Document:

Shareholder Rights Plan Agreement

 Exhibit 4.2 
 SHAREHOLDER RIGHTS PLAN AGREEMENT 
 Amended and Restated as of May 13, 2005 
 between 
 TESCO CORPORATION 

and 
 COMPUTERSHARE TRUST COMPANY OF
CANADA 
 as Rights Agent 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE 1
	CERTAIN DEFINITIONS
			
	1.1	  	CERTAIN DEFINITIONS	  	3
			
	1.2	  	CURRENCY	  	14
			
	1.3	  	ACTING JOINTLY OR IN CONCERT	  	15
			
	1.4	  	CONTROL	  	15
			
	1.5	  	DEFINITION OF AGREEMENT	  	15
	
	ARTICLE 2
	THE RIGHTS
			
	2.1	  	ISSUE OF RIGHTS; LEGEND ON COMMON SHARE CERTIFICATES	  	15
			
	2.2	  	INITIAL EXERCISE PRICE; EXERCISE OF RIGHTS; DETACHMENT OF RIGHTS	  	16
			
	2.3	  	ADJUSTMENTS TO EXERCISE PRICE; NUMBER OF RIGHTS	  	19
			
	2.4	  	DATE ON WHICH EXERCISE IS EFFECTIVE	  	23
			
	2.5	  	EXECUTION, AUTHENTICATION, DELIVERY AND DATING OF RIGHTS CERTIFICATES	  	24
			
	2.6	  	REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE	  	24
			
	2.7	  	MUTILATED, DESTROYED, LOST AND STOLEN RIGHTS CERTIFICATES	  	25
			
	2.8	  	PERSONS DEEMED OWNERS OF RIGHTS	  	25
			
	2.9	  	DELIVERY AND CANCELLATION OF CERTIFICATES	  	26
			
	2.10	  	AGREEMENT OF RIGHTS HOLDERS	  	26
	
	ARTICLE 3
	ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN
TRANSACTIONS
			
	3.1	  	FLIP-IN EVENT	  	27
	
	ARTICLE 4
	THE RIGHTS AGENT
			
	4.1	  	GENERAL	  	28
			
	4.2	  	MERGER, AMALGAMATION OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS AGENT	  	29

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	4.3	  	DUTIES OF RIGHTS AGENT	  	30
			
	4.4	  	CHANGE OF RIGHTS AGENT	  	32
	
	ARTICLE 5
	MISCELLANEOUS
			
	5.1	  	REDEMPTION AND TERMINATION	  	32
			
	5.2	  	EXPIRATION	  	35
			
	5.3	  	ISSUANCE OF NEW RIGHTS CERTIFICATES	  	35
			
	5.4	  	SUPPLEMENTS AND AMENDMENTS	  	35
			
	5.5	  	FRACTIONAL RIGHTS AND FRACTIONAL SHARES	  	37
			
	5.6	  	RIGHTS OF ACTION	  	37
			
	5.7	  	HOLDER OF RIGHTS NOT DEEMED A SHAREHOLDER	  	37
			
	5.8	  	NOTICES	  	38
			
	5.9	  	COSTS OF ENFORCEMENT	  	39
			
	5.10	  	SUCCESSORS	  	39
			
	5.11	  	BENEFITS OF THIS AGREEMENT	  	39
			
	5.12	  	DESCRIPTIVE HEADINGS	  	39
			
	5.13	  	GOVERNING LAW	  	39
			
	5.14	  	LANGUAGE	  	39
			
	5.15	  	COUNTERPARTS	  	40
			
	5.16	  	SEVERABILITY	  	40
			
	5.17	  	COMING INTO EFFECT	  	40
			
	5.18	  	RECONFIRMATION	  	40
			
	5.19	  	REGULATORY APPROVALS	  	40
			
	5.20	  	DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS	  	41
			
	5.21	  	NOTICE OF PROPOSED ACTIONS	  	41
			
	5.22	  	TIME OF THE ESSENCE	  	41
			
	5.23	  	DECLARATION AS TO NON-CANADIAN HOLDERS	  	41
			
	5.24	  	AMENDMENT AND RESTATEMENT	  	42

  

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 SHAREHOLDER RIGHTS PLAN AGREEMENT 
 THIS AGREEMENT dated as of the 13th day of May, 2005, 
 BETWEEN: 
 TESCO CORPORATION, a corporation incorporated under the laws of the Province of Alberta (hereinafter referred to
as the “Corporation”) 
 OF THE FIRST PART, 
 - and - 
 COMPUTERSHARE TRUST COMPANY OF CANADA, a trust company incorporated
under the laws of Canada (hereinafter referred to as the “Rights Agent”) 
 OF THE SECOND PART.

 WHEREAS: 
  

	A.	on July 9, 1996, the Corporation implemented a shareholder rights plan (the “Original Rights Plan”), the terms and conditions of which are
set out in the Shareholder Rights Plan Agreement dated as of July 9, 1996 (the “Original Rights Plan Agreement”) between the Corporation and Montreal Trust Company of Canada, as rights agent;

  

	B.	in order to implement the Original Rights Plan, the board of directors of the Corporation (“Board of Directors”): 

  

	 	(i)	authorized the issuance of one right (a “Right”) in respect of each Common Share outstanding at the Close of Business on July 9, 1996 (the
“Record Time”), which distribution was made to shareholders of record at the Record Time; 

  

	 	(ii)	authorized the issuance of one Right in respect of each Common Share issued after the Record Time and prior to the earlier of the Separation Time and the Expiration Time; and

  

	 	(iii)	authorized the issuance of Rights Certificates to holders of Rights pursuant to the terms and subject to the conditions set forth in the Original Rights Plan Agreement;

  

	C.	each Right entitles the holder thereof, after the Separation Time, to purchase securities of the Corporation pursuant to the terms and subject to the conditions set forth in the
Original Rights Plan Agreement; 

  

	D.	the Original Rights Plan Agreement was subsequently confirmed by the shareholders of the Corporation at the annual general and special meeting of shareholders of the Corporation
held on August 22, 1996; 

	E.	pursuant to an agreement dated January 26, 2001, Montreal Trust Company of Canada assigned all of its rights, duties and obligations under the Original Rights Plan Agreement to
the Rights Agent; 

  

	F.	the Original Rights Plan was amended and restated on March 14, 2002 (the “Amended and Restated Rights Plan”) pursuant to the terms and conditions of the
Original Rights Plan Agreement as amended and restated on March 14, 2002 (the “Amended and Restated Rights Plan Agreement”) and the Amended and Restated Rights Plan Agreement was subsequently ratified, confirmed and
approved at the annual general and special meeting of shareholders of the Corporation held on May 16, 2002; 

  

	G.	the Amended and Restated Rights Plan Agreement provides that (i) at or prior to the annual meeting of shareholders of the Corporation in the year 2005, provided that a Flip-in
Event (as defined in the Amended and Restated Rights Plan Agreement) has not occurred prior to such time (other than a Flip-in Event which has been waived by the Board of Directors in accordance with the terms of the Amended and Restated Rights Plan
Agreement), the Board of Directors shall submit a resolution ratifying the continued existence of the Amended and Restated Rights Plan Agreement until the termination of the annual meeting of shareholders of the Corporation in the year 2008 to the
Independent Shareholders (as that term is defined in the Amended and Restated Rights Plan Agreement) for their consideration and, if thought advisable, approval, and (ii) unless a majority of the votes cast by Independent Shareholders who vote
in respect of such resolution are voted in favour of the continued existence of the Amended and Restated Rights Plan Agreement until the termination of the annual meeting of shareholders of the Corporation in the year 2008, the Amended and Restated
Rights Plan Agreement and all outstanding rights shall terminate and be of no further force and effect as at and after the termination of such annual meeting; 

  

	H.	the Board of Directors has determined that it is advisable to continue the Amended and Restated Rights Plan to ensure, to the extent possible, that all shareholders of the
Corporation are treated equally and fairly in connection with any take-over bid for the Corporation and to ensure that the Board of Directors is provided with a sufficient period of time to evaluate unsolicited take-over bids and to explore and
develop alternatives to maximize shareholder value; 

  

	I.	the Board of Directors has submitted at the annual general and special meeting of shareholders of the Corporation held on May 13, 2005 a resolution to the Independent
Shareholders approving the continued existence of the Amended and Restated Rights Plan under this Agreement and approving this Agreement and such resolution was duly passed by the Independent Shareholders; 

  

	J.	the foregoing recitals and statements of fact are made by the Corporation and not the Rights Agent; and 

  

	K.	all capitalized terms used in the foregoing recitals shall have the meanings attributed thereto in this Agreement; 

 NOW THEREFORE in consideration of the premises and the respective agreements set forth herein, the parties hereby agree as follows: 
  

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 ARTICLE 1 
 CERTAIN DEFINITIONS 
  

	1.1	Certain Definitions 

 For purposes of this
Agreement, the following terms have the meanings indicated: 
  

	 	(a)	“Acquiring Person” shall mean any Person who is the Beneficial Owner of 20% or more of the outstanding Common Shares; provided, however, that
the term “Acquiring Person” shall not include: 

  

	 	(i)	the Corporation or any Subsidiary of the Corporation; 

  

	 	(ii)	any Person who becomes the Beneficial Owner of 20% or more of the outstanding Common Shares as a result of any one or a combination of: 

  

	 	(A)	an acquisition or redemption or conversion by the Corporation of Common Shares which, by reducing the number of Common Shares outstanding, increases the percentage of Common Shares
Beneficially Owned by such Person to 20% or more of the Common Shares then outstanding (“Share Acquisitions or Redemptions”); 

  

	 	(B)	share acquisitions made pursuant to a Permitted Bid or a Competing Permitted Bid (“Permitted Bid Acquisitions”); 

  

	 	(C)	 share acquisitions (1) in respect of which the Board of Directors has waived the application of Section 3.1 pursuant to Sections 5.1(b), (c) or (d);
or (2) which were made on or prior to the Record Time; or (3) which were made pursuant to a dividend reinvestment plan of the Corporation; or (4) pursuant to the receipt and/or exercise of rights issued by the Corporation to all the
holders of the Common Shares to subscribe for or purchase Common Shares or Convertible Securities, provided that such rights are acquired directly from the Corporation and not from any other Person and provided that such Person does not thereby
acquire a greater percentage of Common Shares or Convertible Securities than the Person’s percentage of Common Shares Beneficially Owned immediately prior to the receipt and/or exercise of such rights; or (5) pursuant to a distribution by
the Corporation of Common Shares or Convertible Securities (and the conversion of such Convertible Securities) made pursuant to a prospectus or by way of private placement, provided that such Person does not thereby acquire a greater percentage of
such Common Shares or Convertible Securities than the Person’s percentage of Common Shares Beneficially Owned immediately prior to such distribution; or (6) pursuant to a plan of arrangement, amalgamation or other statutory procedure
requiring shareholder approval; or (7) pursuant to a distribution by the Corporation of Common Shares or Convertible Securities upon the exercise by an individual employee of stock options granted under a stock option plan of the Corporation or
rights to purchase securities granted under a share purchase plan of the Corporation, provided that (i) all 

  

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necessary stock exchange approvals for such stock option plan or share purchase plan have been obtained and such stock option plan or share purchase plan
complies with the terms and conditions of such approvals and (ii) such Person does not become the Beneficial Owner of more than 25% of the Common Shares outstanding immediately prior to the distribution, and in making this determination the
Common Shares to be issued to such Person in the distribution shall be deemed to be held by such Person but shall not be included in the aggregate number of outstanding Common Shares immediately prior to the distribution (“Exempt
Acquisitions”); 

  

	 	(D)	the acquisition of Common Shares upon the exercise of Convertible Securities received by such Person pursuant to a Permitted Bid Acquisition, an Exempt Acquisition or a Pro Rata
Acquisition (as defined below) (“Convertible Security Acquisitions”); or 

  

	 	(E)	acquisitions as a result of a stock dividend, a stock split or other event pursuant to which such Person receives or acquires Common Shares or Convertible Securities on the same
pro rata basis as all other holders of Common Shares, provided that such Person does not thereby acquire a greater percentage of such Common Shares or Convertible Securities than the Person’s percentage of Common Shares Beneficially
Owned immediately prior to such acquisition (“Pro Rata Acquisitions”); 

 provided,
however, that if such Person shall become the Beneficial Owner of 20% or more of the Common Shares then outstanding by reason of any one or a combination of (i) Share Acquisitions or Redemptions, (ii) Permitted Bid Acquisitions,
(iii) Exempt Acquisitions, (iv) Convertible Security Acquisitions, or (v) Pro Rata Acquisitions and, after such Share Acquisitions or Redemptions or Permitted Bid Acquisitions or Exempt Acquisitions or Convertible Security
Acquisitions or Pro Rata Acquisitions, such Person becomes the Beneficial Owner of more than an additional 1.00% of the number of Common Shares outstanding other than pursuant to any one or combination of Share Acquisitions or Redemptions, Permitted
Bid Acquisitions, Exempt Acquisitions or Convertible Security Acquisitions or Pro Rata Acquisitions, then as of the date of any such acquisition such Person shall become an “Acquiring Person”; 
  

	 	(iii)	a Person who is the Beneficial Owner of 20% or more of the outstanding Common Shares at the Record Time provided, however, that if such Person shall after the Record Time become the
Beneficial Owner of more than an additional 1.00% of the number of Common Shares outstanding other than pursuant to Share Acquisitions or Redemptions, Permitted Bid Acquisitions, Exempt Acquisitions, Convertible Security Acquisitions or Pro Rata
Acquisitions, then as of the date of any such acquisition such Person shall become an “Acquiring Person”; 

  

	 	(iv)	 for a period of 10 days after the Disqualification Date, any Person who becomes the Beneficial Owner of 20% or more of the outstanding Common Shares as a result of
such Person becoming disqualified from 

  

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relying on clause 1.1(d)(B) solely because such Person makes or announces an intention to make a Take-over Bid, either alone or by acting jointly or in
concert with any other Person. For the purposes of this definition, “Disqualification Date” means the first date of public announcement that any Person is making or intends to make a Take-over Bid; or

  

	 	(v)	an underwriter or member of a banking or selling group acting in such capacity that becomes the Beneficial Owner of 20% or more of the Common Shares in connection with a
distribution of securities. 

  

	 	(b)	“Affiliate”, when used to indicate a relationship with a specified Person, shall mean a Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, such specified Person. 

  

	 	(c)	“Associate” of a specified individual shall mean any individual to whom such specified individual is married or with whom such specified
individual is living in a conjugal relationship outside marriage, or any relative of such specified individual who has the same residence as such specified individual. 

  

	 	(d)	A Person shall be deemed the “Beneficial Owner”, and to have “Beneficial Ownership”, of, and to
“Beneficially Own”: 

  

	 	(i)	any securities which such Person or any of such Person’s Affiliates or Associates owns at law or in equity and includes any Common Shares in respect of which such Person or any
of such Person’s Affiliates or Associates owns at law or in equity any related instalment receipts; 

  

	 	(ii)	any securities which such Person or any of such Person’s Affiliates or Associates has the right to acquire (A) upon the exercise of any Convertible Securities, or
(B) pursuant to any agreement, arrangement or understanding provided such right is exercisable immediately or within a period of 60 days thereafter and whether or not on condition or the happening of any contingency or the making of any payment
(other than customary agreements with and between underwriters and banking group or selling group members with respect to a distribution of securities or pursuant to a pledge of securities); and 

  

	 	(iii)	any securities which are Beneficially Owned within the meaning of clauses 1.1(d)(i) or (ii) above by any other Person with whom such Person is acting jointly or in concert;

 provided, however, that a Person shall not be deemed the “Beneficial Owner”, or to have “Beneficial
Ownership”, of, or to “Beneficially Own”, any security: 
  

	 	(A)	 where (1) the holder of such security has agreed to deposit or tender such security pursuant to a Permitted Lock-up Agreement to a Take-over Bid made by such
Person or any of such Person’s Affiliates or Associates or any other Person referred to in clause 1.1(d)(iii) or (2) such security has been deposited or tendered pursuant to a Take-over Bid made by such Person or any of such Person’s
Affiliates or Associates or any other Person referred to in 

  

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clause 1.1(d)(iii) until the earliest time at which any such tendered security is accepted unconditionally for payment or exchange or is taken up and paid
for; or 

  

	 	(B)	where such Person, any of such Person’s Affiliates or Associates or any other Person referred to in clause 1.1(d)(iii), holds such security provided that (1) the ordinary
business of such Person (the “Investment Manager”) includes the management of investment funds for others and such security is held by the Investment Manager in the ordinary course of such business in the
performance of such Investment Manager’s duties for the account of any other Person, including non-discretionary accounts held on behalf of a client by a broker or dealer registered under applicable laws, or (2) such Person (the
“Trust Company”) is licensed to carry on the business of a trust company under applicable laws and, as such, acts as trustee or administrator or in a similar capacity in relation to the estates of deceased or
incompetent Persons or in relation to other accounts and holds such security in the ordinary course of such duties for the estates of deceased or incompetent Persons or for such other accounts, or (3) such Person (the “Plan
Trustee”) is the administrator or trustee of one or more pension funds or plans (each a “Plan”) registered under applicable laws and holds such security for the purposes of its activity as
such, or (4) such Person is a Plan or is a Person established by statute (the “Statutory Body”) for purposes that include, and the ordinary business or activity of such Person includes the management of
investment funds for employee benefit plans, pension plans, insurance plans (other than plans administered by insurance companies) or various public bodies, or (5) such Person is a Crown agent or agency; provided in any of the above cases, that
the Investment Manager, the Trust Company, the Plan Trustee, the Plan, the Statutory Body or the Crown agent or agency, as the case may be, is not then making a Take-over Bid or has not announced a current intention to make a Take-over Bid, other
than an Offer to Acquire Common Shares or other securities pursuant to a distribution by the Corporation, by means of a Permitted Bid or by means of ordinary market transactions (including pre-arranged trades entered into in the ordinary course of
business of such Person) executed through the facilities of a stock exchange or organized over-the-counter market, alone or by acting jointly or in concert with any other Person; or 

  

	 	(C)	because such Person is a client of or has an account with the same Investment Manager as another Person on whose account the Investment Manager holds such security, or where such
Person is a client of or has an account with the same Trust Company as another Person on whose account the Trust Company holds such security, or where such Person is a Plan and has a Plan Trustee who is also a Plan Trustee for another Plan on whose
account the Plan Trustee holds such security; or 

  

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	 	(D)	where such Person (i) is a client of an Investment Manager and such security is owned at law or in equity by the Investment Manager, or (ii) has an account with a Trust
Company and such security is owned at law or in equity by the Trust Company, or (iii) is a Plan and such security is owned at law or in equity by the Plan Trustee; or 

  

	 	(E)	where such Person is the registered holder of securities as a result of carrying on the business of, or acting as a nominee of, a securities depositary. 

 For purposes of this Agreement, the percentage of Common Shares Beneficially Owned by any Person shall be and be deemed to be the product determined by
the formula: 
 100 x A/B 
 Where:

  

	 	A =	the number of votes for the election of all directors generally attaching to the Common Shares Beneficially Owned by such Person; and 

  

	 	B =	the number of votes for the election of all directors generally attaching to all outstanding Common Shares. 

 For the purposes of the foregoing formula, where any Person is deemed to Beneficially Own unissued Common Shares which may be acquired pursuant to
Convertible Securities, such Common Shares shall be deemed to be outstanding for the purpose of calculating the percentage of Common Shares Beneficially Owned by such Person in both the numerator and the denominator, but no other unissued Common
Shares which may be acquired pursuant to any other outstanding Convertible Securities held by other Persons shall, for the purposes of that calculation, be deemed to be outstanding. 
  

	 	(e)	“Business Day” shall mean any day other than a Saturday, Sunday or a day that is treated as a holiday at the Corporation’s principal
executive offices in Calgary, Alberta. 

  

	 	(f)	“Business Corporations Act” shall mean the Business Corporations Act, R.S.A. 2000, c. B-9, as amended, and the regulations thereunder,
and any comparable or successor laws or regulations thereto. 

  

	 	(g)	“Canadian-U.S. Exchange Rate” shall mean on any date the inverse of the U.S.-Canadian Exchange Rate. 

  

	 	(h)	“Canadian Dollar Equivalent” of any amount which is expressed in United States dollars shall mean on any day the Canadian dollar equivalent of
such amount determined by reference to the Canadian-U.S. Exchange Rate on such date. 

  

	 	(i)	“Close of Business” on any given date shall mean the time on such date (or, if such date is not a Business Day, the time on the next succeeding
Business Day) at which the office of the transfer agent for the Common Shares in Calgary, Alberta (or, after the Separation Time, the offices of the Rights Agent in Calgary, Alberta) becomes closed to the public. 

  

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	 	(j)	“Common Shares” shall mean the common shares in the capital of the Corporation as constituted on the date hereof and any other shares of the
Corporation into which such common shares may be subdivided, consolidated, reclassified or changed. 

  

	 	(k)	“Competing Permitted Bid” shall mean a Take-over Bid that: 

  

	 	(i)	is made after a Permitted Bid has been made and prior to the expiry of the Permitted Bid; 

  

	 	(ii)	satisfies all components of the definition of a Permitted Bid other than the requirements set out in clause (ii) of that definition; and 

  

	 	(iii)	contains, and the take-up and payment for securities tendered or deposited is subject to, an irrevocable and unqualified condition that no Common Shares will be taken up or paid for
pursuant to the Take-over Bid prior to the Close of Business on the date that is no earlier than the later of (1) the 60th day after the date on which the earliest Permitted Bid which preceded the Competing Permitted Bid was made, and
(2) 35 days after the date of the Take-over Bid constituting the Competing Permitted Bid. 

  

	 	(l)	“Convertible Securities” shall mean at any time: 

  

	 	(i)	any right (contractual or otherwise and regardless of whether such right constitutes a security) to acquire Common Shares from the Corporation; and 

  

	 	(ii)	any securities issued by the Corporation from time to time (other than the Rights) carrying any exercise, conversion or exchange right; 

 which is then exercisable or exercisable within a period of 60 days from that time pursuant to which the holder thereof may acquire Common Shares or other
securities which are convertible into or exercisable or exchangeable for Common Shares (in each case, whether such right is then exercisable or exercisable within a period of 60 days from that time and whether or not on condition or the happening of
any contingency). 
  

	 	(m)	“Exercise Price” shall mean, as of any date, the price at which a holder may purchase the securities issuable upon exercise of one whole Right
and, until adjustment thereof in accordance with the terms hereof, the Exercise Price shall equal $100.00. 

  

	 	(n)	“Expiration Time” shall mean the earlier of: 

  

	 	(i)	the Termination Time; and 

  

	 	(ii)	the termination of the annual meeting of the shareholders of the Corporation in the year 2008; 

  

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 or, if the continued existence of this Agreement is ratified at such annual meeting by resolution passed
by a majority of votes cast by Independent Shareholders who vote in respect thereof in accordance with Section 5.18, “Expiration Time” shall mean the earlier of the Termination Time and the termination of the annual meeting of
shareholders of the Corporation in the year 2011; 
  

	 	(o)	A “Flip-in Event” shall mean a transaction occurring as a result of which any Person shall become an Acquiring Person provided, however, that a
Flip-in Event shall be deemed to occur at the Close of Business on the tenth day (or such later day as the Board of Directors may determine) after the Stock Acquisition Date. 

  

	 	(p)	“Independent Shareholders” shall mean holders of Common Shares excluding (i) any Acquiring Person; or (ii) any Person that is making
or has announced a current intention to make a Take-over Bid for Common Shares (including a Permitted Bid and a Competing Permitted Bid) other than a Person referred to in Section 1.1(d)(B), but excluding any such Person if the Take-over Bid so
announced or made by such Person has been withdrawn, terminated or expired; or (iii) any Affiliate or Associate of such Acquiring Person or Persons referred to in clause (ii); or (iv) any Person acting jointly or in concert with such
Acquiring Person or a Person referred to in clause (ii); or (v) a Person who is a trustee of any employee benefit plan, share purchase plan, deferred profit sharing plan or any similar plan or trust for the benefit of employees of the
Corporation or a Subsidiary of the Corporation, unless the beneficiaries of the plan or trust direct the manner in which the Common Shares are to be voted or direct whether the Common Shares are to be tendered to a Take-over Bid.

  

	 	(q)	“Market Price” per security of any securities on any date of determination shall mean the average of the daily Closing Prices Per Security of
such securities (determined as described below) on each of the 20 consecutive Trading Days through and including the Trading Day immediately preceding such date; provided, however, that if an event of a type analogous to any of the events described
in Section 2.3 hereof shall have caused the price used to determine the Closing Price Per Security on any Trading Day not to be fully comparable with the price used to determine the Closing Price Per Security on such date of determination or,
if the date of determination is not a Trading Day, on the immediately preceding Trading Day, each such price so used shall be appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 hereof in order
to make it fully comparable with the price per security used to determine the Closing Price Per Security on such date of determination or, if the date of determination is not a Trading Day, on the immediately preceding Trading Day. The
“Closing Price Per Security” of any securities on any date shall be: 

  

	 	(i)	the closing board lot sale price or, if such price is not available, the average of the closing bid and asked prices, for such securities as reported by the principal Canadian stock
exchange (as determined by the Board of Directors) on which such securities are listed or admitted to trading, or if for any reason neither such prices is available on such day or the securities are not listed or admitted to trading on a Canadian
stock exchange, the closing board lot sale price or, if such price is not available, the average of the closing bid and asked prices, for such securities as reported by such other securities exchange on which such securities are listed or admitted
for trading; 

  

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	 	(ii)	if, for any reason, none of such prices is available on such date or the securities are not listed or admitted to trading on a Canadian stock exchange or other securities exchange,
the last sale price, or in case no sale takes place on such date, the average of the high bid and low asked prices for such securities in the over-the-counter market, as quoted by any reporting system then in use (as selected by the Board of
Directors); or 

  

	 	(iii)	if the securities are not listed or admitted to trading as contemplated in clause 1.1(q)(i) or (ii), the average of the closing bid and asked prices as furnished by a professional
market maker making a market in the securities selected by the Board of Directors; 

 provided, however, that if on any such
date the Closing Price Per Security cannot be determined in accordance with the foregoing, the Closing Price Per Security of such securities on such date shall mean the fair value per share of such securities on such date as determined in good faith
by the Board of Directors after consultation with a nationally recognized investment dealer or investment banker with respect to the fair value per share of such securities; provided further that if an event of a type analogous to any of the events
described in Section 2.3 hereof has caused any price used to determine the Market Price on any Trading Day not to be fully comparable with the price as so determined on the Trading Day immediately preceding such date of determination, each
price so used shall be appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 hereof in order to make it fully comparable with the price on the Trading Day immediately preceding such date of
determination. The Market Price shall be expressed in Canadian dollars and, if initially determined in respect of any day forming part of the 20 consecutive Trading Day period in question in United States dollars, such amount shall be translated
into Canadian dollars at the Canadian Dollar Equivalent thereof. 
  

	 	(r)	“Offer to Acquire” shall include: 

  

	 	(i)	an offer to purchase, or a solicitation of an offer to sell, Common Shares; and 

  

	 	(ii)	an acceptance of an offer to sell Common Shares, whether or not such offer to sell has been solicited; 

 or any combination thereof, and the Person accepting an offer to sell shall be deemed to be making an offer to acquire to the Person that made the offer
to sell. 
  

	 	(s)	“Offeror’s Securities” shall mean Common Shares Beneficially Owned on the date of an Offer to Acquire by any Person who is making a
Take-over Bid and by such Person’s Affiliates and Associates and by any Person acting jointly and in concert with such Person or such Person’s Affiliate and Associates and “Offeror” means a Person who
has announced (and has not withdrawn) an intention to make or who has made (and has not withdrawn) a Take-over Bid other than a Person who has completed a Permitted Bid or a Competing Permitted Bid. 

  

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	 	(t)	“Permitted Bid” shall mean a Take-over Bid made by a Person by means of a take-over bid circular and which also complies with the following
additional provisions: 

  

	 	(i)	the Take-over Bid is made to all holders of record of Common Shares, other than the Offeror; 

  

	 	(ii)	the Take-over Bid contains, and the take-up and payment for Common Shares tendered or deposited thereunder is subject to, an irrevocable and unqualified condition that no Common
Shares shall be taken up or paid for pursuant to the Take-over Bid prior to the Close of Business on a date which is not less than 60 days following the date of the Take-over Bid; 

  

	 	(iii)	the Take-over Bid contains an irrevocable and unqualified condition that, unless the Take-over Bid is withdrawn, Common Shares may be deposited pursuant to the Take-over Bid at any
time prior to the Close of Business on the date of first take-up or payment for Common Shares and that all Common Shares deposited pursuant to the Take-over Bid may be withdrawn at any time prior to the Close of Business on such date;

  

	 	(iv)	the Take-over Bid contains an irrevocable and unqualified condition that more than 50% of the outstanding Common Shares held by Independent Shareholders, determined as at the date
of first take-up or payment for Common Shares under the Take-over Bid, must be deposited to the Take-over Bid and not withdrawn at the Close of Business on the date of first take-up or payment for Common Shares; and 

  

	 	(v)	the Take-over Bid contains an irrevocable and unqualified condition that in the event that more than 50% of the then outstanding Common Shares held by Independent Shareholders shall
have been deposited to the Take-over Bid and not withdrawn as at the date of first take-up or payment for Common Shares under the Take-over Bid, the Offeror will make a public announcement of that fact and the Take-over Bid will remain open for
deposits and tenders of Common Shares for not less than 10 Business Days from the date of such public announcement; 

 provided
that if a Take-over Bid constitutes a Competing Permitted Bid, the term “Permitted Bid” shall also mean the Competing Permitted Bid. 
  

	 	(u)	“Permitted Lock-up Agreement” shall mean an agreement (the “Lock-up Agreement”) between a Person, any of such
Person’s Affiliates or Associates or any other Person referred to in clause 1.1(d)(iii) and one or more holders of Common Shares (each such holder herein referred to as a “Locked-up Person”) (the terms of
which are publicly disclosed and a copy of which is made available to the public, including the Corporation, not later than the date the Lock-up Bid (as defined below) is publicly announced or, if the Lock-up Bid has been publicly announced prior to
the date of the Lock-up Agreement, not later than the date of the Lock-up Agreement) pursuant to which each such Locked-up Person agrees to deposit or tender Common Shares to a Take-over Bid (the “Lock-up Bid”)
made or to be made by the Person, any of such Person’s Affiliates or Associates or any other Person referred to in clause 1.1(d)(iii), provided that: 

  

 - 11 - 

	 	(i)	the Lock-up Agreement permits the Locked-up Person to withdraw its Common Shares from the Lock-up Agreement in order to deposit or tender the Common Shares to another Take-over Bid
or to support another transaction prior to the Common Shares being taken up and paid for under the Lock-up Bid, so long as the other Take-over Bid or transaction: 

  

	 	(A)	offers a price or value per Common Share that exceeds the price or value per Common Share offered under the Lock-up Bid; or 

  

	 	(B)	is for a number of Common Shares which is greater than the number of Common Shares that the Offeror has offered to purchase under the Lock-up Bid by such number as may have been
agreed to in the Lock-up Agreement, provided that such agreed upon number is not greater than 7% of the number of Common Shares offered to be purchased under such Lock-up Bid at a price or value per Common Share that is not less than the price or
value per Common Share offered under such Lock-up Bid; or 

  

	 	(C)	offers a price or value for each Common Share which is greater than the price or value for each Common Share offered under the Lock-up Bid by as much as or more than a specified
amount provided that such specified amount is not greater than 7% of the price or value offered under such Lock-up Bid; and, 

 for greater clarity, the Lock-up Agreement may (1) contain a right of first refusal, (2) require a period of delay to give the Person who made the Lock-up Bid an opportunity to match or better the consideration or value offered in
the other Take-over Bid or transaction or to offer to purchase or otherwise acquire the same number of Common Shares subject to the other Take-over Bid or transaction or (3) contain other similar limitations on a Locked-up Person’s right
to withdraw Common Shares from the Lock-up Agreement, so long as any such limitation does not preclude the exercise by the Locked-up Person of the right to withdraw Common Shares during the period of the other Take-over Bid or transaction; and

  

	 	(ii)	no “break-up” fees, “top-up” fees, penalties, expenses or other amounts that exceed in the aggregate the greater of: 

  

	 	 (A)
	 the cash equivalent of 2 1/2% of the price or value of the consideration payable under the Lock-up Bid to the Locked-up Person; and 

  

	 	(B)	50% of the amount by which the price or value of the consideration payable under another Take-over Bid or transaction to a Locked-up Person exceeds the price or value of the
consideration that such Locked-up Person would have received under the Lock-up Bid; 

 shall be payable by such Locked-up
Person pursuant to the Lock-up Agreement in the event such Locked-up Person fails to deposit or tender Common Shares to the Lock-up Bid or withdraws Common Shares previously tendered thereto in order to deposit or tender such Common Shares to
another Take-over Bid or support another transaction. 
  

 - 12 - 

	 	(v)	“Person” shall mean any individual, firm, partnership, association, trust, trustee, personal representative, body corporate, corporation,
unincorporated organization, syndicate, government or governmental agency, or other entity. 

  

	 	(w)	“Record Time” shall mean the Close of Business on July 9, 1996. 

  

	 	(x)	“Securities Act” shall mean the Securities Act, R.S.A. 2000, c. S-4, as amended, and the rules and regulations thereunder, and any
comparable or successor laws, rules or regulations thereto. 

  

	 	(y)	“Separation Time” shall mean, subject to Section 5.1(d), the Close of Business on the tenth Business Day after the earlier of:

  

	 	(i)	the Stock Acquisition Date; 

  

	 	(ii)	the date of the commencement of, or first public announcement of the intent of any Person (other than the Corporation or any Subsidiary of the Corporation) to commence a Take-over
Bid (other than a Take-over Bid which is a Permitted Bid or a Competing Permitted Bid or a Take-over Bid in respect of which the Board of Directors has waived the application of Section 3.1), provided that, if any Take-over Bid referred to in
this clause (ii) expires, is cancelled, terminated or otherwise withdrawn prior to the Separation Time, such Take-over Bid shall be deemed, for purposes of this Section 1.1(y), never to have been made; and 

  

	 	(iii)	the date upon which a Permitted Bid or Competing Bid ceases to be such; 

 or such later date as may be determined by the Board of Directors acting in good faith. 
  

	 	(z)	“Stock Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall include, without
limitation, a report filed pursuant to Section 176 of the Securities Act or Section 13(d) of the 1934 Exchange Act) by the Corporation or an Acquiring Person of facts indicating that a Person has become an Acquiring Person.

  

	 	(aa)	“Subsidiary” of any specified Person shall mean any corporation or other entity controlled by such specified Person. 

 

	 	(bb)	“Take-over Bid” shall mean an Offer to Acquire Common Shares or securities convertible into Common Shares, where the Common Shares subject to
the Offer to Acquire, together with the Common Shares into which the securities subject to the Offer to Acquire are convertible, and the Offeror’s Securities, constitute in the aggregate 20% or more of the outstanding Common Shares at the date
of the Offer to Acquire. 

  

	 	(cc)	“Termination Time” shall mean the time at which the right to exercise Rights shall terminate pursuant to Section 5.1 or 5.18 hereof.

  

 - 13 - 

	 	(dd)	“Trading Day”, when used with respect to any securities, shall mean a day on which the principal securities exchange on which such securities
are listed or admitted to trading is open for the transaction of business or, if the securities are not listed or admitted to trading on any securities exchange, a Business Day. 

  

	 	(ee)	“U.S.-Canadian Exchange Rate” shall mean on any date: 

  

	 	(i)	if on such date the Bank of Canada sets an average noon spot rate of exchange with a conversion of one United States dollar into Canadian dollars, such rate;

  

	 	(ii)	in any other case, the rate for such date for the conversion of one United States dollar into Canadian dollars which is calculated in the manner which shall be determined by the
Board of Directors from time to time acting in good faith. 

  

	 	(ff)	“U.S. Dollar Equivalent” of any amount which is expressed in Canadian dollars shall mean on any day the United States dollar equivalent of such
amount determined by reference to the U.S.-Canadian Exchange Rate on such date. 

  

	 	(gg)	“1933 Securities Act” shall mean the United States Securities Act of 1933, as amended, and the rules and regulations thereunder, and any
comparable or successor laws or regulations thereto. 

  

	 	(hh)	“1934 Exchange Act” shall mean the United States Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder,
and any comparable or successor laws or regulations thereto. 

  

	1.2	Currency 

 All sums of money which are referred to
in this Agreement are expressed in lawful money of Canada. 
  

	1.3	Acting Jointly or in Concert 

 For purposes of this
Agreement, a Person is acting jointly or in concert with another Person if such Person has any agreement, arrangement or understanding (whether formal or informal and whether or not in writing) with such other Person to acquire or Offer to Acquire
any Common Shares (other than (i) customary agreements with and between underwriters and banking group or selling group members with respect to a distribution of securities, and (ii) pursuant to a pledge of securities in the ordinary
course of business). 
  

	1.4	Control 

 A Person is
“controlled” by another Person or two or more other Persons acting jointly or in concert if: 
  

	 	(a)	in the case of a body corporate, securities entitled to vote in the election of directors of such body corporate carrying more than 50% of the votes for the election of directors
are held, directly or indirectly, by or for the benefit of the other Person or Persons acting jointly or in concert and the votes carried by such securities are entitled, if exercised, to elect a majority of the board of directors of such body
corporate; or 

  

 - 14 - 

	 	(b)	in the case of a Person which is not a body corporate, more than 50% of the voting or equity interests of such entity are held, directly or indirectly, by or for the benefit of the
other Person or Persons acting jointly or in concert; 

 and “controls”, “controlling” and
“under common control with” shall be interpreted accordingly. 
  

	1.5	Definition of Agreement 

 For purposes of this
Agreement, “Agreement” means the Amended and Restated Rights Plan Agreement, as amended and restated as of May 13, 2005 and as the same may be further amended or supplemented from time to time. References in this
Agreement to “hereto”, “hereof”, “herein”, “hereby” and “hereunder” and similar expressions mean and refer to this Agreement as a
whole and not to any particular part of this Agreement. 
 ARTICLE 2 
 THE RIGHTS 
  

	2.1	Issue of Rights; Legend on Common Share Certificates 

  

	 	(a)	One Right has been issued in respect of each Common Share outstanding as at the Record Time and in respect of each Common Share issued after the Record Time. One Right shall
continue to be issued in respect of each Common Share issued after the date of this Agreement and prior to the earlier of the Separation Time and the Expiration Time. 

  

	 	(b)	Certificates for the Common Shares issued after the Record Time but prior to the earlier of the Separation Time and the Expiration Time shall evidence one Right for each Common
Share represented thereby and, commencing as soon as reasonably practicable after the Record Time, shall have impressed on, printed on, written on or otherwise affixed to them the following legend: 

 Until the Separation Time (as defined in the Rights Agreement referred to below), this certificate also evidences and entitles the holder hereof to
certain Rights as set forth in a Shareholder Rights Plan Agreement, dated as of July 9, 1996, as amended and restated on March 14, 2002 and as further amended and restated on May 13, 2005, as such from time to time be amended,
restated, varied or replaced, (the “Rights Agreement”) between Tesco Corporation (the “Corporation”) and Computershare Trust Company of Canada, as Rights Agent, the terms of which are hereby incorporated herein by reference and a
copy of which is on file at the principal executive office of the Corporation and may be inspected by shareholders of the Corporation during normal business hours. In certain circumstances, as set forth in the Rights Agreement, such Rights may be
amended or redeemed, may expire, may become void (if, in certain cases, they are “Beneficially Owned” by an “Acquiring Person”, as such terms are defined in the Rights Agreement, or a transferee thereof) or may be evidenced by
separate certificates and may no longer be evidenced by this certificate. The Corporation will mail or arrange for the mailing of a copy of the Rights Agreement to the holder of this certificate, without charge, as soon as practicable after the
receipt of a written request therefor. 
  

 - 15 - 

 Certificates representing Common Shares that are issued and outstanding at the Record Time shall evidence
one Right for each Common Share evidenced thereby notwithstanding the absence of the foregoing legend until the earlier of the Separation Time and the Expiration Time. 
  

	2.2	Initial Exercise Price; Exercise of Rights; Detachment of Rights 

  

	 	(a)	Subject to adjustment as herein set forth, each Right will entitle the holder thereof, after the Separation Time and prior to the Expiration Time, to purchase, for the Exercise
Price, or its U.S. Dollar Equivalent as at the Business Day immediately preceding the day of exercise of the Right, one Common Share. Notwithstanding any other provision of this Agreement, any Rights held by the Corporation or any of its
Subsidiaries shall be void. 

  

	 	(b)	Until the Separation Time: 

  

	 	(i)	no Right may be exercised; and 

  

	 	(ii)	each Right will be evidenced by the certificate for the associated Common Share registered in the name of the holder thereof (which certificate shall also be deemed to be a Rights
Certificate) and will be transferable only together with, and will be transferred by a transfer of, such associated Common Share. 

  

	 	(c)	After the Separation Time and prior to the Expiration Time, the Rights (i) may be exercised; and (ii) the registration and transfer of the Rights shall be independent of
Common Shares. Promptly following the Separation Time the Rights Agent will mail to each holder of record of Common Shares as of the Separation Time (other than an Acquiring Person and, in respect of any Rights Beneficially Owned by such Acquiring
Person which are not held of record by such Acquiring Person, the holder of record of such Rights (a “Nominee”)) and to each holder of Convertible Securities (other than an Acquiring Person or the Nominee of an Acquiring Person) at such
holder’s address as shown by the records of the Corporation (the Corporation hereby agreeing to furnish copies of such records to the Rights Agent for this purpose), (x) a certificate (a “Rights
Certificate”) in substantially the form of Exhibit A hereto with registration particulars appropriately completed, representing the number of Rights held by such holder at the Separation Time and having such marks of
identification or designation and such legends, summaries or endorsements printed thereon as the Corporation may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any law or with
any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or quotation system on which the Rights may from time to time be listed or traded, or to conform to usage, and (y) a disclosure statement prepared
by the Corporation describing the Rights; provided that a Nominee shall be sent the materials provided for in (x) and (y) above in respect of all Common Shares or Convertible Securities held of record by it which are not Beneficially Owned
by an Acquiring Person. 

  

 - 16 - 

	 	(d)	Rights may be exercised in whole or in part on any Business Day (or on any other day which, in the city at which an Election to Exercise (as hereinafter defined) is duly submitted
to the Rights Agent in accordance with this Agreement, is not a Saturday, Sunday or a day that is treated as a holiday in such city) after the Separation Time and prior to the Expiration Time by submitting to the Rights Agent (at its office in
Calgary, Alberta or at any other office of the Rights Agent in the cities designated from time to time for that purpose by the Corporation with the approval of the Rights Agent), the Rights Certificate evidencing such Rights together with an
election to exercise such Rights (an “Election to Exercise”) substantially in the form attached to the Rights Certificate duly completed and executed by the holder or his executors or administrators or other
personal representatives or his or their legal attorney duly appointed by an instrument in writing in form and executed in a manner satisfactory to the Rights Agent, accompanied by payment by certified cheque, banker’s draft or money order
payable to the order of the Corporation, of a sum equal to the Exercise Price multiplied by the number of Rights being exercised and a sum sufficient to cover any transfer tax or charge which may be payable in respect of any transfer involved in the
transfer or delivery of Rights Certificates or the issuance or delivery of certificates for Common Shares in a name other than that of the holder of the Rights being exercised. 

  

	 	(e)	Upon receipt of a Rights Certificate, with an Election to Exercise accompanied by payment as set forth in Section 2.2(d) above, which does not indicate that the Rights
represented thereby are null and void as provided by Section 3.1(b), the Rights Agent (unless otherwise instructed by the Corporation in the event that the Corporation is of the opinion that the Rights cannot be exercised in accordance with
this Agreement) will thereupon promptly: 

  

	 	(i)	requisition from the transfer agent of the Common Shares certificates for the number of Common Shares to be purchased (the Corporation hereby irrevocably authorizing its transfer
agent to comply with all such requisitions); 

  

	 	(ii)	when appropriate, requisition from the Corporation the amount of cash to be paid in lieu of issuing fractional Common Shares; 

  

	 	(iii)	after receipt of the Common Share certificates, deliver the same to or to the order of the registered holder of such Rights Certificate, registered in such name or names as may be
designated by such holder; 

  

	 	(iv)	when appropriate, after receipt, deliver such cash to or to the order of the registered holder of the Rights Certificate; and 

  

	 	(v)	tender to the Corporation all payments received on the exercise of the Rights. 

  

	 	(f)	In case the holder of any Rights shall exercise less than all the Rights evidenced by such holder’s Rights Certificate, a new Rights Certificate evidencing the Rights remaining
unexercised will be issued by the Rights Agent to such holder or to such holder’s duly authorized assigns. 

  

	 	(g)	The Corporation covenants and agrees that it will: 

  

	 	(i)	take all such action as may be necessary and within its power to ensure that all Common Shares delivered upon exercise of Rights shall, at the time of delivery of the certificates
for such Common Shares (subject to payment of the Exercise Price), be duly and validly authorized, executed, issued and delivered as fully paid and non-assessable; 

  

 - 17 - 

	 	(ii)	take all such action as may be necessary and within its power to comply with any applicable requirements of the Business Corporations Act, the Securities Act, the
securities acts or comparable legislation of each of the other provinces of Canada, the 1933 Securities Act and the 1934 Exchange Act, and the rules and regulations thereunder and any other applicable law, rule or regulation, in
connection with the issuance and delivery of the Rights Certificates and the issuance of any shares upon exercise of Rights; 

  

	 	(iii)	use reasonable efforts to cause all Common Shares issued upon exercise of Rights to be listed on the principal exchanges or traded in the over-the-counter markets on which the
Common Shares were traded immediately prior to the Stock Acquisition Date; 

  

	 	(iv)	cause to be reserved and kept available out of its authorized and unissued Common Shares a number of Common Shares that, as provided in this Agreement, will from time to time be
sufficient to permit the exercise in full of all outstanding Rights; 

  

	 	(v)	pay when due and payable any and all Canadian and United States federal, provincial, and state transfer taxes (for greater certainty not including any income taxes of the holder or
exercising holder or any liability of the Corporation to withhold tax) and charges which may be payable in respect of the original issuance or delivery of the Rights Certificates or certificates for Common Shares, provided that the Corporation shall
not be required to pay any transfer tax or charge which may be payable in respect of any transfer involved in the transfer or delivery of Rights Certificates or the issuance or delivery of certificates for shares in a name other than that of the
holder of the Rights being transferred or exercised; and 

  

	 	(vi)	after the Separation Time, except as permitted by Section 5.1, not take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably
foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights. 

  

	2.3	Adjustments to Exercise Price; Number of Rights 

 The Exercise Price, the number and kind of shares subject to purchase upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 2.3. 
  

	 	(a)	In the event the Corporation shall at any time after the Record Time and prior to the Expiration Time: 

  

	 	(i)	declare or pay a dividend on the Common Shares payable in Common Shares (or other shares or securities exchangeable for or convertible into or giving a right to acquire Common
Shares or other shares) other than pursuant to any optional stock dividend program; 

  

 - 18 - 

	 	(ii)	subdivide or change the then outstanding Common Shares into a greater number of Common Shares; 

  

	 	(iii)	combine or change the then outstanding Common Shares into a smaller number of Common Shares; or 

  

	 	(iv)	issue any Common Shares (or other shares or securities exchangeable for or convertible into or giving a right to acquire Common Shares or other shares) in respect of, in lieu of or
in exchange for existing Common Shares in a reclassification, amalgamation, merger, statutory arrangement or consolidation; 

 the Exercise Price and the number of Rights outstanding, or, if the payment or effective date therefor shall occur after the Separation Time, the securities purchasable upon exercise of Rights shall be adjusted in the manner set forth
below. If the Exercise Price and number of Rights outstanding are to be adjusted (x) the Exercise Price in effect after such adjustment shall be equal to the Exercise Price in effect immediately prior to such adjustment divided by the number of
Common Shares (or other shares) (the “Expansion Factor”) that a holder of one Common Share immediately prior to such dividend, subdivision, change, combination or issuance would hold thereafter as a result
thereof and (y) each Right held prior to such adjustment shall become that number of Rights equal to the Expansion Factor, and the adjusted number of Rights will be deemed to be allocated among the Common Shares with respect to which the
original Rights were associated (if they remain outstanding) and the shares issued in respect of such dividend, subdivision, change, combination or issuance, so that each such Common Share (or other share) will have exactly one Right associated with
it. If the securities purchasable upon exercise of Rights are to be adjusted, the securities purchasable upon exercise of each Right after such adjustment will be the number of securities that a holder of the securities purchasable upon exercise of
one Right immediately prior to such dividend, subdivision, change, combination or issuance would hold thereafter as a result thereof. If after the Record Time and prior to the Expiration Time the Corporation shall issue any shares other than Common
Shares in a transaction of a type described in Section 2.3(a)(i) or (iv), such shares shall be treated herein as nearly equivalent to Common Shares as may be practicable and appropriate under the circumstances and the Corporation and the Rights
Agent agree to amend this Agreement in order to effect, and will not consolidate with, amalgamate with or into or enter into a statutory arrangement with, any other Person unless such Person agrees to be bound by the terms of an amendment effecting
such treatment. If an event occurs which would require an adjustment under both this Section 2.3 and Section 3.1 hereof, the adjustment provided for in this Section 2.3 shall be in addition to, and shall be made prior to, any
adjustment required pursuant to Section 3.1 hereof. Adjustments pursuant to this Section 2.3(a) shall be made successively whenever an event referred to in this Section 2.3(a) occurs. 
  

 - 19 - 

 In the event the Corporation shall at any time after the Record Time and prior to the Separation Time
issue any Common Shares otherwise than in a transaction referred to in the preceding paragraph, each such Common Share so issued shall automatically have one new Right associated with it, which Right shall be evidenced by the certificate
representing such share. 
  

	 	(b)	In the event the Corporation shall at any time after the Record Time and prior to the Expiration Time fix a record date for the making of a distribution to all holders of Common
Shares of rights or warrants entitling them (for a period expiring within 60 calendar days after such record date) to subscribe for or purchase Common Shares (or securities convertible into or exchangeable for or carrying a right to purchase or
subscribe for Common Shares) at a price per Common Share (or, if a security convertible into or exchangeable for or carrying a right to purchase or subscribe for Common Shares, having a conversion, exchange or exercise price (including the price
required to be paid to purchase such convertible or exchangeable security or right per share)) less than the Market Price per Common Share on such record date, the Exercise Price shall be adjusted in the manner set forth below. The Exercise Price in
effect after such record date shall equal the Exercise Price in effect immediately prior to such record date multiplied by a fraction, of which the numerator shall be the number of Common Shares outstanding on such record date plus the number of
Common Shares which the aggregate offering price of the total number of Common Shares so to be offered (and/or the aggregate initial conversion, exchange or exercise price of the convertible or exchangeable securities or rights so to be offered
(including the price required to be paid to purchase such convertible or exchangeable securities or rights)) would purchase at such Market Price and of which the denominator shall be the number of Common Shares outstanding on such record date plus
the number of additional Common Shares to be offered for subscription or purchase (or into which the convertible or exchangeable securities or rights so to be offered are initially convertible, exchangeable or exercisable). In case such subscription
price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors whose determination shall be described in a statement filed
with the Rights Agent and shall be binding on the Rights Agent and the holders of Rights. Such adjustment shall be made successively whenever such a record date is fixed. For purposes of this paragraph (b), the granting of the right to purchase
Common Shares (whether from treasury shares or otherwise) pursuant to any dividend or interest reinvestment plan and/or any Common Share purchase plan providing for the reinvestment of dividends or interest payable on securities of the Corporation
and/or the investment of periodic optional payments and/or employee benefit or similar plans (so long as such right to purchase is in no case evidenced by the delivery of rights or warrants) shall not be deemed to constitute an issue of rights or
warrants by the Corporation; provided, however, that in the case of any dividend or interest reinvestment plan, the right to purchase Common Shares is at a price per share of not less than 90% of the current market price per share (determined as
provided in such plans) of the Common Shares. 

  

	 	(c)	 In the event the Corporation shall at any time after the Record Time and prior to the Expiration Time fix a record date for the making of a distribution to all
holders of Common Shares of evidences of indebtedness or assets (other than a regular periodic cash dividend or a dividend paid in Common Shares) or rights or 

  

 - 20 - 

	 	 
warrants (excluding those referred to in Section 2.3(b)), the Exercise Price shall be adjusted in the manner set forth below. The Exercise Price in
effect after such record date shall equal the Exercise Price in effect immediately prior to such record date less the fair market value (as determined in good faith by the Board of Directors) of the portion of the assets, evidences of indebtedness,
rights or warrants so to be distributed applicable to each of the securities purchasable upon exercise of one Right (such determination to be described in a statement filed with the Rights Agent and the holders of the Rights). Such adjustment shall
be made successively whenever such a record date is fixed. 

  

	 	(d)	Each adjustment made pursuant to this Section 2.3 shall be made as of: 

  

	 	(i)	the payment or effective date for the applicable dividend, subdivision, change, combination or issuance, in the case of an adjustment made pursuant to paragraph (a) above; and

  

	 	(ii)	the record date for the applicable dividend or distribution, in the case of an adjustment made pursuant to paragraph (b) or (c) above subject to readjustment to reverse
the same if such distribution shall not be made. 

  

	 	(e)	In the event the Corporation shall at any time after the Record Time and prior to the Expiration Time issue any shares (other than Common Shares), or rights or warrants to subscribe
for or purchase any such shares, or securities convertible into or exchangeable for any such shares, in a transaction referred to in clause (a)(i) or (a)(iv) above, or if the Corporation shall take any other action (other than the issue of Common
Shares) which might have a negative effect on the holders of Rights, if the Board of Directors acting in good faith determines that the adjustments contemplated by paragraphs (a), (b) and (c) above are not applicable or will not
appropriately protect the interests of the holders of Rights, the Corporation may determine what other adjustments to the Exercise Price, number of Rights and/or securities purchasable upon exercise of Rights would be appropriate and, if the
adjustments contemplated by paragraphs (a), (b) and (c) above are applicable, notwithstanding such paragraphs, the adjustments so determined by the Corporation, rather than the adjustments contemplated by paragraphs (a), (b) and
(c) above, shall be made. The Corporation and the Rights Agent shall amend this Agreement in accordance with Section 5.4(b) and (c), as the case may be, to provide for such adjustments. 

  

	 	(f)	Whenever an adjustment to the Exercise Price is made pursuant to this Section 2.3, the Corporation shall: 

  

	 	(i)	promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment; 

  

	 	(ii)	promptly file with the Rights Agent and with each transfer agent for the Common Shares a copy of such certificate; and 

  

	 	(iii)	cause notice of the particulars of such adjustment or change to be given to the holders of the Rights by way of press release or by such other means as the Corporation may
determine. 

 Failure to file such certificate or to cause such notice to be given as aforesaid, or any defect therein, shall
not affect the validity of such adjustment. 
  

 - 21 - 

	 	(g)	Irrespective of any adjustment or change in the securities purchasable upon exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express
the securities so purchasable which were expressed in the initial Rights Certificates issued hereunder. 

  

	 	(h)	Notwithstanding anything herein to the contrary, no adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least one
per cent in the Exercise Price; provided, however, that any adjustments which by reason of this Section 2.3(h) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under
Section 2.3 shall be made to the nearest cent or to the nearest ten-thousandth of a share. Notwithstanding the first sentence of this Section 2.3(h), any adjustment required by Section 2.3 shall be made no later than the earlier of:

  

	 	(i)	three years from the date of the transaction which gives rise to such adjustment; or 

  

	 	(ii)	the Expiration Date. 

  

	 	(i)	Each Right originally issued by the Corporation subsequent to any adjustment made to the Exercise Price hereunder shall evidence the right to purchase, at the adjusted Exercise
Price, the number of Common Shares purchasable from time to time hereunder upon exercise of a Right immediately prior to such issue, all subject to further adjustment as provided herein. 

  

	 	(j)	In any case in which this Section 2.3 shall require that an adjustment in the Exercise Price be made effective as of a record date for a specified event, the Corporation may
elect to defer until the occurrence of such event the issuance to the holder of any Right exercised after such record date the number of Common Shares and other securities of the Corporation, if any, issuable upon such exercise over and above the
number of Common Shares and other securities of the Corporation, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment; provided, however, that the Corporation shall deliver to such holder an
appropriate instrument evidencing such holder’s right to receive such additional shares (fractional or otherwise) or other securities upon the occurrence of the event requiring such adjustment. 

  

	 	(k)	Notwithstanding anything contained in this Section 2.3 to the contrary, the Corporation shall be entitled to make such reductions in the Exercise Price, in addition to those
adjustments expressly required by this Section 2.3, as and to the extent that in their good faith judgment the Board of Directors determines to be advisable, in order that any: 

  

	 	(i)	consolidation or subdivision of Common Shares; 

  

	 	(ii)	issuance (wholly or in part for cash) of Common Shares or securities that by their terms are convertible into or exchangeable for Common Shares; 

  

	 	(iii)	stock dividends; or 

  

	 	(iv)	issuance of rights, options or warrants referred to in this Section 2.3, hereafter made by the Corporation to holders of its Common Shares, shall not be taxable to such
shareholders. 

  

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	2.4	Date on Which Exercise is Effective 

 Each Person in
whose name any certificate for Common Shares or other securities, if applicable, is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Common Shares represented thereby on, and such
certificate shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered (together with a duly completed Election to Exercise) and payment of the Exercise Price for such Rights (and any applicable transfer
taxes and other governmental charges payable by the exercising holder hereunder) was made; provided, however, that if the date of such surrender and payment is a date upon which the Common Share transfer books of the Corporation are closed, such
Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the Common Share transfer books of the Corporation are open. 
  

	2.5	Execution, Authentication, Delivery and Dating of Rights Certificates 

  

	 	(a)	The Rights Certificates shall be executed on behalf of the Corporation by any two officers or directors of the Corporation. The signature of any of these officers or directors on
the Rights Certificates may be manual or facsimile. Rights Certificates bearing the manual or facsimile signatures of individuals who were at any time the proper officers or directors of the Corporation shall bind the Corporation, notwithstanding
that such individuals or any of them have ceased to hold such offices prior to the countersignature and delivery of such Rights Certificates. Promptly after the Corporation learns of the Separation Time, the Corporation will notify the Rights Agent
of such Separation Time and will deliver Rights Certificates executed by the Corporation to the Rights Agent for countersignature, and the Rights Agent shall countersign (manually or by facsimile signature in a manner satisfactory to the
Corporation) and mail such Rights Certificates to the holders of the Rights pursuant to Section 2.2(c) hereof. No Rights Certificate shall be valid for any purpose until countersigned by the Rights Agent as aforesaid. 

 

	 	(b)	Each Rights Certificate shall be dated the date of countersignature thereof. 

  

	2.6	Registration, Registration of Transfer and Exchange 

  

	 	(a)	The Corporation will cause to be kept a register (the “Rights Register”) in which, subject to such reasonable regulations as it may prescribe,
the Corporation will provide for the registration and transfer of Rights. The Rights Agent is hereby appointed “Rights Registrar” for the purpose of maintaining the Rights Register for the Corporation and registering Rights and transfers
of Rights as herein provided and the Rights Agent hereby accepts such appointment. In the event that the Rights Agent shall cease to be the Rights Registrar, the Rights Agent will have the right to examine the Rights Register at all reasonable
times. 

  

	 	(b)	After the Separation Time and prior to the Expiration Time, upon surrender for registration of transfer or exchange of any Rights Certificate, and subject to the provisions of
Section 2.6(d) below, the Corporation will execute, and the Rights Agent will countersign and deliver, in the name of the holder or the designated transferee or transferees, as required pursuant to the holder’s instructions, one or more
new Rights Certificates evidencing the same aggregate number of Rights as did the Rights Certificates so surrendered. 

  

 - 23 - 

	 	(c)	All Rights issued upon any registration of transfer or exchange of Rights Certificates shall be the valid obligations of the Corporation, and such Rights shall be entitled to the
same benefits under this Agreement as the Rights surrendered upon such registration of transfer or exchange. 

  

	 	(d)	Every Rights Certificate surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to
the Corporation or the Rights Agent, as the case may be, duly executed by the holder thereof or such holder’s attorney duly authorized in writing. As a condition to the issuance of any new Rights Certificate under this Section 2.6, the
Corporation may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the reasonable fees and expenses of the Rights Agent) in connection
therewith. 

  

	2.7	Mutilated, Destroyed, Lost and Stolen Rights Certificates 

  

	 	(a)	If any mutilated Rights Certificate is surrendered to the Rights Agent prior to the Expiration Time, the Corporation shall execute and the Rights Agent shall countersign and deliver
in exchange therefor a new Rights Certificate evidencing the same number of Rights as did the Rights Certificate so surrendered. 

  

	 	(b)	If there shall be delivered to the Corporation and the Rights Agent prior to the Expiration Time (i) evidence to their satisfaction of the destruction, loss or theft of any
Rights Certificate and (ii) such security or indemnity as may be required by them in their sole discretion to save each of them and any of their agents harmless, then, in the absence of notice to the Corporation or the Rights Agent that such
Rights Certificate has been acquired by a bona fide purchaser, the Corporation shall execute and upon its request the Rights Agent shall countersign and deliver, in lieu of any such destroyed, lost or stolen Rights Certificate, a new Rights
Certificate evidencing the same number of Rights as did the Rights Certificate so destroyed, lost or stolen. 

  

	 	(c)	As a condition to the issuance of any new Rights Certificate under this Section 2.7, the Corporation may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other expenses (including the reasonable fees and expenses of the Rights Agent) connected therewith. 

  

	 	(d)	Every new Rights Certificate issued pursuant to this Section 2.7 in lieu of any destroyed, lost or stolen Rights Certificate shall evidence an original additional contractual
obligation of the Corporation, whether or not the destroyed, lost or stolen Rights Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Agreement equally and proportionately with any and all other
Rights duly issued hereunder. 

  

	2.8	Persons Deemed Owners of Rights 

 The Corporation,
the Rights Agent and any agent of the Corporation or the Rights Agent may deem and treat the Person in whose name a Rights Certificate (or, prior to the Separation 

  

 - 24 - 

 
Time, the associated Common Share certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby for all purposes whatsoever.
As used in this Agreement, unless the context otherwise requires, the term “holder” of any Rights shall mean the registered holder of such Rights (or, prior to the Separation Time, the associated Common Shares). 
  

	2.9	Delivery and Cancellation of Certificates 

 All
Rights Certificates surrendered upon exercise or for redemption, registration of transfer or exchange shall, if surrendered to any Person other than the Rights Agent, be delivered to the Rights Agent and, in any case, shall be promptly cancelled by
the Rights Agent. The Corporation may at any time deliver to the Rights Agent for cancellation any Rights Certificates previously countersigned and delivered hereunder which the Corporation may have acquired in any manner whatsoever, and all Rights
Certificates so delivered shall be promptly cancelled by the Rights Agent. No Rights Certificate shall be countersigned in lieu of or in exchange for any Rights Certificates cancelled as provided in this Section 2.9, except as expressly
permitted by this Agreement. The Rights Agent shall, subject to applicable law, destroy all cancelled Rights Certificates and deliver a certificate of destruction to the Corporation. 
  

	2.10	Agreement of Rights Holders 

 Every holder of Rights
by accepting the same consents and agrees with the Corporation and the Rights Agent and with every other holder of Rights that: 
  

	 	(a)	he will be bound by and subject to the provisions of this Agreement, as amended from time to time in accordance with the terms hereof, in respect of all Rights held;

  

	 	(b)	prior to the Separation Time, each Right will be transferable only together with, and will be transferred by a transfer of, the associated Common Share; 

  

	 	(c)	after the Separation Time, the Rights Certificates will be transferable only on the Rights Register as provided herein; 

  

	 	(d)	prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) for registration of transfer, the Corporation, the
Rights Agent and any agent of the Corporation or the Rights Agent may deem and treat the Person in whose name the Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) is registered as the absolute owner
thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on such Rights Certificate or the associated Common Share certificate made by anyone other than the Corporation or the Rights Agent) for all purposes
whatsoever, and neither the Corporation nor the Rights Agent shall be affected by any notice to the contrary; 

  

	 	(e)	such holder of Rights has waived his right to receive any fractional Rights or any fractional shares or other securities upon exercise of a Right (except as provided herein);

  

	 	(f)	subject to the provisions of Section 5.4, without the approval of any holder of Rights and upon the sole authority of the Board of Directors acting in good faith this Agreement
may be supplemented or amended from time to time to cure any ambiguity or to correct or supplement any provision contained herein which may be inconsistent with the intent of this Agreement or is otherwise defective; and 

  

 - 25 - 

	 	(g)	notwithstanding anything in this Agreement to the contrary, neither the Corporation nor the Rights Agent shall have any liability to any holder of a Right or any other Person as a
result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or
administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation. 

 ARTICLE 3 
 ADJUSTMENTS TO THE
RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS 
  

	3.1	Flip-in Event 

  

	 	(a)	Subject to Sections 3.1(b), 5.1(b), 5.1(c) and 5.1(d) hereof, in the event that prior to the Expiration Time a Flip-in Event shall occur, the Corporation shall take such action as
shall be necessary to ensure and provide, within 10 Business Days thereafter or such longer period as may be required to satisfy the requirements of the Securities Act, the 1933 Securities Act and the applicable securities acts or
comparable legislation of each of the provinces of Canada and the states of the United States so that, except as provided below, each Right shall thereafter constitute the right to purchase from the Corporation, upon exercise thereof in accordance
with the terms hereof, that number of Common Shares having an aggregate Market Price on the date of consummation or occurrence of such Flip-in Event equal to twice the Exercise Price for an amount in cash equal to the Exercise Price (such right to
be appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 in the event that after such date of consummation or occurrence an event of a type analogous to any of the events described in
Section 2.3 shall have occurred with respect to such Common Shares). 

  

	 	(b)	Notwithstanding the foregoing or any other provisions of this Agreement, upon the occurrence of any Flip-in Event, any Rights that are or were Beneficially Owned on or after the
earlier of the Separation Time or the Stock Acquisition Date by: 

  

	 	(i)	an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person or any Affiliate or Associate of an
Acquiring Person); or 

  

	 	(ii)	a transferee, direct or indirect, from an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person
or any Affiliate or Associate of an Acquiring Person) where such transferee becomes a transferee concurrently with or subsequent to the Acquiring Person becoming such, whether or not for consideration, that the Board of Directors acting in good
faith has determined is part of a plan, arrangement or scheme of an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person or any Affiliate or Associate of an
Acquiring Person) that has the purpose or effect of avoiding clause (i) of this Section 3.1(b), 

  

 - 26 - 

 shall become void without any further action and any holder of such Rights (including transferees) shall
thereafter have no right to exercise such Rights under any provision of this Agreement and shall not have any other rights whatsoever in respect of such Rights, whether under any provision of this Agreement or otherwise. 
  

	 	(c)	Any Rights Certificate that represents Rights Beneficially Owned by a Person described in either clauses (i) or (ii) of Section 3.1(b) or transferred to any nominee
of any such Person, and any Rights Certificate issued upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain the following legend: 

 The Rights represented by this Rights Certificate were Beneficially Owned by a Person who was an Acquiring Person or who was an Affiliate or an Associate
of an Acquiring Person (as such terms are defined in the Rights Agreement) or a Person who was acting jointly or in concert with any of them. This Rights Certificate and the Rights represented hereby are void or shall become void in the
circumstances specified in Section 3.1(b) of the Rights Agreement 
 provided, however, that the Rights Agent shall not be under any
responsibility to ascertain the existence of facts that would require the imposition of such legend but shall be required to impose such legend only if instructed to do so by the Corporation or if a holder fails to certify upon transfer or exchange
in the space provided on the Rights Certificate that such holder is not an Acquiring Person or an Affiliate or Associate thereof. 
  

	 	(d)	From and after the Separation Time, the Corporation shall do all such acts and things as shall be necessary and within its power to ensure compliance with the provisions of this
Section 3.1, including without limitation, all such acts and things as may be required to satisfy the requirements of the Business Corporations Act, the Securities Act and the securities laws or comparable legislation of each of
the provinces of Canada and of the United States and each of the states thereof in respect of the issue of Common Shares upon the exercise of Rights in accordance with this Agreement. 

 ARTICLE 4 
 THE RIGHTS AGENT

  

	4.1	General 

  

	 	(a)	 The Corporation hereby appoints the Rights Agent to act as agent for the Corporation and the holders of Rights in accordance with the terms and conditions hereof,
and the Rights Agent hereby accepts such appointment. The Corporation may from time to time appoint such co-rights agents (“Co-Rights Agents”) as it may deem necessary or desirable, subject to the approval of the Rights
Agent. In the event the Corporation appoints one or more Co-Rights Agents, the respective duties of the Rights Agent and Co-Rights Agents shall be 

  

 - 27 - 

	 	 
as the Corporation may determine with the approval of the Rights Agent and the Co-Rights Agent. The Corporation agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the execution and administration of this Agreement and the
exercise and performance of its duties hereunder (including the reasonable fees and other disbursements of any expert retained by the Rights Agent with the approval of the Corporation, such approval not to be unreasonably withheld). The Corporation
also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense, incurred without negligence, bad faith or wilful misconduct on the part of the Rights Agent, for anything done, suffered or omitted by
the Rights Agent in connection with the acceptance, execution and administration of this Agreement and the exercise and performance of its duties hereunder, including legal costs and expenses of defending against any claim or liability, which right
to indemnification will survive the termination of this Agreement and the resignation or removal of the Rights Agent. 

  

	 	(b)	The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its administration of this
Agreement in reliance upon any certificate for Common Shares, Rights Certificate, certificate for other securities of the Corporation, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction,
consent, certificate, opinion, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons. 

  

	 	(c)	The Corporation shall inform the Rights Agent in a reasonably timely manner of events which may materially affect the administration of this Agreement by the Rights Agent.

  

	4.2	Merger, Amalgamation or Consolidation or Change of Name of Rights Agent 

  

	 	(a)	Any corporation into which the Rights Agent or any successor Rights Agent may be merged or amalgamated or with which it may be consolidated, or any corporation resulting from any
merger, amalgamation, statutory arrangement or consolidation to which the Rights Agent or any successor Rights Agent is a party, or any corporation succeeding to the shareholder or stockholder services business of the Rights Agent or any successor
Rights Agent, will be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment
as a successor Rights Agent under the provisions of Section 4.4 hereof. In case, at the time such successor Rights Agent succeeds to the agency created by this Agreement, any of the Rights Certificates have been countersigned but not delivered,
any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates have not been countersigned, any successor
Rights Agent may countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Rights Certificates will have the full force provided in the Rights
Certificates and in this Agreement. 

  

 - 28 - 

	 	(b)	In case at any time the name of the Rights Agent is changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may
adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates
either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

  

	4.3	Duties of Rights Agent 

 The Rights Agent undertakes
the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Corporation and the holders of certificates for Common Shares and Convertible Securities and the holders of Rights Certificates, by
their acceptance thereof, shall be bound: 
  

	 	(a)	The Rights Agent may retain and consult with legal counsel (who may be legal counsel for the Corporation), and the opinion of such counsel will be full and complete authorization
and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion; the Rights Agent may also, with the approval of the Corporation (such approval not to be unreasonably withheld) and at the
expense of the Corporation, consult with such other experts as the Rights Agent shall consider necessary or appropriate to properly carry out the duties and obligations imposed under this Agreement and the Rights Agent shall be entitled to act and
rely in good faith on the advice of any such expert. 

  

	 	(b)	Whenever in the performance of its duties under this Agreement the Rights Agent deems it necessary or desirable that any fact or matter be proved or established by the Corporation
prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by persons believed
by the Rights Agent to be any two officers or directors of the Corporation and delivered to the Rights Agent; and such certificate will be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the
provisions of this Agreement in reliance upon such certificate. 

  

	 	(c)	The Rights Agent will be liable hereunder only for its own negligence, bad faith or willful misconduct. 

  

	 	(d)	The Rights Agent will not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the certificates for Common Shares or the Rights
Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and will be deemed to have been made by the Corporation only. 

  

	 	(e)	 The Rights Agent will not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due
authorization, execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of any Common Share certificate or Rights Certificate (except its countersignature thereof); nor will it be responsible for any breach by
the Corporation of any covenant or condition contained in this Agreement or in 

  

 - 29 - 

	 	 
any Rights Certificate; nor will it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to
Section 3.1(b) hereof) or any adjustment required under the provisions of Section 2.3 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such
adjustment (except with respect to the exercise of Rights after receipt of the certificate contemplated by Section 2.3 describing any such adjustment); nor will it by any act hereunder be deemed to make any representation or warranty as to the
authorization of any Common Shares to be issued pursuant to this Agreement or any Rights or as to whether any Common Shares will, when issued, be duly and validly authorized, executed, issued and delivered and fully paid and non-assessable.

  

	 	(f)	The Corporation agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts,
instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 

  

	 	(g)	The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any persons believed by the Rights Agent to be
any two officers or directors of the Corporation, and to apply to such persons for advice or instructions in connection with its duties, and it shall not be liable for any action taken or suffered by it in good faith in reliance upon instructions of
any such persons; it is understood that instructions to the Rights Agent shall, except where circumstances make it impracticable or the Rights Agent otherwise agrees, be given in writing and, where not in writing, such instructions shall be
confirmed in writing as soon as reasonably possible after the giving of such instructions. 

  

	 	(h)	The Rights Agent and any shareholder or stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in Common Shares, Rights or other securities of the
Corporation or become pecuniarily interested in any transaction in which the Corporation may be interested, or contract with or lend money to the Corporation or otherwise act as fully and freely as though it were not Rights Agent under this
Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Corporation or for any other legal entity. 

  

	 	(i)	The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or agents, and
the Rights Agent will not be answerable or accountable for any act, omission, default, neglect or misconduct of any such attorneys or agents or for any loss to the Corporation resulting from any such act, omission, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued employment thereof. 

  

	4.4	Change of Rights Agent 

 The Rights Agent may resign
and be discharged from its duties under this Agreement upon 30 days’ notice (or such lesser notice as is acceptable to the Corporation) in writing mailed to the Corporation and to each transfer agent of Common Shares by registered or certified
mail, and to the holders of the Rights in accordance with Section 5.8. The Corporation may remove 

  

 - 30 - 

 
the Rights Agent upon 30 days’ notice in writing given to the Rights Agent and to each transfer agent of the Common Shares (by personal delivery, or
registered or certified mail). If the Rights Agent should resign or be removed or otherwise become incapable of acting, the Corporation will appoint a successor to the Rights Agent. If the Corporation fails to make such appointment within a period
of 30 days after such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent, then the resigning Rights Agent (at the Corporation’s expense) or any holder of any Rights
(which holder of Rights shall also submit his Rights Certificate for inspection by the Corporation) may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the
Corporation or by such a court, shall be a corporation incorporated under the laws of Canada or a province thereof authorized to carry on the business of a trust company in the Province of Alberta. After appointment, the successor Rights Agent will
be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any
property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Corporation will file notice thereof in
writing with the predecessor Rights Agent and each transfer agent of the Common Shares, and mail a notice thereof in writing to the holders of the Rights. Failure to give any notice provided for in this Section 4.4, however, or any defect
therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 ARTICLE 5 
 MISCELLANEOUS 
  

	5.1	Redemption and Termination 

  

	 	(a)	The Board of Directors may, with the prior consent of holders of Common Shares or of the holders of Rights given in accordance with Section 5.1(f) or (g), as the case may be,
and in each case prior to the occurrence of a Flip-in Event as to which the application of Section 3.1 has not been waived pursuant to the provisions of this Section 5.1, elect to redeem all but not less than all of the then outstanding
Rights at a redemption price of $.00001 per Right appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 in the event that an event of the type analogous to any of the events described in
Section 2.3 shall have occurred (such redemption price being herein referred to as the “Redemption Price”). 

  

	 	(b)	The Board of Directors may, with the prior consent of the holders of Common Shares given in accordance with Section 5.1(f), determine, at any time prior to the occurrence of a
Flip-in Event as to which the application of Section 3.1 has not been waived pursuant to this Section 5.1, if such Flip-in Event would occur by reason of an acquisition of Common Shares otherwise than pursuant to a Take-over Bid made by
means of a take-over bid circular sent to all holders of record of Common Shares and otherwise than in the circumstances set forth in Section 5.1(d), to waive the application of Section 3.1, on the same terms and conditions, to such
Flip-in Event. In the event that the Board of Directors proposes such a waiver, the Board of Directors shall extend the Separation Time to a date subsequent to and not more than ten Business Days following the meeting of shareholders called to
approve such waiver. 

  

 - 31 - 

	 	(c)	The Board of Directors may, at its option, prior to the occurrence of a Flip-in Event as to which the application of Section 3.1 has not been waived under this clause,
determine, upon prior written notice to the Rights Agent, to waive the application of Section 3.1 to that Flip-in Event provided that the Flip-in Event would occur by reason of a Take-over Bid made by means of a take-over bid circular sent to
all holders of record of Common Shares; further provided that if the Board of Directors waives the application of Section 3.1 to such a Flip-in Event, the Board of Directors shall be deemed to have waived the application of Section 3.1 to
any other Flip-in Event occurring by reason of any Take-over Bid made by means of a take-over bid circular to all holders of record of Common Shares which is made prior to the expiry of any Take-over Bid in respect of which a waiver is, or is deemed
to have been, granted under this Section 5.1(c). 

  

	 	(d)	The Board of Directors may, in respect of any Flip-in Event, waive the application of Section 3.1 to that Flip-in Event, provided that both of the following conditions are
satisfied: 

  

	 	(i)	the Board of Directors has determined that the Acquiring Person became an Acquiring Person by inadvertence and without any intent or knowledge that it would become an Acquiring
Person; and 

  

	 	(ii)	such Acquiring Person has reduced its Beneficial Ownership of Common Shares such that at the time of waiver pursuant to this Section 5.1(d) it is no longer an Acquiring Person
and has provided the Board of Directors with satisfactory evidence thereof; 

 and in the event of any such waiver, for the
purposes of this Agreement, such Flip-in Event shall be deemed not to have occurred and the Separation Time shall be deemed not to have occurred as a result of such Person having inadvertently become an Acquiring Person. 
  

	 	(e)	The Board of Directors shall, without further formality, be deemed to have elected to redeem the Rights at the Redemption Price on the date that a Person who has made a Permitted
Bid or a Take-over Bid in respect of which the Board of Directors has waived, or is deemed to have waived, pursuant to Section 5.1(c), the application of Section 3.1, takes up and pays for the Common Shares pursuant to the terms and
conditions of the Permitted Bid or Take-over Bid, as the case may be. 

  

	 	(f)	If a redemption of Rights pursuant to Section 5.1(a) or a waiver of a Flip-in Event pursuant to Section 5.1(b) is proposed at any time prior to the Separation Time, such
redemption or waiver shall be submitted for approval to the holders of Common Shares. Such approval shall be deemed to have been given if the redemption or waiver is approved by the affirmative vote of a majority of the votes cast by Independent
Shareholders represented in person or by proxy at a meeting of such holders duly held in accordance with applicable laws and the Corporation’s by-laws. 

  

	 	(g)	 If a redemption of Rights pursuant to Section 5.1(a) is proposed at any time after the Separation Time, such redemption shall be submitted for approval to the
holders of Rights. Such approval shall be deemed to have been given if the redemption is approved by holders of Rights by a majority of the votes cast by the holders of Rights represented in person or by proxy at and entitled to vote at 

  

 - 32 - 

	 	 
a meeting of such holders. For the purposes hereof, each outstanding Right (other than Rights which are Beneficially Owned by any Person referred to in
clauses (i) to (v) inclusive of the definition of Independent Shareholders) shall be entitled to one vote, and the procedures for the calling, holding and conduct of the meeting shall be those, as nearly as may be, which are provided in
the Corporation’s by-laws and the Business Corporations Act with respect to meetings of shareholders of the Corporation. 

  

	 	(h)	Where a Take-over Bid that is not a Permitted Bid is withdrawn or otherwise terminated after the Separation Time has occurred and prior to the occurrence of a Flip-in Event, the
Board of Directors may elect to redeem all the outstanding Rights at the Redemption Price and reissue Rights under this Agreement to holders of record of Common Shares immediately following such time of redemption. Notwithstanding such redemption,
all of the provisions of this Agreement shall continue to apply as if the Separation Time had not occurred and it shall be deemed not to have occurred and Rights shall remain attached to the outstanding Common Shares, subject to and in accordance
with the provisions of this Agreement. 

  

	 	(i)	If the Board of Directors elects or is deemed to have elected to redeem the Rights, and, in circumstances where Section 5.1(a) is applicable, such redemption is approved by the
holders of Common Shares or the holders of Rights in accordance with Section 5.1(f) or (g), as the case may be, the right to exercise the Rights will thereupon, without further action and without notice, terminate and the only right thereafter
of the holders of Rights will be to receive the Redemption Price. 

  

	 	(j)	Within 10 Business Days after the Board of Directors electing or having been deemed to have elected to redeem the Rights or, if Section 5.1(a) is applicable within 10 Business
Days after the holders of Common Shares or the holders of Rights have approved a redemption of Rights in accordance with Section 5.1(f) or (g), as the case may be, the Corporation shall give notice of redemption to the holders of the then
outstanding Rights by mailing such notice to each such holder at its last address as it appears upon the register of the Rights Agent or, prior to the Separation Time, on the register of the Transfer Agent for the Common Shares. Any notice which is
mailed in the manner herein provided will be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. The Corporation may not redeem,
acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this Section 5.1 or in connection with the purchase of Common Shares prior to the Separation Time. 

  

	 	(k)	The Corporation shall give prompt notice to the Rights Agent of any waiver of the application of Section 3.1 made by the Board of Directors under this Section 5.1.

  

	5.2	Expiration 

 No Person shall have any rights
pursuant to this Agreement or in respect of any Right after the Expiration Time, except the Rights Agent as specified in Section 4.1(a) of this Agreement. 
  

 - 33 - 

	5.3	Issuance of New Rights Certificates 

 Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Corporation may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by its Board of Directors to
reflect any adjustment or change in the number of or kind or class of shares purchasable upon exercise of Rights made in accordance with the provisions of this Agreement. 
  

	5.4	Supplements and Amendments 

  

	 	(a)	The Corporation may make amendments to this Agreement to correct any clerical or typographical error or which are required to maintain the validity of this Agreement as a result of
any change in any applicable legislation, rules or regulations thereunder. Notwithstanding anything in this Section 5.4 to the contrary, no such amendment shall be made to the provisions of Article 4 except with the written concurrence of the
Rights Agent to such supplement or amendment. 

  

	 	(b)	Subject to Section 5.4(a), the Corporation may, with the prior consent of the holders of Common Shares obtained as set forth below, at any time prior to the Separation Time,
supplement, amend, vary, rescind or delete any of the provisions of this Agreement and the Rights (whether or not such action would materially adversely affect the interests of the holders of Rights generally) provided that no such amendment,
variation or deletion shall be made to the provisions of Article 4 except with the written concurrence of the Rights Agent thereto. Such consent shall be deemed to have been given if the action requiring such approval is authorized by the
affirmative vote of a majority of the votes cast by Independent Shareholders present or represented at and entitled to be voted at a meeting of the holders of Common Shares duly called and held in compliance with applicable laws and the articles and
by-laws of the Corporation. 

  

	 	(c)	The Corporation may, with the prior consent of the holders of Rights, at any time on or after the Separation Time, supplement, amend, vary, rescind or delete any of the provisions
of this Agreement and the Rights (whether or not such action would materially adversely affect the interests of the holders of Rights generally), provided that no such amendment, variation or deletion shall be made to the provisions of Article 4
except with the written concurrence of the Rights Agent thereto. Such consent shall be deemed to have been given if such amendment, variation or deletion is authorized by the affirmative votes of the holders of Rights present or represented at and
entitled to be voted at a meeting of the holders and representing 50% plus one of the votes cast in respect thereof. 

  

	 	(d)	Any approval of the holders of Rights shall be deemed to have been given if the action requiring such approval is authorized by the affirmative votes of the holders of Rights
present or represented at and entitled to be voted at a meeting of the holders of Rights and representing a majority of the votes cast in respect thereof. For the purposes hereof, each outstanding Right (other than Rights which are void pursuant to
the provisions hereof) shall be entitled to one vote, and the procedures for the calling, holding and conduct of the meeting shall be those, as nearly as may be, which are provided in the Corporation’s by-laws and the Business Corporations
Act with respect to meetings of shareholders of the Corporation. 

  

 - 34 - 

	 	(e)	Any amendments made by the Corporation to this Agreement pursuant to Section 5.4(a) which are required to maintain the validity of this Agreement as a result of any change in
any applicable legislation, rules or regulation thereunder shall: 

  

	 	(i)	if made before the Separation Time, be submitted to the shareholders of the Corporation at the next meeting of shareholders and the shareholders may, by the majority referred to in
Section 5.4(b), confirm or reject such amendment; 

  

	 	(ii)	if made after the Separation Time, be submitted to the holders of Rights at a meeting to be called for on a date not later than immediately following the next meeting of
shareholders of the Corporation and the holders of Rights may, by resolution passed by the majority referred to in Subsection 5.4(d), confirm or reject such amendment. 

 Any such amendment shall be effective from the date of the resolution of the Board of Directors adopting such amendment, until it is confirmed or rejected
or until it ceases to be effective (as described in the next sentence) and, where such amendment is confirmed, it continues in effect in the form so confirmed. If such amendment is rejected by the shareholders or the holders of Rights or is not
submitted to the shareholders or holders of Rights as required, then such amendment shall cease to be effective from and after the termination of the meeting at which it was rejected or to which it should have been but was not submitted or from and
after the date of the meeting of holders of Rights that should have been but was not held, and no subsequent resolution of the Board of Directors to amend this Agreement to substantially the same effect shall be effective until confirmed by the
shareholders or holders of Rights as the case may be. 
  

	5.5	Fractional Rights and Fractional Shares 

  

	 	(a)	The Corporation shall not be required to issue fractions of Rights or to distribute Rights Certificates which evidence fractional Rights. After the Separation Time there shall be
paid to the registered holders of the Rights Certificates (provided the Rights represented by such Rights Certificates are not void pursuant to the provisions of Section 3.1(b)) with regard to which fractional Rights would otherwise be
issuable, an amount in cash (rounded to the nearest cent) equal to the same fraction of the Market Price of a whole Right in lieu of such fractional Rights as of the date such fractional Rights would otherwise be issuable. 

 

	 	(b)	The Corporation shall not be required to issue fractional Common Shares upon exercise of the Rights or to distribute certificates which evidence fractional Common Shares. In lieu of
issuing fractional Common Shares, the Corporation shall pay to the registered holder of Rights Certificates at the time such Rights are exercised as herein provided, an amount in cash (rounded to the nearest cent) equal to the same fraction of the
Market Price of one Common Share at the date of such exercise. 

  

	5.6	Rights of Action 

 Subject to the terms of this
Agreement, rights of action in respect of this Agreement, other than rights of action vested solely in the Rights Agent, are vested in the respective holders 

  

 - 35 - 

 
of the Rights; and any holder of any Rights, without the consent of the Rights Agent or of the holder of any other Rights, may, on such holder’s own
behalf and for such holder’s own benefit and the benefit of other holders of Rights, enforce, and may institute and maintain any suit, action or proceeding against the Corporation to enforce, or otherwise act in respect of, such holder’s
right to exercise such holder’s Rights, or Rights to which he is entitled, in the manner provided in this Agreement and in such holder’s Rights Certificate. Without limiting the foregoing or any remedies available to the holders of Rights
it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of the obligations under, and injunctive relief against actual or
threatened violations of, the obligations of any Person subject to this Agreement. 
  

	5.7	Holder of Rights Not Deemed a Shareholder 

 No
holder, as such, of any Rights shall be entitled to vote, receive dividends or be deemed for any purpose the holder of Common Shares or any other securities which may at any time be issuable on the exercise of Rights, nor shall anything contained
herein or in any Rights Certificate be construed to confer upon the holder of any Rights, as such, any of the rights of a shareholder of the Corporation or any right to vote for the election of directors or upon any matter submitted to shareholders
at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting Shareholders (except as provided in Section 5.8 hereof), or to receive dividends or subscription rights
or otherwise, until such Rights, or Rights to which such holder is entitled, shall have been exercised in accordance with the provisions hereof. 
  

	5.8	Notices 

 Notices or demands to be given or made in
connection with this Agreement by the Rights Agent or by the holder of any Rights to or on the Corporation shall be sufficiently given or made if delivered or sent by mail, postage prepaid or by fax or other form of recorded electronic communication
(with, in the case of fax or other form of recorded electronic communication, an original copy of the notice or demand sent by first class mail, postage prepaid, to the Corporation following the giving of the notice or demand by fax or other form of
recorded electronic communication), addressed (until another address is filed in writing with the Rights Agent) as follows: 
  

			
	Tesco Corporation
	6204 - 6A Street S.E.
	Calgary, Alberta T2H 2B7
		
	Attention:	  	President
		
	Fax:	  	(403) 252-3362
	Phone:	  	(403) 233-0757

 Notices or demands to be given or made in connection with this Agreement by the Corporation or by
the holder of any Rights to or on the Rights Agent shall be sufficiently given or made if delivered or sent by mail, postage prepaid, or by fax or other form of recorded electronic communication (with, in the case of fax or other form of recorded
electronic communication, an original copy of the notice or demand sent by first class mail, postage prepaid, to the Rights Agent following the giving of the notice or demand by fax or other form of recorded electronic communication), addressed
(until another address is filed in writing with the Corporation) as follows: 
  

			
	Computershare Trust Company of Canada
	Suite 600, Western Gas Tower
	530 - 8th Avenue S.W.
	Calgary, Alberta T2P 3S8
		
	Attention:	  	General Manager
		
	Fax:	  	(403) 267-6529

  

 - 36 - 

 Notices or demands to be given or made in connection with this Agreement by the Corporation or the Rights
Agent to or on the holder of any Rights shall be sufficiently given or made if delivered or sent by first class mail, postage prepaid, addressed to such holder at the address of such holder as it appears upon the register of the Rights Agent or,
prior to the Separation Time, on the register of the Corporation for the Common Shares. 
 Any notice given or made in accordance with this
Section 5.8 shall be deemed to have been given and to have been received on the day of delivery, if so delivered, on the third Business Day (excluding each day during which there exists any general interruption of postal service due to strike,
lockout or other cause) following the mailing thereof, if so mailed, and on the day of faxing or sending by other means of recorded electronic communication (provided such faxing or sending is during the normal business hours of the addressee on a
Business Day and if not, on the first Business Day thereafter). Each of the Corporation and the Rights Agent may from time to time change its address for notice by notice to the other given in the manner aforesaid. 
 If mail service is or is threatened to be interrupted at a time when the Corporation or the Rights Agent wishes to give a notice or demand hereunder to
or on the holders of the Rights, the Corporation or the Rights Agent may, notwithstanding the foregoing provisions of this Section 5.8, give such notice by means of publication once in each of two successive weeks in the business section of the
Financial Post or the national edition of the Globe and Mail and, if the Corporation has a transfer agent in the United States, in a daily publication in the United States designated by the Corporation, or in such other publication or publications
as may be designated by the Corporation and notice so published shall be deemed to have been given on the date on which the first publication of such notice in any such publication has taken place. 
  

	5.9	Costs of Enforcement 

 The Corporation agrees that
if the Corporation fails to fulfil any of its obligations pursuant to this Agreement, then the Corporation will reimburse the holder of any Rights for the costs and expenses (including legal fees) incurred by such holder in actions to enforce his
rights pursuant to any Rights or this Agreement. 
  

	5.10	Successors 

 All the covenants and provisions of
this Agreement by or for the benefit of the Corporation or the Rights Agent shall bind and enure to the benefit of their respective successors and assigns hereunder. 
  

	5.11	Benefits of this Agreement 

 Nothing in this
Agreement shall be construed to give to any Person other than the Corporation, the Rights Agent and the holders of the Rights any legal or equitable right, remedy or claim under this Agreement and this Agreement shall be for the sole and exclusive
benefit of the Corporation, the Rights Agent and the holders of the Rights. 
  

 - 37 - 

	5.12	Descriptive Headings 

 Descriptive headings appear
herein for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 
  

	5.13	Governing Law 

 This Agreement and each Right issued
hereunder shall be deemed to be a contract made under the laws of the Province of Alberta and for all purposes shall be governed by and construed in accordance with the laws of such Province applicable to contracts to be made and performed entirely
within such Province. 
  

	5.14	Language 

 Les parties aux présentes ont
exigé que la présente convention ainsi que tous les documents et avis qui s’y rattachent et/ou qui en découleront soient rédigés en langue anglaise. The parties hereto have required that this Agreement and all
documents and notices related thereto and/or resulting therefrom be drawn up in the English language. 
  

	5.15	Counterparts 

 This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 
  

	5.16	Severability 

 If any term or provision hereof or
the application thereof to any circumstance is, in any jurisdiction and to any extent, invalid or unenforceable, such term or provision shall be ineffective as to such jurisdiction to the extent of such invalidity or unenforceability without
invalidating or rendering unenforceable the remaining terms and provisions hereof or the application of such term or provision to circumstances other than those as to which it is held invalid or unenforceable. 
  

	5.17	Coming Into Effect 

 This Agreement replaces and
supercedes the Amended and Restated Rights Plan Agreement and is effective and in full force and effect in accordance with its terms from and after the date hereof. 
  

	5.18	Reconfirmation 

 At or prior to the annual meeting
of shareholders of the Corporation in the year 2008, provided that a Flip-in Event has not occurred prior to such time (other than a Flip-in-Event which has been waived by the Board of Directors in accordance with the terms of this Agreement), the
Board of Directors shall submit a resolution ratifying the continued existence of this Agreement until the termination of the annual meeting of shareholders of the Corporation in the year 2011 to the Independent Shareholders for their consideration
and, if thought advisable, approval. Unless a majority of the votes cast by Independent Shareholders who vote in respect of such resolution are voted in favour of the continued existence of this Agreement until the 

  

 - 38 - 

 
termination of the annual meeting of shareholders of the Corporation in the year 2011, this Agreement and all outstanding Rights shall terminate and be of no
further force and effect as at and after the termination of such annual meeting. 
  

	5.19	Regulatory Approvals 

 Any obligation of the
Corporation or action or event contemplated by this Agreement shall be subject to the receipt of any requisite approval or consent from any governmental or regulatory authority having jurisdiction in respect of such matter. Without limiting the
generality of the foregoing, any issuance or delivery of debt or equity securities (other than non-convertible debt securities) of the Corporation upon the exercise of Rights and any amendment or supplement to this Agreement shall be subject to the
prior consent of the Toronto Stock Exchange and any other stock exchange on which the Common Shares may then be listed. 
  

	5.20	Determinations and Actions by the Board of Directors 

 All actions and determinations (including all omissions with respect to the foregoing) which are done or made by the Board of Directors, in good faith pursuant to or in connection with the administration of this Agreement, shall not subject
any member of the Board of Directors to any liability whatsoever to the holders of the Rights. 
  

	5.21	Notice of Proposed Actions 

 In case the Corporation
shall propose after the Separation Time and prior to the Expiration Time: 
  

	 	(a)	to effect or permit (in cases where the Corporation’s permission is required) any Flip-in Event; or 

  

	 	(b)	to effect the liquidation, dissolution or winding up of the Corporation or the sale of all or substantially all of the Corporation’s assets, 

 then, in each such case, the Corporation shall give to each holder of a Right, in accordance with Section 5.8 hereof, a notice of such proposed action, which shall
specify the date on which such Flip-in Event, liquidation, dissolution, or winding up is to take place, and such notice shall be so given at least 10 Business Days prior to the date of taking of such proposed action by the Corporation. 

 

	5.22	Time of the Essence 

 Time shall be of the essence
in this Agreement. 
  

	5.23	Declaration as to Non-Canadian Holders 

 In no event
has the Corporation or the Rights Agent an obligation to issue or deliver Rights or securities issuable on exercise of Rights to Persons who are citizens, residents or nationals of any jurisdiction other than Canada in which jurisdiction such issue
or delivery would be unlawful without registration of the relevant Persons, securities or issue or delivery for such purposes. 
  

 - 39 - 

	5.24	Amendment and Restatement 

 The Amended and Restated
Rights Plan Agreement is effective and in full force and effect in accordance with its terms from and after March 14, 2002 and, is hereby amended and restated as set forth herein and is, as so amended and restated, ratified and confirmed by
each of the parties hereto. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first
above written. 
  

			
	TESCO CORPORATION
		
	Per:	 	 /s/ Evert Beierbach

	Name:	 	Evert Beierbach
	Title:	 	Sr. Vice President Product Development & Sales
		
	Per:	 	 /s/ Robert C. VanWalleghem

	Name:	 	Rob Van Walleghem
	Title:	 	General Counsel & Corporate Secretary
	
	COMPUTERSHARE TRUST COMPANY OF CANADA
		
	Per:	 	 /s/ Carol Kinmond

	Name:	 	Carol Kinmond
	Title:	 	Relationship Manager
		
	Per:	 	 /s/ Stephen Bandola

	Name:	 	Stephen Bandola
	Title:	 	Relationship Manager

  

 - 40 - 

 EXHIBIT A 
 FORM OF RIGHTS CERTIFICATE 
  

			
	 Certificate No.
                        
	  	                     Rights

 THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE CORPORATION, ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. IN CERTAIN CIRCUMSTANCES (SPECIFIED IN SECTION 3.1(b) OF THE RIGHTS AGREEMENT), RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR TRANSFEREES OF AN ACQUIRING PERSON OR ITS AFFILIATES OR ASSOCIATES (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT) OR ANY PERSON ACTING JOINTLY OR IN CONCERT WITH ANY OF THEM, MAY BECOME VOID. 
 Rights Certificate 
 This certifies that
                                        ,
or registered assigns, is the registered holder of the number of Rights set forth above, each of which entitles the registered holder thereof, subject to the terms, provisions and conditions of the Shareholder rights Plan Agreement dated as of
July 9, 1996, as amended and restated on March 14, 2002 and as further amended and restated on May 13, 2005, as such may from time to time be amended, restated, (the “Rights Agreement”) between Tesco Corporation, a
corporation incorporated under the laws of the Province of Alberta (the “Corporation”), and Computershare Trust Company of Canada, a trust company incorporated under the laws of Canada, as rights agent (the “Rights Agent”, which
term shall include any successor Rights Agent under the Rights Agreement), to purchase from the Corporation at any time after the Separation Time (as such term is defined in the Rights Agreement) and prior to the earlier of (i) the Termination
Time (as such term is defined in the Rights Agreement) and (ii) the termination of the annual meeting of the Corporation in the year 2008 (or, if the continued existence of the Rights Agreement is ratified at such annual meeting by a resolution
passed by a majority of votes cast by Independent Shareholders (as such term is defined in the Rights Agreement) who vote in respect thereof, the termination of the annual meeting of shareholders of the Corporation in the year 2011), one fully paid
common share of the Corporation (a “Common Share”) at the Exercise Price referred to below, upon presentation and surrender of this Rights Certificate together with the Form of Election to Exercise duly executed and submitted to the Rights
Agent at its principal office in Calgary, Alberta or in such other cities as may be designated by the Corporation from time to time. The Exercise Price shall initially be CDN $100.00 per Right and shall be subject to adjustment in certain
events as provided in the Rights Agreement. 
 In certain circumstances described in the Rights Agreement, the number of Common Shares which
each Right entitles the registered holder thereof to purchase shall be adjusted as provided in the Rights Agreement. 
 This Rights
Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby
made for a full description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Rights Agent, the Corporation and the holders of the Rights Certificates. Copies of the Rights Agreement are on file at the
principal executive office of the Corporation and are available upon written request. 

 This Rights Certificate, with or without other Rights Certificates, upon surrender at any of the offices
of the Rights Agent designated for such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing an aggregate number of Rights equal to the aggregate number of Rights evidenced by the Rights
Certificate or Rights Certificates surrendered. If this Rights Certificate shall be exercised in part, the registered holder shall be entitled to receive, upon surrender hereof, another Rights Certificate or Rights Certificates for the number of
whole Rights not exercised. 
 Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate may be redeemed by
the Corporation at a redemption price of $.00001 per Right, subject to adjustment in certain events, under certain circumstances at its option. 
 No fractional Common Shares will be issued upon the exercise of any Rights evidenced hereby, but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
 No holder of this Rights Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of Common Shares or
of any other securities which may at any time be issuable upon the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the Rights of a shareholder of the
Corporation or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting
shareholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by this Rights Certificate shall have been exercised as provided in the Rights Agreement. 

This Rights Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent. 
 WITNESS the facsimile signature of the proper officers of the Corporation. 
 Date:                      
  

			
	TESCO CORPORATION
		
	By:	 	  

		 	Authorized Officer
		
	By:	 	  

		 	Authorized Officer

 Countersigned: 
  

			
	COMPUTERSHARE TRUST COMPANY OF CANADA
		
	By:	 	  

		 	Authorized Officer

  

 - 2 - 

 FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such holder desires to transfer the Rights represented by this Rights Certificate.) 
 FOR VALUE RECEIVED
                                        
hereby sells, assigns and transfers to 
 (Please print name and address of transferee) the Rights represented by this Rights Certificate, together
with all right, title and interest therein, and hereby irrevocably constitutes and appoints
                                        
as attorney, to transfer the within Rights on the books of the Corporation, with full power of substitution. 
  

			
	Dated:                     
	
	 Signature Guaranteed:

  

			
	  

	Signature
	
	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change
whatsoever.)

 Signature must be guaranteed by a Canadian chartered bank, a Canadian trust company, a member of a
recognized stock exchange or a member of the Securities Transfer Association Medallion (STAMP) Program. 
  
  
  
 (To be completed if true) 
 The undersigned hereby represents, for the benefit of all holders of Rights and Common Shares,
that the Rights evidenced by this Rights Certificate are not, and, to the knowledge of the undersigned, have never been, Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof or by any Person acting jointly or in concert
with any of the foregoing (all capitalized terms are used as defined in the Rights Agreement). 
  

							
	 Dated:
                    
	 		 	Signature:	 	  

 NOTICE 
 In the event the certification set forth above in the Form of Election to Exercise is not completed upon exercise of the Right(s) evidenced hereby or in the event that the certification set forth above in the Form of
Assignment is not completed upon the assignment of the Right(s) evidenced hereby, the Corporation will deem the Beneficial Owner of the Right(s) evidenced by this Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as
defined in the Rights Agreement) and, in the case of an assignment, will affix a legend to that effect on any Rights Certificates issued in exchange for this Rights Certificate. 

 (To be attached to each Rights Certificate) 
 FORM OF ELECTION TO EXERCISE 
 TO: TESCO CORPORATION 
 The undersigned hereby irrevocably elects to exercise
                                        
whole Rights represented by the attached Rights Certificate to purchase the Common Shares (or other securities or property) issuable upon the exercise of such Rights and requests that certificates for such shares (or other securities or title to
such property) be issued in the name of: 
  

					
		 	  
	 	
		 	(Name)	 	
			
		 	  
	 	
		 	(Street)	 	
			
		 	  
	 	
		 	(City and State or Province)	 	
			
		 	  
	 	
		 	(Country, Postal Code or Zip Code)	 	
			
		 	  
	 	
		 	SOCIAL INSURANCE, SOCIAL SECURITY OR OTHER TAXPAYER IDENTIFICATION NUMBER	 	

 If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights Certificate for
the balance of such Rights shall be registered in the name of and delivered to: 
  

					
		 	  
	 	
		 	(Name)	 	
			
		 	  
	 	
		 	(Street)	 	
			
		 	  
	 	
		 	(City and State or Province)	 	
			
		 	  
	 	
		 	(Country, Postal Code or Zip Code)	 	
			
		 	  
	 	
		 	SOCIAL INSURANCE, SOCIAL SECURITY OR OTHER TAXPAYER IDENTIFICATION NUMBER	 	

  

	
	 Dated:                    

	
	 Signature Guaranteed:

  

			
	  

	Signature
	
	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change
whatsoever.)

 Signature must be guaranteed by a Canadian chartered bank, a Canadian trust company, a member of a
recognized stock exchange or a member of the Securities Transfer Association Medallion (STAMP) Program. 
  
  
  
 (To be completed if true) 
 The undersigned hereby represents, for the benefit of all holders of Rights and Common Shares,
that the Rights evidenced by this Rights Certificate are not, and, to the knowledge of the undersigned, have never been, Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof or by any Person acting jointly or in concert
with any of the foregoing (all capitalized terms are used as defined in the Rights Agreement). 
  

							
	 Dated:
                    
	 		  	Signature:	  	  

 NOTICE 
 In the event the certification set forth above in the Form of Election to Exercise is not completed upon exercise of the Right(s) evidenced hereby or in the event that the certification set forth above in the Form of
Assignment is not completed upon the assignment of the Right(s) evidenced hereby, the Corporation will deem the Beneficial Owner of the Right(s) evidenced by this Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (as
defined in the Rights Agreement) and, in the case of an assignment, will affix a legend to that effect on any Rights Certificates issued in exchange for this Rights Certificate.Form of Instrument of Grant - 2005 Incentive Plan

 Exhibit 10.16 
 Form of 
 INSTRUMENT OF GRANT 
 UNDER THE 
 AMENDED AND RESTATED TESCO CORPORATION 2005 INCENTIVE PLAN 

 General Award Provisions 
  

			
	 NAME:
	  	
		
	 TYPE OF AWARD:
	  	
		
	 NUMBER OF AWARDS:
	  	
		
	 COUNTRY OF AWARD:
	  	
		
	 EXERCISE OR SETTLEMENT
 CURRENCY:
	  	
		
	 AWARD EFFECTIVE DATE:
	  	
		
	 VESTING PERIOD START DATE
 (IF APPLICABLE):
	  	
		
	 VESTING PERIOD END DATE
 (IF APPLICABLE):
	  	
		
	 VESTING SCHEDULE
 (IF APPLICABLE):
	  	One-third (1/3) of the                      awarded herein shall vest on the first,
second and third anniversaries respectively of the Vesting Period Start Date.
		
	 PERFORMANCE CRITERIA
 INCLUDING PERFORMANCE
 PERIOD (IF APPLICABLE):
	  	

 Stock Option Awards Only 
 TYPE OF OPTION (INCENTIVE 
 OR NONQUALIFIED): 
 DESCRIPTION AND NUMBER 
 OF SHARES SUBJECT TO 
 AWARD:

 EXERCISE PRICE 
 (NOT LESS THAN FMV ON 
 AWARD EFFECTIVE DATE): 
 EXPIRATION DATE: 
 Restricted Stock Units and Performance Stock Units Only 
  

			
	 DIVIDEND EQUIVALENTS
 (YES OR NO):
	    	No

 Stock Appreciation Rights Only 
 TYPE OF SAR (STAND-ALONE 
 OR TANDEM): 
 DESCRIPTION AND NUMBER 
 OF SHARES SUBJECT TO 
 AWARD:

 BASE PRICE 
 (NOT LESS THAN FMV ON 
 AWARD EFFECTIVE DATE): 
 EXPIRATION DATE: 
 Phantom Stock Awards Only 
 DEFERRAL PERIOD 
 (AWARD EFFECTIVE DATE 
 AND EXPIRATION DATE): 
 RESTRICTIONS 
 (IF APPLICABLE): 
 FORFEITURE CONDITIONS 
 (IF APPLICABLE): 

 Other Award Terms 
  

	
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

  

	1.	GRANT OF AWARD 

 This instrument (hereinafter the “Instrument
of Grant”) evidences an Award to you of the number of Awards indicated above, on the Effective Date indicated above, pursuant to the Amended and Restated Tesco Corporation 2005 Incentive Plan, as in effect from time to time (the
“Plan”). 
 (a) Stock Option Awards: Subject to the terms of this Instrument of Grant, each stock option award (each
“Option”) covered by this Instrument of Grant generally entitles you to purchase one common share (a “Share”) of Tesco Corporation (the “Company”), at the Exercise Price per Share indicated above, no later than the
Expiration Date indicated above, or such earlier date as may be applicable pursuant to the provisions of the Plan. 
 (b) Restricted Stock
Unit Award: Subject to the terms of this Instrument of Grant, each restricted stock unit award (each “RSU”) covered by this Instrument of Grant generally entitles you to receive one Share of the Company upon or as soon as reasonably
practicable following the date the RSU becomes vested in accordance with the vesting schedule indicated above, or such earlier date as may be applicable pursuant to the provisions of the Plan and this Instrument of Grant. 
 (c) Performance Stock Unit Award: Subject to the terms of this Instrument of Grant, each Performance Stock Unit Award (each “PSU”)
covered by this Instrument of Grant generally entitles you to receive one Share of the Company upon or as soon as reasonably practicable following the vesting of the PSUs, or such earlier date as may be applicable pursuant to the provisions of the
Plan and this Instrument of Grant. 
 (d) Stock Appreciation Rights: Subject to the terms of this Instrument of Grant, each Stock
Appreciation Right (“SAR”) covered by this Instrument of Grant shall entitle you to payment or delivery, in cash, Shares or any combination thereof, as determined by the Granting Authority, of an aggregate amount equal to: the product of
(A) the excess of the Market Value of a Share on the date of exercise over the Exercise Price or Base Price for a Share under the applicable SAR, multiplied by (B) the number of SARs exercised. 

 (e) Phantom Stock Awards: Subject to the terms of this Instrument of Grant, each Phantom Stock
Award covered by this Instrument of Grant entitles you to receive cash equal to the Market Value of a specified number of Shares at the end of deferral period specified above. 
 (f) Bonus Stock: Each “Bonus Stock” Award covered by this Instrument of Grant shall be a grant of shares not subject to any restriction.

  

	2.	CERTAIN DEFINED TERMS 

 (a)
“Awards” shall mean, collectively, Options, RSUs, PSUs, SARs, Phantom Stock, Bonus Stock or other stock or performance-based Awards. 
 (b) “Base Price” shall mean the base dollar amount used to calculate the amount, if any, payable to a you with respect to a Share subject to a Stand-Alone SAR upon exercise thereof, which base dollar
amount shall not be less than 100 percent of the Market Value of a Share on the Effective Date of the grant of the Stand-Alone SAR, subject to adjustment pursuant to the Plan. 
 (c) “Board” shall mean the board of directors of the Company. 
 (d) “Canadian Award” shall mean an Award pursuant to which, as applicable, (i) the Exercise Price is stated and payable in Canadian
dollars or the basis upon which it is to be settled (whether in cash or in Shares) is stated in Canadian dollars), (ii) in the case of Stand-Alone SARs, the Base Price is stated in Canadian dollars and any cash amount payable in settlement
thereof shall be paid in Canadian dollars or (iii) in the case of RSUs or PSUs, any cash amount payable in settlement thereof shall be paid in Canadian dollars. 
 (e) “Canadian Grantee” shall mean a recipient of the Award subject to this Instrument of Grant who is a resident of Canada for the purposes of the ITA, or who is granted a Canadian Award under the
Plan in respect of services performed in Canada for the Company or any of its corporate Affiliates. 
 (f) “Code” shall mean
the United States Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations thereunder. 
 (g)
“Exercise Price” shall mean, (i) with respect to an Option, the price indicated in this Award to purchase one Share on exercise of such Option, which shall not be less than 100% of the Market Value of a Share on the Effective
Date of the grant of the Option covering such Share and (ii) with respect to a Tandem SAR, the Exercise Price applicable to the Option to which the Tandem SAR relates, in each such case, subject to adjustment pursuant to the Plan. 

(h) “Granting Authority” shall mean the Board, the Compensation Committee of the Board, or another committee meeting the requirements
set forth in Section 3(a) of the Plan, as applicable, that is charged with or exercising the powers and responsibility as to a specific matter in question affecting this Award. 

 (i) “ITA” shall mean the Income Tax Act (Canada) and any regulations thereunder as
amended from time to time. 
 (j) “Market Value” shall have the meaning set forth in the Plan. 
 (k) “Person” shall mean, unless the context otherwise requires or unless and to the extent otherwise limited or required by applicable
law or rules of a Stock Exchange, any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust, governmental authority or other entity, and any other person, entity or group that would
constitute a “person” within the meaning of Section 3(a)(9) of the Exchange Act (with any related modifications or additions in Section 13(d) and 14(d) of the Exchange Act). 
 (l) “Stock Exchange” shall mean the U.S. Exchange and the TSX. 
 (m) “TSX” shall mean the Toronto Stock Exchange. 
 (n) “U.S. Exchange” shall mean the NASDAQ Stock Market or such other national securities exchange or trading system on which the Company’s Shares are listed. 
  

	3.	APPLICABILITY OF PLAN 

 All Awards covered by this Instrument of
Grant are subject to the terms and conditions stated in the Plan, except as specifically or additionally provided in this Instrument of Grant and/or in any rules, regulations, determinations or interpretations prescribed and/or made by the Committee
(or its delegates) under the power and authority granted under the Plan (the “Rules and Regulations”), and all of the provisions of the Plan and the Rules and Regulations are incorporated by reference as if expressly restated herein.
Different Rules and Regulations may apply to you and/or the Awards covered by this Instrument of Grant depending on your country work location, residency or payroll, whether on the Effective Date of the Award, on the date of settlement of the Award,
or otherwise. Accordingly, you should review the Plan and the Rules and Regulations from time to time, which are available as indicated below, in conjunction with this Instrument of Grant. 
  

	4.	EXERCISE AND SETTLEMENT OF AWARDS 

  

	 	(a)	Stock Option Awards: 

 (i) You will
have the right to exercise Options awarded to you pursuant to this Instrument of Grant after they have vested in such amounts and on such dates in accordance with the vesting schedule indicated above. To exercise vested Options, you must pay or
satisfy, in accordance with the terms of the Plan, the full amount of the Exercise Price and any withholding amounts with respect to such exercise. 

 (ii) The Exercise Price shall be payable on exercise of a vested Option: 
 (A) in the currency specified above, and may be paid in cash, or by wire transfer, certified cheque, banker’s cheque or bank draft or
other similar methods of cash equivalent payment acceptable to the Granting Authority at the time of exercise or settlement, 
 (B) the surrender and transfer of Shares then owned by you to such Person as the Granting Authority may direct unless you are prohibited by applicable law or rules of a Stock Exchange from such surrender and transfer; 
 (C) by, if the Granting Authority permits, the withholding of Shares otherwise issuable upon exercise of such vested Option unless you are
prohibited by applicable law or rules of a Stock Exchange from participating in such withholding; 
 (D) by payment pursuant
to a broker-assisted sale and remittance program authorized by the Granting Authority; or 
 (E) in any combination of the
foregoing. 
 Shares surrendered or withheld, if permitted by the Granting Authority and in accordance with this Section 3(a), shall be valued at the
Market Value thereof on the date of exercise, determined in the currency specified above. 
  

	 	(b)	Restricted Stock Unit Awards and Performance Stock Unit Awards. 

 (i) (A) If you are the holder of RSUs you will have the right to receive one Share in settlement of each RSU once the RSU has become vested in accordance with the vesting schedule indicated above, subject to your
continued employment with the Company at the time of vesting, or (B) if you are the holder of PSUs you will have the right to receive one Share in settlement of each PSU once the PSU has become vested in accordance with the vesting schedule
indicated above, subject to the satisfaction of Performance Criteria indicated above. 
 (ii) RSUs and PSUs shall be settled
upon or as soon as reasonably practicable following the vesting thereof, subject to payment or other satisfaction of all related withholding obligations in accordance with the provisions of this Plan. Except as may otherwise be required under
Section 409A of the Code, payment described in the immediately preceding sentence shall be made by the later of (A) the date that is 2 1/2 months after the end of your first taxable year in which the RSU and/or PSU is earned and payable
under this Instrument of Grant and (B) the date that is 2 1/2 months after the end of the Company’s first taxable year in which the RSU and/or the PSU is earned and payable under this Instrument of Grant, and such payment shall not be
subject to any election by you to defer the payment to a later period. Settlement shall be made in cash, Shares or any combination thereof, as determined by the Granting Authority, which 

 
determination may be reflected in this Instrument of Grant or may be made on or before the date of the settlement or as otherwise specified by the Granting
Authority. Settlement of RSUs and/or PSUs in Shares shall be made by delivery of one Share for each such RSU or PSU then being settled. Settlement of RSUs or PSUs in cash shall be made by payment of an aggregate amount equal to: 
 the product of 
 (A) the Market Value of a Share on the applicable settlement date specified by the Granting Authority in the Award, and 
 (B) the number of Restricted Stock Units or Performance Stock Units then being settled. 
 Any cash payment in settlement of RSUs or PSUs shall be
payable in the currency specified above. 
  

	 	(c)	Stock Appreciation Rights and Phantom Stock Awards. 

 (i) SARs. Each Tandem SAR granted shall be subject to the same terms and conditions and denominated in the same currency as the Option to which it relates and the additional terms and conditions set forth in this
Section 3(c). On exercise of a Tandem SAR, the related Option shall be cancelled and you shall be entitled to an amount in settlement of such Tandem SAR calculated and in such form as provided below. Tandem SARs may be exercised only if and to
the extent the Options related thereto are then vested and exercisable as set forth in this Instrument of Grant. If you are a Canadian Grantee, Stand-Alone SARs must be exercised within 10 days of becoming vested, unless applicable Canadian law
permits a longer exercise period. Upon exercise thereof and subject to payment or other satisfaction of all related withholding obligations in accordance with this Instrument of Grant and the Plan, SARs (and, in the case of Tandem SARs, the related
Options) shall be settled by payment or delivery, in cash, Shares or any combination thereof, as determined by the Granting Authority, of an aggregate amount equal to: the product of (A) the excess of the Market Value of a Share on the date of
exercise over the Exercise Price or Base Price for a Share under the applicable SAR, multiplied by (B) the number of SARs exercised. 
 (ii) Phantom Stock Awards. Subject to any restrictions and/or forfeiture conditions as specified above, you will have the right to receive cash equal to the Market Value of the number of Shares at the end of the
deferral period as specified above. 
  

	5.	WITHHOLDING TAXES 

 The Company may require, as a condition of
exercise of the Options or SARs, that you: (i) pay any applicable taxes, charges, duties, contributions or otherwise (“Taxes”) which are required to be paid by you at the minimum statutory rate to any federal, provincial, state,
local, foreign or other taxation authority; (ii) pay or reimburse any Taxes which are required to be withheld and remitted by the Company or any of its subsidiaries; (iii)

 
complete any forms or provide any additional documents in connection with Taxes; and (iv) otherwise comply with all applicable Tax laws; in each case in
connection with the Grant of the Options or SARs, the vesting of the Options or SARs, the exercise of the Options or SARs, and/or the expiration of the Options or SARs, and as may be specified in the Rules and Regulations or otherwise in accordance
with the Plan. The Company may also require, as a condition of exercise of the Options or SARs, that all or a portion of the Shares issued to you upon the exercise of the Options or SARs: (i) be withheld, until such time as payment for any tax
withholdings at the minimum statutory rate made by the Company or any of its subsidiaries on account of applicable Taxes (“Tax Withholdings”) has been received; and/or (ii) be sold by you or on your behalf to generate proceeds
sufficient to cover Tax Withholdings, in each case if you do not pay such Tax Withholdings within the designated time periods as may be specified in the Rules and Regulations or otherwise in accordance with the Plan. You further acknowledge and
agree that conditions or restrictions on the transferability of the Shares issued to you upon the exercise of the Options may be imposed on such Shares on account of Taxes or Tax Withholdings in connection with the Grant of the Options or SARs, the
vesting of the Options or SARs, the exercise of the Options or SARs, and/or the expiration of the Options or SARs, in each case as may be specified in the Rules and Regulations or otherwise in accordance with the Plan. Finally, the Company may
require, as a condition to settlement of RSUs, PSUs or Phantom Stock, that you pay or reimburse the Company for required withholding of Taxes (at the minimum statutory rate) related to settlement of RSUs, PSUs or Phantom Stock. 
  

	6.	CONSEQUENCES OF TERMINATION 

 Unless otherwise specified immediately
below, the consequences of the termination of your employment on your Award are set forth in the Plan. 
  

	7.	SPECIAL LIMITATION ON PAYMENT OF CERTAIN AWARDS INCIDENT TO A SEPARATION FROM SERVICE 

 Notwithstanding any other provision of this Instrument of Grant to the contrary, to the extent that at any time prescribed under Code Section 409A and regulations or other regulatory guidance issued thereunder,
you are a key employee, as defined in Code Section 416(i) without regard to paragraph 5 thereof, except to the extent permitted under Code Section 409A and regulations or other regulatory guidance issued thereunder, no distribution or
payment that is subject to Code Section 409A shall be made under this Agreement on account of your separation from service, as defined in Code Section 409A and the regulations or other regulatory guidance issued thereunder, with the
Company (at any time when you are deemed under Code Section 409A and regulations or other regulatory guidance issued thereunder to be a specified employee, as defined in Code Section 409A and regulations or other regulatory guidance issued
thereunder, and any stock of the Company is publicly traded on an established securities market or otherwise) before the date that is the first day of the month that occurs six months after the date of your separation from service (or, if earlier,
your date of death or any other date permitted under Code Section 409A and regulations or other regulatory guidance issued thereunder). 

	8.	TRANSFERABILITY 

 (a) Transfer Restrictions.
Unless otherwise provided above, no Award, and no rights or interests therein, shall or may be assigned, transferred, sold, exchanged, encumbered, pledged or otherwise hypothecated or disposed of by you other than by testamentary disposition or the
laws of intestate succession. No such interest shall be subject to execution, attachment or similar legal process including without limitation seizure for the payment of your debts, judgments, alimony or separate maintenance. 
 (b) Permitted Transfers. Notwithstanding the foregoing, unless otherwise specified above an Award is transferable or assignable (i) in the
case of a transfer without the payment of any consideration, to your spouse, former spouse, children, stepchildren, grandchildren, parent, stepparent, grandparent, sibling, Persons having one of the foregoing types of relationship with you due to
adoption and any entity in which these Persons (or the Participant) own more than fifty percent of the voting interests and (ii) to an entity in which more than fifty percent of the voting interests are owned by these Persons (or the
Participant) in exchange for an interest in that entity. Following any such transfer or assignment, the Award shall remain subject to substantially the same terms applicable to the Award while held by you, and, as a condition to such transfer, the
transferee shall execute an agreement agreeing to be bound by such terms. An Incentive Stock Option may be transferred or assigned only to the extent permitted under Section 422 of the Code. 
  

	9.	AMENDMENTS AND TERMINATION 

 The Board may amend, suspend or
terminate this Plan, or any portion thereof, at any time, subject to limitations set forth in the Plan and those provisions of applicable law and the rules of the Stock Exchanges, if any, that require the approval of shareholders or any governmental
regulative body. However, except as expressly set forth in the Plan, no action of the Board, the Granting Authority, or shareholders shall alter or impair your rights under this Instrument of Grant without your consent prior to the amendment,
suspension or termination. 
  

	10.	NO ADDITIONAL RIGHTS 

 The grant of this Award shall not be
construed as giving you any right to continue in the employment of the Company or affect the right of the Company to terminate your employment. Unless otherwise determined by the Granting Authority, neither any period of notice, if any, nor any
payment in lieu thereof, upon termination shall be considered as extending the period of employment for the purposes of this Award. 
  

	11.	SHAREHOLDER RIGHTS 

 You shall not have the right or be entitled to
exercise any voting rights, receive any dividends (except as specifically provided herein) or have or be entitled to any other rights as a shareholder in respect of Shares subject to this Award unless and until such Shares have been paid for in full
and issued and certificates therefor have been issued. Your entitlement to Shares as a result of the exercise of an Option or SAR or the settlement of a RSU or a PSU shall not be deemed for any purpose to be, or have any 

 
such rights as a shareholder of the Company by virtue of such exercise or settlement, except to the extent a Share certificate is issued therefor and then
only from the date such certificate is issued. No adjustment shall be made for dividends or distributions or other rights for which the record date is prior to the date such share certificate is issued, other than adjustments for dividend equivalent
amounts to the extent provided above. 
  

	12.	GOVERNING LAW 

 This Instrument of Grant and the Award granted
hereunder shall be interpreted and construed in accordance with the laws of Alberta, Canada. In the event of a conflict between the provisions of this Instrument of Grant and those of the Plan or the Rules and Regulations, the provisions of the Plan
or the Rules and Regulations, as the case may be, shall govern, except to the extent that the terms and conditions of the Award evidenced by this Instrument of Grant are specifically recorded as a variation from the terms and conditions of the Plan
or the Rules and Regulations, as the case may be. 
  

	13.	UNFUNDED PLAN 

 You shall have no rights under the Plan other than
those of an unsecured general creditor of the Company. 
  

	14.	NO GUARANTEE OF TAX CONSEQUENCES 

 Neither the Company nor the
Granting Authority makes any commitment or guarantee that any specific tax treatment will apply or be available to you. 
  

	15.	SEVERABILITY 

 The various provisions and sub-provisions of this
Instrument of Grant are severable and if any provision or identifiable part thereof is held to be unenforceable by any court of competent jurisdiction then such unenforceability shall not affect the enforceability of the remaining provisions or
identifiable parts thereof in this Instrument of Grant, the Plan, the Rules and Regulations, or any documents related to the Plan. 
  

	16.	COLLECTION OF INFORMATION 

 The Company and its third party service
providers may need to collect and use information about employees for the purpose of the grant and/or exercise of Awards, administering the Plan, and to comply with tax, reporting and disclosure obligations under applicable laws and regulations.
Such information may be communicated to any person deemed necessary for the administration of the Plan, even if it requires such information to be transferred or communicated to persons based outside your country of employment. Such information is
from time to time transferred between companies within the group and to such third party service providers, to achieve these objectives. The Company and its third party service providers will hold your “Plan participation file” at any
location deemed necessary, on the understanding that you will be given access without constraint at reasonable intervals and without excessive delay or expense to examine and correct such information. By accepting the Instrument of Grant or the
Options, you are affirming your consent to the collection, processing, storage, disclosure and transfer of your personal information for these purposes. 

	17.	CERTAIN ACKNOWLEDGMENTS 

 You acknowledge that: (i) the Plan is
discretionary and may be suspended or terminated by the Company at any time; (ii) the Grant of an Award does not create any right to receive future Grants of Awards, or benefits in lieu of Awards and the terms and conditions of any future
Grants of Awards, if any, will be communicated if and when new Grants of Awards are to be made; (iii) the value of the Award is outside the scope of your employment contract, if any, and the Grant of Awards is not for labor performed;
(iv) participation in the Plan is voluntary; (v) the future value of the Awards and Shares are unknown and cannot be predicted with certainty; and (vi) the Award is not part of remuneration for purposes of any compensation on
termination of employment, severance payments, indemnities or end of service payments or benefits of any nature. If, notwithstanding the foregoing, any contractual or statutory (employment or otherwise) claim is found to have arisen, then you, by
accepting this Instrument of Grant or the Award, shall, to the extent permitted by applicable law, be deemed irrevocably to have waived your entitlement to pursue such claim. 
 By accepting this Instrument of Grant or the Award, you (i) acknowledge and confirm that you have read and understood the Plan, the Rules and Regulations and this Instrument of Grant, and that you have had an
opportunity to seek separate fiscal, legal and taxation advice in relation thereto; and (ii) agree to be bound by the terms and conditions stated in this Instrument of Grant, including without limitation the terms and conditions of the Plan and
the Rules and Regulations incorporated by reference herein. 
 [SIGNATURE PAGE FOLLOWS] 

 If you accept the terms and conditions of this Award as described in this Instrument of Grant, please confirm your
acceptance by signing where indicated below and returning it to the Company at the address indicated below. 
  

			
	TESCO CORPORATION
		
	Per:	 	  

		
	Per:	 	  

  

			
	ACKNOWLEDGED AND ACCEPTED BY:
		
	Signature:	 	  

	Print Name:

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