2

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  TORONTO BRANCH as Lender to Canadian

  Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Jeffrey Coleman

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ROYAL
  BANK OF CANADA, as Lender to

  Canadian Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ illegible signature

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA N.A., BY ITS

  CANADA BRANCH, as Lender to Canadian

  Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Nelson Lam

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABN
  AMRO BANK N.V., CANADA

  BRANCH, as Lender to Canadian Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Lawrence J. Maloney

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ H. Bayu Budiatmanto

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  

 

S3

 

	
   

  	
  THE
  BANK OF NOVA SCOTIA, as Lender to

  Canadian Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ William E. Zarrett

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF
  MONTREAL, as Lender to

  Canadian Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ illegible signature

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TORONTO DOMINION (TEXAS) LLC,

  
	
   

  	
  as Lender to U.S. Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Jackie Barrett

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  as Lender to U.S. Borrowers

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Jeffrey Coleman

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  

 

S4

 

	
   

  	
  ROYAL
  BANK OF CANADA, ACTING

  THROUGH A NEW YORK BRANCH, as

  Lender to the U.S. Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Dustin Craven

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A., as Lender to the

  U.S. Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ illegible signature

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABN
  AMRO BANK N.V., as Lender to the

  U.S. Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Lawrence J. Maloney

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ H. Bayu Budiatmanto

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, NATIONAL

  ASSOCIATION, as Lender to the U.S.

  Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Charles Reed

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Thiplada Siddiqui

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  

 

S5

 

	
   

  	
  THE
  BANK OF NOVA SCOTIA, BY ITS

  ATLANTA AGENCY, as Lender to the U.S.

  Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ William E. Zarrett

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BANK OF
  MONTREAL, CHICAGO

  BRANCH, as Lender to the U.S. Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Bruce Pietka

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FIFTH
  THIRD BANK (CHICAGO), as

  Lender to the U.S. Borrowers

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Todd E. Ritz

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signing Officer

  

 

S6

 

ACKNOWLEDGEMENT AND CONFIRMATION

 

 

Each of the undersigned
parties, all of whom granted guarantees of the obligations of IPSCO Inc. under
the Credit Agreement pursuant to guarantees made the 19th day of
November, 2004 (the “Guarantees”),
for the benefit of the Agent and the Lenders, hereby (a) consents to the
execution and delivery of the First Amendment to Revolving Credit Agreement
(the “First Amendment”), and (b) acknowledges
and agrees that the Guarantees granted by each of them as aforesaid are, and
shall remain, in full force and effect after giving effect to the First
Amendment.

 

DATED this 3rd day of
February, 2006.

 

	
   

  	
  IPSCO
  ENTERPRISES INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/
  Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  (Authorized Signing Officer)

  

 

 

	
   

  	
  IPSCO
  SASKATCHEWAN INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/
  Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  (Authorized Signing Officer)

  

 

 

	
   

  	
  IPSCO
  STEEL (ALABAMA) INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/
  Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  (Authorized Signing Officer)

  

 

 

	
   

  	
  IPSCO
  STEEL INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/
  Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  (Authorized Signing Officer)

  

 

 

	
   

  	
  IPSCO
  RECYCLING INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/
  Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  (Authorized Signing Officer)

  

 

 

	
   

  	
  IPSCO
  TUBULARS INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/
  Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  (Authorized Signing Officer)

  

 

 

	
   

  	
  IPSCO
  MINNESOTA INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/
  Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  (Authorized Signing Officer)

  

 

 

	
   

  	
  IPSCO
  TEXAS INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/
  Leslie T. Lederer

  
	
   

  	
   

  	
   

  	
  (Authorized Signing Officer)

  

 

2

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