Document:

Exhibit 4.1

 

IPSCO Inc.

2005 Form 10-K

 

SHAREHOLDER RIGHTS AGREEMENT

 

Dated as of March 14, 1990, as amended and
restated

 

on April 20, 1995, April 24, 1998, May 2, 2001
and April 29, 2004

 

between

 

IPSCO INC.

 

and

COMPUTERSHARE TRUST COMPANY OF CANADA

 

as Rights Agent

 

 

TABLE OF
CONTENTS

	
  ARTICLE I - CERTAIN
  DEFINITIONS

  	
  2

  
	
   

  	
   

  
	
  1.01

  	
  Certain Definitions

  	
  2

  
	
  1.02

  	
  Currency

  	
  11

  
	
  1.03

  	
  Acting Jointly or in
  Concert

  	
  11

  
	
  1.04

  	
  References to Agreement

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE II - RIGHTS

  	
  11

  
	
   

  	
   

  
	
  2.01

  	
  Legend on Common Share
  Certificates

  	
  11

  
	
  2.02

  	
  Initial Exercise Price;
  Exercise of Rights; Detachment of Rights

  	
  12

  
	
  2.03

  	
  Adjustments to Exercise
  Price; Number of Rights

  	
  14

  
	
  2.04

  	
  Date on Which Exercise is
  Effective

  	
  17

  
	
  2.05

  	
  Execution. Authentication.
  Delivery and Dating of Rights Certificates

  	
  17

  
	
  2.06

  	
  Registration. Registration
  of Transfer and Exchange

  	
  18

  
	
  2.07

  	
  Mutilated, Destroyed. Lost
  and Stolen Rights Certificates

  	
  18

  
	
  2.08

  	
  Persons Deemed Owners

  	
  19

  
	
  2.09

  	
  Delivery and Cancellation
  of Certificates

  	
  19

  
	
  2.10

  	
  Agreement of Rights Holder

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE III - ADJUSTMENTS
  TO THE RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS

  	
  20

  
	
   

  	
   

  
	
  3.01

  	
  Flip-in Event

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV - THE RIGHTS
  AGENT

  	
  21

  
	
   

  	
   

  
	
  4.01

  	
  General

  	
  21

  
	
  4.02

  	
  Merger. Amalgamation or
  Consolidation or Change of Name of Rights Agent

  	
  21

  
	
  4.03

  	
  Duties of Rights Agent

  	
  22

  
	
  4.04

  	
  Change of Rights Agent

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE V - MISCELLANEOUS

  	
  24

  
	
   

  	
   

  
	
  5.01

  	
  Redemption, Waiver and
  Termination

  	
  24

  
	
  5.02

  	
  Expiration

  	
  25

  
	
  5.03

  	
  Determinations and Actions
  by the Board of Directors

  	
  25

  
	
  5.04

  	
  Issuance of New Rights
  Certificates

  	
  25

  
	
  5.05

  	
  Supplements and Amendments

  	
  25

  
	
  5.06

  	
  Fractional Rights and
  Fractional Shares

  	
  26

  
	
  5.07

  	
  Rights of Action

  	
  27

  
	
  5.08

  	
  Regulatory Approvals

  	
  27

  
	
  5.09

  	
  Declaration as to
  Non-Canadian Holders

  	
  27

  
	
  5.10

  	
  Holder of Rights Not
  Deemed a Shareholder

  	
  27

  
	
  5.11

  	
  Notices

  	
  27

  
	
  5.12

  	
  Costs of Enforcement

  	
  28

  
	
  5.13

  	
  Successors

  	
  29

  
	
  5.14

  	
  Benefits of this Agreement

  	
  29

  
	
  5.15

  	
  Descriptive Headings

  	
  29

  
	
  5.16

  	
  Governing Law

  	
  29

  
	
  5.17

  	
  Counterparts

  	
  29

  
	
  5.18

  	
  Severability

  	
  29

  
	
  5.19

  	
  Time of the Essence

  	
  30

  

 

 

THIS AGREEMENT dated as of the 14th day of
March, 1990, as amended and restated as of the 20th day of April, 1995, the
24th day of April, 1998, the 2nd day of May, 2001 and the 29th day
of April, 2004.

 

BETWEEN:

 

IPSCO INC., a
corporation continued under the Canada Business Corporations Act (hereinafter 

referred to as the
“Company”),

 

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.

 

SHAREHOLDER RIGHTS
AGREEMENT

 

WHEREAS the Company and the Rights Agent (then
known as Computershare Trust Company of Canada) entered into a Shareholder
Rights Agreement dated as of the 14th day of March, 1990, amended the
Shareholder Rights Agreement as of April 20, 1995 amended and restated the
Shareholder Rights Agreement as of April 24, 1995 and wish to amend and restate
such agreement by entering into this Agreement;

 

AND WHEREAS the Board of Directors of the
Company has determined that it is advisable to adopt a shareholder rights
agreement (the “Rights Agreement”);

 

AND WHEREAS in order to implement the Rights
Agreement, the Board of Directors of the Company has:

 

(a)           authorized and declared a distribution of one
right (a “Right”) effective 7:00 p.m. (Central Standard Time) on March 14, 1990
in respect of each Common Share (hereinafter defined) outstanding at the close
of business on March 14, 1990 (the “Record Time”);

 

(b)           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 (as hereinafter defined) and the Expiration Time (as
hereinafter defined); and

 

(c)           authorized the issuance of Rights Certificates
(as hereinafter defined) to holders of Rights.

 

AND WHEREAS each Right entitles the holder
thereof, after the Separation Time, to purchase securities of the Company
pursuant to the terms and subject to the conditions set forth herein;

 

AND WHEREAS the Company desires to appoint a
Rights Agent to act on behalf of the Company, and the Rights Agent is willing
to act in connection with the issuance, transfer, exchange and replacement of
the Rights Certificates, the exercise of Rights and other matters as referred
to herein;

 

AND WHEREAS the shareholders approved this
Agreement, as amended and restated, on April 29, 2004;

 

NOW, THEREFORE, IN CONSIDERATION OF the
premises and respective agreements set forth herein, the parties hereby agree
as follows:

 

 

ARTICLE I - CERTAIN DEFINITIONS

 

1.01        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 Voting Shares of the
Company; provided, however, that the term “Acquiring Person” shall not include:

 

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

 

(ii)           any Person who
becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares of
the Company as a result of one or any combination of (A) a Voting Share
Reduction, (B) Permitted Bid Acquisition, (C) Exempt Acquisition or (D) Pro
Rata Acquisition; provided, however
that if a Person shall become the Beneficial Owner of 20% or more of the Voting
Shares of the Company then outstanding by reason of one or any combination of
the operation of clauses (A), (B), (C) or (D) above and such Person’s
Beneficial Ownership of Voting Shares thereafter increases by more than 1.0% of
the number of Voting Shares outstanding (other than pursuant to one or any
combination of a Voting Share Reduction, a Permitted Bid Acquisition, an Exempt
Acquisition or a Pro Rata Acquisition), then as of the date such Person becomes
the Beneficial Owner of such additional Voting Shares, such Person shall become
an “Acquiring Person”;

 

(iii)          for a period of 10 days
after the Disqualification Date (as hereinafter defined in this subparagraph
1.01(a) (iii)), any Person who becomes the Beneficial Owner of 20% or more of
the outstanding Voting Shares as a result of such Person becoming disqualified
from relying on clause l.01(e)(viii) because such Person or the Beneficial
Owner of such Voting Shares is making or has announced an intention to make a
Take-over Bid either alone or by acting jointly or in concert with any other
Person or becomes otherwise disqualified. For the purposes of this definition,
“Disqualification Date” means the first date of public announcement that any
Person is making or has announced an intention to make a Take-over Bid;

 

(iv)          an underwriter or
member of a banking or selling group that becomes the Beneficial Owner of 20%
or more of the Voting Shares in connection with a distribution of securities of
the Company; or

 

(v)           a Person (a “Grandfathered Person”) who is the
Beneficial Owner of 20% or more of the outstanding Voting Shares of the Company
determined as at the Record Time, provided, however, that this exception shall
not be, and shall cease to be, applicable to a Grandfathered Person in the
event that such Grandfathered Person shall, after the Record Time, become the
Beneficial Owner of additional Voting Shares of the Company that increases its
Beneficial Ownership of Voting Shares by more than 1% of the number of Voting
Shares outstanding as at the Record Time, other than through a Voting Share
Reduction, a Permitted Bid Acquisition, an Exempt Acquisition or a Pro Rata
Acquisition.

 

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

 

(c)           “Agreement” shall mean this shareholder rights
agreement dated as of March 14, 1990 between the Company and the Rights Agent,
as amended and restated on April 20, 1995 and April 24, 1998 and as it may be
subsequently amended or restated from time to time.

 

2

 

(d)           “Associate” means, when used to indicate a
relationship with a specified Person, a spouse of that Person, any Person of
the same or opposite sex with whom that Person is living in a conjugal
relationship outside marriage, a child of that Person or a relative of that
Person if that relative has the same residence as that Person.

 

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

 

(i)            any securities as to which such Person or any
of such Person’s Affiliates or Associates is the owner at law or in equity;

 

(ii)           any securities as to
which such Person or any of such Person’s Affiliates or Associates has the
right to become the owner at law or in equity (where such right is exercisable
within a period of 60 days thereafter and whether or not on the condition or on
the happening of any contingency) pursuant to any agreement, arrangement or
understanding, whether or not in writing, (other than customary agreements with
and between underwriters or banking group members or selling group members with
respect to a distribution of securities or to a pledge of securities in the
ordinary course of business) or upon the exercise of any conversion right,
exchange right, share purchase right (other than the Rights), warrant or
option; and

 

(iii)          any securities which
are Beneficially Owned within the meaning of subparagraph 1.01 (e)(i) and (ii)
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:

 

(iv)          where such security
has been agreed to be deposited or tendered pursuant to a Lock-up Agreement, or
is otherwise deposited or tendered, to any Take-over Bid made by such Person,
made by any of such Person’s Affiliates or Associates or made by any other
Person acting jointly or in concert with such Person until such deposited or
tendered security has been taken up or paid for, whichever shall first occur;

 

(v)           where such Person, any of such Person’s
Affiliates or Associates or any other Person acting jointly or in concert with
such Person holds such security; provided that: (A) the ordinary business of
any such Person (the “Investment Manager”) includes the management of
investment funds for others (which others, for greater certainty, may include
or be limited to one or more employee benefit plans or pension plans) 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 (a “Client”) including a non-discretionary account held on
behalf of a Client by a broker or dealer registered under applicable laws; (B)
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 (each an “Estate Account”) or in relation to other
accounts (each an “Other Account”) and holds such security in the ordinary
course of such duties for the estate of any such deceased or incompetent Person
or for such other accounts; (C) such Person is established by statute for
purposes that include, and the ordinary business or activity of such Person
(the “Statutory Body”) includes, the management of investment funds for
employee benefit plans, pension plans, insurance plans or various public
bodies; or (D) such Person (the “Independent Person”), any of such Person’s
Affiliates or Associates or any Person acting jointly or in concert with such
Person is the administrator or trustee of one or more pension funds or plans (a
“Plan”) registered under the laws of Canada or any Province thereof or the laws
of the United States of America or any State thereof, or is a Plan and holds
such security for the purposes of its activities as an Independent Person or as
a Plan; provided, in any of the

 

3

 

above
cases, that the Investment Manager, the Trust Company, the Statutory Body, the
Independent Person or the Plan, as the case may be, is not then making or has
not then announced an intention to make a Take-over Bid, other than an Offer to
Acquire Voting Shares or other securities pursuant to a distribution by the
Company or by means of ordinary market transactions (including prearranged
trades) 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;

 

(vi)          where such Person is
(A) a Client of the same Investment Manager as another Person on whose account
the Investment Manager holds such security, (B) an Estate Account or an Other
Account of the same Trust Company as another Person on whose account the Trust
Company holds such security, or (C) a Plan with the same Independent Person as
another Plan on whose account the independent person holds such security;

 

(vii)         where such Person is
(A) a Client of an Investment Manager and such security is owned at law or in
equity by the Investment Manager, (B) an Estate Account or an Other Account of
a Trust Company and such security is owned at law or in equity by the Trust
Company, or (C) a Plan and such security is owned at law or in equity by the
Independent Person or the Plan; or

 

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

 

(f)            “Board of Directors” shall mean the board of
directors of the Company or any duly constituted and empowered committee
thereof;

 

(g)           “Business Day” shall mean any day other than a
Saturday, Sunday or a day on which banking institutions in the City of Regina,
Saskatchewan are authorized or obligated by law to close.

 

(h)           “Canada Business Corporations Act” shall mean
the Canada Business Corporations Act, R.S.C. 1985, C-44, as amended, and the
regulations thereunder, and any comparable or successor laws or regulations or,
if such laws or regulations shall be repealed or rescinded and there shall be
no comparable or successor laws or regulations, the laws and regulations as in
effect on the date of this Agreement.

 

(i)            “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.

 

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

 

(k)           “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 the City of Regina (or, after the Separation Time, the
offices of the Rights Agent) becomes closed to the public.

 

(l)            “Common Shares” shall mean the common shares in
the capital stock of the Company.

 

(m)           “Competing Permitted Bid” means a Take-over
Bid made while another Permitted Bid is in existence and that satisfies all of
the provisions of a Permitted Bid except that the condition set forth in
subparagraph 1.01 (ag)(ii) may provide that the Voting Shares that are the
subject of the Take-over Bid may be taken up or paid for on a date which is not
earlier than the later of (i) 35 days after the date of the Take-over Bid must
be open for acceptance under applicable Canadian

 

4

 

securities
legislation; and (ii) the 60th day after the date on which the initial
Permitted Bid with which such Take-over Bid competes was made.

 

(n)           “controlled”: a corporation is “controlled” by
another Person if:

 

(i)            securities entitled to vote in the election of
directors carrying more than 50 percent of the votes for the election of
directors are held, directly or indirectly, by or on behalf of the other
Person; and

 

(ii)           the votes carried by
such securities are entitled, if exercised, to elect a majority of the board of
directors of such corporation;

 

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

 

(o)           “Disposition Date” shall have the meaning
ascribed thereto in paragraph 5.01(h).

 

(p)           “Dividend Reinvestment Acquisition” shall mean
an acquisition of Voting Shares pursuant to a Dividend Reinvestment Plan.

 

(q)           “Dividend Reinvestment Plan” means a regular
dividend reinvestment or other plan of the Company made available by the
Company to holders of its securities where such plan permits the holder to
direct that some or all of:

 

(i)            dividends paid in respect of shares of any
class of the Company;

 

(ii)           proceeds of
redemption of shares of the Company;

 

(iii)          interest paid on
evidences of indebtedness of the Company; or

 

(iv)          optional cash
payments, be applied to the purchase from the Company of Voting Shares.

 

(r)            “Election to Exercise” shall have the meaning
ascribed thereto in subparagraph 2.02(d)(i).

 

(s)           “Exempt Acquisition” means a share acquisition
in respect of which the Board of Directors has waived, or is deemed to have
waived, the application of Section 3.01 pursuant to the provisions of paragraph
5.01(b) or(h).

 

(t)            “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 be CDN $200.00 (without adjustment pursuant to
Section 2.03 hereof for the three-for-two stock split of the Company effected
by stock dividend with a payment date of March 9, 1998).

 

(u)           “Expansion Factor” shall have the meaning
ascribed thereto in paragraph 2.03(b);

 

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

 

(i)            the Termination Time; or

 

(ii)           the termination of
the annual meeting of the Company in the year 2007.

 

(w)          A “Flip-in Event” shall mean a transaction in
which any Person shall become an Acquiring Person.

 

(x)            “holder” shall have the meaning ascribed
thereto in Section 2.08.

 

5

 

(y)           “Independent Shareholders” shall mean holders
of Voting Shares of the Company other than:

 

(i)            an Acquiring Person;

 

(ii)           any Offeror, other
than a Person described in subparagraph 1.01 (e)(v);

 

(iii)          any Affiliate or
Associate of any Acquiring Person or Offeror;

 

(iv)          any Person acting
jointly or in concert with any Acquiring Person or Offeror;

 

(v)           any employee benefit plan, deferred profit
sharing plan, stock participation plan or trust for the benefit of employees of
the Company but excluding in any event a plan or trust in respect of which the
employee directs the manner in which the Voting Shares are to be voted or
directs whether the Voting Shares be tendered to a Take-over Bid.

 

(z)            “Lock-up Agreement” means an agreement between
an Offeror, any of its Affiliates or Associates or any other Person acting
jointly or in concert with the Offeror and a Person (the “Locked-up Person”)
who is not an Affiliate or Associate of the Offeror or a Person acting jointly
or in concert with the Offeror whereby the Locked-up Person agrees to deposit
or tender the Voting Shares held by the Locked-up Person to the Offeror’s
Take-over Bid or to any Take-over Bid made by any of the Offeror’s Affiliates
or Associates or made by any other Person acting jointly or in concert with the
Offeror (the “Lock-up Bid”), where the agreement:

 

(i)            permits the Locked-up Person to withdraw the
Voting Shares from the agreement in order to tender or deposit the Voting
Shares to another Take-over Bid or to support another transaction that contains
an offering price for each Voting Share that is higher than the offering price
contained in or proposed to be contained in the Lock-up Bid; or

 

(ii)           (a) permits the
Locked-up Person to withdraw the Voting Shares from the agreement in order to
tender or deposit the Voting Shares to another Take-over Bid or to support
another transaction that contains an offering price for each Voting Share that
exceeds by as much as or more than a specified amount (the “Specified Amount”)
the offering price for each Voting Share contained in or proposed to be
contained in the Lock-up Bid; and (b) does not by its terms provide for a
Specified Amount that is greater than 7% of the offering price contained in or
proposed to be contained in the Lock-up Bid;

 

and,
for greater clarity, an agreement may contain a right of first refusal or
require a period of delay to give an offeror an opportunity to match a higher
price in another take-over bid or other similar limitation on a Locked-up
Person as long as the Locked-up Person can accept another bid or tender to
another transaction;

 

(aa)         “Market Price” per
share of any securities on any date of determination shall mean the average of
the daily closing prices per share 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 2.03 hereof shall have caused the closing prices used to
determine the Market Price on any Trading Days not to be fully comparable with
the closing price on such date of determination or, if the date of
determination is not a Trading Day, on the immediately preceding Trading Day,
each such closing price so used shall be appropriately adjusted in a manner
analogous to the applicable adjustment provided for in Section 2.03 hereof in
order to make it fully comparable with the closing price 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 Share” of any
securities on any date shall be:

 

6

 

(i)            the closing board lot sale price or, if no such
sale takes place on such date, the average of the closing bid and asked prices,
for each of such securities as reported by the principal Canadian stock
exchange on which such securities are listed and admitted to trading;

 

(ii)           if for any reason
none of such prices is available on such day or the securities are not listed
or admitted to trading on a Canadian stock exchange, the last sale price or, in
case no such sale takes place on such date, the average of the closing bid and
asked prices for each share of such securities as reported by the principal
national United States securities exchange on which securities are listed or
admitted to trading;

 

(iii)          if for any reason
none of such prices is available on such day or the securities are not listed
or admitted to trading on a Canadian stock exchange or a national United States
securities exchange, the last quoted price or if not so quoted, the average of
the high bid and low asked prices for each share of such securities in the
over-the-counter market, as reported by the National Association of Securities
Dealers, Inc. Automated Quotation System (“NASDAQ”) or such other system then
in use; or

 

(iv)          if for any reason
none of such prices is available on such day or the securities are not quoted,
listed or admitted to trading on a Canadian stock exchange, a national United
States securities exchange or quoted by any over-the-counter market reporting
system, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the securities selected in good
faith by the Board of Directors of the Company,

 

provided, however, that if for any
reason none of such prices is available on such day, the closing price per share
of such securities on such date means the fair value per share of securities on
such date as determined by a nationally recognized investment dealer or
investment banker with respect to the fair value per share of such securities.
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.

 

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

 

(cc)         “Nominee” shall have
the meaning ascribed thereto in paragraph 2.02(c). (dd) 

 

(dd)         “Offer to Acquire”
shall include:

 

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

 

(ii)           an acceptance of an
offer to sell Voting 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.

 

(ee)         “Offeror” shall mean
a Person who has announced a current intention to make or is making a Take-over
Bid.

 

(ff)           “Offeror’s
Securities” means Voting Shares Beneficially Owned by an Offeror on the date of
the Offer to Acquire.

 

7

 

(gg)         “Permitted Bid” means
a Take-over Bid made by an Offeror, for all or a portion of the Voting Shares,
which is made by means of a take-over bid circular which also complies with the
following additional provisions:

 

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

 

(ii)           the Take-over Bid
contains, and the take-up and payment for securities tendered or deposited is
subject to, an irrevocable and unqualified provision that no Voting Shares will
be taken up or paid for pursuant to the Take-over Bid prior to the close of
business on the date which is not less than 60 days following the date of the
Take-over Bid and only if at such date more than 50% of the Voting Shares held
by Independent Shareholders have been deposited or tendered pursuant to the
Take-over Bid and not withdrawn;

 

(iii)          unless the Take-over
Bid is withdrawn, the Take-over Bid contains an irrevocable and unqualified
provision that Voting Shares may be deposited pursuant to such Take-over Bid at
any time during the period of time described in subparagraph l.0l(gg)(ii) and
that any Voting Shares deposited pursuant to the Take-over Bid may be withdrawn
until taken up and paid for; and

 

(iv)          the Take-over Bid
contains an irrevocable and unqualified provision that in the event that the
deposit condition set forth in subparagraph 1.01 (gg)(ii) is satisfied the
Offeror will make a public announcement of that fact and the Take-over Bid will
remain open for deposits and tenders of Voting Shares for not less than ten
days from the date of such public announcement.

 

(hh)         “Permitted Bid
Acquisition” shall mean an acquisition of Voting Shares made pursuant to a
Permitted Bid or a Competing Permitted Bid.

 

(ii)           “Person” shall mean
any individual, firm, partnership, association, trust, body corporate,
corporation, unincorporated organization, syndicate, government entity or other
entity.

 

(jj)           “Pro Rata
Acquisition” means an acquisition by a Person of Voting Shares pursuant to:

 

(i)            a Dividend Reinvestment Acquisition;

 

(ii)           a stock dividend, stock
split or other event in respect of securities of the Company of one or more
particular classes or series pursuant to which such Person becomes the
Beneficial Owner of Voting Shares on the same pro rata basis as all other
holders of securities of the particular class, classes or series;

 

(iii)          the acquisition or
the exercise by the Person of only those rights to purchase Voting Shares
distributed to that Person in the course of a distribution to all holders of
securities of the Company of one or more particular classes or series pursuant
to a rights offering or pursuant to a prospectus provided that such rights are
acquired directly or indirectly from the Company and not from any other person
provided that the Person does not thereby acquire a greater percentage of
Voting Shares, or securities convertible into or exchangeable for Voting Shares
so offered, than the Person’s percentage of Voting Shares, or such convertible
or exchangeable securities so offered, beneficially owned prior to such
acquisition; or

 

(iv)          a distribution of
Voting Shares, or securities convertible into or exchangeable for Voting Shares
(and the conversion or exchange of such convertible or exchangeable
securities), made pursuant to a prospectus or by way of a private placement,
provided that such

 

8

 

Person
does not become the Beneficial Owner of more than 25% of the Voting Shares
outstanding immediately prior to the distribution, and in making this
determination the Voting Shares to be issued to such Person in the distribution
shall be deemed to be held by such Person and shall not be included in the
aggregate number of outstanding Voting Shares immediately prior to the
distribution.

 

(kk)         “Record Time” shall
have the meaning ascribed to it in paragraph (a) of the third whereas clause.

 

(ll)           “regular periodic
cash dividend” shall mean cash dividends paid at regular intervals in any
fiscal year of the Company to the extent that such cash dividends do not
exceed, in the aggregate, the greatest of:

 

(i)            200% of the cash dividends, on a per share
basis, declared payable by the Company on its Common Shares in its immediately
preceding fiscal year;

 

(ii)           300% of the
arithmetic mean of the cash dividends, on a per share basis, declared payable
by the Company on its Common Shares in its three immediately preceding fiscal
years; and

 

(iii)          100% of the aggregate
consolidated net income of the Company, before extraordinary items, for its
immediately preceding fiscal year.

 

(mm)       “Right” means a right
to purchase a Common Share of the Company upon the terms and subject to the
conditions set forth in this Agreement.

 

(nn)         “Rights Certificate”
means the certificates representing the Rights after the Separation Time, which
shall be substantially in the form attached hereto as Exhibit A.

 

(oo)         “Rights Register”
shall have the meaning ascribed thereto in paragraph 2.06(a).

 

(pp)         “Securities Act
(Saskatchewan)” shall mean The Securities Act, 1988 S.S. 1988, c. S-42.2, as
amended, and the regulations thereunder and any comparable or successor laws or
regulations thereto and the “Securities Act (Ontario)” shall mean the
Securities Act, R.S.O. 1990, c.S.5, as amended, and the regulations thereunder
and any comparable or successor laws or regulations thereto. “Securities Acts”
means the Securities Act (Saskatchewan), the Securities Act (Ontario) and the
comparable legislation in each of the provinces of Canada.

 

(qq)         “Separation Time”
shall mean the close of business on the eighth Trading Day after the earlier
of:

 

(i)            the Stock Acquisition Date; and

 

(ii)           the date of the
commencement of, or first public announcement of the intent of any Person
(other than the Company or any Subsidiary of the Company) to commence, a
Take-over Bid (other than a Permitted Bid or a Competing Permitted Bid),

 

or
on such later day as the Board of Directors shall determine, provided that if
any such Take-over Bid expires, is cancelled, terminated or otherwise withdrawn
prior to the Separation Time, such Take-over bid shall be deemed, for purposes
of this definition, never to have been made.

 

(rr)           “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 110 of the Securities Act (Saskatchewan), Section 101 of the Securities
Act (Ontario) or Section 13(d) under the 1934 Exchange Act) by the Company or
an Acquiring Person of facts indicating that an Acquiring Person has become
such.

 

9

 

(ss)         “Subsidiary”: a
corporation shall be deemed to be a Subsidiary of another corporation if:

 

(i)            it is controlled by:

 

(A)          that other; or

 

(B)           that other and one or more corporations each of
which is controlled by that other; or

 

(C)           two or more corporations each of which is
controlled by that other; or

 

(ii)           it is a Subsidiary of
a corporation that is that other’s Subsidiary.

 

(tt)           “Take-over Bid” shall
mean an Offer to Acquire Voting Shares or securities convertible into Voting
Shares if, assuming that the Voting Shares or convertible securities subject to
the Offer to Acquire are acquired and are Beneficially Owned at the date of
such Offer to Acquire by the Person making such Offer to Acquire, such Voting
Shares (including Voting Shares that may be acquired upon conversion of
securities convertible into Voting Shares) together with the Offeror’s
Securities, constitute in the aggregate 20% or more of the outstanding Voting
Shares (including Voting Shares that may be acquired upon conversion of
securities convertible into Voting Shares) at the date of the Offer to Acquire.

 

(uu)         “Termination Time”
shall mean the time at which the right to exercise Rights shall terminate
pursuant to Sections 3.01, 5.01 or 5.02.

 

(vv)         “Trading Day”, when
used with respect to any securities, shall mean a day on which the principal
Canadian stock 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 Canadian stock exchange, a Business Day.

 

(ww)       “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 for the conversion of one United States
dollar into Canadian dollars, such rate; and

 

(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.

 

(xx)          “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.

 

(yy)         “Voting Share Reduction”
means an acquisition or redemption by the Company of Voting Shares which, by
reducing the number of Voting Shares outstanding, increases the proportionate
number of Voting Shares Beneficially Owned by any person to 20% or more of the
Voting Shares then outstanding.

 

10

 

(zz)          “Voting Shares” shall
mean the Common Shares of the Company and any other shares of capital stock of
the Company entitled to vote generally in the election of directors; and the percentage
of Voting Shares Beneficially Owned by any Person, shall, for the purposes of
this Agreement, 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 Voting Shares Beneficially Owned by such Person; and

 

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

 

Where
any Person is deemed to Beneficially Own unissued Voting Shares, such Voting
Shares shall be deemed to be outstanding for the purpose of calculating the
percentage of Voting Shares Beneficially Owned by such Person.

 

1.02        Currency

 

All
sums of money which are referred to in this Agreement are expressed in lawful
money of Canada, unless otherwise specified.

 

1.03        Acting Jointly or in Concert

 

For
the purposes of this Agreement, a Person is acting jointly or in concert with
every Person who is a party to an agreement, commitment or understanding,
whether formal or informal, with the first Person or any Associate or Affiliate
thereof to acquire or offer to acquire Voting Shares (other than customary
agreements with and between underwriters or banking group members or selling
group members with respect to a distribution of securities or to a pledge of
securities in the ordinary course of business).

 

1.04        References to Agreement

 

References
to “this Agreement”, “hereto”, “herein”, “hereby”, “hereunder”, “hereof” and
similar expressions refer to this Agreement and not to any particular Article,
section, subsection, paragraph, subparagraph, clause, subclause, or other
subdivision or portion hereof and include any and every instrument supplemental
or ancillary hereto.

 

ARTICLE II - RIGHTS

 

2.01        Legend on Common Share Certificates

 

Certificates
for the Common Shares issued after the Record Time but prior to the close of
business on the earlier of the Separation Time and the Expiration Time shall
evidence one Right for each Common Share represented thereby and shall have
impressed on, printed on, written on or otherwise affixed to them the following
legend:

 

Until
the Separation Time (as defined in the Amended Rights Agreement referred to
below), this certificate also evidences and entitles the holder hereof to
certain Rights as set forth in a Shareholder Rights Agreement, dated as of the
14th day of March, 1990 and as amended and restated on the 20th day of April,
1995, between IPSCO Inc. (the “Company”) and Computershare Trust Company of
Canada, as Rights Agent (the “Amended Rights Agreement”), the terms of which
are hereby incorporated herein by reference and a copy of which is on file at
the principal office of the Company. Under certain circumstances, as set

 

11

 

forth
in the Amended 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 Amended Rights
Agreement, or a transferee thereof) or may be evidenced by separate
certificates and may no longer be evidenced by this certificate. The Company
will mail or arrange for the mailing of a copy of the Amended Rights Agreement
to the holder of this certificate without charge within five days after the receipt
of a written request therefor. The Amended Rights Agreement was further amended
on the 29th day of April, 2004.

 

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.

 

All
Certificates representing Common Shares that are issued and outstanding on
April 29, 2004 shall be deemed to bear the foregoing legend.

 

2.02        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, to purchase,
for the Exercise Price, one Common Share.

 

(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 and will be
transferable only together with, and will be transferred by a transfer of, such
associated share. Notwithstanding any other provision of this Agreement, any
Rights held by the Company or any of its Subsidiaries shall be void.

 

(c)           After the Separation Time and prior to the
Expiration Time, the Rights (i) may be exercised; and (ii) will be transferable
independently of Common Shares. Promptly following the Separation Time, the
Rights Agent on behalf of the Company will mail to each holder of record of
Voting Shares as of the Separation Time (other than an Acquiring Person and, in
respect of any Rights Beneficially Owned by such Acquiring Person, the holder
of record of such Rights (a “Nominee”)) at such holder’s address as shown by
the records of the Company (the Company hereby agreeing to furnish copies of
such records to the Rights Agent for this purpose), (A) a certificate (a
“Rights Certificate”) in substantially the form of Exhibit A hereto
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 Company 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 (B) a disclosure statement
describing the Rights (provided that a Nominee shall be sent the materials
provided for in (A) and (B) in respect of all Common Shares held of record by
it which are not Beneficially Owned by an Acquiring Person).

 

(d)           Rights may be exercised in whole or in part on
any Business Day after the Separation Time and prior to the Expiration Time by
submitting to the Rights Agent:

 

(i)            the Rights Certificate evidencing such Rights
with an Election to Exercise (an “Election to Exercise”) substantially in the
form attached to the Rights Certificate appropriately completed and duly
executed by the holder or such holder’s executor or administrator or other
personal representative or such holder’s legal attorney duly appointed by an

 

12

 

instrument
in writing in form and executed in a manner satisfactory to the Rights Agent;
and

 

(ii)           payment in cash, or
by certified cheque, banker’s draft or money order payable to the order of the
Company, 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 (that does not indicate that such Right is null and void
as provided in paragraph 3.01(b)) accompanied by payment as set forth in subparagraph
2.02(d)(ii), the Rights Agent will promptly:

 

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

 

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

 

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

 

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

 

(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 Company covenants and agrees that it will:

 

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

 

(ii)           take all such action
as may be necessary and within its power to comply with any applicable
requirements of the Canada Business Corporations Act and the Securities Acts or
comparable legislation of each of the provinces of Canada or the rules and
regulations thereunder or any other applicable law, rule or regulation of a
province of Canada, 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 on which the Common Shares were traded prior to the
Stock Acquisition Date; and

 

(iv)          pay when due and
payable any and all Canadian and provincial transfer taxes (for greater
certainty not including any income taxes of the holder or exercising holder or
any liability of the Company to withhold tax) and charges which may be payable
in respect of the original issuance or delivery of the Rights Certificates or
certificates for shares, provided that the Company shall not be required to pay
any transfer tax or charge which may be

 

13

 

payable
in respect of any 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.

 

2.03        Adjustments to Exercise Price; Number of Rights

 

(a)           The Exercise Price, the number and kind of
securities 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 2.03.

 

(b)           In the event the Company 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 capital stock of the Company (or other securities
exchangeable for or convertible into or giving a right to acquire Common Shares
or other capital stock of the Company) other than pursuant to any optional
stock dividend program;

 

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

 

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

 

(iv)          issue any Common
Shares or other capital stock of the Company (or other securities exchangeable
for or convertible into or giving a right to acquire Common Shares or other
capital stock of the Company) in respect of, in lieu of or in exchange for
existing Common Shares except as otherwise provided in this Section 2.03,

 

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:

 

(A)          the Exercise Price in effect after such
adjustment will be equal to the Exercise Price in effect immediately prior to
such adjustment divided by the number of Common Shares (or other capital stock)
(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 (assuming the exercise of all such exchange or
conversion rights, if any); and

 

(B)           each Right held prior to such adjustment will
become that number of Rights equal to the Expansion Factor,

 

and
the adjusted number of Rights will be deemed to be distributed 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 capital stock) 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 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. To the extent that such
rights of exchange, conversion or acquisition are not exercised prior to the
expiration thereof, the

 

14

 

Exercise
Price shall be readjusted to the Exercise Price which would then be in effect
based on the number of Common Shares (or securities convertible into or
exchangeable for Common Shares) actually issued upon the exercise of such
rights.

 

If,
after the Record Time but prior to the Separation Time, the Company issues any
securities in a transaction of a type similar to any of the transactions
relating to Common Shares described in subparagraphs 2.03(b)(i) or (iv) which
are exchangeable for or convertible into or give a right to purchase or
subscribe for Common Shares, such securities shall be treated herein as nearly
equivalent to Common Shares as may be practicable and appropriate under the
circumstances and the Company and the Rights Agent shall amend this Agreement in
order to effect such treatment; provided that no such amendment may materially
adversely affect the interests of the holders of the Rights generally.

 

If
an event occurs which would require an adjustment under both this Section 2.03
and Section 3.01, the adjustment provided for in this Section 2.03 shall be in
addition to, and shall be made prior to, any adjustment required under Section
3.01.

 

(c)           In the event the Company shall at any time
after the Record Time and prior to the Separation 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 45 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. The Exercise Price
in effect after such record date will 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 (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 by delivery of 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 of the Company. To the extent that such rights
of exchange, conversion or acquisition are not exercised prior to the
expiration thereof, the Exercise Price shall be readjusted to the Exercise
Price which would then be in effect based on the number of Common Shares (or
securities convertible into or exchangeable or exercisable for Common Shares)
actually issued upon the exercise of such rights.

 

For
purposes of this Agreement, the granting of the right to purchase Common Shares
(whether from treasury shares or otherwise) pursuant to any (i) dividend or
interest reinvestment plan or (ii) any Common Share purchase plan providing for
the reinvestment of dividends or interest payable on securities of the Company
or the investment of periodic optional payments or (iii) 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 Company; 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 percent of the then current Market Price
per share (determined as provided in such plans) of the Common Shares.

 

(d)           In the event the Company shall at any time
after the Record Time and prior to the Separation Time fix a record date for
the making of a distribution to all holders of Common Shares of evidences of

 

15

 

indebtedness
or assets (other than a regular periodic cash dividend or a dividend paid in
Common Shares) or rights or warrants (excluding those referred to in paragraph
2.03(c)), the Exercise Price shall be adjusted. The Exercise Price in effect
after such record date will 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 Company) of the portion of the assets,
evidences of indebtedness, rights or warrants so to be distributed applicable
to the securities purchasable upon exercise of one Right.

 

(e)           Each adjustment made pursuant to this Section
2.03 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 2.03(a); and

 

(ii)           the record date for
the applicable dividend or distribution, in the case of an adjustment made
pursuant to paragraph 2.03(c) or (d).

 

(f)            Subject to the prior consent of the holders of
Voting Shares or Rights obtained as set forth in paragraph 5.05 (b) or 5.05
(c), as applicable, in the event the Company shall at any time after the Record
Time and prior to the Separation Time issue any shares of capital stock (other
than Common Shares), or rights or warrants to subscribe for or purchase any
such capital stock, or securities convertible into or exchangeable for any such
capital stock in a transaction referred to in subparagraphs 2.03(b) (i) or
(iv), if the Board of Directors acting in good faith determines that the
adjustments contemplated by paragraphs 2.03(b), (c) and (d) in connection with
such transaction will not appropriately protect the interests of the holders of
Rights, the Board of Directors may from time to time determine what other
adjustments to the Exercise Price, number of Rights or securities purchasable
upon exercise of Rights would be appropriate and, notwithstanding paragraphs
2.03(b), (c) and (d), such adjustments, rather than the adjustments
contemplated by paragraphs 2.03(b), (c) and (d), shall be made. The Company and
the Rights Agent shall amend this Agreement as appropriate to provide for such
adjustments.

 

(g)           Notwithstanding anything herein to the
contrary, no adjustment to the Exercise Price shall be required unless such
adjustment (including any prior adjustments which have been carried forward and
not given effect to) would require an increase or a decrease of at least 1% in
the Exercise Price, provided that any adjustment which is not made as a result
of this paragraph 2.03(g) shall be carried forward and taken into account in
any subsequent adjustment. Each adjustment to the Exercise Price made pursuant
to this Section 2.03 shall be calculated to the nearest cent. Whenever an
adjustment to the Exercise Price is made pursuant to this Section 2.03 the
Company shall:

 

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

 

(ii)           promptly file with
the Rights Agent and with each transfer agent for the Common Shares a copy of
such certificate and mail a brief summary thereof to each holder of Rights.

 

(h)           If as a result of an adjustment made pursuant
to Section 2.02 or 2.03, the holder of any Right thereafter exercised shall
become entitled to receive any securities other than Common Shares, thereafter
the number of such other shares so receivable upon exercise of any Right and
the applicable Exercise Price thereof shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Shares contained in subsections 2.03
(b),(c), (d), (e), (f), (g), (i), (j) and (k), and the provisions of this
Agreement with respect to the Common Shares and shall apply on like terms to
any such other securities.

 

16

 

(i)            All Rights originally issued by the Company
subsequent to any adjustment made to an 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 the Rights, all
subject to further adjustment as provided herein.

 

(j)            In any case in which this Section 2.03 shall
require that an adjustment in an Exercise Price be made effective as of a
record date for a specified event, the Company may elect to defer until the
occurrence of such event the issuance to the holder of any Right exercised
after such record date of the number of Common Shares and other securities of
the Company, if any, issuable upon such exercise over and above the number of
Common Shares and other securities of the Company, if any, issuable upon such
exercise on the basis of the relevant Exercise Price in effect prior to such
adjustment; provided, however, that the Company shall deliver to such holder an
appropriate instrument evidencing such holder’s right to receive such
additional Common Shares (fractional or otherwise) or other securities upon the
occurrence of the event requiring such adjustment.

 

(k)           Notwithstanding anything in this Section 2.03
to the contrary, the Company shall be entitled to make such reductions in the
Exercise Price, in addition to those adjustments expressly required by this
Section 2.03, as and to the extent that in their good faith judgment the Board
of Directors shall determine to be advisable, in order that any subdivision or
consolidation of the Common Shares, issuance (wholly or in part for cash) of
Common Shares or securities that by their terms are exchangeable for or
convertible into or giving a right to acquire Common Shares, stock dividends or
issuance of rights, options or warrants referred to in this Section 2.03,
hereafter made by the Company to holders of its Common Shares, subject to
applicable taxation laws, shall not be taxable to such shareholders.

 

(l)            The Company covenants and agrees that, after
the Separation Time, it will not, except as permitted by Section 5.01 or 5.05
take (or permit any Subsidiary of the Company 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.

 

(m)          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.

 

(n)           If the Company shall at any time after the
Record Time and prior to the earlier of the Separation Time and the Expiration
Time issue any Common Shares otherwise than in a transaction referred to in
paragraph 2.03(b) 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.

 

2.04        Date on Which Exercise is Effective

 

Each
Person in whose name any certificate for Common Shares 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 in accordance with paragraph 2.02(d) (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 Company 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 Company
are open.

 

2.05        Execution. Authentication. Delivery and Dating of Rights Certificates

 

(a)           The Rights Certificates shall be executed on
behalf of the Company by any two of its Chairman of the Board, President and
Chief Executive Officer, a Senior Vice President, a Vice President,

 

17

 

Treasurer,
Secretary or Assistant Secretary with its corporate seal reproduced thereon.
The signature of any of these officers 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 of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased
to hold such offices prior or subsequent to the countersignature and delivery
of such Rights Certificates.

 

(b)           Promptly after the Company learns of the
Separation Time, the Company will notify the Rights Agent of such Separation
Time and will deliver Rights Certificates executed by the Company to the Rights
Agent for countersignature, and the Rights Agent shall countersign (manually or
by facsimile signature in a manner satisfactory to the Company) and deliver
such Rights Certificates to the holders of the Rights pursuant to paragraph
2.02(c) hereof. No Rights Certificate shall be valid for any purpose until
countersigned by the Rights Agent as aforesaid.

 

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

 

2.06        Registration. Registration of Transfer and Exchange

 

(a)           The Company will cause to be kept a register
(the “Rights Register”) in which, subject to such reasonable regulations as it
may prescribe, the Company 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 Company and registering Rights and
transfers of Rights as herein provided. 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 paragraph 2.06(d), the Company
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.

 

(c)           All Rights issued upon any registration of
transfer or exchange of Rights Certificates shall be the valid obligations of
the Company, 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 Company 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 2.06, the Company 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 fees
and expenses of the Rights Agent) connected therewith.

 

2.07        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 Company 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 Company 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 to save each of them
and any of their agents harmless, then, in the absence of notice to the Company
or the Rights Agent that such Rights

 

18

 

Certificate
has been acquired by a bona fide purchaser, the Company 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 2.07, the Company 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 fees and
expenses of the Rights Agent) connected therewith.

 

(d)           Every new Rights Certificate issued pursuant to
this Section 2.07 in lieu of any destroyed, lost or stolen Rights Certificate
shall evidence an original additional contractual obligation of the Company,
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.

 

2.08        Persons Deemed Owners

 

The
Company, the Rights Agent and any agent of the Company or the Rights Agent may
deem and treat the person in whose name such Rights Certificate (or, prior to
the Separation Time, such 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).

 

2.09        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 Company may at any time deliver to
the Rights Agent for cancellation any Rights Certificates previously
countersigned and delivered hereunder which the Company 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 2.09, except as expressly permitted by this
Agreement. The Rights Agent shall destroy all cancelled Rights Certificates and
deliver a certificate of destruction to the Company.

 

2.10        Agreement of Rights Holder

 

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

 

(a)           such holder shall 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 Company, the Rights Agent and
any agent of the Company 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

 

19

 

certificate
made by anyone other than the Company or the Rights Agent) for all purposes
whatsoever, and neither the Company nor the Rights Agent shall be affected by a
notice to the contrary; and

 

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

 

ARTICLE III -

ADJUSTMENTS TO THE RIGHTS IN THE

EVENT OF CERTAIN TRANSACTIONS

 

3.01        Flip-in Event

 

(a)           Subject to paragraph 3.01(b) and Section 5.01,
in the event that prior to the Expiration Time a Flip-in Event shall occur,
each Right shall thereafter constitute, effective from and after the close of
business on the eighth Trading Day following the Stock Acquisition Date, the
right to purchase from the Company, upon exercise thereof in accordance with
the terms hereof, that number of Common Shares of the Company 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 2.03 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 2.03 shall have occurred).

 

(b)           Notwithstanding anything in this Agreement to
the contrary, 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 other Person acting jointly or in concert
with an Acquiring Person or any Affiliate or Associate of such other Person);
or

 

(ii)           a transferee, direct
or indirect, of an Acquiring Person (or any Affiliate or Associate of an
Acquiring Person or any other Person acting jointly or in concert with an
Acquiring Person or any Affiliate or Associate of such other Person) in a
transfer, whether or not for consideration, that the Board of Directors of the
Company 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 other Person acting jointly or in concert with an Acquiring
Person or any Affiliate or Associate of such other Person) that has the purpose
or effect of avoiding subparagraph 3.0l(b)(i),

 

shall
become null and 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 further shall thereafter not have
any other rights whatsoever with respect to such Rights, whether under any
provision of this Agreement or otherwise.

 

(c)           From and after the Separation Time, the Company
shall do all such acts and things as shall be necessary and within its power to
ensure compliance with the provisions of this Section 3.01, including without
limitation, all such acts and things as may be required to satisfy the
requirements of the Canada Business Corporations Act, the Securities Act
(Saskatchewan) 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.

 

20

 

(d)           Any Rights Certificate that represents Rights
Beneficially Owned by a Person described in either subparagraph 3.01(b)(i) or
(ii) 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 Certificate were issued to a Person who was an
Acquiring Person or an Affiliate or an Associate of an Acquiring Person (as
such terms are defined in the Shareholder Rights Agreement) or a Person acting
jointly or in concert with any of them. This Rights Certificate and the Rights
represented hereby shall become void in the circumstances specified in
paragraph 3.01(b) of the Rights Agreement.

 

provided 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 Company or if a holder fails to
certify upon transfer or exchange in the space provided on the Rights
Certificate that such holder is not a Person described in such legend.

 

ARTICLE IV - THE RIGHTS AGENT

 

4.01        General

 

(a)           The Company hereby appoints the Rights Agent to
act as agent for the Company and the holders of Rights in accordance with the
terms and conditions hereof, and the Rights Agent hereby accepts such
appointment. The Company may from time to time appoint such co-Rights Agents
(“Co-Rights Agents”) as it may deem necessary or desirable. In the event the
Company appoints one or more Co-Rights Agents, the respective duties of the
Rights Agent and Co-Rights Agents shall be as the Company may determine. The
Company 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 administration and execution of this Agreement and the exercise
and performance of its duties hereunder. The Company 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 or omitted by the Rights Agent in
connection with the acceptance and administration of this Agreement, including
the costs and expenses of defending against any claim of liability, which right
to indemnification will survive the termination of this Agreement.

 

(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 Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, 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.

 

4.02        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 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

 

21

 

Rights
Agent under the provisions of Section 4.04 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.

 

(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.

 

4.03        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 Company and the
holders of Rights Certificates, by their acceptance thereof, shall be bound:

 

(a)           The Rights Agent may consult with legal counsel
(who may be legal counsel for the Company) 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.

 

(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 Company 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 any two of the Chairman of
the Board, the President and Chief Executive Officer, a Senior Vice President,
a Vice President, the Treasurer, the Secretary or and Assistant Secretary of
the Company 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 wilful 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 Company
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 Company of any
covenant or condition contained in this Agreement or in any Rights Certificate;
nor will it be responsible for any change in the exercisability of the Rights
(including the Rights becoming void pursuant to paragraph 3.01(b) hereof) or
any adjustment required under the provisions of Section 2.03 hereof or
responsible for the manner, method or amount of any such

 

22

 

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 2.03 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 nonassessable.

 

(f)            The Company 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 of the Chairman of the Board, the President and Chief
Executive Officer, a Senior Vice President, a Vice President, the Treasurer,
the Secretary or an Assistant Secretary of the Company, 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
accordance with instructions of any such person.

 

(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 Company or become
pecuniarily interested in any transaction in which the Company may be
interested, or contract with or lend money to the Company 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 Company or for any other legal entity.

 

(i)            The Rights Agent may execute and exercise any
of its 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, default, neglect or
misconduct of any such attorneys or agents or for any loss to the Company
resulting from any such act, default, neglect or misconduct, provided
reasonable care was exercised in the selection and continued employment
thereof.

 

4.04        Change of Rights Agent

 

The
Rights Agent may resign and be discharged from its duties under this Agreement
upon 90 days’ notice (or such lesser notice as is acceptable to the Company) in
writing mailed to the Company and to each transfer agent of Common Shares by
registered or certified mail, and to the holders of the Rights in accordance
with Section 5.11.  The Company may remove
the Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent
and to each transfer agent of the Common Shares by registered or certified
mail, and to the holders of the Rights in accordance with Section 5.11.  If the Rights Agent should resign or be
removed or otherwise become incapable of acting, the Company will appoint a
successor to the Rights Agent. If the Company 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 or by the holder of any Rights (which holder shall, with such
notice, submit such holder’s Rights Certificate for inspection by the Company),
then the holder of any Rights may apply to any court of competent jurisdiction
for the appointment of a new Rights Agent. Any successor Rights Agent, whether
appointed by the Company 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 Saskatchewan. 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 Company will file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Voting Shares,
and mail a notice thereof in writing to the holders of the Rights in accordance
with Section 5.11. Failure to give any notice provided for in this Section
4.04, however, or any defect therein, shall

 

23

 

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 V - MISCELLANEOUS

 

5.01        Redemption, Waiver and Termination

 

(a)           Subject to the prior consent of the holders of
Voting Shares or Rights obtained as set forth in paragraph 5.05(b) or 5.05(c),
as applicable, the Board of Directors of the Company acting in good faith may
at any time prior to the provisions of Section 3.01 becoming applicable as a
result of the occurrence of a Flip-in Event elect to redeem all but not less
than all of the then outstanding Rights at a redemption price of $0.0001 per
Right appropriately adjusted in a manner analogous to the applicable adjustment
provided for in Section 2.03 if an event of the type analogous to any of the
events described in Section 2.03 shall have occurred (such redemption price
being herein referred to as the “Redemption Price”).

 

(b)           The Board of Directors of the Company acting in
good faith may, until the occurrence of a Flip-in Event, upon prior written
notice delivered to the Rights Agent, determine to waive the application of
Section 3.01 to a Flip-in Event that may occur by reason of a Take-over Bid
made by means of a take-over bid circular to all holders of record of Voting
Shares (which for greater certainty shall not include the circumstances
described in paragraph 5.01(h)); provided that if the Board of Directors waives
the application of Section 3.01 to a particular Flip-in Event pursuant to this
paragraph 5.01(b), the Board of Directors shall be deemed to have waived the
application of Section 3.01 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 Voting Shares 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 paragraph
5.01(b).

 

(c)           Where a Person acquires pursuant to a Permitted
Bid, a Competing Permitted Bid or an Exempt Acquisition under paragraph
5.01(b), outstanding Voting Shares, other than Voting Shares Beneficially Owned
at the date of the Permitted Bid, the Competing Permitted Bid or the Exempt
Acquisition under paragraph 5.0 1(b) by such Person, then the Company shall
immediately upon the consummation of such acquisition and without further formality,
be deemed to have elected to redeem the Rights at the Redemption Price.

 

(d)           Where a Take-over Bid that is not a Permitted
Bid Acquisition 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.

 

(e)           If the Company is deemed under paragraph
5.01(c) to have elected to redeem the Rights, or the Board of Directors elects
under either of paragraph 5.01(a) or (d) to redeem the Rights 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 shall be to
receive the Redemption Price.

 

(f)            Within 10 days after the Company is deemed
under paragraph 5.01(c) to have redeemed the Rights or within 10 days after the
Board of Directors elects under paragraph 5.01(a) or (d) to redeem the Rights,
the Company shall give notice of redemption to the holders of the then
outstanding Rights by mailing such notice to each such holder at such holder’s
last address as it appears upon the registry books of the Rights Agent or,
prior to the Separation Time, on the registry books of the transfer agent for
the Voting Shares. Any notice which is mailed in the manner herein provided
shall 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.

 

(g)           Upon the Rights being redeemed pursuant to
paragraph 5.01(d), all the provisions of this Agreement shall continue to apply
as if the Separation Time had not occurred and Rights

 

24

 

Certificates
representing the number of Rights held by each holder of record of Common
Shares as of the Separation Time had not been mailed to each such holder and
for all purposes of this Agreement the Separation Time shall be deemed not to
have occurred.

 

(h)           The Board of Directors may waive the
application of Section 3.01 in respect of the occurrence of any Flip-in Event
if the Board of Directors has determined within eight Trading Days following a
Stock Acquisition Date that a Person became an Acquiring Person by inadvertence
and without any intention to become, or knowledge that it would become, an
Acquiring Person under this Agreement and, in the event that such a waiver is
granted by the Board of Directors, such Stock Acquisition Date shall be deemed
not to have occurred. Any such waiver pursuant to this paragraph 5.01(h) must
be on the condition that such Person, within 14 days after the foregoing
determination by the Board of Directors or such earlier or later date as the
Board of Directors may determine (the “Disposition Date”), has reduced its
Beneficial Ownership of Voting Shares such that the Person is no longer an
Acquiring Person. If the Person remains an Acquiring Person at the close of
business on the Disposition Date, the Disposition Date shall be deemed to be
the date of occurrence of a further Stock Acquisition Date and Section 3.01
shall apply thereto.

 

5.02        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
paragraph 4.01(a) of this Agreement.

 

5.03        Determinations and Actions by the Board of Directors

 

All
such actions, calculations, interpretations and determinations (including all
omissions with respect to the foregoing) which are done or made by the Board,
in good faith, shall not subject the Board to any liability to the holders of
the Rights.

 

5.04        Issuance of New Rights Certificates

 

Notwithstanding
any of the provisions of this Agreement or the Rights to the contrary, the
Company 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 or kind or class of shares purchasable upon
exercise of Rights made in accordance with the provisions of this Agreement.

 

5.05        Supplements and Amendments

 

(a)           The Company 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, regulations or rules thereunder.

 

(b)           Subject to paragraph 5.05(a), the Company may,
with the prior consent of the holders of Voting Shares obtained as set forth
below and with the prior approval of The Toronto Stock Exchange, at any time
prior to the Separation Time, amend, vary or rescind 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 IV 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 Voting Shares duly called and held in compliance
with applicable laws and the articles and by-laws of the Company.

 

(c)           The Company may, with the prior consent of the
holders of Rights and with the prior approval of The Toronto Stock Exchange, at
any time on or after the Separation Time, amend, vary or delete

 

25

 

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 IV 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 of Rights and representing a majority 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 Company’s by-laws and the Canada Business Corporations Act
with respect to meetings of shareholders of the Company.

 

(e)           Any amendments made by the Company to this
Agreement pursuant to paragraph 5.05(a) which are required to maintain the
validity of this Agreement as a result of any change in any applicable
legislation, regulation or rules thereunder shall:

 

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

 

(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 Company and the holders of Rights may, by resolution passed
by the majority referred to in paragraph 5.05(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, 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.

 

5.06        Fractional Rights and Fractional Shares

 

(a)           The Company shall not be required to issue
fractions of Rights or to distribute Rights Certificates which evidence
fractional Rights. After the Separation, in lieu of such fractional Rights, the
Company shall pay to the registered holders of the Rights Certificates
(provided the Rights represented by such Rights Certificates are not void
pursuant to the provisions of paragraph 3.01(b), at the time such fractional
Rights would-otherwise be issuable), an amount in cash equal to the same
fraction of the Market Value of a whole Right that the fraction of a Right that
would otherwise be issuable is of one whole Right.

 

(b)           The Company shall not be required to issue
fractions of Common Shares upon exercise of the Rights or to distribute
certificates which evidence fractional Common Shares. In lieu of issuing
fractional Common Shares, the Company shall pay to the registered holders of
Rights Certificates, at the time such Rights are exercised as herein provided,
an amount in cash equal to the same fraction of the Market Value of one Common
Share that the fraction of a Common Share that

 

26

 

would
otherwise be issuable upon the exercise of such Right is of one whole Common
Share at the date of such exercise.

 

5.07        Rights of Action

 

Subject
to the terms of this Agreement, all 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 of the Rights. 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, as the case may be, enforce, and may institute and
maintain any suit, action or proceeding against the Company 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.

 

5.08        Regulatory Approvals

 

Any
obligation of the Company 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, and without limiting the generality of
the foregoing, necessary approvals of The Toronto Stock Exchange and other
exchanges shall be obtained, relating to the issuance of Common Shares upon the
exercise of Rights under paragraph 2.02(d).

 

5.09        Declaration as to Non-Canadian Holders

 

If
in the opinion of the Board of Directors (who may rely upon the advice of
counsel) any action or event contemplated by this Agreement would require
compliance by the Company with the securities laws or comparable legislation of
a jurisdiction outside Canada, the Board of Directors acting in good faith
shall take such actions as it may deem appropriate to ensure such compliance.
In no event shall the Company or the Rights Agent be required 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 or the United
States, in which such issue or delivery would be unlawful without registration
of the relevant Persons or securities for such purposes.

 

5.10        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
Company 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, 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.

 

5.11        Notices

 

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

 

27

 

IPSCO
Inc.

P.O. Box 1670

Regina, Saskatchewan

S4P 3C7

 

Attention:
Vice President and Chief Financial Officer

Fax: (306) 924-7413

 

Any
notice or demand authorized or required by this Agreement to be given or made
by the Company or by the holder of any Rights to or on the Rights Agent shall
be sufficiently given or made if delivered, sent by first-class mail, postage
prepaid, or by fax (with, in the case of fax, 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 by fax), addressed (until another address is filed in
writing with the Company) as follows:

 

Computershare
Trust Company of Canada

530 - 8th Avenue SW, 6th Floor

Calgary, Alberta

T2P 3S8

 

Attention:
Manager, Corporate Trust Services

Fax: (403) 267-6529

 

Notices
or demands authorized or required by this Agreement to be given or made by the
Company or the Rights Agent to or on the holder of any Rights shall be
sufficiently given or made if delivered, sent by first-class mail, postage
prepaid, or by fax (with, in the case of fax, an original copy of the notice or
demand sent by first class mail, postage prepaid, to the holder following the
giving of the notice or demand by fax), addressed to such holder at the address
of such holder as it appears upon the registry books of the Rights Agent or,
prior to the Separation Time, on the registry books of the transfer agent for
the Common Shares in the case of holders of Rights.

 

Any
notice given or made in accordance with this Section 5.11 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 provided such 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 Company 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 Company
or the Rights Agent wishes to give a notice or demand hereunder to or on the
holders of the Rights, the Company or the Rights Agent may, notwithstanding the
foregoing provisions of this Section 5.11, give such notice by means of
publication once in the business section of both the Financial Post and The
Globe & Mail and, so long as the Company has a transfer agent in the United
States, in a daily publication in the United States designated by the Company,
or in such other publication or publications as may be designated by the
Company 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.

 

5.12        Costs of Enforcement

 

The
Company agrees that if the Company or any other Person the securities of which
are purchasable upon exercise of Rights fails to fulfil any of its obligations
pursuant to this Agreement, then the Company or such Person 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.

 

28

 

5.13        Successors

 

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

 

5.14        Benefits of this Agreement

 

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

 

5.15        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.

 

5.16        Governing Law

 

This
Agreement and each Right issued hereunder shall be deemed to be a contract made
under the laws of the Province of Saskatchewan 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.

 

5.17        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.

 

5.18        Severability

 

If
any term or provision hereof or the application thereof to any circumstance
shall, in any jurisdiction and to any extent, be invalid or unenforceable, such
term or provision shall be ineffective only 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.

 

29

 

5.19        Time of the Essence

 

Time
shall be of the essence in this Agreement.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date noted above.

 

	
   

  	
  IPSCO INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  George H. Valentine

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Raymond J. Rarey

  
	
   

  	
   

  
	
   

  	
  COMPUTERSHARE TRUST COMPANY OF CANADA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ illegible signature

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carol Kinmond

  

 

30

 

EXHIBIT A

 

[Form of Rights Certificate]

 

Certificate No.         Rights

 

THE
RIGHTS ARE SUBJECT TO TERMINATION ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. UNDER CERTAIN CIRCUMSTANCES (SPECIFIED IN PARAGRAPH 3.01(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 Rights Agreement, dated as of the
14th day of March, 1990, as amended, (the “Rights Agreement”) between IPSCO
Inc., a corporation continued under the Canada Business Corporations Act (the
“Company”) 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 Company at any time after the Separation Time
and prior to the Expiration Time (as such terms are defined in the Rights
Agreement), one fully paid common share of the Company (a “Common Share”) at
the Exercise Price referred to below, upon presentation and surrender of this
Rights Certificate with the Form of Election to Exercise (in the form
hereinafter provided) duly executed and submitted to the Rights Agent at its
principal office in any of the Cities of Vancouver, Calgary, Regina, Winnipeg,
Toronto or Montreal. The Exercise Price shall initially be CDN $200.00 per
Right and shall be subject to adjustment in certain events 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 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
Company and the holders of the Rights Certificates. Copies of the Rights Agreement
are on file at the registered office of the Company 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 Right 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.

 

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 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 Company 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 Company and its corporate seal.

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  IPSCO INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Countersigned:

  
	
   

  
	
  COMPUTERSHARE TRUST COMPANY OF CANADA

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized
  Signature

  
										

 

2

 

FORM OF ASSIGNMENT

 

(To be executed by the
registered holder if such holder

desires to transfer the Rights Certificates)

 

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 Company, 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 member firm of a recognized stock exchange in Canada, a
registered national securities exchange in the United States, a member of the
Investment Dealers Association of Canada or National Association of Securities
Dealers, Inc., or a commercial bank or trust company having an office or
correspondent in Canada.

 

CERTIFICATE

(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. Capitalized terms shall have
the meaning ascribed thereto in the Rights Agreement.

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  

 

 

[To be attached to each Rights
Certificate]

 

FORM OF ELECTION TO EXERCISE

 

TO:  IPSCO INC.

 

The
undersigned hereby irrevocably elects to exercise                 
whole Rights represented by the attached Rights Certificate to purchase the
Common Shares issuable upon the exercise of such Rights and requests that
certificates for such shares be issued in the name of:

 

	
   

  	
   

  
	
  (Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Street)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (City
  and Province)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Postal
  Code)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SOCIAL
  INSURANCE 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 Province)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Postal
  Code)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SOCIAL
  INSURANCE 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 member firm of a recognized stock exchange in Canada, a
registered national securities exchange in the United States, a member of the
Investment Dealers Association of Canada or National Association of Securities
Dealers, Inc., or a commercial bank or trust company having an office or
correspondent in Canada.

 

CERTIFICATE

(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. Capitalized terms shall
have the meaning ascribed thereto in the Rights Agreement.

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  

 

NOTICE

 

In
the event the certification set forth above in the Forms of Assignment and
Election is not completed, the Company will deem the Beneficial Owner of the
Right evidenced by this Rights Certificate to be an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement.) No Rights
Certificates shall be issued in exchange for a Rights Certificate owned or
deemed to have been owned by an Acquiring Person or an Affiliate or Associate
thereof, or by a Person acting jointly or in concert with an Acquiring Person
or an Affiliate or Associate thereof.

 

2Exhibit 4.2

 

IPSCO Inc.

2005 Form 10-K

 

 

IPSCO
INC.,

 

as
Issuer,

 

THE
GUARANTORS PARTY HERETO,

 

as
Guarantors,

 

and

 

WELLS
FARGO BANK MINNESOTA, N.A.,

 

as
Trustee

 

 

INDENTURE

 

Dated
as of June 18, 2003

 

 

$200,000,000

 

8
3/4% Senior Notes due 2013

 

 

CROSS-REFERENCE
TABLE

 

	
  TIA

  Section

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  310(a)

  	
  (1)

  	
   

  	
   

  	
  7.10

  
	
  (a)

  	
  (2)

  	
   

  	
   

  	
  7.10

  
	
  (a)

  	
  (3)

  	
   

  	
   

  	
  N.A.

  
	
  (a)

  	
  (4)

  	
   

  	
   

  	
  N.A.

  
	
  (a)

  	
  (5)

  	
   

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.08; 7.10

  
	
  (b)

  	
  (1)

  	
   

  	
   

  	
  7.10

  
	
  (c)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  311(a)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  312(a)

  	
   

  	
   

  	
   

  	
  2.06

  
	
  (b)

  	
   

  	
   

  	
   

  	
  11.03

  
	
  (c)

  	
   

  	
   

  	
   

  	
  11.03

  
	
  313

  	
  (a)

  	
   

  	
   

  	
  7.06

  
	
  (b)

  	
  (1)

  	
   

  	
   

  	
  N.A.

  
	
  (b)

  	
  (2)

  	
   

  	
   

  	
  7.06

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.06; 11.02

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.06

  
	
  314(a)

  	
   

  	
   

  	
   

  	
  4.02; 4.04;
  11.02

  
	
  (b)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  (c)

  	
  (1)

  	
   

  	
   

  	
  11.04

  
	
  (c)

  	
  (2)

  	
   

  	
   

  	
  11.04

  
	
  (c)

  	
  (3)

  	
   

  	
   

  	
  N.A.

  
	
  (d)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
   

  	
   

  	
  11.05

  
	
  (f)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  315(a)

  	
   

  	
   

  	
   

  	
  7.01(b)

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.05; 11.02

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.01(a)

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.01(c)

  
	
  (e)

  	
   

  	
   

  	
   

  	
  6.12

  
	
  316(a) 

  	
  (last
  sentence)

  	
   

  	
   

  	
  2.10

  
	
  (a)

  	
  (1)(A)

  	
   

  	
   

  	
  6.05

  
	
  (a)

  	
  (1)(B)

  	
   

  	
   

  	
  6.04

  
	
  (a)

  	
  (2)

  	
   

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.08

  
	
  (c)

  	
   

  	
   

  	
   

  	
  8.04

  
	
  317(a)

  	
  (1)

  	
   

  	
   

  	
  6.09

  
	
  (a)

  	
  (2)

  	
   

  	
   

  	
  2.05; 7.12

  
	
  318(a)

  	
   

  	
   

  	
   

  	
  11.01

  

 

N.A. means Not
Applicable

Note:  This Cross-Reference Table shall not, for any
purpose, be deemed to be a part of this Indenture

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  1.01

  	
   

  	
  Definitions

  	
  1

  
	
  SECTION

  	
   

  	
  1.02

  	
   

  	
  Other
  Definitions

  	
  29

  
	
  SECTION

  	
   

  	
  1.03

  	
   

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
  30

  
	
  SECTION

  	
   

  	
  1.03

  	
   

  	
  Rules of
  Construction

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TWO

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  2.01

  	
   

  	
  Amount of
  Notes

  	
  31

  
	
  SECTION

  	
   

  	
  2.02

  	
   

  	
  Form and
  Dating

  	
  32

  
	
  SECTION

  	
   

  	
  2.03

  	
   

  	
  Execution
  and Authentication

  	
  33

  
	
  SECTION

  	
   

  	
  2.04

  	
   

  	
  Registrar
  and Paving Agent

  	
  33

  
	
  SECTION

  	
   

  	
  2.05

  	
   

  	
  Paying Agent
  To Hold Money in Trust

  	
  34

  
	
  SECTION

  	
   

  	
  2.06

  	
   

  	
  Holder Lists

  	
  34

  
	
  SECTION

  	
   

  	
  2.07

  	
   

  	
  Transfer and
  Exchange

  	
  35

  
	
  SECTION

  	
   

  	
  2.08

  	
   

  	
  Replacement
  Notes

  	
  35

  
	
  SECTION

  	
   

  	
  2.09

  	
   

  	
  Outstanding
  Notes

  	
  36

  
	
  SECTION

  	
   

  	
  2.10

  	
   

  	
  Treasury
  Notes

  	
  36

  
	
  SECTION

  	
   

  	
  2.11

  	
   

  	
  Temporary
  Notes

  	
  37

  
	
  SECTION

  	
   

  	
  2.12

  	
   

  	
  Cancellation

  	
  37

  
	
  SECTION

  	
   

  	
  2.13

  	
   

  	
  Defaulted
  Interest

  	
  37

  
	
  SECTION

  	
   

  	
  2.14

  	
   

  	
  CUSIP Number

  	
  38

  
	
  SECTION

  	
   

  	
  2.15

  	
   

  	
  Deposit of
  Moneys

  	
  38

  
	
  SECTION

  	
   

  	
  2.16

  	
   

  	
  Book-Entry
  Provisions for Global Notes

  	
  38

  
	
  SECTION

  	
   

  	
  2.17

  	
   

  	
  Special
  Transfer Provisions

  	
  40

  
	
  SECTION

  	
   

  	
  2.18

  	
   

  	
  Computation
  of Interest

  	
  43

  
	
  SECTION

  	
   

  	
  2.19 

  	
   

  	
  Issuance of
  Additional Notes

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE THREE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  3.01

  	
   

  	
  Election To
  Redeem; Notices to Trustee

  	
  44

  
	
  SECTION

  	
   

  	
  3.02

  	
   

  	
  Selection by
  Trustee of Notes To Be Redeemed

  	
  44

  
	
  SECTION

  	
   

  	
  3.03

  	
   

  	
  Notice of
  Redemption

  	
  45

  

 

I

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  3.04

  	
   

  	
  Effect of
  Notice of Redemption

  	
  46

  
	
  SECTION

  	
   

  	
  3.05

  	
   

  	
  Deposit of
  Redemption Price

  	
  46

  
	
  SECTION

  	
   

  	
  3.06

  	
   

  	
  Notes
  Redeemed in Part

  	
  46

  
	
  SECTION

  	
   

  	
  3.07

  	
   

  	
  Optional
  Redemption

  	
  47

  
	
  SECTION

  	
   

  	
  3.08

  	
   

  	
  Tax
  Redemption

  	
  47

  
	
  SECTION

  	
   

  	
  3.09

  	
   

  	
  Purchase of
  Notes

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FOUR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  4.01

  	
   

  	
  Payment of
  Notes

  	
  48

  
	
  SECTION

  	
   

  	
  4.02

  	
   

  	
  Reports to
  Holders

  	
  48

  
	
  SECTION

  	
   

  	
  4.03

  	
   

  	
  Waiver of
  Stay, Extension or Usury Laws

  	
  49

  
	
  SECTION

  	
   

  	
  4.04

  	
   

  	
  Compliance
  Certificate

  	
  49

  
	
  SECTION

  	
   

  	
  4.05

  	
   

  	
  Taxes

  	
  50

  
	
  SECTION

  	
   

  	
  4.06

  	
   

  	
  Limitations
  on Additional Indebtedness

  	
  50

  
	
  SECTION

  	
   

  	
  4.07

  	
   

  	
  Limitations
  on Restricted Payments

  	
  53

  
	
  SECTION

  	
   

  	
  4.08

  	
   

  	
  Limitations
  on Liens

  	
  55

  
	
  SECTION

  	
   

  	
  4.09

  	
   

  	
  Limitations
  on Transactions with Affiliates

  	
  56

  
	
  SECTION

  	
   

  	
  4.10

  	
   

  	
  Limitation
  on Asset Sales

  	
  58

  
	
  SECTION

  	
   

  	
  4.11

  	
   

  	
  Limitation
  on the Issuance or Sale of Equity Interests of Restricted Subsidiaries

  	
  60

  
	
  SECTION

  	
   

  	
  4.12

  	
   

  	
  Limitations
  on Dividend and Other Restrictions Affecting Restricted Subsidiaries

  	
  60

  
	
  SECTION

  	
   

  	
  4.13

  	
   

  	
  [Reserved]

  	
  62

  
	
  SECTION

  	
   

  	
  4.14

  	
   

  	
  Legal
  Existence

  	
  62

  
	
  SECTION

  	
   

  	
  4.15

  	
   

  	
  Change of
  Control Offer

  	
  62

  
	
  SECTION

  	
   

  	
  4.16

  	
   

  	
  Payment of
  Additional Amounts

  	
  64

  
	
  SECTION

  	
   

  	
  4.17

  	
   

  	
  RESERVED

  	
  65

  
	
  SECTION

  	
   

  	
  4.18

  	
   

  	
  Limitations
  on Layering Indebtedness

  	
  65

  
	
  SECTION

  	
   

  	
  4.19

  	
   

  	
  Limitations
  on Designation of Unrestricted Subsidiaries

  	
  66

  
	
  SECTION

  	
   

  	
  4.20

  	
   

  	
  Limitations
  on Sale and Leaseback Transactions

  	
  67

  
	
  SECTION

  	
   

  	
  4.21

  	
   

  	
  Conduct of
  Business

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE FIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUCCESSOR CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  5.01

  	
   

  	
  Limitation
  on Mergers, Amalgamations, Consolidations, Etc.

  	
  68

  

 

II

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  6.01

  	
   

  	
  Events of
  Default

  	
  70

  
	
  SECTION

  	
   

  	
  6.02

  	
   

  	
  Acceleration

  	
  72

  
	
  SECTION

  	
   

  	
  6.03

  	
   

  	
  Other
  Remedies

  	
  72

  
	
  SECTION

  	
   

  	
  6.04

  	
   

  	
  Waiver of
  Past Defaults and Events of Default

  	
  73

  
	
  SECTION

  	
   

  	
  6.05

  	
   

  	
  Control by
  Majority

  	
  73

  
	
  SECTION

  	
   

  	
  6.06

  	
   

  	
  Limitation
  on Suits

  	
  73

  
	
  SECTION

  	
   

  	
  6.07

  	
   

  	
  No Personal
  Liability of Directors, Officers, Employees and Stockholders

  	
  74

  
	
  SECTION

  	
   

  	
  6.08

  	
   

  	
  Rights of
  Holders To Receive Payment

  	
  74

  
	
  SECTION

  	
   

  	
  6.09

  	
   

  	
  Collection
  Suit by Trustee

  	
  74

  
	
  SECTION

  	
   

  	
  6.10

  	
   

  	
  Trustee May
  File Proofs of Claim

  	
  75

  
	
  SECTION

  	
   

  	
  6.11

  	
   

  	
  Priorities

  	
  75

  
	
  SECTION

  	
   

  	
  6.12

  	
   

  	
  Undertaking
  for Costs 

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  7.01

  	
   

  	
  Duties of
  Trustee

  	
  76

  
	
  SECTION

  	
   

  	
  7.02

  	
   

  	
  Rights of
  Trustee

  	
  77

  
	
  SECTION

  	
   

  	
  7.03

  	
   

  	
  Individual
  Rights of Trustee

  	
  78

  
	
  SECTION

  	
   

  	
  7.04

  	
   

  	
  Trustee’s
  Disclaimer

  	
  78

  
	
  SECTION

  	
   

  	
  7.05

  	
   

  	
  Notice of
  Defaults

  	
  79

  
	
  SECTION

  	
   

  	
  7.06

  	
   

  	
  Reports by
  Trustee to Holders

  	
  79

  
	
  SECTION

  	
   

  	
  7.07

  	
   

  	
  Compensation
  and Indemnity

  	
  79

  
	
  SECTION

  	
   

  	
  7.08

  	
   

  	
  Replacement
  of Trustee

  	
  80

  
	
  SECTION

  	
   

  	
  7.09

  	
   

  	
  Successor
  Trustee by Consolidation, Merger, Etc.

  	
  81

  
	
  SECTION

  	
   

  	
  7.10

  	
   

  	
  Eligibility;
  Disqualification

  	
  81

  
	
  SECTION

  	
   

  	
  7.11

  	
   

  	
  Preferential
  Collection of Claims Against Issuer

  	
  82

  
	
  SECTION

  	
   

  	
  7.12

  	
   

  	
  Paying
  Agents

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMENDMENTS, SUPPLEMENTS AND WAIVERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  8.01

  	
   

  	
  Without
  Consent of Holders

  	
  82

  
	
  SECTION

  	
   

  	
  8.02

  	
   

  	
  With Consent
  of Holders

  	
  83

  
	
  SECTION

  	
   

  	
  8.03

  	
   

  	
  Compliance
  with Trust Indenture Act

  	
  85

  
	
  SECTION

  	
   

  	
  8.04

  	
   

  	
  Revocation
  and Effect of Consents

  	
  85

  

 

III

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  8.05

  	
   

  	
  Notation on
  or Exchange of Notes

  	
  85

  
	
  SECTION

  	
   

  	
  8.06

  	
   

  	
  Trustee To
  Sign Amendments, Etc

  	
  86

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE NINE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DISCHARGE OF INDENTURE; DEFEASANCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  9.01

  	
   

  	
  Discharge of
  Indenture

  	
  86

  
	
  SECTION

  	
   

  	
  9.02

  	
   

  	
  Legal Defeasance

  	
  87

  
	
  SECTION

  	
   

  	
  9.03

  	
   

  	
  Covenant
  Defeasance

  	
  87

  
	
  SECTION

  	
   

  	
  9.04

  	
   

  	
  Conditions
  to Legal Defeasance or Covenant Defeasance

  	
  88

  
	
  SECTION

  	
   

  	
  9.05

  	
   

  	
  Deposited Money and U.S. Government Obligations To BeHeld in Trust;
  Other Miscellaneous Provisions

  	
  89

  
	
  SECTION

  	
   

  	
  9.06

  	
   

  	
  Reinstatement

  	
  90

  
	
  SECTION

  	
   

  	
  9.07

  	
   

  	
  Moneys Held
  by Paying Agent

  	
  90

  
	
  SECTION

  	
   

  	
  9.08

  	
   

  	
  Moneys Held
  by Trustee

  	
  90

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GUARANTEE OF NOTES

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  10.01

  	
   

  	
  Note
  Guarantee

  	
  91

  
	
  SECTION

  	
   

  	
  10.02

  	
   

  	
  Execution
  and Delivery of Note Guarantee

  	
  93

  
	
  SECTION

  	
   

  	
  10.03 

  	
   

  	
  Limitation
  of Note Guarantee

  	
  93

  
	
  SECTION

  	
   

  	
  10.04 

  	
   

  	
  Additional
  Guarantors

  	
  93

  
	
  SECTION

  	
   

  	
  10.05 

  	
   

  	
  Release of
  Guarantor

  	
  94

  
	
  SECTION

  	
   

  	
  10.06

  	
   

  	
  Waiver of
  Subrogation

  	
  94

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  11.01

  	
   

  	
  Trust Indenture
  Act Controls

  	
  95

  
	
  SECTION

  	
   

  	
  11.02

  	
   

  	
  Notices

  	
  95

  
	
  SECTION

  	
   

  	
  11.03

  	
   

  	
  Communications
  by Holders with Other Holders

  	
  97

  
	
  SECTION

  	
   

  	
  11.04

  	
   

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  97

  
	
  SECTION

  	
   

  	
  11.05

  	
   

  	
  Statements
  Required in Certificate and Opinion

  	
  97

  
	
  SECTION

  	
   

  	
  11.06

  	
   

  	
  Rules by
  Trustee and Agents

  	
  97

  
	
  SECTION

  	
   

  	
  11.07

  	
   

  	
  [Reserved].

  	
  98

  
	
  SECTION

  	
   

  	
  11.08

  	
   

  	
  Governing Law

  	
  98

  
	
  SECTION

  	
   

  	
  11.09

  	
   

  	
  Agent for
  Service; Submission to Jurisdiction; Waiver of Immunities

  	
  98

  
	
  SECTION

  	
   

  	
  11.10

  	
   

  	
  No Adverse
  Interpretation of Other Agreements

  	
  99

  
	
  SECTION

  	
   

  	
  11.11

  	
   

  	
  No Recourse
  Against Others

  	
  99

  

 

IV

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION

  	
   

  	
  11.12

  	
   

  	
  Successors

  	
  99

  
	
  SECTION

  	
   

  	
  11.13

  	
   

  	
  Multiple
  Counterparts

  	
  100

  
	
  SECTION

  	
   

  	
  11.14

  	
   

  	
  Table of
  Contents, Headings. Etc.

  	
  100

  
	
  SECTION

  	
   

  	
  11.15

  	
   

  	
  Separability

  	
  100

  
	
  SECTION

  	
   

  	
  11.16

  	
   

  	
  Judgment
  Currency

  	
  100

  

 

	
  EXHIBITS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A.

  	
   

  	
  Form of Note
  

  	
  A-1

  
	
  Exhibit B.

  	
   

  	
  Form of
  Private Placement Legend

  	
  B-1

  
	
  Exhibit C.

  	
   

  	
  Form of
  Legend for Global Note

  	
  C-l

  
	
  Exhibit D.

  	
   

  	
  Form of Certificate To Be Delivered in Connection with Transfers to
  Non-QIB Institutional Accredited Investors

  	
  D-l

  
	
  Exhibit E.

  	
   

  	
  Form of
  Certificate To Be Delivered in Connection with Transfers Pursuant to
  Regulation S

  	
  E-l

  
	
  Exhibit F.

  	
   

  	
  Form of Note
  Guarantee

  	
  F-l

  
	
  Exhibit G.

  	
   

  	
  Form of
  Legend Applicable to Canadian Holders

  	
  G-l

  

 

V

 

INDENTURE,
dated as of June 18, 2003, between IPSCO INC., a company incorporated under the
laws of Canada, as issuer (the “Issuer”), the Guarantors (as defined
herein) and WELLS FARGO BANK MINNESOTA, N.A., as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders of the Notes.

ARTICLE ONE

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

SECTION
1.01               Definitions.

 

“Acquired Indebtedness” means (1) with respect to any Person
that becomes a Restricted Subsidiary after the Issue Date, Indebtedness of such
Person and its Subsidiaries existing at the time such Person becomes a Restricted
Subsidiary that was not incurred in connection with, or in contemplation of,
such Person becoming a Restricted Subsidiary and (2) with respect to the Issuer
or any Restricted Subsidiary, any Indebtedness of a Person (other than the
Issuer or a Restricted Subsidiary) existing at the time such Person is merged
with or into the Issuer or a Restricted Subsidiary, or Indebtedness expressly
assumed by the Issuer or any Restricted Subsidiary in connection with the
acquisition of an asset or assets from another Person, which Indebtedness was
not, in any case, incurred by such other Person in connection with, or in
contemplation of, such merger or acquisition.

 

“Additional
Interest” has the meaning set forth in the Registration Rights Agreement.

 

“Additional Notes” means, subject to the Issuer’s compliance
with Section 4.06, 8 3/4% Senior Notes due 2013, if any, issued from time to
time after the Issue Date pursuant to Section 2.19.

 

“Affiliate” of any Person means any other Person, which directly
or indirectly controls or is controlled by, or is under direct or indirect
common control with, the referent Person. For purposes of this definition, “control”
of a Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise.

 

“Agent”
means any Registrar, Paying Agent, or agent for service of notices and demands.

 

“amend” means to amend, supplement, restate, amend and restate
or otherwise modify; and “amendment” shall have a correlative meaning.

 

“asset”
means any asset or property.

 

 

“Asset
Acquisition” means

 

(1)            an Investment by the
Issuer or any Restricted Subsidiary of the Issuer in any other Person if, as a
result of such Investment, such Person shall become a Restricted Subsidiary of
the Issuer, or shall be merged with or into the Issuer or any Restricted
Subsidiary of the Issuer, or

 

(2)            the acquisition by the
Issuer or any Restricted Subsidiary of the Issuer of all or substantially all
of the assets of any other Person or any division or line of business of any
other Person.

 

“Asset Sale”
means any sale, issuance, conveyance, transfer, lease, assignment or other
disposition by the Issuer or any Restricted Subsidiary to any Person other than
the Issuer or any Restricted Subsidiary (including by means of a Sale and
Leaseback Transaction or a merger or consolidation) (collectively, for purposes
of this definition, a “transfer”) in one transaction or a series of
related transactions, of any assets of the Issuer or any of its Restricted
Subsidiaries other than in the ordinary course of business. For purposes of
this definition, the term “Asset Sale” shall not include:

 

(1)           transfers
of cash or Cash Equivalents;

 

(2)           transfers of assets
(including Equity Interests) that are governed by, and made in accordance with,
Section 5.01;

 

(3)          Section 4.07; Permitted
Investments and Restricted Payments permitted under

 

(4)          the
creation or realization of any Permitted Lien;

 

(5)          transfers of damaged,
worn-out or obsolete equipment or assets that, in the Issuer’s reasonable
judgment, are no longer used or useful in the business of the Issuer or its
Restricted Subsidiaries;

 

(6)          sales of accounts
receivable of the type specified in the definition of “Qualified Securitization
Transaction” to a Securitization Entity for the Fair Market Value thereof; and

 

(7)          any transfer or series
of related transfers that, but for this clause, would be Asset Sales, if after
giving effect to such transfers, the aggregate Fair Market Value of the assets
transferred in such transaction or any such series of related transactions does
not exceed $2.5 million.

 

“Attributable Indebtedness” when used with respect to any Sale
and Leaseback Transaction, means, as at the time of determination, the present
value (discounted at a rate

 

2

 

equivalent to
the implied rate in such transaction) of the total obligations of the lessee
for rental payments during the remaining term of the lease included in any such
Sale and Leaseback Transaction.

 

“Bankruptcy
Law” means Title 11 of the United States Code, as amended, or any similar
U.S. federal or state or Canadian federal or provincial law for the relief of
debtors.

 

“Board of
Directors” means, with respect to any Person, the board of directors or
comparable governing body of such Person.

 

“Board
Resolution” means a copy of a resolution certified pursuant to an Officers’
Certificate to have been duly adopted by the Board of Directors oft he Issuer
or a Guarantor, as appropriate, and to be in full force and effect, and, as so
certified, delivered to the Trustee.

 

“Business
Day” means a day other than a Saturday, Sunday or other day on which
banking institutions in New York or Toronto are authorized or required by law
to close.

 

“Capitalized
Lease” means a lease required to be capitalized for financial reporting
purposes in accordance with GAAP.

 

“Capitalized
Lease Obligations” of any Person means the obligations of such Person to
pay rent or other amounts under a Capitalized Lease, and the amount of such
obligation shall be the capitalized amount thereof determined in accordance
with GAAP.

 

“Cash
Equivalents” means:

 

(1)           marketable
obligations with a maturity of 360 days or less issued or directly and fully
guaranteed or insured by the United States of America or Canada or

 

any agency or
instrumentality thereof (provided that the full faith and credit of the
United States of America or Canada is pledged in support thereof);

 

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

 

(3)           commercial
paper maturing no more than 180 days from the date of purchase thereof issued
by a corporation that is not the Issuer or an Affiliate of the Issuer, and is
organized under the laws of any State of the United States of America or the
District of Columbia or Canada or any province or territory thereof and rated
at least A-2 by S&P, at least P-2 by Moody’s or R-l (1ow) by DBRS;

 

3

 

(4)           repurchase
obligations with a term of not more than ten days for underlying securities of
the types described in clause (1) above entered into with any commercial bank meeting
the specifications of clause (2) above; and

 

(5)           investments
in money market or other mutual funds substantially all of whose assets
comprise securities of the types described in clauses (1) through (4) above.

 

“Change of
Control” means the occurrence of any of the following events:

 

(1) any “person”
or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange
Act), becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act, except that for purposes of this clause that person or group
shall be deemed to have “beneficial ownership” of all securities that any such
person or group has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of
Voting Stock representing more than 50% of the voting power of the total
outstanding Voting Stock of the Issuer;

 

(2)           during
any period of two consecutive years, individuals who at the beginning of such
period constituted the Board of Directors (together with any new directors
whose election to such Board of Directors or whose nomination for election by
the stockholders of the Issuer was approved by a vote of the majority of the
directors of the Issuer then still in office who were either directors at the
beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
Board of Directors of the Issuer;

 

(3)           (a)
all or substantially all of the assets of the Issuer and the Restricted
Subsidiaries are sold or otherwise transferred to any Person other than a
Wholly-Owned Restricted Subsidiary or (b) the Issuer consolidates or merges
with or into another Person or any Person consolidates, amalgamates or merges
with or into the Issuer, in either case under this clause (3), in one
transaction or a series of related transactions in which immediately after the
consummation thereof Persons owning Voting Stock representing in the aggregate
a majority of the total voting power of the Voting Stock of the Issuer
immediately prior to such consummation do not own Voting Stock representing a
majority of the total voting power of the Voting Stock of the Issuer or the
surviving or transferee Person; or

 

(4)           the
Issuer shall adopt a plan of liquidation or dissolution or any such plan shall
be approved by the stockholders of the Issuer.

 

“Common
Stock” of any Person means all Equity Interests of such Person that are
generally entitled to (i) vote in the election of directors of such Person or
(ii) if such Person is not a corporation, vote or otherwise participate in the
selection of the governing body, partners, managers or others that shall
control the management and policies of such Person.

 

4

 

“Company
Request” means any written request signed in the name of the Issuer by
anyone of the Chairman of the Board of Directors, the Chief Executive Officer,
the President, any Vice President, the Chief Financial Officer, the Controller
or the Treasurer of the Issuer and attested to by the Secretary or any
Assistant Secretary of the Issuer.

 

“Consolidated
Amortization Expense” for any period means the amortization expense of the
Issuer and the Restricted Subsidiaries for such period, determined on a consolidated
basis in accordance with GAAP.

 

“Consolidated
Cash Flow” for any period means, without duplication, the sum of the
amounts for such period of

 

(1)           Consolidated
Net Income, plus

 

(2)           in
each case only to the extent deducted in determining Consolidated Net

 

Income and
with respect to the portion of Consolidated Net Income attributable to any
Restricted Subsidiary that is not a Guarantor only if a corresponding amount
would be permitted at the date of determination to be distributed to the Issuer
by such Restricted

 

Subsidiary
without prior approval (that has not been obtained), pursuant to the terms of
its charter and all agreements, instruments, judgments, decrees, orders,
statutes, rules and governmental regulations applicable to such Restricted Subsidiary
or its stockholders,

 

(a)           Consolidated
Income Tax Expense,

 

(b)           Consolidated
Amortization Expense (but only to the extent not included in Consolidated Fixed
Charges),

 

(c)           Consolidated
Depreciation Expense (but only to the extent not included in Consolidated Fixed
Charges),

 

(d)           Consolidated
Fixed Charges, and

 

(e)           all other non-cash
items reducing the Consolidated Net Income (excluding any non-cash charge that
results in an accrual of a reserve for cash charges in any future period) for
such period,

 

in each case determined on a consolidated basis in accordance with
GAAP, minus

 

(3)           the
aggregate amount of all non-cash items, determined on a consolidated basis, to
the extent such items increased Consolidated Net Income for such period.

 

“Consolidated
Depreciation Expense” for any period means the depreciation expense of the
Issuer and the Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP.

 

5

 

“Consolidated
Fixed Charge Coverage Ratio” means the ratio of Consolidated Cash Flow
during the most recent four consecutive full fiscal quarters for which
financial statements are publicly available (the “Four-Quarter Period”
ending on or prior to the date of the transaction giving rise to the need to
calculate the Consolidated Fixed Charge Coverage Ratio (the “Transaction
Date” to Consolidated Fixed Charges for the Four-Quarter Period. For
purposes of this definition, Consolidated Cash Flow and Consolidated Fixed Charges
shall be calculated after giving effect on a pro forma basis for the period of
such calculation to:

 

(1)           the incurrence of any
Indebtedness or the issuance of any Preferred Stock of the Issuer or any
Restricted Subsidiary (and the application of the proceeds there from) and any
repayment of other Indebtedness or redemption of other Preferred Stock (other
than the incurrence or repayment of Indebtedness in the ordinary course of
business for working capital purposes pursuant to any revolving credit arrangement)
occurring during the Four-Quarter Period or at any time subsequent to the last
day of the Four-Quarter Period and on or prior to the Transaction Date, as if
such incurrence, repayment, issuance or redemption, as the case may be (and the
application of the proceeds thereof), occurred on the first day of the
Four-Quarter Period; and

 

(2)           any Asset Sale or other
disposition or Asset Acquisition (including, without limitation, any Asset
Acquisition giving rise to the need to make such calculation as a result of the
Issuer or any Restricted Subsidiary (including any Person who becomes a
Restricted Subsidiary as a result of such Asset Acquisition) incurring Acquired
Indebtedness and also including any Consolidated Cash Flow (including any pro
forma expense and cost reductions calculated on a basis consistent with
Regulation S-X under the Exchange Act) associated with any such Asset
Acquisition) occurring during the Four-Quarter Period or at any time subsequent
to the last day of the Four-Quarter Period and on or prior to the Transaction
Date, as if such Asset Sale or Asset Acquisition or other disposition
(including the incurrence of, or assumption or liability for, any such
Indebtedness or Acquired Indebtedness) occurred on the first day of the
Four-Quarter Period.

 

If the Issuer or any Restricted Subsidiary directly or indirectly
guarantees Indebtedness of a third Person, the preceding sentence shall give
effect to the incurrence of such guaranteed Indebtedness as if the Issuer or
such Restricted Subsidiary had directly incurred or otherwise assumed such
guaranteed Indebtedness.

 

In calculating Consolidated Fixed Charges for purposes of determining
the denominator (but not the numerator) of this Consolidated Fixed Charge
Coverage Ratio:

 

(1)          interest on outstanding
Indebtedness determined on a fluctuating basis as of the Transaction Date and
which shall continue to be so determined thereafter shall be deemed to have
accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness
in effect on the Transaction Date;

 

6

 

(2)            if interest on any
Indebtedness actually incurred on the Transaction Date may optionally be
determined at an interest rate based upon a factor of a prime or similar rate,
a eurocurrency interbank offered rate, or other rates, then the interest rate
in effect on the Transaction Date shall be deemed to have been in effect during
the Four-Quarter Period; and

 

(3)           notwithstanding clause
(1) or (2) above, interest on Indebtedness determined on a fluctuating basis,
to the extent such interest is covered by agreements relating to Hedging
Obligations, shall be deemed to accrue at the rate per annum resulting after
giving effect to the operation of such Hedging Agreements.

 

“Consolidated
Fixed Charges” for any period means the sum, without duplication, of the
total interest expense of the Issuer and the Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP and shall
also include, without duplication,

 

(1)           imputed interest on
Capitalized Lease Obligations, obligations under conditional sale and other
title retention programs and Attributable Indebtedness,

 

(2)           commissions and
discounts owed with respect to letters of credit securing financial
obligations, bankers’ acceptance financing and receivables financings,

 

(3)           the net costs
associated with Hedging Obligations of the type described in clause (1) of the
definition thereof,

 

(4)           amortization
of debt issuance costs and debt discount or premium,

 

(5)           the
interest portion of any deferred payment obligations,

 

(6)           all
other non-cash interest expense,

 

(7)           capitalized
interest,

 

(8)          the product of (a) all
dividend payments on any series of Preferred Stock of the Issuer or any
Restricted Subsidiary (other than any such Preferred Stock held by the Issuer
or a Wholly-Owned Restricted Subsidiary), to the extent not deductible or
creditable for tax purposes multiplied by (b) a fraction, the numerator
of which is one and the denominator of which is one minus the then
current combined federal, foreign, state, provincial and local statutory tax
rate of the Issuer and the Restricted Subsidiaries, expressed as a decimal,

 

(9)          all
interest payable with respect to discontinued operations,

 

(10)           all interest on any
Indebtedness of any other Person guaranteed by the Issuer or any Restricted
Subsidiary but solely to the extent such Person is in default under

 

7

 

such
Indebtedness or such interest is currently payable by the Issuer or any
Restricted Subsidiary, and

 

(11)            all interest payable
with respect to any Indebtedness (other than any such Indebtedness held by the
Issuer or a Wholly-Owned Restricted Subsidiary) of the Issuer or any Restricted
Subsidiary to the extent such Indebtedness is treated as equity in accordance
with GAAP;

 

provided
that, notwithstanding the foregoing, any interest or dividends of the type
described in this definition shall be excluded from Consolidated Fixed Charges
to the extent paid in shares of the Issuer’s Common Stock.

 

“Consolidated Income Tax Expense” for any period means the
provision for taxes of the Issuer and the Restricted Subsidiaries, determined
on a consolidated basis in accordance with GAAP.

 

“Consolidated Net Income” for any period means the net income
(or loss) ofthe Issuer and the Restricted Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP; provided that there
shall be excluded from such net income (to the extent otherwise included therein),
without duplication:

 

(1)          the net income (or loss)
of any Person (other than a Restricted Subsidiary) in which any Person other
than the Issuer and the Restricted Subsidiaries has an ownership interest,
except to the extent that cash in an amount equal to any such income has
actually been received by the Issuer or any of its Wholly-Owned Restricted
Subsidiaries during such period;

 

(2)         except to the extent
includible in the consolidated net income of the Issuer pursuant to the
foregoing clause (1), the net income (or loss) of any Person that accrued prior
to the date that (a) such Person becomes a Restricted Subsidiary or is merged
into or consolidated with the Issuer or any Restricted Subsidiary or (b) the
assets of such Person are acquired by the Issuer or any Restricted Subsidiary;

 

(3)         the net income of any
Restricted Subsidiary that is not a Guarantor during such period to the extent
that the declaration or payment of dividends or similar distributions by such
Restricted Subsidiary of that income is not permitted by operation of the terms
of its charter or any agreement, instrument, judgment, decree, order, statute,
rule or governmental regulation applicable to that Subsidiary during such
period, except that the Issuer’s equity in a net loss of any such Restricted
Subsidiary for such period shall be included in determining Consolidated Net
Income;

 

(4)        for the purposes of
calculating the Restricted Payments Basket only, in the case of a successor to
the Issuer by consolidation, merger or transfer of its assets, any income (or
loss) of the successor prior to such merger, consolidation or transfer of
assets;

 

8

 

(5)            other than for
purposes of calculating the Restricted Payments Basket, any gain (or loss),
together with any related provisions for taxes on any such gain (or the tax
effect of any such loss), realized during such period by the Issuer or any
Restricted Subsidiary upon (a) the acquisition of any securities, or the
extinguishment of any Indebtedness, of the Issuer or any Restricted Subsidiary
or (b) any asset sale by the Issuer or any Restricted Subsidiary; and

 

(6)           other than for purposes
of calculating the Restricted Payments Basket, any extraordinary gain (or
extraordinary loss), together with any related provision for taxes on any such
extraordinary gain (or the tax effect of any such extraordinary loss), realized
by the Issuer or any Restricted Subsidiary during such period.

 

In addition,
any return of capital with respect to an Investment that increased the
Restricted Payments Basket pursuant to clause (3)(d) of the first paragraph of
Section 4.07 or decreased the amount of Investments outstanding pursuant to
clause (12) of the definition of “Permitted Investments” shall be excluded from
Consolidated Net Income for purposes of calculating the Restricted Payments Basket.

 

“Corporate Trust Office” means the office of the Trustee at
which at any particular time its corporate trust business shall be principally
administered, which office at the date of execution of this Indenture is as set
forth in Section 11.02.

 

“Coverage Ratio Exception” has the meaning set forth in the
proviso in the first paragraph of Section 4.06.

 

“Credit Agreement” means the Amended and Restated Revolving
Credit Agreement dated as of October 13, 2000 by and among the Issuer and the
Guarantors, as Borrowers, The Toronto-Dominion Bank, as agent, and the other
lenders named therein, and one or more other debt facilities of the Issuer
and/or the Guarantors, including any notes, guarantees, collateral and security
documents, instruments and agreements executed in connection therewith
(including Hedging Obligations related to the Indebtedness incurred
thereunder), and in each case as amended or refinanced from time to time,
including any agreement or agreements extending the maturity of, refinancing,
replacing or otherwise restructuring (including increasing the amount of
borrowings or other Indebtedness outstanding or available to be borrowed
thereunder) all or any portion ofthe Indebtedness under such agreement or
agreements, and any successor or replacement agreement or agreements with the
same or any other agents, creditor, lender or group of creditors or lenders.

 

“Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

 

“DBRS”
means Dominion Bond Rating Service Limited, and its successors.

 

9

 

“Default”
means (1) any Event of Default or (2) any event, act or condition that, after notice
or the passage of time or both, would be an Event of Default.

 

“Designation”
has the meaning given to this term in Section 4.19.

 

“Designation
Amount” has the meaning given to this term in Section 4.19.

 

“Disqualified Equity Interests” of any Person means any Equity
Interests of such Person that, by its terms, or by the terms of any related
agreement or of any security into which it is convertible, puttable or
exchangeable, is, or upon the happening of any event or the passage of time
would be, required to be redeemed by such Person, whether or not at the option
of the holder thereof, or matures or is mandatorily redeemable, pursuant to a
sinking fund obligation or otherwise, in whole or in part, on or prior to the
date which is 91 days after the final maturity date of the Notes; provided,
however, that any class of Equity Interests of such Person that, by its
terms, authorizes such Person to satisfy in full its obligations with respect
to the payment of dividends or upon maturity, redemption (pursuant to a sinking
fund or otherwise) or repurchase thereof or otherwise by the delivery of Equity
Interests that are not Disqualified Equity Interests, and that is not
convertible, puttable or exchangeable for Disqualified Equity Interests or
Indebtedness, shall not be deemed to be Disqualified Equity Interests so long
as such Person satisfies its obligations with respect thereto solely by the
delivery of Equity Interests that is not Disqualified Equity Interests; provided,
further, however, that any Equity Interests that would not
constitute Disqualified Equity Interests but for provisions thereof giving
holders thereof (or the holders of any security into or for which such Equity
Interests is convertible, exchangeable or exercisable) the right to require the
Issuer to redeem such Equity Interests upon the occurrence of a change in
control occurring prior to the final maturity date of the Notes shall not
constitute Disqualified Equity Interests if the change in control provisions
applicable to such Equity Interests are no more favorable to such holders than
the provisions described under Section 4.15 and such Equity Interests
specifically provides that the Issuer shall not redeem any such Equity
Interests pursuant to such provisions prior to the Issuer’s purchase of the
Notes as required pursuant to the provisions described under Section 4.15.

 

“DTC”
means The Depository Trust Company, its nominee or successor.

 

“Equity Interests” of any Person means (l) any and all shares or
other equity interests (including Common Stock, preferred stock, limited
liability company interests and partnership interests) in such Person and (2)
all rights to purchase, warrants or options (whether or not currently
exercisable), participations or other equivalents of or interests in (however
designated) such shares or other interests in such Person.

 

“Exchange
Act” means the U.S. Securities Exchange Act of 1934, as amended.

 

“Exchange
Notes” has the meaning provided in the Registration RightsAgreement.

 

10

 

“Fair Market Value” means, with respect to any asset, the price
(after taking into account any liabilities relating to such assets) that would
be negotiated in an arm’s-length transaction for cash between a willing seller
and a willing and able buyer, neither of which is under any compulsion to
complete the transaction, as such price is determined in good faith by the
Board of Directors of the Issuer or a duly authorized committee thereof, as
evidenced by a resolution of such Board or committee.

 

“First Preferred Shares” means the Issuer’s 6,000,000 Cdn$25.00
original liquidation value, first preferred shares Series 1 issued and
outstanding on the date hereof.

 

“GAAP” means generally accepted accounting principles in Canada,
as in effect from time to time.

 

“guarantee” means a direct or indirect guarantee by any Person
of any Indebtedness of any other Person and includes any obligation, direct or
indirect, contingent or otherwise, of such Person: (1) to purchase or pay (or
advance or supply funds for the purchase or payment of) Indebtedness of such
other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services
(unless such purchase arrangements are on arm’s-length terms and are entered
into in the ordinary course of business), to take-or-pay, or to maintain
financial statement conditions or otherwise); or (2) entered into for purposes
of assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part). “guarantee,” when used as a verb, and “guaranteed” have
correlative meanings.

 

“General Scrap Facilities” means one or more debt facilities of
General Scrap Partnership or any of its Subsidiaries, including any notes,
guarantees, collateral and security documents, instruments and agreements
executed in connection therewith (including Hedging Obligations related to the
Indebtedness incurred thereunder), and in each case as amended or refinanced
from time to time, including any agreement or agreements extending the maturity
of, refinancing, replacing or otherwise restructuring (including increasing the
amount of borrowings or other Indebtedness outstanding or available to be
borrowed thereunder) all or any portion of the Indebtedness under such
agreement or agreements, and any successor or replacement agreement or
agreements with the same or any other agents, creditor, lender or group of
creditors or lenders.

 

“Guarantors” means each Restricted Subsidiary of the Issuer that
has been a borrower under or has executed a guarantee of Indebtedness under the
Credit Agreement, and each other Person that is required to become a Guarantor
by the terms of this Indenture after the Issue Date, in each case, until such
Person is released from its Note Guarantee.

 

“Hedging Obligations” of any Person means the obligations of
such Person pursuant to (1) any interest rate swap agreement, interest rate
collar agreement or other similar agreement or arrangement, (2) foreign
exchange contracts, currency swap agreements or other

 

11

 

similar
agreement or arrangement, or (3) any forward contract, commodity swap
agreement, commodity option agreement or other similar agreement or
arrangement.

 

“Holder”
means any registered holder, from time to time, of the Notes.

 

“incur” means, with respect to any Indebtedness or Obligation,
incur, create, issue, assume, guarantee or otherwise become directly or, indirectly
liable, contingently or otherwise, with respect to such Indebtedness or
Obligation; provided that (1) the Indebtedness of a Person existing at
the time such Person became a Restricted Subsidiary shall be deemed to have
been incurred by such Restricted Subsidiary and (2) neither the accrual of
interest nor the accretion of original issue discount shall be deemed to be an
incurrence of Indebtedness.

 

“Indebtedness”
of any Person at any date means, without duplication:

 

(1)          all liabilities,
contingent or otherwise, of such Person for borrowed money (whether or not the
recourse of the lender is to the whole of the assets of such Person or only to
a portion thereof);

 

(2)          all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments;

 

(3)          all obligations of such
Person in respect of letters of credit or other similar instruments (or
reimbursement obligations with respect thereto);

 

(4)          all obligations of such
Person to pay the deferred and unpaid purchase price of assets;

 

(5)         the maximum fixed
redemption or repurchase price of all Disqualified Equity Interests of such
Person;

 

(6)         all
Capitalized Lease Obligations of such Person;

 

(7)         all Indebtedness of
others secured by a Lien on any asset of such Person, whether or not such
Indebtedness is assumed by such Person;

 

(8)         all Indebtedness of
others guaranteed by such Person to the extent of such guarantee; provided
that Indebtedness of the Issuer or its Subsidiaries that is guaranteed by the
Issuer or the Issuer’s Subsidiaries shall only be counted once in the
calculation of the amount of Indebtedness of the Issuer and its Subsidiaries on
a consolidated basis;

 

(9)         all Attributable
Indebtedness;

 

(10)       all Hedging Obligations of
such Person; and

 

12

 

(11) all obligations of such Person under conditional sale or other
title retention agreements relating to assets purchased by such Person.

 

For the avoidance of doubt, “Indebtedness” of any Person shall not
include:

 

(i)     current trade payables
incurred in the ordinary course of business and payable in accordance with
customary practices;

 

(ii)    deferred tax obligations;

 

(iii)   minority interest;

 

(iv)    uncapitalized interest;

 

(v)     non-interest bearing
installment obligations and accrued liabilities incurred in the ordinary course
of business; and

 

(vi)    obligations of the Issuer
or any Restricted Subsidiary pursuant to contracts for, or options, puts or
similar arrangements relating to, the purchase of raw materials or the sale of
inventory at a time in the future entered into in the ordinary course of
business.

 

Any Indebtedness which is incurred at a discount to the principal
amount at maturity thereof shall be deemed to have been incurred at the
discounted principal amount at maturity thereof based on the implied rate in
the transaction. The amount of Indebtedness of any Person at any date shall be
the outstanding balance at such date of all unconditional obligations as
described above, the maximum liability of such Person for any such contingent
obligations at such date and, in the case of clause (7), the lesser of (a) the
Fair Market Value of any asset subject to a Lien securing the Indebtedness of
others on the date that the Lien attaches and (b) the amount of the
Indebtedness secured. For purposes of clause (5), the “maximum fixed redemption
or repurchase price” of any Disqualified Equity Interests that do not have a
fixed redemption or repurchase price shall be calculated in accordance with the
terms of such Disqualified Equity Interests as if such Disqualified Equity
Interests were redeemed or repurchased on any date on which an amount of
Indebtedness outstanding shall be required to be determined pursuant to this
Indenture.

 

“Indenture” means this Indenture as amended,
restated or supplemented from time to time.

 

“Independent Director” means a director of the
Issuer who

 

(1)           has
no financial interest in the transaction at issue;

 

(2)           does not have any
material financial interest in the Issuer or any of its Affiliates (other than
as a result of holding securities of the Issuer); and

 

13

 

(3) has not and whose Affiliates have not, at any time during the
twelve months prior to the taking of any action hereunder, received, or entered
into any understanding or agreement to receive, any compensation, payment or
other benefit from the Issuer or any of its Affiliates, other than directors’
fees for serving on the Board of Directors of the Issuer or any Affiliate and
reimbursement of out-of-pocket expenses for attendance at the Issuer’s or
Affiliate’s board and board committee meetings.

 

“Independent
Financial Advisor” means an accounting, appraisal or investment banking
firm of nationally recognized standing that is, in the reasonable judgment of
the Issuer’s Board of Directors, qualified to perform the task for which it has
been engaged and disinterested and independent with respect to the Issuer and
its Affiliates.

 

“Initial Purchasers” means UBS Securities LLC, RBC Dominion
Securities Corporation, ABN AMRO Incorporated, CIBC World Markets Corp., TD
Securities (USA) Inc. and Wells Fargo Securities, LLC.

 

“Institutional Accredited Investor” means an institution that is
an “accredited investor” as that term is defined in Rule 501(a)(1), (2), (3) or
(7) promulgated under the Securities Act.

 

“interest” means, with respect to the Notes, interest and
Additional Interest, if any, on the Notes.

 

“Interest Payment Date” means each semiannual interest payment
date on June 1 and December 1 of each year, commencing December 1,2003.

 

“Investment Grade” designates a rating of BBB- or higher by
S&P, Baa3 or higher by Moody’s or BBB(low) by DBRS or the equivalent of
such ratings by S&P, Moody’s or DBRS. In the event that the Issuer shall
select any other Rating Agency, the equivalent of such ratings by such Rating
Agency shall be used.

 

“Investments”
of any Person means:

 

(1)         all direct or indirect
investments by such Person in any other Person in the form of loans, advances
or capital contributions or other credit extensions constituting Indebtedness
of such other Person, and any guarantee of Indebtedness of any other Person;

 

(2)         all purchases {or other
acquisitions for consideration) by such Person of Indebtedness, Equity
Interests or other securities of any other Person;

 

(3)         all other items that
would be classified as investments (including purchases of assets outside the
ordinary course of business) on a balance sheet of such Person prepared in
accordance with GAAP; and

 

14

 

(4)           the
Designation of any Subsidiary as an Unrestricted Subsidiary.

 

Except as
otherwise expressly specified in this definition, the amount of any Investment
(other than an Investment made in cash) shall be the Fair Market Value thereof
on the date such Investment is made. The amount of Investment pursuant to
clause (4) shall be the Designation Amount determined in accordance with
Section 4.19. If the Issuer or any Subsidiary sells or otherwise disposes of
any Equity Interests of any direct or indirect Subsidiary such that, after
giving effect to any such sale or disposition, such Person is no longer a
Subsidiary, the Issuer shall be deemed to have made an Investment on the date
of any such sale or other disposition equal to the Fair Market Value ofthe
Equity Interests of and all other Investments in such Subsidiary not sold or
disposed of, which amount shall be determined by the Board of Directors. The
acquisition by the Issuer or any Restricted Subsidiary of a Person that holds
an Investment in a third Person shall be deemed to be an Investment by the
Issuer or such Restricted Subsidiary in the third Person in an amount equal to
the Fair Market Value of the Investment held by the acquired Person in the
third Person. Notwithstanding the foregoing, purchases or redemptions of Equity
Interests or debt instruments of the Issuer or any wholly-owned Subsidiary
shall be deemed not to be Investments.

 

“Issue Date”
means June 18,2003.

 

“Legend
Applicable to Canadian Holders” means a legend set forth in Exhibit G.

 

“Lien” means, with respect to any asset, any mortgage, deed of
trust, lien (statutory or other), pledge, lease, easement, restriction,
covenant, charge, security interest or other encumbrance of any kind or nature
in respect of such asset, whether or not filed, recorded or otherwise perfected
under applicable law, including any conditional sale or other title retention
agreement, and any lease in the nature thereof, any option or other agreement
to sell, and any filing of, or agreement to give, any financing statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction (other
than cautionary filings in respect of operating leases).

 

“Maturity
Date” means June 1,2013.

 

“Montpelier Sale and Leaseback Obligations” means the
obligations of IPSCO Steel Inc. to make payments pursuant to the Equipment
Lease, dated as of October 13,2000 between State Street Bank and Trust Company
of Connecticut, National Association (in its capacity as trustee under IPSCO
Statutory Trust No. 2000-1), as lessor, IPSCO Steel Inc., as lessee, as in
effect on the Issue Date and as amended after the Issue Date in any manner that
does not materially increase the obligations thereunder.

 

“Moody’s” means
Moody’s Investors Service, Inc. and its successors.

 

“Net Available Proceeds” means, with respect
to any Asset Sale, the proceeds thereof in the form of cash or Cash
Equivalents, net of

 

15

 

(1)             brokerage commissions
and other fees and expenses (including fees and expenses of legal counsel,
accountants and investment banks) of such Asset Sale;

 

(2)            provisions for taxes
payable as a result of such Asset Sale (after taking into account any available
tax credits or deductions and any tax sharing arrangements);

 

(3)            amounts required to be
paid to any Person (other than the Issuer or any Restricted Subsidiary) owning
a beneficial interest in the assets subject to the Asset Sale or having a Lien
thereon;

 

(4)            payments of unassumed
liabilities (not constituting Indebtedness) relating to the assets sold at the
time of, or within 30 days after the date of, such Asset Sale; and

 

(5)            appropriate amounts to
be provided by the Issuer or any Restricted Subsidiary, as the case may be, as
a reserve required in accordance with GAAP against any liabilities associated
with such Asset Sale and retained by the Issuer or any Restricted Subsidiary,
as the case may be, after such Asset Sale, including pensions and other
postemployment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale, all as reflected in an Officers’ Certificate delivered to the
Trustee; provided, however, that any amounts remaining after
adjustments, revaluations or liquidations of such reserves shall constitute Net
Available Proceeds;

 

provided,
that the term “Net Available Proceeds” shall not include the proceeds of any
Asset Sale entered into during any Suspension Period.

 

“Non-Recourse
Indebtedness” means Indebtedness of an Unrestricted Subsidiary:

 

(1)           as to which neither the
Issuer nor any Restricted Subsidiary (a) provides credit support of any kind
(including any undertaking, agreement or instrument that would constitute
Indebtedness), (b) is directly or indirectly liable as a guarantor or
otherwise, or (c) constitutes the lender;

 

(2)          no default with respect
to which (including any rights that the holders thereof may have to take
enforcement action against an Unrestricted Subsidiary) would permit upon
notice, lapse of time or both any holder of any other Indebtedness (other than
the Notes) of the Issuer or any Restricted Subsidiary to declare a default on
such other Indebtedness or cause the payment thereof to be accelerated or
payable prior to its stated maturity; and

 

(3)          as to which the lenders
have been notified in writing that they shall not have any recourse to the
Equity Interests or assets of the Issuer or any Restricted Subsidiary.

 

16

 

“Non-U.S.
Person” means a Person who is not a U.S. person, as defined in Regulation
S.

 

“Note
Guarantee” means a guarantee of the Notes by a Guarantor.

 

“Notes” means the 8 3/4% Senior Notes due 2013 issued by the
Issuer, including, without limitation, the Original Notes, Additional Notes, if
any, the Private Exchange Notes, if any, and the Exchange Notes, constituting a
single class of securities, as amended or supplemented from time to time in
accordance with the terms hereof, that are issued pursuant to this Indenture.

 

“Obligation” means any principal, interest,
penalties, fees, indemnification, reimbursements, costs, expenses, damages and
other liabilities payable under the documentation governing any Indebtedness.

 

“Offering means the offering pursuant to the Offering Memorandum
of the Notes to be issued on the Issue Date.

 

“Offering Memorandum” means the Offering Memorandum dated June
13,2003 pursuant to which the Notes issued on the Issue Date were offered.

 

“Officer” means any of the following of the Issuer: the Chairman
of the Board of Directors, the Chief Executive Officer, the Chief Financial
Officer, the President, any Vice President, the Treasurer or the Secretary.

 

“Officers’
Certificate” means a certificate signed by two Officers.

 

“Opinion of Counsel” means a written opinion reasonably
satisfactory in form and substance to the Trustee from legal counsel, which
counsel is reasonably acceptable to the Trustee, including the matters required
by Section 11.05 and delivered to the Trustee.

 

“Original Notes”
means $200.0 million of Notes issued on the Issue Date.

 

“Pari Passu Indebtedness” means any Indebtedness of the Issuer
or any Guarantor that ranks pari  passu as to payment with the
Notes or the Note Guarantees, as applicable.

 

“Permitted Business” means the businesses engaged in by the
Issuer and its Subsidiaries on the Issue Date as described in the Offering
Memorandum and businesses that are reasonably related thereto or constitute
reasonable extensions thereof.

 

“Permitted
Investment” means:

 

(1) Investments by the Issuer or any Restricted Subsidiary in (a) any
Restricted Subsidiary or (b) in any Person that is or shall become immediately
after such

 

17

 

Investment a Restricted
Subsidiary or that shall merge, amalgamate or consolidate with or into the
Issuer or a Restricted Subsidiary;

 

(2)           Investments
in the Issuer by any Restricted Subsidiary;

 

(3)           loans
and advances to directors, employees and officers of the Issuer and the
Restricted Subsidiaries for bona fide business purposes not in excess of $5.0
million at anyone time outstanding;

 

(4)           Hedging
Obligations incurred pursuant to clause (4) of the second paragraph of Section
4.06;

 

(5)           Cash
Equivalents;

 

(6)           receivables
owing to the Issuer or any Restricted Subsidiary if created or acquired in the
ordinary course of business and payable or dischargeable in accordance with
customary trade terms; provided, however, that such trade terms
may include such concessionary trade terms as the Issuer or any such Restricted
Subsidiary deems reasonable under the circumstances;

 

(7)           Investments
in securities of trade creditors or customers received pursuant to any plan of
compromise, arrangement or reorganization or similar arrangement upon the
bankruptcy or insolvency of such trade creditors or customers;

 

(8)           Investments
made by the Issuer or any Restricted Subsidiary as a result of consideration
received in connection with an Asset Sale made in compliance with Section 4.10;

 

(9)           lease,
utility and other similar deposits in the ordinary course of business;

 

(10)         Investments
made by the Issuer or a Restricted Subsidiary for consideration consisting only
of Qualified Equity Interests of the Issuer;

 

(11)         stock,
obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Issuer or any Restricted
Subsidiary or in satisfaction of judgments;

 

(12)         Investments
in joint ventures in an aggregate amount not to exceed $35.0 million at anyone
time outstanding;

 

(13)         any
Investment by the Issuer or a Restricted Subsidiary of the Issuer in a
Securitization Entity; provided that such Investment is in the form of a
Purchase Money Note or an equity interest or interests in accounts receivable
generated by the Issuer or any of its Restricted Subsidiaries; and

 

18

 

(14)         Investments
in an aggregate amount not to exceed $30.0 million at any one time outstanding
(with each Investment being valued as of the date made and without regard to
subsequent changes in value).

 

The amount of Investments outstanding at any time shall be deemed to be
reduced:

 

(a)           upon the disposition or
repayment of or return on any Investment, by an amount equal to the return of
capital with respect to such Investment to the Issuer or any Restricted
Subsidiary (to the extent not included in the computation of Consolidated Net
Income), less the cost of the disposition of such Investment and net of taxes;
and

 

(b)          upon a Redesignation of
an Unrestricted Subsidiary as a Restricted Subsidiary, by an amount equal to
the lesser of (x) the Fair Market Value of the Issuer’s proportionate interest
in such Subsidiary immediately following such Redesignation, and (y) the
aggregate amount of Investments in such Subsidiary that increased (and did not
previously decrease) the amount of Investments outstanding.

 

“Permitted
Liens” means the following types of Liens:

 

(1)          Liens for taxes,
assessments or governmental charges or claims either (a) not delinquent or (b)
contested in good faith by appropriate proceedings and as to which

 

the Issuer or
the Restricted Subsidiaries shall have set aside on its books such reserves as
may be required pursuant to GAAP;

 

(2)          Liens imposed by law
that are incurred in the ordinary course of business and do not secure
Indebtedness for borrowed money, such as carriers’, warehousemen’s, mechanics’,
landlords’, materialmen’s, employees’, laborers’, employers’, suppliers’, banks’,
repairmen’s and other like Liens;

 

(3)          Liens incurred or
deposits made in connection with workers’ compensation, unemployment insurance
and other types of social security, or to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, leases, government
contracts, performance and return-of-money bonds and other similar obligations
(exclusive of obligations for the payment of borrowed money);

 

(4)          Liens upon specific
items of inventory or other goods and proceeds of any Person securing such
Person’s obligations in respect of bankers’ acceptances issued or created for
the account of such Person to facilitate the purchase, shipment or storage of
such inventory or other goods;

 

19

 

(5)           judgment Liens not
giving rise to a Default so long as any appropriate legal proceedings which may
have been duly initiated for the review of such judgment have not been finally
terminated or the period within which the proceedings may be initiated has not
expired;

 

(6)           easements,
rights-of-way, zoning restrictions and other similar charges, restrictions or
encumbrances in respect of real property or immaterial imperfections of title
which do not, in the aggregate, impair in any material respect the ordinary
conduct of the business of the Issuer and the Restricted Subsidiaries taken as
a whole;

 

(7)           Liens securing
reimbursement obligations with respect to commercial letters of credit which
encumber documents and other assets relating to such letters of credit and
products and proceeds thereof;

 

(8)          Liens encumbering
deposits made to secure obligations arising from statutory, regulatory,
contractual or warranty requirements of the Issuer or any Restricted
Subsidiary, including rights of offset and setoff;

 

(9)          bankers’ Liens, rights
of setoff and other similar Liens existing solely with respect to cash and Cash
Equivalents on deposit in one or more of accounts maintained by the Issuer or
any Restricted Subsidiary, in each case granted in the ordinary course of
business in favor of the bank or banks with which such accounts are maintained,
securing amounts owing to such bank with respect to cash management and
operating account arrangements, including those involving pooled accounts and
netting arrangements; provided that in no case shall any such Liens
secure (either directly or indirectly) the repayment of any Indebtedness;

 

(10)          leases or subleases
granted to others that do not materially interfere with the ordinary course of
business of the Issuer or any Restricted Subsidiary;

 

(11)          Liens arising from
filing Uniform Commercial Code financing statements regarding leases;

 

(12)          Liens
securing all of the Notes and Liens securing any Note Guarantee;

 

(13)          Liens
existing on the Issue Date securing Indebtedness outstanding on the

 

(14)          Liens
in favor of the Issuer or any Restricted Subsidiary;

 

(15)          Liens on accounts
receivables, inventory, books, records, supporting obligations and contracts
and other rights related thereto securing Indebtedness under the Credit
Agreement;

 

20

 

(16)            Liens
securing Purchase Money Indebtedness and Liens securing Capitalized Lease
Obligations to the extent such Liens do not extend to any property or assets
other than the property or assets acquired after the. Issue Date;

 

(17)           Liens securing Acquired
Indebtedness permitted to be incurred under this Indenture; provided
that the Liens do not extend to assets not subject to such Lien at the time of
acquisition (other than improvements thereon) and are no more favorable to the
lienholders than those securing such Acquired Indebtedness prior to the
incurrence of such Acquired Indebtedness by the Issuer or a Restricted
Subsidiary;

 

(18)           Liens on assets of a
Person existing at the time such Person is acquired or merged with or into or
consolidated with the Issuer or any such Restricted Subsidiary (and not created
in anticipation or contemplation thereof);

 

(19)           Liens to secure
Refinancing Indebtedness of Indebtedness secured by Liens referred to in this
definition; provided that in each case such Liens do not extend to any
additional assets (other than improvements thereon and replacements thereof);

 

(20)           Liens to secure
Attributable Indebtedness (including, without limitation, Liens securing the
Montpelier Sale and Leaseback Obligations) and/or that are incurred pursuant to
Section 4.20; provided that any such Lien shall not extend to or cover
any assets of the Issuer or any Restricted Subsidiary other than the assets
which are the subject of the Sale and Leaseback Transaction in which the
Attributable Indebtedness is incurred;

 

(21)          Liens
existing on the Issue Date;

 

(22)          Liens on accounts
receivable, inventory, books, records and supporting obligations, contracts and
other rights related thereto and Cash Equivalents securing Hedging Obligations
incurred in compliance with clause (4) of the second paragraph of Section 4.06;

 

(23)          pledges of or Liens on
raw materials or on manufactured products as security for any drafts or bills
of exchange drawn in connection with the importation of such raw materials or
manufactured products;

 

(24)          Liens in favor of banks
that arise under Article 4 of the UCC on items in collection and documents
relating thereto and proceeds thereof and Liens arising under Section 2-711 of
the Uniform Commercial Code;

 

(25)         Liens occurring solely by
the filing of a Uniform Commercial Code statement, which filing has not been
consented to by the Issuer or any Restricted Subsidiary;

 

21

 

(26)            any
obligations or duties affecting any property of the Issuer or any Restricted
Subsidiary to any municipality or public authority with respect to any
franchise, grant, license or permit that do not materially impair the use of
such property for the purposes for which it is held;

 

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

 

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

 

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

 

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

 

(31)          any Liens resulting from
security given to a public utility or governmental entity when required by such
utility or governmental entity in connection with the operation of the business
of such Person;

 

(32)          the reservation,
limitations, provisions and conditions, if any, expressed in any original
grants of real property from the Crown;

 

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

 

(34)         Liens arising or that may
be deemed to arise on accounts receivable, books, records and contracts,
supporting obligations and other rights related thereto in favor of a
Securitization Entity arising in connection with a Qualified Securitization
Transaction; and

 

22

 

(35)         Liens incurred in the
ordinary course of business of the Issuer or any Restricted Subsidiary with
respect to obligations (other than Indebtedness) that do not in the aggregate
exceed $10.0 million at anyone time outstanding.

 

“Person”
means any individual, corporation, partnership, limited liability company,
joint venture, incorporated or unincorporated association, joint-stock company,
trust, unincorporated organization or government or other agency or political
subdivision thereof or other entity of any kind.

 

“Physical Notes” means certificated Notes in registered form in
substantially the form set forth in Exhibit A.

 

“Plan of Liquidation” with respect to any Person, means a plan
that provides for, contemplates or the effectuation of which is preceded or
accompanied by (whether or not substantially contemporaneously, in phases or
otherwise): (1) the sale, lease, conveyance or other disposition of all or
substantially all of the assets of such Person otherwise than as an entirety or
substantially as an entirety; and (2) the distribution of all or substantially
all of the proceeds of such sale, lease, conveyance or other disposition of all
or substantially all of the remaining assets of such Person to holders of Equity
Interests of such Person.

 

“Preferred Stock” means, with respect to any Person, any and all
preferred or preference stock or other preferred or preference equity interests
(however designated) of such Person whether now outstanding or issued after the
Issue Date.

 

“principal” means, with respect to the Notes, the principal of,
and premium, if any, on the Notes.

 

“Private
Exchange” has the meaning set forth in the Registration Rights Agreement.

 

“Private
Exchange Notes” has the meaning set forth in the Registration Rights Agreement.

 

“Private
Placement Legend” means a legend in the form set forth in Exhibit B.

 

“Purchase Money Indebtedness” means Indebtedness, including
Capitalized Lease Obligations, of the Issuer or any Restricted Subsidiary
incurred for the purpose of financing all or any part of the purchase price of
property, plant or equipment used in the business of the Issuer or any
Restricted Subsidiary or the cost of installation, construction or improvement
thereof; provided, however, that (1) the amount of such Indebtedness
shall not exceed such purchase price or cost plus the amount of fees and
expenses associated with such purchase and the financing thereof, (2) such
Indebtedness shall not be secured by any asset other than the specified asset being
financed or, in the case of real property or fixtures, including additions and
improvements, the real property to which such asset is attached and (3) such
Indebtedness shall

 

23

 

be incurred
within 90 days after such acquisition of such asset by the Issuer or such
Restricted Subsidiary or such installation, construction or improvement.

 

“Purchase Money Note” means a promissory note evidencing a line
of credit, which may be irrevocable, from, or evidencing other Indebtedness
owed to, the Issuer or any if its Restricted Subsidiaries in connection with a
Qualified Securitization Transaction, which note shall be repaid from cash
available to the maker of such note, other than amounts required to be established
as reserves pursuant to agreements, amounts paid to investors in respect of
interest, principal and other amounts owing to such investors and amounts paid
in connection with the purchase of newly generated accounts receivable.

 

“Qualified Equity Interests” means Equity Interests of the
Issuer other than Disqualified Equity Interests; provided that such
Equity Interests shall not be deemed Qualified Equity Interests to the extent
sold or owed to a Subsidiary of the Issuer or financed, directly or indirectly,
using funds (1) borrowed from the Issuer or any Subsidiary of the Issuer until
and to the extent such borrowing is repaid or (2) contributed, extended,
guaranteed or advanced by the Issuer or any Subsidiary of the Issuer
(including, without limitation, in respect of any employee stock ownership or
benefit plan).

 

“Qualified Equity Offering” means the issuance and sale of
Qualified Equity Interests of the Issuer to any Person who is not, prior to
such issuance and sale, an Affiliate of the Issuer.

 

“Qualified Securitization Transaction” means any transaction or
series of transactions that may be entered into by the Issuer, any Restricted
Subsidiary or a Securitization Entity pursuant to which the Issuer or such
Restricted Subsidiary or that Securitization Entity may, pursuant to customary
terms, sell, conveyor otherwise transfer to, or grant a security interest in
for the benefit of, (1) a Securitization Entity or the Issuer or any Restricted
Subsidiary which subsequently transfers to a Securitization Entity (in the case
of a transfer by the Issuer or such Restricted Subsidiary) and (2) any other
Person (in the case of transfer by a Securitization Entity), any accounts
receivable (whether now existing or arising or acquired in the future) of the
Issuer or any Restricted Subsidiary which arose in the ordinary course of
business of the Issuer or such Restricted Subsidiary, and any assets related
thereto, including, books, records, and supporting obligations, contracts and
other rights relating thereto which are customarily transferred or in respect
of which security interests are customarily granted in connection with asset
securitization transactions involving accounts receivable; provided that
the sum (the “Outstanding Receivables Amount”) of (i) the aggregate
uncollected balances of the receivables so transferred (the “Transferred
Receivables”) plus (ii) the aggregate amount of all collections on
Transferred Receivables theretofore received by the seller but not yet remitted
to the purchaser, in each case, at the date of determination, would not exceed
$212.0 million

 

“Qualified Institutional Buyer” or “QIB” shall have the meaning
specified in Rule 144A promulgated under the Securities Act.

 

24

 

“Rating
Agencies” means:

 

(a)            S&P;

 

(b)            Moody’s;

 

(c)            DBRS;
or

 

(d)           if one or more of
S&P, Moody’s or DBRS shall not make a rating of the Notes publicly
available, a nationally recognized securities rating agency or agencies, as the
case may be, selected by the Issuer, which shall be substituted for S&P,
Moody’s or DBRS, as the case may be.

 

“redeem”
means to redeem, repurchase, purchase, defease, retire, discharge or otherwise
acquire or retire for value; and “redemption” shall have a correlative
meaning; provided that this definition shall not apply for purposes of
Section 3.07.

 

“Redemption Date” when used with respect to any Note to be
redeemed means the date fixed for such redemption pursuant to the terms of the
Notes.

 

“Redesignation”
has the meaning given to such term in Section 4.19.

 

“refinance”
means to refinance, repay, prepay, replace, renew or refund.

 

“Refinancing Indebtedness” means Indebtedness of the Issuer or a
Restricted Subsidiary issued in exchange for, or the net proceeds from the
issuance and sale or disbursement of which are used substantially concurrently
to redeem or refinance, in whole or in part, or constituting an amendment of,
any Indebtedness of the Issuer or any Restricted Subsidiary (the “Refinanced
Indebtedness”) in an amount not in excess of the amount of the Refinanced
Indebtedness so repaid or amended plus costs and expenses associated therewith
(or, if such Refinancing Indebtedness refinances Indebtedness under a revolving
credit facility or other agreement providing a commitment for subsequent
borrowings, with a maximum commitment not to exceed the maximum commitment
under such revolving credit facility or other agreement); provided that:

 

(1)          the Refinancing
Indebtedness is the obligation of the same Person as that of the Refinanced
Indebtedness;

 

(2)          if the Refinanced
Indebtedness was subordinated to or pari  passu with the Notes or
the Note Guarantees, as the case may be, then such Refinancing Indebtedness, by
its terms, is expressly pari  passu with (in the case of
Refinanced Indebtedness that was pari passu with) or subordinate in
right of payment to (in the case of Refinanced Indebtedness that was
subordinated to) the Notes or the Note Guarantees, as the case may be;

 

25

 

(3)            the Refinancing Indebtedness
is scheduled to mature either (a) no earlier than the Refinanced Indebtedness
being repaid or amended or (b) after the maturity date of the Notes;

 

(4)            the portion, if any,
of the Refinancing Indebtedness that is scheduled to mature on or prior to the
maturity date of the Notes has a Weighted Average Life to Maturity at the time
such Refinancing Indebtedness is incurred that is equal to or greater than the
Weighted Average Life to Maturity of the portion of the Refinanced Indebtedness
being repaid that is scheduled to mature on or prior to the maturity date of
the Notes; and

 

(5)           the Refinancing
Indebtedness is secured only to the extent, if at all, and by the assets, that
the Refinanced Indebtedness being repaid or amended is secured.

 

“Registration
Rights Agreement” means the Registration Rights Agreement dated June
18,2003 among the Issuer, the Guarantors and the Initial Purchasers, as amended
from time to time.

 

“Regulation
S” means Regulation S promulgated under the Securities Act.

 

“Regulation
S- X” means Regulation S- X promulgated under the Securities Act.

 

“Relevant Taxing Jurisdiction” means Canada or any other
jurisdiction in which the Issuer or any Guarantor is organized or resident for
tax purposes or conducts business, or from which or through which payment is
made, or any political subdivision thereof or therein.

 

“Responsible Officer” when used with respect to the Trustee,
means an officer or assistant officer assigned to the corporate trust
department of the Trustee (or any successor group of the Trustee) with direct
responsibility for the administration of this Indenture and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject.

 

“Restricted Note” has the same meaning as “restricted security”
set forth in Rule 144(a)(3) promulgated under the Securities Act; provided,
that the Trustee shall be entitled to request and conclusively rely upon an
Opinion of Counsel with respect to whether any Note is a Restricted Note.

 

“Restricted
Payment” means any of the following:

 

(1) the declaration or payment of any dividend or any other
distribution on Equity Interests of the Issuer or any Restricted Subsidiary or
any payment made to the direct or indirect holders (in their capacities a such)
of Equity Interests of the Issuer or any Restricted Subsidiary, including,
without limitation, any payment in connection with any merger or consolidation
involving the Issuer but excluding (a) dividends or

 

26

 

distributions
payable solely in Qualified Equity Interests and (b) in the case of Restricted
Subsidiaries, dividends or distributions payable to the Issuer or to a
Restricted Subsidiary and pro rata dividends or distributions payable to
minority stockholders of any Restricted Subsidiary;

 

(2)           the redemption of any
Equity Interests of the Issuer or any Restricted Subsidiary, including, without
limitation, any payment in connection with any merger or consolidation
involving the Issuer but excluding any such Equity Interests held by the Issuer
or any Restricted Subsidiary;

 

(3)           any Investment other
than a Permitted Investment; or

 

(4)           any redemption prior to
91 days before the scheduled maturity or prior to 91 days before any scheduled
repayment of principal or sinking fund payment, as the case may be, in respect
of Subordinated Indebtedness.

 

“Restricted Payments Basket” has the meaning given to such term
in Section 4.07.

 

“Restricted Subsidiary” means any Subsidiary of the Issuer other
than an Unrestricted Subsidiary.

 

“Rule 144” means Rule 144 promulgated under the Securities Act.

 

“Rule 144A” means Rule 144A promulgated under the Securities
Act.

 

“S&P” means Standard & Poor’s Ratings Services, a
division of the McGraw,.Hill Companies, Inc., and its successors.

 

“Sale and Leaseback Transactions” means with respect to any
Person an arrangement with any bank, insurance company or other lender or
investor or to which such lender or investor is a party, providing for the
leasing by such Person of any asset of such Person which has been or is being
sold or transferred by such Person to such lender or investor or to any Person
to whom funds have been or are to be advanced by such lender or investor on the
security of such asset.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Securities Act” means the U.S. Securities Act of 1933, as
amended.

 

“Securitization Entity” means any Unrestricted Subsidiary of the
Issuer or any other corporation, trust or entity that is exclusively engaged in
Qualified Securitization Transactions and activities relating directly thereto.

 

“Significant Subsidiary” means (1) any Restricted Subsidiary
that would be a “significant subsidiary” as defined in Regulation S-X
promulgated pursuant to the Securities Act

 

27

 

as such
Regulation is in effect on the Issue Date and (2) any Restricted Subsidiary
that, when aggregated with all other Restricted Subsidiaries that are not
otherwise Significant Subsidiaries and as to which any event described in
clause (7) or (8) under Section 6.01 has occurred and is continuing, would
constitute a Significant Subsidiary under clause (1) of this definition.

 

“Subordinated Indebtedness” means Indebtedness of the Issuer or
any Restricted Subsidiary that is subordinated in right of payment to the Notes
or the Note Guarantees, respectively.

 

“Subsidiary”
means, with respect to any Person:

 

(1)          any corporation, limited
liability company, association or other business entity of which more than 50%
of the total voting power of the Equity Interests entitled

 

(without
regard to the occurrence of any contingency) to vote in the election of the
Board of Directors thereof are at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and

 

(2)          any partnership (a) the
sole general partner or the managing general partner of which is such Person or
a Subsidiary of such Person or (b) the only general partners of which are such
Person or of one or more Subsidiaries of such Person (or any combination
thereof).

 

Unless
otherwise specified, “Subsidiary” refers to a Subsidiary of the Issuer.

 

“Suspension Period” means any period in which the Notes are
rated Investment Grade by all three Rating Agencies and no Default or Event of
Default has occurred and is continuing under this Indenture.

 

“Tax” shall mean any tax, duty, levy, impost, assessment or
other governmental charge (including penalties, interest and any other
liabilities related thereto).

 

“Taxing Authority” shall mean any government or political
subdivision or territory or possession of any government or any authority or
agency therein or thereof having power to tax.

 

“Trust Indenture Act” or “TIA” means the Trust Indenture
Act of 1939, as amended.

 

“Trustee” means the party named as such in this Indenture until
a successor replaces it pursuant to this Indenture and thereafter means the
successor.

 

28

 

“Unrestricted
Subsidiary” means (1) any Subsidiary that at the time of determination
shall be designated an Unrestricted Subsidiary by the Board of Directors of the
Issuer in accordance with Section 4.19 and (2) any Subsidiary of an
Unrestricted Subsidiary.

 

“U.S.” and “United States” means the United States of
America, its territories and possessions, any state of the United States, and
the District of Columbia.

 

“U.S. Government Obligations” means direct non-callable
obligations of, or obligations guaranteed by, the United States of America for
the payment of which guarantee or obligations the full faith and credit of the
United States is pledged.

 

“Voting Stock” with respect to any Person, means securities of
any class of Equity Interests of such Person entitling the holders thereof
(whether at all times or only so long as no senior class of stock or other
relevant equity interest has voting power by reason of any contingency) to vote
in the election of members of the Board of Directors of such Person.

 

“Weighted Average Life to Maturity” when applied to any
Indebtedness at any date, means the number of years obtained by dividing (1)
the sum of the products obtained by

 

multiplying
(a) the amount of each then remaining installment, sinking fund, serial
maturity or other required payment of principal, including payment at final
maturity, in respect thereof by (b) the number of years (calculated to the
nearest one-twelfth) that shall elapse between such date and the making of such
payment by (2) the then outstanding principal amount of such Indebtedness.

 

“Wholly-Owned Restricted Subsidiary” means a Restricted
Subsidiary of which 100% of the Equity Interests (except for directors’
qualifying shares or certain minority interests owned by other Persons solely
due to local law requirements that there be more than one stockholder, but
which interest is not in excess of what is required for such purpose) are owned
directly by the Issuer or through one or more Wholly-Owned Restricted
Subsidiaries.

 

SECTION
1.02               Other Definitions

 

The
definitions of the following terms may be found in the sections indicated as follows:

 

	
  Term

  	
   

  	
  Defined in Section

  
	
  “actual
  knowledge”

  	
   

  	
   

  	
  7.02

  
	
  “Additional
  Amounts”

  	
   

  	
   

  	
  4.16

  
	
  “Affiliate
  Transaction”.

  	
   

  	
   

  	
  4.09

  
	
   “Change of Control Offer”

  	
   

  	
   

  	
  4.15(a)

  
	
  “Change of
  Control Payment Date” .

  	
   

  	
   

  	
  4.15(b)

  
	
   “Change of Control Purchase Price” .

  	
   

  	
   

  	
  4.15(a)

  
	
   “Clearstream” .

  	
   

  	
   

  	
  2.16(a).

  

 

29

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  “Covenant
  Defeasance”

  	
   

  	
  9.03

  	
   

  
	
  “DTC Agent
  Members”

  	
   

  	
  2.16

  	
  (a)

  
	
  “Euroclear”

  	
   

  	
  2.16

  	
  (a)

  
	
  “Events of
  Default”

  	
   

  	
  6.01

  	
   

  
	
  “Excess
  Proceeds”

  	
   

  	
  4.10

  	
   

  
	
  “Global
  Notes”

  	
   

  	
  2.16

  	
  (a)

  
	
  “Legal
  Defeasance”

  	
   

  	
  9.02

  	
   

  
	
  “Judgment
  Currency”

  	
   

  	
  11.16

  	
   

  
	
  “Net Proceeds
  Deficiency”

  	
   

  	
  4.10

  	
   

  
	
  “Net
  Proceeds Offer”

  	
   

  	
  4.10

  	
   

  
	
  “Offered
  Price”

  	
   

  	
  4.10

  	
   

  
	
  “Other
  Notes”

  	
   

  	
  2.02

  	
   

  
	
  “Outstanding
  Receivables Amount”

  	
   

  	
  1.01

  	
   

  
	
  “Pari Pasu
  Indebtedness Price”

  	
   

  	
  4.10

  	
   

  
	
  “Paying
  Agent”

  	
   

  	
  2.04

  	
   

  
	
  “Payment
  Amount”

  	
   

  	
  4.10

  	
   

  
	
  “Permitted
  Indebtedness”

  	
   

  	
  4.06

  	
   

  
	
  “Refinanced
  Indebtedness”

  	
   

  	
  1.01

  	
   

  
	
  “Register”

  	
   

  	
  2.04

  	
   

  
	
  “Registrar”

  	
   

  	
  2.04

  	
   2.

  
	
  “Regulation
  S Global Note”

  	
   

  	
  2.16

  	
  (a)

  
	
  “Regulation
  S Notes”

  	
   

  	
  2.02

  	
   

  
	
  “Restricted
  Global Note”

  	
   

  	
  2.16

  	
  (a)

  
	
  “Restricted
  Period”

  	
   

  	
  2.16

  	
  (f)

  
	
  “Rule 144
  A Notes”

  	
   

  	
  2.02

  	
   

  
	
  “Successor”

  	
   

  	
  5.01

  	
   

  
	
  “Transaction
  Date”

  	
   

  	
  1.01

  	
   

  
	
  “Transferred
  Receivables”

  	
   

  	
  1.01

  	
   

  

 

SECTION 1.03               Incorporation
by Reference of Trust Indenture Act

 

Whenever this Indenture refers to a provision of the TIA, the portion
of such provision required to be incorporated herein in order for this
Indenture to be qualified under the TIA is incorporated by reference in and
made a part of this Indenture. All terms used in this Indenture that are
defined by the TIA, defined in the TIA by reference to another statute or
defined by a rule of the SEC and not otherwise defined herein have the
meanings therein assigned to them.

 

30

 

 

SECTION 1.04               Rules of Construction

 

Unless the context otherwise requires:

 

(a)           a
term has the meaning assigned to it herein, whether defined expressly or by
reference;

 

(b)           “or”
is not exclusive;

 

(c)           words
in the singular include the plural, and in the plural include the singular;

 

(d)           words
used herein implying any gender shall apply to all genders;

 

(e)           “herein,”
“hereof’ and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or subsection;

 

(t)            unless
otherwise specified herein, all accounting terms used herein shall be
interpreted, all accounting determinations hereunder shall be made, and all
financial statements required to be delivered hereunder shall be prepared in
accordance with the definition of GAAP set forth in Section 1.01;

 

(g)           “Dollars,”
“United States Dollars” and “$” each refer to United States Dollars, or such
other money of the United States that at the time of payment is legal tender
for payment of public and private debts; and “Cdn $” refers to Canadian
Dollars, or such other money of Canada that at the time of payment is legal tender
for payment of public and private debts; and

 

(h)           whenever
in this Indenture there is mentioned, in any context, principal, interest or
any other amount payable under or with respect to any Note, such mention shall
be deemed to include mention of the payment of Additional Interest to the
extent that, in such context, Additional Interest is, was or would be payable
in respect thereof.

 

ARTICLE TWO

 

THE NOTES

 

SECTION 2.01               Amount of Notes

 

The Trustee shall authenticate Original Notes for original issue on the
Issue Date in the aggregate principal amount of $200,000,000 upon receipt of a
written order of the Issuer in the form of an Officers’ Certificate of the
Issuer. In addition, the Trustee or an authenticating agent shall, upon receipt
of a written order of the Issuer in the form of an Officer’s Certificate of the
Issuer, authenticate Additional Notes in accordance with Section 2.19; provided
that the Trustee shall be entitled to receive an Officers’ Certificate and an
Opinion of Counsel of the

 

31

 

Issuer in
connection with the authentication of such Additional Notes. Such written order
shall specify the amount of Notes to be authenticated and the date on which
such Notes are to be authenticated and, in the case of an issuance of
Additional Notes pursuant to Section 2.19, such Officer’s Certificate of
the Issuer shall certify that such issuance shall not be prohibited by Section 4.06.

 

Upon receipt of a Company Request and an Officers’ Certificate of the
Issuer certifying that a registration statement relating to an exchange offer
specified in the Registration Rights Agreement is effective under the
Securities Act and that the conditions precedent to a Private Exchange
thereunder have been met, the Trustee shall authenticate an additional series
of Notes in an aggregate principal amount not to exceed $200,000,000 for
issuance in exchange for the Notes tendered for exchange pursuant to such
exchange offer registered under the Securities Act or pursuant to a Private
Exchange. Exchange Notes or Private Exchange Notes may have such distinctive
series designations and such changes in the form thereof as are specified in
the Company Request referred to in the preceding sentence.

 

SECTION 2.02               Form and Dating

 

The Notes and the Trustee’s certificate of authentication with respect
thereto shall be substantially in the form set forth in Exhibit A, which
is incorporated in and forms a part of this Indenture. The Notes may have
notations, legends or endorsements required by law, rule or usage to which
the Issuer is subject. Without limiting the generality of the foregoing, Notes
offered and sold to Qualified Institutional Buyers in reliance on Rule 144A
(“Rule 144A Notes”) shall bear the Private Placement Legend
and include the form of assignment set forth in Exhibit B, Notes
offered and sold in offshore transactions in reliance on Regulation S (“Regulation
S Notes”) shall bear the Private Placement Legend and include the form of
assignment set forth in Exhibit B and Notes distributed in Canada,
if any, shall bear the Legend Applicable to Canadian Holders set forth in Exhibit G.
Notes transferred pursuant to Section 2.17(a) (“Other Notes”)
shall be represented by a Physical Note bearing the Private Placement Legend.
Each Note shall be dated the date of its authentication. The Notes shall be
issuable only in registered form without coupons in denominations of $1,000 and
any integral multiple thereof.

 

Upon the occurrence of the Exchange Offer in accordance with the
Registration Rights Agreement, Exchange Notes issued by the Issuer shall be
substantially in the form set forth in Exhibit A (but shall not
contain paragraph 11 thereof). Exchange Notes issued to Holders in Canada shall
bear the Legend Applicable to Canadian Holders set forth in Exhibit G.

 

The terms and provisions contained in the Notes shall constitute, and
are expressly made, a part of this Indenture and, to the extent applicable, the
Issuer, any Guarantors and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and agree to be bound
thereby. However, to the extent any provision of the Notes conflicts with the
provisions of this Indenture, the provisions of this Indenture shall govern and
be controlling.

 

32

 

The Notes may be presented for registration of transfer and exchange at
the offices of the Registrar.

 

SECTION 2.03               Execution
and Authentication

 

One Officer shall sign the Notes for the Issuer by manual or facsimile
signature.

 

If an Officer whose signature is on a Note was an Officer at the time
of such execution but no longer holds that office at the time the Trustee
authenticates the Note, the Note shall be valid nevertheless.

 

At any time and from time to time after the execution and delivery of
this Indenture, the Issuer may deliver Notes executed by the Issuer to the
Trustee for authentication, together with a Company Request for authentication
and delivery of such Notes, and the Trustee, in accordance with such Company
Request, shall authenticate and deliver such Notes.

 

No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any Note
shall be conclusive evidence, and the only evidence, that such Note has been
duly authenticated and delivered hereunder. Notwithstanding the foregoing, if
any Note shall have been authenticated and delivered hereunder but never issued
and sold by the Issuer, and the Issuer shall deliver such Note to the Trustee
for cancellation as provided in Section 2.12, for all purposes of this
Indenture such Note shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this
Indenture.

 

Upon prior notice to, and approval by (which approval shall not be
unreasonably withheld), the Issuer, the Trustee may appoint an authenticating
agent to authenticate the Notes. Unless otherwise provided in the appointment,
an authenticating agent may authenticate the Notes whenever the Trustee may do
so. Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as an
Agent to deal with the Issuer and Affiliates of the Issuer. Each Paying Agent
is designated as an authenticating agent for purposes of this Indenture.

 

SECTION 2.04               Registrar and Paving Agent

 

The Issuer shall maintain an office or agency (which shall be located
in the Borough of Manhattan in The City of New York, State of New York) where
Notes may be presented for registration of transfer or for exchange (the “Registrar”),
and an office or agency where Notes may be presented for payment (the “Paying
Agent”) and an office or agency where notices and demands to or upon the
Issuer, if any, in respect of the Notes and this Indenture may be served. The
Registrar shall keep a register (the “Register”) of the names and
address of the Holders and the Notes and of their transfer and exchange. The
Issuer may have one or more

 

33

 

additional
Paying Agents. The term “Paying Agent” includes any additional Paying Agent.
The Issuer may change any Paying Agent or Registrar without notice to any
Holder. The Issuer or any of its Subsidiaries may act as Paying Agent or
Registrar.

 

The Issuer shall enter into an appropriate agency agreement, which
shall incorporate applicable provisions of the TIA, with any Agent that is not
a party to this Indenture. The agreement shall implement the provisions of this
Indenture that relate to such Agent. The Issuer shall notify the Trustee of the
name and address of any such Agent. If the Issuer fails to maintain a Registrar
or Paying Agent, or fails to give the foregoing notice, the Trustee shall act
as such and shall be entitled to appropriate compensation in accordance with Section 7.07.

 

The Issuer initially appoints the Trustee as Registrar, Paying Agent
and Agent for service of notices and demand (subject to Section 11.09) in
connection with the Notes and this Indenture.

 

SECTION 2.05               Paying
Agent To Hold Money in Trust

 

Each Paying Agent shall hold in trust for the benefit of the Holders or
the Trustee all money held by the Paying Agent for the payment of principal of
or premium or interest on the Notes (whether such money has been paid to it by
the Issuer or any other obligor on the Notes or any Guarantor), and the Issuer
and the Paying Agent shall notify the Trustee in writing of any default by the
Issuer (or any other obligor on the Notes or any Guarantor) in making any such
payment. Money held in trust by the Paying Agent need not be segregated except
as required by law and in no event shall the Paying Agent be liable for any
interest on any money received by it hereunder. The Issuer at any time may
require the Paying Agent to pay all money held by it to the Trustee and account
for any funds disbursed and the Trustee may at any time during the continuance
of any Event of Default specified in clause (1) or (2) of Section 6.01
hereof, upon written request to the Paying Agent, require such Paying Agent to
pay forthwith all money so held by it to the Trustee and to account for any
funds disbursed. Upon making such payment, the Paying Agent shall have no
further liability for the money delivered to the Trustee.

 

SECTION 2.06               Holder
Lists

 

The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
the Holders. Such list shall be in written form or any other form capable of
being converted into written form within a reasonable time. If the Trustee is
not the Registrar, the Issuer shall furnish to the Trustee at least five
Business Days before each Interest Payment Date, and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of the Holders. The
Trustee may rely on the lists of Holders provided by the Issuer.

 

34

 

SECTION 2.07               Transfer
and Exchange

 

Subject to Sections 2.16 and 2.17, when Notes are presented to the
Registrar with a request from the Holder of such Notes to register a transfer
or to exchange them for an equal principal amount of Notes of other authorized
denominations, the Registrar shall register the transfer as requested. Every
Note presented or 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 Issuer and the Registrar, duly executed by the Holder
thereof or its attorneys duly authorized in writing. To permit registrations of
transfers and exchanges, the Issuer shall issue and execute and the Trustee
shall authenticate new Notes evidencing such transfer or exchange at the
Registrar’s request in accordance with Section 2.03 hereof. No service
charge shall be made to the Holder for any registration of transfer or
exchange. The Issuer may require from the Holder payment of a sum sufficient to
cover any transfer taxes or other governmental charge that may be imposed in
relation to a transfer or exchange, but this provision shall not apply to any
exchange pursuant to Section 2.11,3.06,4.10,4.15 or 8.05 (in which events
the Issuer shall be responsible for the payment of such taxes). The Registrar
shall not be required to exchange or register a transfer of any Note for a
period of 15 days immediately preceding the mailing of notice of redemption of
Notes to be redeemed or of any Note selected, called or being called for
redemption except the unredeemed portion of any Note being redeemed in part.

 

Any Holder of a Global Note shall, by acceptance of such Global Note,
agree that transfers of the beneficial interests in such Global Note may be
effected only through a book entry system maintained by the Holder of such
Global Note (or its agent), and that ownership of a beneficial interest in a
Global Note shall be required to be reflected in a book entry.

 

Each Holder of a Note agrees to indemnify the Issuer and the Trustee
against any liability that may result from the transfer, exchange or assignment
of such Holder’s Note in violation of any provision of this Indenture and/or
applicable U.S. federal or state securities laws or Canadian provincial
securities laws.

 

Neither the Trustee nor the Registrar shall have any duty to monitor
the Issuer’s compliance with or have any responsibility with respect to the
Issuer’s compliance with any U.S. federal or state securities laws or Canadian
provincial securities laws.

 

SECTION 2.08               Replacement
Notes

 

If a mutilated Note is surrendered to the Registrar or the Trustee, or
if the Holder of a Note claims that the Note has been lost, destroyed or
wrongfully taken, the Issuer shall issue and the Trustee shall authenticate a
replacement Note if (a) the Holder of such Note furnishes to the Issuer
and the Trustee evidence reasonably acceptable to them of the ownership and the
destruction, loss or theft of such Note and (b) the requirements of Section 8-405
of the New York Uniform Commercial Code (or applicable provision at the time of
such replacement) are met. If required by the Trustee or the Issuer, an
indemnity bond shall be posted, sufficient in the judgment of both to protect
the Issuer, any Guarantors, the Trustee or any Paying Agent from

 

35

 

any loss that
any of them may suffer if such Note is replaced. The Issuer may charge such
Holder for the Issuer’s reasonable out-of-pocket expenses in replacing such
Note and the Trustee may charge the Issuer for the Trustee’s expenses
(including, without limitation, attorneys’ fees and disbursements) in replacing
such Note. Every replacement Note shall constitute a contractual obligation of
the Issuer.

 

In case any such mutilated, destroyed, lost
or stolen Note has become, or shall become within 30 days, due and payable, the
Issuer in its discretion may, instead of issuing a new Note, pay such Note.

 

SECTION 2.09               Outstanding
Notes

 

The Notes outstanding at any time are all
Notes that have been authenticated by the Trustee except for (a) those
cancelled by it, (b) those delivered to it for cancellation, (c) to
the extent set forth in Sections 9.01 and 9.02, on or after the date on which
the conditions set forth in Section 9.01 or 9.02 have been satisfied,
those Notes theretofore authenticated and delivered by the Trustee hereunder
and (d) those described in this Section 2.09 as not outstanding.
Subject to Section 2.10, a Note does not cease to be outstanding because
the Issuer or one of its Affiliates holds the Note.

 

If a Note is replaced pursuant to Section 2.08, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a bona fide purchaser in whose hands such Note is a
legal, valid and binding obligation of the Issuer.

 

If the Paying Agent (other than the Issuer, a Subsidiary or an
Affiliate of any thereof) holds, in its capacity as such, on any Maturity Date
or on any optional redemption date, money sufficient to pay all accrued
interest and principal with respect to the Notes payable on that date and is
not prohibited from paying such money to the Holders thereof pursuant to the
terms of this Indenture, then on and after that date such Notes cease to be
outstanding and interest on them ceases to accrue.

 

SECTION 2.10               Treasury
Notes

 

In determining whether the Holders of the required principal amount of
Notes have concurred in any declaration of acceleration or notice of default or
direction, waiver or consent or any amendment, modification or other change to
this Indenture, Notes owned by the Issuer or any Person directly or indirectly
controlling or controlled by or under common control with the Issuer shall be
disregarded as though they were not outstanding, except that for the purposes
of determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent or any amendment, modification or other change to
this Indenture, only Notes as to which the Trustee has received an Officers’
Certificate of the Issuer stating that such Notes are so owned shall be so
disregarded. Notes so owned which have been pledged in good faith shall not be
disregarded if the pledgee established to the satisfaction of the Trustee the
pledgee’s

 

36

 

right so to
act with respect to the Notes and that the pledgee is not the Issuer, a
Guarantor, any other obligor on the Notes or any of their respective
Affiliates.

 

SECTION 2.11               Temporary
Notes

 

Until definitive Notes are prepared and ready for delivery, the Issuer
may prepare and the Trustee shall authenticate temporary Notes, which are
printed, lithographed, typewritten, mimeographed or otherwise produced in any
authorized denomination. Temporary Notes shall be substantially in the form of
definitive Notes but may have insertions, omissions, substitutions and other
variations that the Issuer considers appropriate for temporary Notes and that
the Issuer shall have identified to the Trustee in writing. Without
unreasonable delay, the Issuer shall prepare and the Trustee shall authenticate
definitive Notes in exchange for temporary Notes. Until such exchange,
temporary Notes shall be entitled to the same rights, benefits and privileges
as definitive Notes.

 

SECTION 2.12               Cancellation

 

The Issuer at any time may deliver Notes to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Notes surrendered to them for registration of transfer, exchange or
payment. The Trustee shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and shall destroy
canceled Notes and deliver a certificate of destruction thereof to the Issuer
unless the Issuer directs the Trustee in writing to deliver canceled Notes to
the Issuer. The Issuer may not reissue or resell, or issue new Notes to
replace, Notes that the Issuer has redeemed or paid, or that have been
delivered to the Trustee for cancellation.

 

SECTION 2.13               Defaulted
Interest

 

If the Issuer defaults on a payment of interest on the Notes, it shall
pay the defaulted interest in any lawful manner, plus (to the extent permitted by
law) any interest payable on the defaulted interest, in accordance with
paragraph 1 of the Notes, to the Persons who are Holders on a subsequent
special record date, which date shall be at least five Business Days prior to
the payment date. The Issuer shall fix such special record date and payment
date in a manner satisfactory to the Trustee. At least 10 days before such
special record date, the Issuer shall mail to each Holder a notice that states
the special record date, the payment date and the amount of defaulted interest,
and interest payable on defaulted interest, if any, to be paid. The Issuer may
make payment of any defaulted interest in any other lawful manner not
inconsistent with the requirements (if applicable) of any securities exchange
on which the Notes may be listed and, upon such notice as may be required by
such exchange, if, after written notice given by the Issuer to the Trustee of
the proposed payment pursuant to this sentence, such manner of payment shall be
deemed practicable by the Trustee.

 

37

 

SECTION 2.14               CUSIP
Number

 

The Issuer in issuing the Notes may use one or more “CUSIP” or “ISIN”
numbers, and if so, each such CUSIP or ISIN number shall be included in notices
of redemption or exchange as a convenience to Holders; provided that any
such notice may state that no representation is made as to the correctness or
accuracy of the CUSIP or ISIN number printed in the notice or on the Notes, and
that reliance may be placed only on the other identification numbers printed on
the Notes. The Issuer shall promptly notify the Trustee of any such CUSIP or
ISIN number used by the Issuer in connection with the issuance of the Notes and
of any change in the CUSIP or ISIN number.

 

SECTION 2.15               Deposit
of Moneys

 

Prior to 10:00 a.m., New York City time, on each Interest Payment
Date and the Maturity Date, the Issuer shall have deposited with the Paying
Agent in immediately available funds money sufficient to make cash payments due
on such Interest Payment Date or the Maturity Date, as the case may be, in a
timely manner which permits the Trustee to remit payment to the Holders on such
Interest Payment Date or the Maturity Date, as the case may be. Except as
otherwise provided herein, the principal and interest on Global Notes shall be
payable to DTC or the nominee of DTC, as the case may be, as the sole
registered owner and the sole holder of the Global Notes represented thereby.
The principal and interest on Physical Notes shall be payable, either in person
or by mail, at the office of the Paying Agent.

 

SECTION 2.16               Book-Entry
Provisions for Global Notes

 

(a)           Rule 144A Notes
initially shall be represented by one or more notes in registered, global form
without interest coupons (collectively, the “Restricted Global Note”).
Regulation S Notes initially shall be represented by one or more notes in
registered, global form without interest coupons (collectively, the “Regulation
S Global Note,” and, together with the Restricted Global Note and any other
global notes representing Notes, the “Global Notes”). The Global Notes
shall each bear a legend as set forth in Exhibit C. The Global
Notes initially shall (i) be registered in the name of DTC or the nominee
of DTC, in each case, for credit to an account of DTC Agent Members (or, in the
case of the Regulation S Global Note, DTC Agent Members (as defined below)
holding for Euroclear System (“Euroclear”) and Clearstream Banking Societé Anonyme (“Clearstream”))
(ii) be delivered to the Trustee as custodian for DTC and (iii) in
the case of the Restricted Global Notes or the Regulation S Global Notes, bear
legends as set forth in Exhibit B.

 

Neither members of, nor direct or indirect participants in, DTC (“DTC
Agent Members”) shall have any rights under this Indenture with respect to
any Global Note held on their behalf by DTC, or the Trustee as its custodian,
or under the Global Notes, and DTC may be treated by the Issuer, the Trustee
and any agent of the Issuer or the Trustee as the absolute owner of such Global
Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein
shall prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee
from giving effect to

 

38

 

any written
certification, proxy or other authorization furnished by DTC or impair, as
between DTC and DTC Agent Members, the operation of customary practices
governing the exercise of the rights of a Holder of any Note.

 

(b)           Transfers of Global
Notes shall be limited to transfer of such Global Notes in whole, but not in
part, to DTC, its successors or their respective nominees. Interests of
beneficial owners in the Global Notes may be transferred or exchanged for
Physical Notes in accordance with the rules and procedures of DTC, Euroclear
and Clearstream and the provisions of Section 2.17. In addition, a Global
Note shall be exchangeable for Physical Notes if (i) DTC notifies the
Issuer that it is unwilling or unable to continue as depository for such Global
Note and the Issuer thereupon fails to appoint a successor depository within 90
days of such event, (ii) the Issuer, in its sole discretion, notifies the
Trustee in writing that it elects to cause the issuance of such Physical Notes,
or (iii) there shall have occurred and be continuing an Event of Default
with respect to the Notes which has not been waived pursuant to Section 6.04
of this Indenture. In all cases, Physical Notes delivered in exchange for any
Global Note or beneficial interests therein shall be registered in the names,
and issued in any approved denominations, requested by or on behalf of DTC (in
accordance with its customary procedures).

 

(c)           In connection with any
transfer or exchange of a portion of the beneficial interest in any Global Note
to beneficial owners pursuant to clause (b) of this Section 2.16, the
Registrar shall (if one or more Physical Notes are to be issued) reflect on its
books and records the date and a decrease in the principal amount of such
Global Note in an amount equal to the principal amount of the beneficial
interest in such Global Note to be transferred, and the Issuer shall execute,
and the Trustee shall upon receipt of a written order from the Issuer
authenticate and make available for delivery, one or more Physical Notes of
like tenor and amount.

 

(d)           In connection with the
transfer of any Global Note as an entirety to beneficial owners pursuant to
clause (b) of this Section 2.16, such Global Note shall be deemed to
be surrendered to the Trustee for cancellation, and the Issuer shall execute,
and the Trustee shall authenticate and deliver, to each beneficial owner
identified by DTC in writing in exchange for its beneficial interest in such
Global Note, an equal aggregate principal amount of Physical Notes of
authorized denominations.

 

(e)           Any Physical Note
delivered in exchange for an interest in a Global Note that is a Restricted
Note pursuant to clause (b), (c) or (d) of this Section 2.16
shall, except as otherwise provided by clause (c) of Section 2.17,
bear the Private Placement Legend unless the Issuer determines otherwise in
compliance with applicable law.

 

(f)            On or prior to the
40th day after the later of the commencement of the Offering and the Issue Date
(such period through and including such 40th day, the “Restricted Period”),
a beneficial interest in the Regulation S Global Note may be held only through
Euroclear or Clearstream, as indirect participants in DTC, unless transferred
to a Person who takes delivery in the form of an interest in the Restricted
Global Note only upon receipt by the Trustee and the Issuer of a written
certification from the transferor to the effect that such transfer

 

39

 

is being made
(i)(A) to a Person whom the transferor reasonably believes is a Qualified
Institutional Buyer in a transaction meeting the requirements of Rule 144A
or (B) pursuant to another exemption from the registration requirements
under the Securities Act which is accompanied by an Opinion of Counsel
regarding the availability of such exemption and (ii) in accordance with
all applicable securities laws of any state of the United States, the provinces
of Canada or any other jurisdiction.

 

(g)           Beneficial interests in
the Restricted Global Note may be transferred to a Person who takes delivery in
the form of an interest in the Regulation S Global Note, whether before or
after the expiration of the Restricted Period, only if the transferor first
delivers to the Trustee (i) a written certificate to the effect that such
transfer is being made in accordance with Rule 903 or 904 of Regulation S
or Rule 144 (if available) and that, if such transfer occurs prior to the
expiration of the Restricted Period, the interest transferred shall be held
immediately thereafter through Euroclear or Clearstream and (ii) at the
option of the Trustee and the Issuer, an Opinion of Counsel reasonably
satisfactory to the Trustee and the Issuer to the effect that such transfer is
in accordance with Regulation S or Rule 144, as the case may be.

 

(h)           Any beneficial interest
in a Global Note that is transferred to a Person who takes delivery in the form
of an interest in another Global Note shall, upon transfer, cease to be an
interest in such Global Note and become an interest in such other Global Note
and, accordingly, shall thereafter be subject to all transfer restrictions and
other procedures applicable to beneficial interests in such other Global Note
for as long as it remains such an interest.

 

(i)            The Holder of any
Global Note may grant proxies and otherwise authorize any Person, including DTC
Agent Members and Persons that may hold interests through DTC Agent Members, to
take any action, which a Holder is entitled to take under this Indenture or the
Notes.

 

SECTION 2.17               Special
Transfer Provisions.

 

(a)           Transfers to Non-QIB
Institutional Accredited Investors and Non-U.S. Persons. The following
provisions shall apply with respect to the registration of any proposed
transfer of a Restricted Note to any Institutional Accredited Investor, which
is not a QIB, or to any Non-U.S. Person:

 

(i)            the
Registrar shall register the transfer of any Note, whether or not such Note
bears the Private Placement Legend, if (A) the requested transfer is after
the time period referred to in Rule 144(k) under the Securities Act, or
such other date as such Note shall be freely transferable under Rule 144
as certified in an Officers’ Certificate or (B) (1) in the case of a
transfer to an Institutional Accredited Investor which is not a QIB (excluding
Non-U.S. Persons), the proposed transferee has delivered to the Registrar and
the Issuer a certificate substantially in the form of Exhibit D
hereto and, at the request of the Registrar and the Issuer, an Opinion of
Counsel reasonably satisfactory to the Registrar and the Issuer to the effect
that such transfer is in accordance with the

 

40

 

Securities Act or (2) in the case of a transfer to a Non-U .S.
Person (including a QIB), the proposed transferor has delivered to the
Registrar and the Issuer a certificate substantially in the form of Exhibit E
hereto and, at the request of the Registrar and the Issuer, an Opinion of
Counsel reasonably satisfactory to the Registrar or the Issuer to the effect
that such transfer is in accordance with the Securities Act and any applicable
securities laws of the Provinces of Canada; provided that in the case of
any transfer of a Note bearing the Private Placement Legend for a Note not
bearing the Private Placement Legend, the Registrar has received an Officers’
Certificate authorizing such transfer and, at the request of the Registrar and
the Issuer, the proposed transferor shall deliver an Opinion of Counsel
reasonably satisfactory to the Registrar and the Issuer to the effect that such
transfer is in accordance with the Securities Act; and

 

(ii)           if
the proposed transferor is a DTC Agent Member holding a beneficial interest in
the Restricted Global Note, and the proposed transferee is either a Non-U.S.
Person who is receiving a beneficial interest in the Regulation S Global Note
or any Person who requests delivery in the form of Physical Notes, upon receipt
by the Registrar of (A) the documents, if any, required by clause (a) (i) of
this Section 2.17 and (B) instructions given in accordance with DTC’s
(and Euroclear’s or Clearstream’s, if applicable) and the Registrar’s
procedures, whereupon (C) the Registrar shall reflect on its books and
records the date and a decrease in the principal amount of the Restricted
Global Note in an amount equal to the principal amount of the beneficial
interest in the Restricted Global Note to be transferred, and (D) (I) with
respect to transfers to a Non-U.S. Person receiving a beneficial interest in
the Regulation S Global Note, the Registrar shall reflect on its books and
records the date and an increase in the principal amount of the Regulation S
Global Note in an amount equal to the principal amount of the beneficial
interest in the Restricted Global Note transferred or (II) with respect to a
Person who requests delivery in the form of Physical Notes, the Issuer shall
execute and the Trustee shall authenticate and make available for delivery one
or more Physical Notes of like tenor and amount.

 

(b)           Transfers
to QIBs. The following provisions shall apply with respect to the
registration of any proposed registration of transfer of a Restricted Note to a
QIB (excluding transfers to Non-U.S. Persons):

 

(i) (A)     if
the Restricted Note consists of Physical Notes, the Registrar shall register
the transfer if such transfer is being made by a proposed transferor who has
checked the box provided for on such Holder’s Note stating, or has otherwise
advised the Issuer and the Registrar in writing, that the sale has been made in
compliance with the provisions of Rule l44A to a transferee who has signed
the certification provided on such Holder’s Note stating, or has otherwise
advised the Issuer and the Registrar in writing, that such transferee
represents and warrants that it is purchasing the Note for its own account or
an account with respect to which it exercises sole investment discretion and
that it and any such account is a QIB within the meaning of Rule l44A, and
is aware that

 

41

 

the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Issuer as it
has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon its
foregoing representations in order to claim the exemption from registration
provided by Rule 144A, and (B) if the Restricted Note consists of an
interest in the Restricted Global Note, unless otherwise provided in this
Indenture, the transfer of such interest may only be effected through the
book-entry system maintained by the Depository; and

 

(ii)           if
the proposed transferee is a DTC Agent Member, and the Notes to be transferred
consist of Physical Notes which after transfer are to be evidenced by an
interest in the Restricted Global Note, upon receipt by the Registrar of
instructions given in accordance with DTC’s and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and an increase in
the principal amount of the Restricted Global Note in an amount equal to the principal
amount of the Physical Notes to be transferred, and the Trustee shall cancel
the Physical Notes so transferred.

 

(c)           Private Placement
Legend. Upon the registration of transfer, exchange or replacement of Notes
not bearing the Private Placement Legend, the Registrar shall deliver Notes
that do not bear the Private Placement Legend. Upon the registration of
transfer, exchange or replacement of Notes bearing the Private Placement
Legend, the Registrar shall deliver only Notes that bear the Private Placement
Legend unless (i) it has received the Officers’ Certificate required by
paragraph (a)(i)(A) of this Section 2.17, (ii) there is
delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the
Issuer and the Trustee to the effect that neither such legend nor the related
restrictions on transfer are required in order to maintain compliance with the
provisions of the Securities Act or (iii) such Note has been sold pursuant
to an effective registration statement under the Securities Act.

 

(d)           Restrictions
applicable to Canadian Holders. Upon the registration of transfer, exchange
or replacement of Notes bearing the Legend Applicable to Canadian Holders, the
Registrar shall deliver Notes that do not bear the Legend Applicable to
Canadian Holders if the transfer, exchange or replacement of Notes occurs on a
date that is on or after four months and a day after the issuance of such
Notes.

 

(e)           General. By its
acceptance of any Note bearing the Private Placement Legend, each Holder of
such Note acknowledges and agrees to the restrictions on transfer of

such Note set forth in this Indenture and in the Private Placement
Legend and further agrees that it shall transfer such Note only as provided in
this Indenture. By its acceptance of any Note bearing the Legend Applicable to
Canadian Holders, each Holder to which such legend applies acknowledges and
agrees to the restrictions on transfer of such Note set forth in this Indenture
and in the Legend Applicable to Canadian Holders.

 

(f)            Euroclear and Clearstream
Procedures Applicable. The provisions of the “Operating Procedures of the
Euroclear System” and “Terms and Conditions Governing Use of

 

42

 

Euroclear” and
the “Management Regulations” and “Instructions to Participants” of Clearstream
shall be applicable to transfers of beneficial interests in the Regulation S
Global Notes that are held by DTC Agent Members through Euroclear or
Clearstream.

 

The Registrar shall retain for a period of three years, copies of all
letters, notices and other written communications received pursuant to Section 2.16
or this Section 2.17. The Issuer shall have the right to inspect and make
copies of all such letters, notices or other written communications at any
reasonable time upon the giving of reasonable notice to the Registrar.

 

SECTION 2.18               Computation
of Interest.

 

Interest on the Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months.

 

For the purposes of the Interest Act (Canada) where any interest
payable hereunder or under the Notes is expressed to be computed on the basis
of a 360-day year of twelve 30-day months, the annual rate of interest to which
such stated rate is equivalent is calculable by determining, on the following
basis for the relevant period, the amount of interest accruing during such
period and expressing such amount as a percentage of the outstanding principal
multiplied by the number of days in such period and divided by the number of
days in the year (being 365 or 366, as the case may be)

 

(a)           for
any complete calendar month in respect of which such rate is applicable, the
stated rate

 

(i)            multiplied
by the actual number of days in the year in which such month falls and divided
by the actual number of days in the month, and

 

(ii)           multiplied by 30 and
divided by 360, and

 

(b)           for
any part of a calendar month in respect of which such rate is applicable, the
stated rate multiplied by the actual number of days in any applicable year,
being 365 or 366, as the case may be and divided by 360.

 

SECTION 2.19               Issuance
of Additional Notes.

 

The Issuer shall be entitled to issue Additional Notes under this
Indenture which shall have substantially identical terms as the Original Notes,
other than with respect to the date of issuance, issue price, amount of
interest payable on the first payment date applicable thereto or upon a
registration default as provided under a registration rights agreement related
thereto and terms of optional redemption, if any (and, if such Additional Notes
shall be issued in the form of Exchange Notes, other than with respect to
transfer restrictions); provided that such issuance shall be made in
compliance with Section 4.06.

 

43

 

With respect to any Additional Notes, the Issuer shall set forth in a
resolution of its Board of Directors (or a duly appointed committee thereof)
and in an Officers’ Certificate, a copy of each of which shall be delivered to
the Trustee, the following information:

 

(i) the aggregate principal amount of
Notes outstanding immediately prior to the issuance of such Additional Notes;

 

(ii) the aggregate principal amount of
such Additional Notes to be authenticated and delivered pursuant to this
Indenture;

 

(iii) the issue price and the issue date
of such Additional Notes and the amount of interest payable on the first
payment date applicable thereto; and

 

(iv) whether such Additional Notes shall
be transfer restricted securities or shall be registered securities issued in
the form of Exchange Notes.

 

ARTICLE THREE

 

REDEMPTION

 

SECTION 3.01               Election
To Redeem: Notices to Trustee.

 

If the Issuer elects to redeem Notes pursuant to Section 3.07 or
3.08 of this Indenture, at least 45 days prior to the Redemption Date (unless a
shorter notice shall be agreed to in writing by the Trustee) but not more than
65 days before the Redemption Date, the Issuer shall notify the Trustee in
writing of the Redemption Date, the principal amount of Notes to be redeemed
and the redemption price, and deliver to the Trustee an Officers’ Certificate
stating that such redemption shall comply with the conditions contained in Section 3.07
or 3.08 of this Indenture. Notice given to the Trustee pursuant to this Section 3.01
may not be revoked after the time that notice is given to Holders pursuant to Section 3.03.

 

SECTION 3.02               Selection
by Trustee of Notes To Be Redeemed.

 

In the event that fewer than all of the Notes are to be redeemed, the
Trustee shall select the Notes to be redeemed, if the Notes are listed on a
national securities exchange, in accordance with the rules of such
exchange or, if the Notes are not so listed, either on a pro rata basis,
by lot or in such other manner as the Trustee shall deem fair and appropriate; provided,
however, that if a partial redemption is made with the proceeds of a
Qualified Equity Offering, selection of the Notes or portions thereof for
redemption shall be made by the Trustee only on a pro rata basis or on
as nearly a pro rata basis as is practicable (subject to DTC
procedures), unless such method is otherwise prohibited. The Trustee shall
promptly notify the Issuer of the Notes selected for redemption and, in the
case of any Notes selected for partial redemption, the principal amount thereof
to be redeemed. . The
Trustee may select for redemption portions of the principal of the Notes that
have denominations larger than $1,000. Notes and portions thereof

 

44

 

the Trustee selects shall be redeemed in amounts of $1,OOO or whole
multiples of $1,OOO. For all purposes of this Indenture unless the context
otherwise requires, provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption.

 

SECTION 3.03               Notice
of Redemption.

 

At least 30 days, and no more than 60 days,
before a Redemption Date, the Issuer shall mail, or cause to be mailed, a
notice of redemption by first-class mail to each Holder of Notes to be redeemed
at his or her last address as the same appears on the registry books maintained
by the Registrar pursuant to Section 2.04.

 

The notice shall identify the Notes to be
redeemed (including the CUSIP or ISIN numbers thereof, if any) and shall state:

 

(1) the
Redemption Date;

 

(2) the
redemption price and the amount of premium, if any, and accrued and unpaid
interest to be paid;

 

(3) if
any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the Redemption Date and upon surrender of
such Note, a new Note or Notes in principal amount equal to the unredeemed
portion shall be issued;

 

(4) the
name and address of the Paying Agent;

 

(5) that
Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price;

 

(6) that
unless the Issuer defaults in making the redemption payment, interest on Notes
called for redemption ceases to accrue on and after the Redemption Date;

 

(7) the
provision of this Indenture pursuant to which the Notes called for redemption
are being redeemed;

 

(8) the
aggregate principal amount of Notes that are being redeemed; and

 

(9) that
no representation is made as to the correctness or accuracy of the CUSIP or
ISIN number, if any, listed in such notice or printed on the Notes.

 

At the Issuer’s written request made at least
two Business Days prior to the date on which notice is to be given, the Trustee
shall give the notice of redemption in the Issuer’s name and at the Issuer’s
sole expense; provided, however, that the Issuer shall deliver to
the Trustee at least 45 days prior to the Redemption Date an Officers’
Certificate requesting that the

 

45

 

Trustee give
such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph.

 

SECTION 3.04               Effect
of Notice of Redemption.

 

Once the notice of redemption described in Section 3.03 is mailed,
Notes called for redemption become due and payable on the Redemption Date and
at the redemption price, including premium, if any, plus accrued and unpaid
interest to the Redemption Date. Upon surrender to the Paying Agent, such Notes
shall be paid at the redemption price, including premium, if any, plus accrued
and unpaid interest to the Redemption Date; provided that if the
Redemption Date is after a regular record date and on or prior to the Interest
Payment Date, the accrued interest shall be payable to the Holder of the
redeemed Notes registered on the relevant record date; provided, further, that
if a Redemption Date is not a Business Day, payment shall be made on the next
succeeding Business Day and no interest shall accrue for the period from such
Redemption Date to such succeeding Business Day.

 

SECTION 3.05               Deposit
of Redemption Price.

 

On or prior to 10:00 A.M., New York City time, on each Redemption
Date, the Issuer shall deposit with the Paying Agent in immediately available
funds money sufficient to pay the redemption price of, including premium, if
any, and accrued and unpaid interest on all Notes to be redeemed on that date
other than Notes or portions thereof called for redemption on that date which
have been delivered by the Issuer to the Trustee for cancellation.

 

On and after any Redemption Date, if money sufficient to pay the
redemption price of, including premium, if any, and accrued and unpaid interest
on Notes called for redemption shall have been deposited with the Paying Agent
in accordance with the preceding paragraph, the Notes called for redemption
shall cease to accrue interest and the only right of the Holders of such Notes
shall be to receive payment of the redemption price of, premium, if any, and,
subject to the first proviso in Section 3.04, accrued and unpaid interest
on such Notes to the Redemption Date. If any Note surrendered for redemption
shall not be so paid, interest shall be paid, from the Redemption Date until
such redemption payment is made, on the unpaid principal of the Note and any
interest not paid on such unpaid principal, in each case, at the rate and in
the manner provided in the Notes.

 

SECTION 3.06               Notes
Redeemed in Part.

 

Upon surrender of a Note that is redeemed in part, the Trustee shall
authenticate for the Holder thereof a new Note equal in principal amount to the
unredeemed portion of the Note surrendered.

 

46

 

SECTION 3.07               Optional
Redemption.

 

The Issuer, at its option, may redeem the Notes, in whole at any time,
at any time, or in part from time to time, in each case, on or after June 1,2008, upon not less than 30 nor more than
60 days’ notice, at the redemption prices (expressed as percentages of
principal amount thereof) set forth below, together, in each case, with accrued
and unpaid interest to the Redemption Date, if redeemed during the 12 month
period beginning on June 1 of each year listed below:

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.375

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  102.916

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2010

  	
   

  	
  101.458

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  2011 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

Notwithstanding the foregoing, the Issuer, at its option, may redeem in
the aggregate up to 35% of the aggregate principal amount of the Notes
originally issued at any time and from time to time prior to June 1,2006 at a redemption price equal to
108.75% of the aggregate principal amount so redeemed, plus accrued and unpaid
interest to the Redemption Date, out of the net cash proceeds of one or more
Qualified Equity Offerings; provided that (1) at least 65% oft he
aggregate principal amount of Notes originally issued remains outstanding
immediately after the occurrence of any such redemption and (2) that any
such redemption occurs within 180 days following the closing of any such
Qualified Equity Offering.

 

SECTION 3.08               Tax
Redemption.

 

The Notes are redeemable, in whole but not in part, at the option of
the Issuer at any time, upon not less than 30 nor more than 60 calendar days’
prior written notice, mailed by first class mail to each Holder at its last
address appearing in the register maintained by the Registrar of Notes, at 100%
of the principal amount thereof, plus accrued and unpaid interest thereon to
the Redemption Date, if the Issuer is or would become obligated to pay, on the
next date on which any amount would be payable with respect to the Notes, any
Additional Amounts as a result of a change in, or amendment to, the laws (or
any regulations promulgated thereunder) of any Taxing Authority, or any changes
in, or amendment to, any official position regarding the application or
interpretation of such laws or regulations.

 

Prior to the publication of any notice of redemption pursuant to this
provision, the Issuer shall deliver to the trustee (a) an Officers’
Certificate stating that the Issuer is entitled to effect such redemption and
setting forth a statement of facts showing that the conditions

 

47

 

precedent to
the right of the Issuer so to redeem have occurred and (b) an opinion of
legal counsel qualified under the laws of the relevant jurisdiction to the
effect that the Issuer or such Guarantor has or shall become obligated to pay
such Additional Amounts as a result of such amendment or change as described
above.

 

SECTION 3.09               Purchase
of Notes.

 

The Issuer or any of its Subsidiaries shall have the right at any time
and from time to time to purchase Notes in the open market (which shall include
purchase from or through an investment dealer, investment bank or firm holding
membership in a stock exchange or the National Association of Securities
Dealers, Inc.) or by tender or by private contract or otherwise, at any
price, provided that the Issuer complies with any securities laws or
regulations applicable to any such purchase including, but not limited to Rule 14e-1
under the Exchange Act.

 

ARTICLE FOUR

 

COVENANTS

 

SECTION 4.01               Payment
of Notes.

 

The Issuer shall pay the principal of and interest (including all
Additional Interest) on the Notes on the dates and in the manner provided in
the Notes and this Indenture. An installment of principal or interest shall be
considered paid on the date it is due if the Trustee or Paying Agent (if other
than the Issuer, a Subsidiary of the Issuer or any Guarantor) holds on that
date money designated for and sufficient to pay such installment.

 

The Issuer shall pay interest on overdue principal (including
post-petition interest in a proceeding under any Bankruptcy Law), and overdue
installments of interest, to the extent lawful, at the rate specified in the
Notes.

 

SECTION 4.02               Reports
to Holders.

 

Whether or not required by the SEC, so long as any Notes are
outstanding, the Issuer shall furnish to the Trustee and, upon request to any
Holder, within the time periods specified in the SEC’s rules and
regulations:

 

(1) all annual financial information
that would be required to be contained in a filing with the SEC on Form 40-F
if the Issuer were required to file these Forms, including a “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and,
with respect to the annual information only, a report on the annual financial
statements by the Issuer’s independent accountants; and

 

(2) all quarterly and current reports
that would be required to be filed with the SEC on Form 6-K if the Issuer
were required to file these reports.

 

48

 

In addition, following the consummation of the Exchange Offer
contemplated by the Registration Rights Agreement, whether or not required by
the SEC, the Issuer shall file a copy of all of the information and reports
referred to in clauses (1) and (2) above with the SEC for public
availability within the time periods specified in the SEC’s rules and
regulations (unless the SEC shall not accept the filing) and make the
information available to prospective investors upon request. The Issuer and the
Guarantors have agreed that, for so long as any Notes remain outstanding, the
Issuer shall furnish to the Holders and to prospective investors, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act.

 

SECTION 4.03               Waiver
of Stay. Extension or Usury Laws.

 

The Issuer and any Guarantors covenant (to the extent that they may
lawfully do so) that they shall not at any time insist upon, or plead (as a
defense or otherwise) or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury law or other law which
would prohibit or forgive the Issuer and any Guarantors from paying all or any
portion of the principal of, premium, if any, and/or interest on the Notes as
contemplated herein, wherever enacted, now or at any time hereafter in force,
or which may affect the covenants or the performance of this Indenture; and (to
the extent that they may lawfully do so) the Issuer and any Guarantors hereby
expressly waive all benefit or advantage of any such law, and covenant that
they shall not hinder, delay or impede the execution of any power herein
granted to the Trustee, but shall suffer and permit the execution of every such
power as though no such law had been enacted.

 

SECTION 4.04               Compliance
Certificate.

 

(a) The Issuer shall deliver to the Trustee, within 120 days after
the end of each fiscal year and on or before 60 days after the end of the
first, second and third quarters of each fiscal year, an Officers’ Certificate
stating that a review of the activities of the Issuer and its Subsidiaries
during such fiscal year or fiscal quarter, as the case may be, has been made
under the supervision of the signing Officers with a view to determining
whether the Issuer and each Guarantor has kept, observed, performed and
fulfilled their obligations under this Indenture, and further stating, as to
each such Officer signing such certificate, that to the best of his or her
knowledge, the Issuer and each Guarantor has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in
default in the performance or observance of any of the terms, provisions and
conditions hereof (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which he or she may have
knowledge and what action they are taking or propose to take with respect
thereto) and that to the best of his or her knowledge no event has occurred and
remains in existence by reason of which payments on account of the principal of
or interest, if any, on the Notes is prohibited or if such event has occurred,
a description of the event and what action the Issuer and any Guarantors are
taking or propose to take with respect thereto.

 

49

 

(b) The Issuer and any Guarantors shall, so long as any of the
Notes are outstanding, deliver to the Trustee, forthwith upon any Officer
becoming aware of any Default or Event of Default, an Officers’ Certificate
specifying such Default or Event of Default and what action the Issuer and any
Guarantors are taking or propose to take with respect thereto.

 

(c) The Issuer’s fiscal year currently ends on December 31.
The Issuer shall promptly provide written notice to the Trustee of any change
in its fiscal year.

 

SECTION 4.05               Taxes.

 

The Issuer and any Guarantors shall, and shall cause each of their
Subsidiaries to, pay prior to delinquency all material taxes, assessments, and
governmental levies except as contested in good faith and by appropriate
proceedings.

 

SECTION 4.06               Limitations
on Additional Indebtedness.

 

The Issuer shall not, and shall not permit any Restricted Subsidiary
to, directly or indirectly, incur any Indebtedness; provided that the
Issuer or any Guarantor may incur additional Indebtedness if, after giving
effect thereto, the Consolidated Fixed Charge Coverage Ratio would be at least
2.0 to 1.0 (the “Coverage Ratio Exception”).

 

Notwithstanding the above, each of the
following shall be permitted (the “Permitted Indebtedness”):

 

(1) Indebtedness of the Issuer and any
Guarantor under the Credit Agreement in an aggregate amount at any time
outstanding not to exceed the greater of (x) the sum of (i) $212.0
million, less (ii) any Indebtedness outstanding under the General
Scrap Facilities less (iii) the aggregate amount of Net Available
Proceeds applied to repayments under the Credit Agreement in accordance with Section 4.10,
and (y) 85% of the book value of the accounts receivable plus 60% of the
book value of inventory of the Issuer and the Restricted Subsidiaries,
calculated on a consolidated basis and in accordance with GAAP and in the case
of each of clause (x) and (y) less the Outstanding Receivables Amount;

 

(2) the Original Notes (and a like
amount of Exchange Notes issued in exchange for such Notes) and the Note
Guarantees;

 

(3) Indebtedness of the Issuer and the
Restricted Subsidiaries to the extent outstanding on the Issue Date (other than
Indebtedness referred to in clauses (1) and (2) above, and after
giving effect to the intended use of proceeds of the Notes as set forth in the
Offering Memorandum);

 

(4) Indebtedness under Hedging
Obligations; provided that (a) such Hedging Obligations are
designed to protect against fluctuations in interest or currency rates or

 

50

 

commodity prices and (b) in the case of any Hedging Obligations
under clause (1) of the definition thereof, (I) such Hedging Obligations
relate to payment obligations on Indebtedness otherwise permitted to be
incurred by this Section 4.06, and (II) the notional principal amount of
such Hedging Obligations at the time incurred does not exceed the amount of the
Indebtedness to which such Hedging Obligations relate;

 

(5) Indebtedness of the Issuer owed to a
Restricted Subsidiary and Indebtedness of any Restricted Subsidiary owed to the
Issuer or any Restricted Subsidiary; provided, however, that upon
any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or such
Indebtedness being owed to any Person other than the Issuer or a Restricted
Subsidiary, the Issuer or such Restricted Subsidiary, as applicable, shall be
deemed to have incurred Indebtedness not permitted by this clause (5);

 

(6) Indebtedness in respect of bid,
performance or surety bonds issued for the account of the Issuer or any
Restricted Subsidiary, including guarantees or obligations of the Issuer or any
Restricted Subsidiary with respect to letters of credit supporting such bid,
performance or surety obligations (in each case other than for an obligation
for money borrowed);

 

(7) Purchase Money Indebtedness incurred
by the Issuer or any Restricted Subsidiary, and Indebtedness under Capitalized
Lease Obligations, industrial revenue bonds or mortgage financing incurred by
the Issuer or any Restricted Subsidiary for the purpose of financing all or any
part of the purchase price or cost of development of property, plant or
equipment used in the business of the Issuer or any Restricted Subsidiary, and
Refinancing Indebtedness thereof, in an aggregate amount not to exceed at any
time outstanding $25.0 million;

 

(8) Indebtedness arising from the
honoring by a bank or other financial institution of a check, draft or similar
instrument inadvertently (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business;

 

(9) Indebtedness arising in connection
with endorsement of instruments for deposit in the ordinary course of business;

 

(10) Refinancing Indebtedness with
respect to Indebtedness incurred pursuant to the Coverage Ratio Exception or
clause (2), (3), (12), (13) or (16) of this Section 4.06;

 

(11) the guarantee by the Issuer or any
Guarantor of Indebtedness of the Issuer or a Guarantor incurred pursuant to the
Coverage Ratio Exception or another clause in this Section 4.06;

 

(12) Indebtedness of the Issuer or any
Restricted Subsidiary (including letters of credit) in order to provide
security for workers’ compensation claims, payment

 

51

 

obligations in connection with self-insurance, or similar requirements
of the Issuer or any Restricted Subsidiary in the ordinary course of business;

 

(13) customary indemnification, adjustment of
purchase price or similar obligations, including title insurance, of the Issuer
or any Restricted Subsidiary, in each case, incurred in connection with the
acquisition or disposition of any assets of the Issuer or any Restricted
Subsidiary (other than guarantees of Indebtedness incurred by any Person
acquiring all or any portion of such assets for the purpose of financing such
acquisition);

 

(14) Indebtedness consisting of take-or-pay
obligations contained in supply agreements entered into in the ordinary course
of business;

 

(15) Indebtedness evidenced by promissory
notes subordinated to the Notes and the Note Guarantees issued to current or
former employees or directors of the Issuer or any Subsidiary (or their
respective spouses or estates) in lieu of cash payments for Equity Interests
being repurchased from such Persons in an aggregate amount not to exceed $5.0
million at any time outstanding;

 

(16) Indebtedness of the Issuer or any
Restricted Subsidiary to refinance the Montpelier Sale and Leaseback
Obligations;

 

(17) Indebtedness under the General Scrap
Facilities in an amount not to exceed $12.0 million;

 

(18) Indebtedness of the Issuer or any Restricted
Subsidiary in an aggregate amount not to exceed $40.0 million
at any time outstanding; and

 

(19) Indebtedness of the Issuer or any
Restricted Subsidiary incurred during any Suspension Period.

 

For purposes of determining compliance with this Section 4.06, in
the event that an item of Indebtedness meets the criteria of more than one of
the categories of Permitted Indebtedness described in clauses (1) through
(19) above or is entitled to be incurred pursuant to the Coverage Ratio
Exception, the Issuer may, in its sole discretion, classify such item of
Indebtedness and may divide and classify such Indebtedness in more than one of
the types of Indebtedness described, except that Indebtedness incurred under
the Credit Agreement on the Issue Date shall be deemed to have been incurred
under clause (1) of this Section 4.06.

 

The maximum amount of Indebtedness that the Issuer or any Restricted
Subsidiary may incur pursuant to this Section 4.06 shall not be deemed to
be exceeded solely as the result of fluctuations in the exchange rates of
currencies. In determining the
amount of Indebtedness outstanding under one of the clauses above, the
outstanding principal amount of any particular Indebtedness of any Person shall
be counted only once and any obligation of such

 

52

 

Person or any
other Person arising under any guarantee, Lien, letter of credit or similar
instrument supporting such Indebtedness shall be disregarded so long as it is
permitted to be incurred by the Person or Persons incurring such obligation.

 

SECTION 4.07               Limitations
on Restricted Payments.

 

The Issuer shall not, and shall not permit any Restricted Subsidiary
to, directly or indirectly, make any Restricted Payment if at the time of such
Restricted Payment:

 

(1) a Default shall have occurred and be
continuing or shall occur as a consequence thereof;

 

(2) the Issuer cannot incur $1.00 of
additional Indebtedness pursuant to the Coverage Ratio Exception; or

 

(3) the amount of such Restricted
Payment, when added to the aggregate amount of all other Restricted Payments
made after the Issue Date (other than Restricted Payments made pursuant to
clause (2), (3), (4), (5), (7), (9), (10), (11) or, at any time prior to December 31,2004,
clause (6) of the second paragraph of this Section 4.07), exceeds the
sum (the “Restricted Payments Basket”) of (without duplication):

 

(a) 50% of Consolidated Net Income for
the period (taken as one accounting period) commencing on the first day of the
first full fiscal quarter commencing after the Issue Date to and including the
last day of the fiscal quarter ended immediately prior to the date of such
calculation for which consolidated financial statements are publicly available
(or, if such Consolidated Net Income shall be a deficit, minus 100% of such
aggregate deficit), plus

 

(b) 100% of the aggregate net cash
proceeds received by the Issuer either (x) as contributions to the common
equity of the Issuer after the Issue Date or (y) from the issuance and sale of
Qualified Equity Interests after the Issue Date, plus

 

(c) the aggregate amount by which
Indebtedness (other than any Subordinated Indebtedness) incurred by the Issuer
or any Restricted Subsidiary subsequent to the Issue Date is reduced on the
Issuer’s balance sheet upon the conversion or exchange (other than by a
Subsidiary of the Issuer) into Qualified Equity Interests (less the amount of
any cash, or the fair value of assets, distributed by the Issuer or any
Restricted Subsidiary upon such conversion or exchange), plus

 

(d) in the case of the disposition or
repayment of or return on any Investment that was treated as a Restricted
Payment made after the Issue Date, an amount (to the extent not included in the
computation of Consolidated Net

 

53

 

Income) equal to the lesser of (i) the amount received with
respect to such Investment less the cost of the disposition of such Investment
and net of taxes and (ii) the amount of such Investment that was treated
as a Restricted Payment, plus

 

(e) upon a Redesignation of an
Unrestricted Subsidiary as a Restricted Subsidiary, the lesser of (i) the
Fair Market Value of the Issuer’s proportionate interest in such Subsidiary
immediately following such Redesignation, and (ii) the aggregate amount of
the Issuer’s Investments in such Subsidiary to the extent such Investments
reduced the Restricted Payments Basket and were not previously repaid or
otherwise reduced.

 

The foregoing provisions shall not prohibit:

 

(1) the payment by the Issuer or any
Restricted Subsidiary of any dividend within 90 days after the date of
declaration thereof, if on the date of declaration the payment would have
complied with the provisions of this Indenture;

 

(2) the redemption, repurchase or other
acquisition of, or the payment of any sums due with respect to, any Equity
Interests of the Issuer or any Restricted Subsidiary in exchange for, or out of
the proceeds of the substantially concurrent issuance and sale of, Qualified
Equity Interests;

 

(3) the redemption, repurchase or other
acquisition of, or the payment of any sums due with respect to, Subordinated
Indebtedness of the Issuer or any Restricted Subsidiary (a) in exchange
for, or out of the proceeds of the substantially concurrent issuance and sale
of, Qualified Equity Interests or (b) in exchange for, or out of the
proceeds of the substantially concurrent incurrence of, Refinancing
Indebtedness permitted to be incurred under Section 4.06 and the other
terms of this Indenture;

 

(4) the redemption, repurchase or other
acquisition of, or the payment of any sums due with respect to, Equity
Interests of the Issuer held by officers, directors or employees or former
officers, directors or employees (or their transferees, estates or
beneficiaries under their estates), upon their death, disability, retirement,
severance or termination of employment or service; provided that the
aggregate cash consideration paid for all such redemptions shall not exceed
$2.0 million during any calendar year (with unused amounts in any calendar year
being usable, without duplication, in subsequent calendar years); provided
that such amounts shall be increased by: (a) the cash proceeds from the
sale of Equity Interests to members of management, directors or consultants of
the Issuer and its Subsidiaries that occurs after the date of this Indenture (provided
that such proceeds have not been included for the purpose of determining
whether a previous Restricted Payment was permitted pursuant to the preceding
paragraph) plus (b) the cash proceeds of key man life insurance
policies received by the Issuer or any Restricted Subsidiaries after the Issue
Date;

 

54

 

(5) repurchases of Equity Interests
deemed to occur upon the exercise of stock options or warrants if the Equity
Interests represent a portion of the exercise price thereof and repurchases of
Equity Interests deemed to occur upon the withholding of a portion of the
Equity Interests granted or awarded to an employee to pay for the taxes payable
by

such employee upon such grant or award;

 

(6) the payment of dividends on the
First Preferred Shares in accordance with the Issuer’s articles of
incorporation as in effect on the Issue Date;

 

(7) at any time on or prior to December 31,
2004, the repurchase or redemption of the First Preferred Shares in accordance
with the Issuer’s articles of incorporation as in effect on the Issue Date;

 

(8) the payment of dividends on the
Issuer’s common stock in an amount not to exceed $10.0 million per year;

 

(9) Restricted Payments made during any
Suspension Period;

 

(10) the purchase, redemption,
acquisition, cancellation or other retirement for a nominal value per right of
any rights granted to all the holders of Common Stock of the Issuer pursuant to
any shareholders’ rights plan adopted for the purpose of protecting
shareholders from unfair takeover tactics;

 

(11) payments by the Issuer or any Restricted
Subsidiary in respect of Indebtedness of the Issuer or any Restricted
Subsidiary owed to the Issuer or another Restricted Subsidiary; and

 

(12) Restricted Payments of up to $20.0
million in the aggregate since the Issue Date;

 

provided that
(a) in the case of any Restricted Payment pursuant to clause (3), (6),
(7), (8), (9), (11) or (12) of this Section 4.07, no Default shall have
occurred and be continuing or occur as a consequence thereof and (b) no
issuance and sale of Qualified Equity Interests pursuant to clause (2) or (3) of
this Section 4.07 shall increase the Restricted Payments Basket.

 

SECTION 4.08               Limitations
on Liens.

 

The Issuer shall not, and shall not permit any Guarantor to, directly
or indirectly, create, incur, assume or permit or suffer to exist any Lien
(other than Permitted Liens) against any assets of the Issuer or any Guarantor
(including Equity Interests of a Restricted Subsidiary), whether owned at the
Issue Date or thereafter acquired, or any proceeds therefrom, or assign or
otherwise convey any right to receive income or profits therefrom, unless
contemporaneously therewith:

 

55

 

(1) in the case of any Lien securing an
obligation that ranks pari  passu with the Notes or a Note
Guarantee, effective provision is made to secure the Notes or such Note
Guarantee, as the case may be, at least equally and ratably with or prior to
such obligation with a Lien on the same collateral; and

 

(2) in the case of any Lien securing an
obligation that is subordinated in right of payment to the Notes or a Note
Guarantee, effective provision is made to secure the Notes or such Note
Guarantee, as the case may be, with a Lien on the same collateral that is prior
to the Lien securing such subordinated obligation,

 

in each case,
for so long as such obligation is secured by such Lien.

 

SECTION 4.09               Limitations
on Transactions with Affiliates.

 

The Issuer shall not, and shall not permit any Restricted Subsidiary
to, directly or indirectly, in one transaction or a series of related
transactions, sell, lease, transfer or otherwise dispose of any of its assets
to, or purchase any assets from, or enter into any contract, agreement,
understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate {an “Affiliate Transaction”), unless:

 

(1) such Affiliate Transaction is on
terms that are no less favorable to the Issuer or the relevant Restricted
Subsidiary than those that would have been obtained in a comparable transaction
at such time on an arm’s-length basis by the Issuer or that Restricted
Subsidiary from a Person that is not an Affiliate of the Issuer or that Restricted
Subsidiary; and

 

(2) the Issuer delivers to the Trustee:

 

(a) with respect to any Affiliate
Transaction involving aggregate value in excess of $1 0.0 million, an Officers’
Certificate certifying that such Affiliate Transaction complies with clause (1) of
the first paragraph of this Section 4.09 and that sets forth and
authenticates a resolution that has been adopted by the Independent Directors
approving such Affiliate Transaction; and

 

(b) with respect to any Affiliate
Transaction involving aggregate value of$20.0 million or more, the certificate
described in the preceding clause (a) of this Section 4.09 and a
written opinion as to the fairness of such Affiliate Transaction to the Issuer
or such Restricted Subsidiary from a financial point of view issued by an
Independent Financial Advisor.

 

The foregoing restrictions shall not apply to:

 

(1) transactions exclusively between or
among (a) the Issuer and one or more Restricted Subsidiaries or (b) Restricted
Subsidiaries; provided in each case, that no

 

56

 

Affiliate of the Issuer (other than another Restricted Subsidiary) owns
Equity Interests of any such Restricted Subsidiary;

 

(2) director, officer and employee
compensation (including bonuses) and other benefits (including retirement,
health, stock option and other benefit plans) and indemnification arrangements,
in each case approved by the Board of Directors;

 

(3) the entering into of a tax sharing
agreement, or payments pursuant thereto, between the Issuer and/or one or more
Subsidiaries, on the one hand, and any other Person with which the Issuer or
such Subsidiaries are required or permitted to file a consolidated tax return
or with which the Issuer or such Subsidiaries are part of a consolidated group
for tax purposes, on the other hand, which payments by the Issuer and the
Restricted Subsidiaries are not in excess of the tax liabilities that would
have been payable by them on a stand-alone basis;

 

(4) loans and advances permitted by
clause (3) of the definition of “Permitted Investments”;

 

(5) Restricted Payments, which are made
in accordance with Section 4.07;

 

(6) any transaction with an Affiliate to
the extent involving Qualified Equity Interests;

 

(7) transactions with suppliers or
purchasers for the sale or purchase of goods which are fair to the Issuer and
its Restricted Subsidiaries and, in the judgment of the Board of Directors, are
on terms at least as favorable as might reasonably have been obtained from an
unaffiliated third party;

 

(8) transactions with a Person that is
an Affiliate solely because the Issuer or any Restricted Subsidiary owns Equity
Interests in such Person; provided that no Affiliate of the Issuer
(other than a Restricted Subsidiary) owns Equity Interests in such Person;

 

(9) purchases and sales of raw materials
or inventory in the ordinary course of business on market terms;

 

(10) any transaction with an Affiliate
entered into during any Suspension Period; or

 

(11) transactions between the Issuer or
any Restricted Subsidiary and any Securitization Entity in connection with a
Qualified Securitization Transaction, in each case provided that such
transactions are not otherwise prohibited by this Indenture.

 

57

 

SECTION 4.10               Limitation
on Asset Sales.

 

At any time other than during a Suspension Period, the Issuer shall
not, and. shall not permit any Restricted Subsidiary to, directly or
indirectly, consummate any Asset Sale unless:

 

(1) the Issuer or such Restricted
Subsidiary receives consideration at the time of such Asset Sale at least equal
to the Fair Market Value of the assets included in such Asset Sale; and

 

(2) at least 75% of the total
consideration received in such Asset Sale consists of cash or Cash Equivalents.

 

For purposes of clause (2), the following
shall be deemed to be cash:

 

(a) the amount (without duplication) of
any Indebtedness (other than Subordinated Indebtedness) of the Issuer or such
Restricted Subsidiary that is assumed (expressly or by operation of law) by the
transferee in such Asset Sale and with respect to which the Issuer or such
Restricted Subsidiary, as the case may be, is no longer liable,

 

(b) the amount of any obligations
received from such transferee that are within 180 days converted by the Issuer
or such Restricted Subsidiary to cash (to the extent of the cash actually so
received), and

 

(c) the Fair Market Value of any assets
received by the Issuer or any Restricted Subsidiary to be used by it in the
Permitted Business.

 

If at any time any non-cash consideration received by the Issuer or any
Restricted Subsidiary of the Issuer, as the case may be, in connection with any
Asset Sale is repaid or converted into or sold or otherwise disposed of for
cash (other than interest received with respect to any such non-cash
consideration), then the date of such repayment, conversion or disposition
shall be deemed to constitute the date of an Asset Sale hereunder and the Net
Available Proceeds thereof shall be applied in accordance with this Section 4.10.

 

If the Issuer or any Restricted Subsidiary engages in an Asset Sale,
the Issuer or such Restricted Subsidiary shall, no later than 365 days
following the consummation thereof, apply all or any of the Net Available
Proceeds therefrom to:

 

(1) satisfy all mandatory repayment
obligations under the Credit Agreement arising by reason of such Asset Sale;

 

(2) repay any Indebtedness which was
secured by the assets sold in such Asset Sale;

 

58

 

(3) invest all or any part of the Net
Available Proceeds thereof in the purchase of assets to be used by the Issuer
or any Restricted Subsidiary in the Permitted Business; and! or

 

(4) in the case of any Restricted
Subsidiary that is not a Guarantor, repay Indebtedness of such Restricted
Subsidiary.

 

The amount of Net Available Proceeds not applied or invested as
provided in this paragraph shall constitute “Excess Proceeds.”

 

When the aggregate amount of Excess Proceeds equals or exceeds $20.0
million, the Issuer shall be required to make an offer to purchase from all
Holders and, if applicable, redeem (or make an offer to do so) any Pari Passu
Indebtedness of the Issuer the provisions of which require the Issuer to redeem
such Indebtedness with the proceeds from any Asset Sales (or offer to do so),
in an aggregate principal amount of Notes and such Pari Passu Indebtedness
equal to the amount of such Excess Proceeds as follows:

 

(1) the Issuer shall (a) make an
offer to purchase (a “Net Proceeds Offer”) to all Holders in accordance with
the procedures set forth in this Indenture, and (b) redeem (or make an
offer to do so) any such other Pari Passu Indebtedness, pro rata in
proportion to the respective principal amounts of the Notes and such other
Indebtedness required to be redeemed, the maximum principal amount of Notes and
Pari Passu Indebtedness that may be redeemed out of the amount (the “Payment
Amount”) of such Excess Proceeds;

 

(2) the offer price for the Notes shall
be payable in cash in an amount equal to 100% of the principal amount of the
Notes tendered pursuant to a Net Proceeds Offer, plus accrued and unpaid
interest thereon, if any, to the date such Net Proceeds Offer is consummated
(the “Offered Price”), in accordance with the procedures set forth in
this Indenture and the redemption price for such Pari Passu Indebtedness (the “Pari
Passu Indebtedness Price”) shall be as set forth in the related
documentation governing such Indebtedness;

 

(3) if the aggregate Offered Price of
Notes validly tendered and not withdrawn by Holders thereof exceeds the pro
rata portion of the Payment Amount allocable to the Notes, Notes to be
purchased shall be selected on a pro  rata basis; and

 

(4) upon completion of such Net Proceeds
Offer in accordance with the foregoing provisions, the amount of Excess
Proceeds with respect to which such Net Proceeds Offer was made shall be deemed
to be zero.

 

To the extent that the sum of the aggregate Offered Price of Notes
tendered pursuant to a Net Proceeds Offer and the aggregate Pari Passu
Indebtedness Price paid to the holders of such Pari Passu Indebtedness is less
than the Payment Amount relating thereto (such shortfall constituting a “Net
Proceeds Deficiency”), the Issuer may use the Net Proceeds

 

59

 

Deficiency, or
a portion thereof, for general corporate purposes, subject to the provisions of
this Indenture.

 

In the event of the transfer of substantially all (but not all) of the
assets of the Issuer and the Restricted Subsidiaries as an entirety to a Person
in a transaction covered by and effected in accordance with Section 5.01,
the successor corporation shall be deemed to have sold for cash at Fair Market
Value the assets of the Issuer and the Restricted Subsidiaries not so
transferred for purposes of this Section, and shall comply with the provisions
of this Section with respect to such deemed sale as if it were an Asset
Sale (with such Fair Market Value being deemed to be Net Available Proceeds for
such purpose).

 

The Issuer shall comply with applicable tender offer rules, including
the requirements of Rule 14e-1 under the Exchange Act and any other
applicable laws and regulations in connection with the purchase of Notes
pursuant to a Net Proceeds Offer. To the extent that the provisions of any
securities laws or regulations conflict with this Section 4.10, the Issuer
shall comply with the applicable securities laws and regulations and shall not
be deemed to have breached its obligations under this Section 4.10 by
virtue of this compliance.

 

SECTION 4.11               Limitation
on the Issuance or Sale of Equity Interests of Restricted Subsidiaries.

 

At any time other than during a Suspension Period, the Issuer shall
not, and shall not permit any Restricted Subsidiary to, directly or indirectly,
sell or issue any shares of Equity Interests of any Restricted Subsidiary
except (1) to the Issuer, a Restricted Subsidiary or the minority
stockholders of any Restricted Subsidiary, on a pro  rata basis,
at Fair Market Value, (2) to the extent such shares represent directors’ qualifying
shares or shares required by applicable law to be held by a Person other than
the Issuer or a Wholly-Owned Restricted Subsidiary or (3) to a third party
to the extent the Issuer would be permitted to make an Investment in the
remaining Equity Interests of such Restricted Subsidiary pursuant to Section 4.07.
The sale of all the Equity Interests of any Restricted Subsidiary is permitted
by this Section 4.11 but is subject to Section 4.10.

 

SECTION 4.12               Limitations
on Dividend and Other Restrictions Affecting Restricted Subsidiaries.

 

The Issuer shall not, and shall not permit any Restricted Subsidiary
to, directly or indirectly, create or otherwise cause or permit to exist or
become effective any consensual encumbrance or consensual restriction on the
ability of any Restricted Subsidiary to:

 

(a) pay dividends or make any other
distributions on or in respect of its Equity Interests;

 

(b) make loans or advances or pay any
Indebtedness or other obligation owed to the Issuer or any other Restricted
Subsidiary; or

 

60

 

(c) transfer any of its assets to the
Issuer or any other Restricted Subsidiary;

 

except for:

 

(1) encumbrances or restrictions
existing under. or by reason of applicable law;

 

(2) encumbrances or restrictions
existing under this Indenture, the Notes and the Note Guarantees;

 

(3) non-assignment provisions of any
contract or any lease entered into in the ordinary course of business;

 

(4) encumbrances or restrictions
existing under agreements existing on the date of this Indenture (including,
without limitation, the Credit Agreement) as in effect on that date;

 

(5) restrictions on the transfer of
assets subject to any Lien permitted under this Indenture imposed by the holder
of such Lien;

 

(6) restrictions on the transfer of
assets imposed under any agreement to sell such assets permitted under this
Indenture to any Person pending the closing of such sale;

 

(7) any instrument governing Acquired
Indebtedness or any agreement of any Person that was acquired after the Issue
Date, in either case, which encumbrance or restriction is not applicable to any
Person, or the properties or assets of any Person, other than the Person or the
properties or assets of the Person so acquired;

 

(8) any other agreement governing
Indebtedness entered into after the Issue Date that contains encumbrances and
restrictions that are not materially more restrictive in the aggregate than
those in effect on the Issue Date pursuant to agreements in effect on the Issue
Date;

 

(9) provisions in partnership
agreements, limited liability company organizational governance documents,
joint venture agreements and other similar agreements entered into in the
ordinary course of business that restrict the transfer of ownership interests in
such partnership, limited liability company, joint venture or similar Person;

 

(10) Indebtedness incurred in compliance
with Section 4.06 that impose restrictions of the nature described in
clause (c) of this Section 4.12 on the assets acquired;

 

61

 

(11) any encumbrances or restrictions imposed
by any amendments or refinancings of the contracts, instruments or obligations
referred to in clauses (1) through (10) of this Section 4.12; provided
that such amendments or refinancings are, in the good faith judgment of the
Issuer’s Board of Directors, no more materially restrictive in the aggregate
with respect to such encumbrances and restrictions than those prior to such
amendment or refinancing; and

 

(12) encumbrances or restrictions incurred or
entered into during any Suspension Period.

 

SECTION 4.13               [Reserved]

 

SECTION 4.14               Legal
Existence.

 

Subject to Article Five, the Issuer shall do or cause to be done
all things necessary to preserve and keep in full force and effect its legal
existence, and the corporate, partnership or other existence of each Restricted
Subsidiary, in accordance with the respective organizational documents (as the
same may be amended from time to time) of each Restricted Subsidiary and the rights
(charter and statutory), licenses and franchises of the Issuer and its
Restricted Subsidiaries; provided that the Issuer shall not be required
to preserve any such right, license or franchise, or the corporate, partnership
or other existence of any of its Restricted Subsidiaries if the Board of
Directors of the Issuer shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Issuer and its
Restricted Subsidiaries, taken as a whole, and that the loss thereof is not
adverse in any material respect to the Holders.

 

SECTION4.15                Change
of Control Offer.

 

(a) Upon the occurrence of a Change of Control, the Issuer shall
be obligated to make an offer to purchase (the “Change of Control Offer”)
all outstanding Notes at a cash purchase price (the “Change of Control
Purchase Price”) equal to 101 % of the principal amount thereof, plus
accrued and unpaid interest thereon to the Change of Control Payment Date in
accordance with this Section 4.15.

 

(b) Within 30 days of the occurrence of a Change of Control, the
Issuer shall (i) cause a notice of the Change of Control Offer to be sent
at least once to the Dow Jones News Service or similar business news service in
the United States and (ii) send by first-class mail, postage prepaid, to
the Trustee and to each Holder, at the address appearing in the register
maintained by the Registrar of the Notes, a notice stating:

 

(1) that the Change of Control Offer is
being made pursuant to this Section 4.15 and that all Notes tendered shall
be accepted for payment;

 

62

 

(2) the Change of Control Purchase Price
and the purchase date (which shall be a Business Day no earlier than 30 days
nor later than 60 days from the date such notice is mailed (the “Change of
Control Payment Date”));

 

(3) that any Note not tendered shall
continue to accrue interest;

 

(4) that, unless the Issuer defaults in
the payment of the Change of Control Purchase Price, any Notes accepted for
payment pursuant to the Change of Control Offer shall cease to accrue interest
after the Change of Control Payment Date;

 

(5) that such Change of Control Offer
shall remain open for at least 20 Business Days and that Holders accepting the
offer to have a Note purchased pursuant to any Change of Control Offer shall be
required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Note completed, to the Paying Agent at
the address specified in the notice prior to the close of business on the
Business Day preceding the Change of Control Payment Date;

 

(6) that Holders shall be entitled to
withdraw their election if the Paying Agent receives, not later than the close
of business on the third Business Day preceding the Change of Control Payment
Date, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Notes the Holder delivered for
purchase, and a statement that such Holder is withdrawing his election to have
such Note purchased;

 

(7) that Holders whose Notes are being
purchased only in part shall be issued new Notes equal in principal amount to
the unpurchased portion of the Notes surrendered; provided that each
Note purchased and each such new Note issued shall be in an original principal
amount in denominations of $1,000 and integral multiples thereof;

 

(8) any other procedures that a Holder
must follow to accept a Change of Control Offer or effect withdrawal of such
acceptance; and

 

(9) the name and address of the Paying
Agent.

 

On the Change of Control Payment Date, the Issuer shall, to the extent
lawful, (i) accept for payment Notes or portions thereof properly tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying
Agent money sufficient to pay the purchase price of all Notes or portions
thereof so tendered and (iii) deliver or cause to be delivered to the
Trustee Notes so accepted together with an Officers’ Certificate stating the
Notes or portions thereof tendered to the Issuer. The Paying Agent shall
promptly mail to each Holder of Notes so accepted payment in an amount equal to
the purchase price for such Notes, and the Issuer shall execute and issue, and
the Trustee shall promptly authenticate and mail to such Holder, a new Note
equal in principal amount to any unpurchased portion of the Notes surrendered; provided
that each such new Note shall be issued in an original principal amount in
denominations of

 

63

 

$1,000 and
integral multiples thereof. The Issuer will publicly announce the results of
the Change of Control Offer on or as soon as practicable after the Change of
Control Payment Date.

 

(c) (i) If the Issuer or any Restricted Subsidiary thereof has issued
any outstanding (A) Indebtedness that is subordinated in right of payment to
the Notes or (B) Preferred Stock, and the Issuer or such Restricted Subsidiary
is required to make a Change of Control Offer or to make a distribution with
respect to such subordinated Indebtedness or Preferred Stock in the event of a
Change of Control, the Issuer shall not consummate any such offer or
distribution with respect to such subordinated Indebtedness or Preferred Stock
until such time as the Issuer shall have paid the Change of Control Purchase
Price in full to the Holders of Notes that have accepted the Issuer’s Change of
Control Offer and shall otherwise have consummated the Change of Control Offer
made to Holders of the Notes and (ii) the Issuer shall not issue Indebtedness
that is subordinated in right of payment to the Notes or Preferred Stock with
Change of Control provisions requiring the payment of such Indebtedness or
Preferred Stock prior to the payment of the Notes in the event of a Change of
Control Triggering Event under this Indenture.

 

The Issuer shall comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the repurchase
of Notes pursuant to a Change of Control Offer. To the extent that the
provisions of any securities laws or regulations conflict with this Section
4.15, the Issuer shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under this
Section 4.15 by virtue thereof.

 

The Issuer is not required to make a Change of Control Offer upon a
Change of Control if a third party (i) makes the Change of Control Offer in the
manner and at the time and otherwise in compliance with this Section 4.15, and
(ii) purchases all Notes validly tendered and not withdrawn under the Change of
Control Offer.

 

SECTION
4.16               Payment of
Additional Amounts.

 

All payments made by the Issuer under or with respect to the Notes
shall be made free and clear of and without withholding or deduction for or on
account of any present or future Taxes imposed or levied by or on behalf of any
Taxing Authority in any jurisdiction in which the Issuer is organized or is
otherwise resident for tax purposes or any jurisdiction from or through which
payment is made (each a “Relevant Taxing Jurisdiction”), unless the
Issuer is required to withhold or deduct Taxes by law or by the interpretation
or administration thereof. If the Issuer is required to withhold or deduct any
amount for or on account of Taxes imposed by a Relevant Taxing Jurisdiction,
from any payment made under or with respect to the Notes, the Issuer shall make
such withholding or deduction and shall pay such additional amounts (“Additional
Amounts”) as may be necessary so that the net amount received by each
Holder of Notes (including Additional Amounts) after such withholding or
deduction shall equal the amount the Holder would have received if such Taxes
had not been withheld or deducted; provided,

 

64

 

however,
that no Additional Amounts shall be payable with respect to any Tax that would
not have been imposed, payable or due:

 

(1) with respect to a Holder with which the Issuer or any Guarantor
does not deal on an arm’s length basis within the meaning of the Income Tax
Act (Canada) on the date of such payment;

 

(2) but for the existence of any present or former connection between
the Holder and the Relevant Taxing Jurisdiction (including being a citizen or
resident or national of, or carrying on a business or maintaining a permanent
establishment in, or being physically present in, the Relevant Taxing
Jurisdiction) other than the mere holding of the Notes or enforcement of rights
thereunder or the receipt of payments in respect thereof;

 

(3) but for the failure to satisfy any certification, identification or
other reporting requirements whether imposed by statute, treaty, regulation or
administrative practice; or

 

(4) if the presentation of Notes (where presentation is required) for
payment has not occurred within 30 days after the date such payment was due and
payable or was duly provided for, whichever is later.

 

In addition, Additional Amounts shall not be payable if the beneficial
owner of,.or person ultimately entitled to obtain an interest in, such Notes
had been the Holder of the Notes and such beneficial owner would not be
entitled to the payment of Additional Amounts by reason of clause (1), (2), (3)
or (4) above. In addition, Additional Amounts shall not be payable with respect
to any Tax which is payable or assessed on a Holder under the laws of the
jurisdiction(s) in which: (1) that Holder is incorporated, organized, resident
or has a permanent establishment for tax purposes, or (2) that Holder’s office
is located in respect of amounts received or receivable in that jurisdiction,
if that Tax is imposed on or calculated by reference to the income received or
receivable by that Holder.

 

Upon request, the Issuer shall provide the Trustee with documentation
satisfactory to the Trustee evidencing the payment of Additional Amounts.

 

SECTION
4.17               RESERVED.

 

SECTION
4.18               Limitations on
Layering Indebtedness.

 

At any time other than during a Suspension Period, the Issuer shall
not, and shall not permit any Guarantor to, directly or indirectly, incur any
Indebtedness that is or purports to be by its terms (or by the terms of any
agreement governing such Indebtedness) subordinated to any other Indebtedness
of the Issuer or of such Guarantor, as the case may be, unless such

 

65

 

Indebtedness is also by its
terms (or by the terms of any agreement governing such Indebtedness) made
expressly subordinate to the Notes or the Note Guarantee of such Guarantor, to
the same extent and in the same manner as such Indebtedness is subordinated to
such other Indebtedness of the Issuer or such Guarantor, as the case may be.

 

SECTION 4.19               Limitations
on Designation of Unrestricted Subsidiaries.

 

The Issuer may designate any Subsidiary of the Issuer as an
“Unrestricted Subsidiary” under this Indenture (a “Designation”) only
if:

 

(1) no Default shall have occurred and be continuing after giving
effect to such Designation; and

 

(2) the Issuer would be permitted to make an Investment in an amount
(the “Designation Amount”) equal to the Fair Market Value of the
Issuer’s proportionate interest in such Subsidiary on such date (and in the
case of any Designation occurring during a Suspension Period, the Issuer could make
such Investment if such Suspension Period were not then in effect).

 

No Subsidiary shall be Designated as an “Unrestricted Subsidiary”
unless such Subsidiary:

 

(1) has no Indebtedness other than Non-Recourse Indebtedness;

 

(2) is not party to any agreement, contract, arrangement or
understanding with the Issuer or any Restricted Subsidiary unless the terms of
the agreement, contract, arrangement or understanding are no less favorable to
the Issuer or the Restricted Subsidiary than those that might be obtained at
the time from Persons who are not Affiliates;

 

(3) is a Person with respect to which neither the Issuer nor any
Restricted Subsidiary has any direct or indirect obligation (a) to subscribe
for additional Equity Interests or (b) to maintain or preserve the Person’s
financial condition or to cause the Person to achieve any specified levels of
operating results; and

 

(4) has not guaranteed or otherwise directly or indirectly provided
credit support for any Indebtedness of the Issuer or any Restricted Subsidiary,
except for any guarantee given solely to support the pledge by the Issuer or
any Restricted Subsidiary of the Equity Interests of such Unrestricted
Subsidiary, which guarantee is not recourse to the Issuer or any Restricted
Subsidiary, and except to the extent the amount thereof constitutes a
Restricted Payment permitted pursuant to Section 4.07.

 

If, at any time, any Unrestricted Subsidiary fails to meet the
preceding requirements as an Unrestricted Subsidiary, it shall thereafter cease
to be an Unrestricted

 

66

 

Subsidiary for
purposes of this Indenture and any Indebtedness of the Subsidiary and any Liens
on assets of such Subsidiary shall be deemed to be incurred by a Restricted
Subsidiary as of the date and, if the Indebtedness is not permitted to be
incurred under Section 4.06 or the Lien is not permitted under Section 4.08,
the Issuer shall be in default of the applicable covenant.

 

The Issuer may redesignate an Unrestricted Subsidiary as a Restricted
Subsidiary (a “Redesignation”) only if:

 

(1) no Default shall have occurred and be continuing at the time of and
after giving effect to such Redesignation; and

 

(2) all Liens, Indebtedness and Investments of such Unrestricted
Subsidiary outstanding immediately following such Redesignation would, if
incurred or made at such time, have been permitted to be incurred or made for
all purposes of this Indenture.

 

All Designations and Redesignations must be evidenced by resolutions of
the Board of Directors of the Issuer, delivered to the Trustee certifying
compliance with the foregoing provisions.

 

SECTION
4.20               Limitations on Sale
and Leaseback Transactions.

 

The Issuer shall not, and shall not permit any Guarantor to enter into
any Sale and Leaseback Transaction; provided that the Issuer or any
Guarantor may enter into a Sale and Leaseback Transaction if:

 

(1) the Issuer or such Guarantor could have (a) incurred the
Indebtedness attributable to such Sale and Leaseback Transaction pursuant to
Section 4.06 and (b) incurred a Lien on such assets pursuant to Section 4.08;
and

 

(2) the gross cash proceeds of such Sale and Leaseback Transaction are
at least equal to the Fair Market Value of the asset that is the subject of
such Sale and Leaseback Transaction.

 

SECTION 4.21    Conduct
of Business.

 

At any time except during a Suspension Period, the Issuer shall not,
and shall not permit any Restricted Subsidiary to, enter into any line of
business other than a Permitted Business.

 

67

 

ARTICLE FIVE

 

SUCCESSOR
CORPORATION

 

SECTION
5.01               Limitation on
Mergers, Amalgamations, Consolidations, Etc.

 

The Issuer
shall not, directly or indirectly, in a single transaction or a series of
related transactions, (a) consolidate, merge or amalgamate with or into (other
than a merger, amalgamation or plan of arrangement with a Wholly-Owned
Restricted Subsidiary solely for the purpose of changing the Issuer’s
jurisdiction of incorporation to a State of the United States or another province
or territory of Canada), or sell, lease, transfer, conveyor otherwise dispose
of or assign all or substantially all of the assets of the Issuer or the Issuer
and the Restricted Subsidiaries (taken as a whole) or (b) adopt a Plan of
Liquidation unless, in either case:

 

(1)           either:

 

(a)           the
Issuer shall be the surviving or continuing Person; or

 

(b) the Person formed by or surviving such consolidation, amalgamation
or merger or to which such sale, lease, conveyance or other disposition shall
be made (or, in the case of a Plan of Liquidation, any Person to which assets
are transferred) (collectively, the “Successor”) is organized and
existing under the laws of any province or territory of Canada, any State of
the United States of America or the District of Columbia, and the Successor
expressly assumes, by supplemental indenture in form and substance satisfactory
to the Trustee, all of the obligations of the Issuer under the Notes, this
Indenture and the Registration Rights Agreement;

 

(2) at any time other than during a Suspension Period, immediately
after giving effect to such transaction and the assumption of the obligations
as set forth in clause (1 )(b) above and the incurrence of any Indebtedness to
be incurred in connection therewith, no Default shall have occurred and be
continuing; and

 

(3) at any time other than during a Suspension Period, immediately
after and giving effect to such transaction and the assumption of the
obligations set forth in clause (1 )(b) above and the incurrence of any
Indebtedness to be incurred in connection therewith, and the use of any net
proceeds therefrom on a pro forma basis, the Issuer or the Successor, as the
case may be, could incur $1.00 of additional Indebtedness pursuant to the
Coverage Ratio Exception.

 

For purposes of this Section 5.01, any Indebtedness of the Successor
that was not Indebtedness of the Issuer immediately prior to the transaction
shall be deemed to have been incurred in connection with such transaction.

 

68

 

Except as
provided in Section 10.05, no Guarantor may consolidate or amalgamate with or
merge with or into (whether or not such Guarantor is the surviving Person)
another Person, whether or not affiliated with such Guarantor, unless:

 

(1)           either:

(a)           such
Guarantor shall be the surviving or continuing Person; or

 

(b) the Person formed by or surviving any such consolidation,
amalgamation or merger, amalgamation or plan of arrangement assumes, by
supplemental indenture in form and substance satisfactory to the Trustee, all
of the obligations of such Guarantor under the Note Guarantee of such
Guarantor, this Indenture and the Registration Rights Agreement; and

 

(2) immediately after giving effect to such transaction, no Default
shall have occurred and be continuing.

 

For purposes of the foregoing, the transfer (by lease, assignment, sale
or otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of one or more Restricted
Subsidiaries, the Equity Interests of which constitute all or substantially all
of the properties and assets of the Issuer, shall be deemed to be the transfer
of all or substantially all of the properties and assets of the Issuer.

 

Upon any consolidation, combination, merger or amalgamation of the
Issuer or a Guarantor, or any transfer of all or substantially all of the
assets of the Issuer in accordance with the foregoing, in which the Issuer or
such Guarantor is not the continuing obligor under the Notes or its Note
Guarantee, the surviving entity formed by such consolidation or into which the
Issuer or such Guarantor is merged or to which the conveyance, lease or
transfer is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Issuer or such Guarantor under this Indenture,
the Notes and the Note Guarantees with the same effect as if such surviving
entity had been named therein as the Issuer or such Guarantor and, except in
the case of a conveyance, transfer or lease, the Issuer or such Guarantor, as
the case may be, shall be released from the obligation to pay the principal of
and interest on the Notes or in respect of its Note Guarantee, as the case may
be, and all of the Issuer’s or such Guarantor’s other obligations and covenants
under the Notes, this Indenture and its Note Guarantee, if applicable.

 

Notwithstanding the foregoing, any Restricted Subsidiary may merge
into, consolidate or amalgamate with the Issuer or another Restricted
Subsidiary.

 

69

 

ARTICLE SIX

 

DEFAULTS AND REMEDIES

 

SECTION
6.01               Events of Default.

 

Each of the
following is an “Event of Default”:

 

(1) failure by the Issuer to pay interest on any of the Notes when it
becomes due and payable and the continuance of any such failure for 30 days;

 

(2) failure by the Issuer to pay the principal on any of the Notes when
it becomes due and payable, whether at stated maturity, upon redemption, upon
purchase, upon acceleration or otherwise;

 

(3) failure by the Issuer to comply with any of its agreements or
failure to comply with Sections 4.15 and 5.01;

 

(4) failure by the Issuer to comply with any other agreement or
covenant in this Indenture (including the requirement to make a Net Proceeds
Offer as described above under Section 4.10 and continuance of this failure for
45 days after notice of the failure has been given to the Issuer by the Trustee
or by the Holders of at least 25% of the aggregate principal amount of the
Notes then outstanding;

 

(5) default under any mortgage, indenture or other instrument or
agreement under which there may be issued or by which there may be secured or
evidenced Indebtedness of the Issuer or any Restricted Subsidiary, whether such
Indebtedness now exists or is incurred after the Issue Date, which default:

 

(a) is caused by a failure to pay when due principal on such
Indebtedness within the applicable express grace period,

 

(b) results in the acceleration of such Indebtedness prior to its
express final maturity, or

 

( c) results in the commencement of judicial proceedings to foreclose
upon, or to exercise remedies under applicable law or applicable security
documents to take ownership of, the assets securing such Indebtedness, and in
each case, the principal amount of such Indebtedness, together with any other
Indebtedness with respect to which an event described in clause (a), (b) or (c)
has occurred and is continuing, aggregates $15.0 million or more;

 

(6) one or more final and non-appealable judgments or orders that
exceed $15.0 million in the aggregate (net of amounts covered by insurance or
bonded) for the

 

70

 

payment of
money have been entered by a court or courts of competent jurisdiction against
the Issuer or any Restricted Subsidiary and such judgment or judgments have not
been satisfied, stayed, annulled or rescinded within 60 days of being entered;

 

(7) the Issuer or any Significant Subsidiary pursuant to or within the
meaning of any Bankruptcy Law:

 

(a) commences a voluntary case,

 

(b) consents to the entry of an order for relief against it in an
involuntary case,

 

(c) consents to the appointment of a Custodian of it or for all or
substantially all of its assets, or

 

(d) makes a general assignment for the benefit of its creditors;

 

(8) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:

 

(a) is for relief against the Issuer or any Significant Subsidiary as
debtor in an involuntary case,

 

(b) appoints a Custodian of the Issuer or any Significant Subsidiary or
a Custodian for all or substantially all of the assets of the Issuer or any
Significant Subsidiary, or

 

(c) orders the liquidation of the Issuer or any Significant Subsidiary,
and the order or decree remains unstayed and in effect for 60 days; or

 

(9) any Note Guarantee of any Significant Subsidiary ceases to be in
full force and effect (other than in accordance with the terms of such Note
Guarantee and this Indenture) or is declared null and void and unenforceable or
found to be invalid or any Guarantor denies its liability under its Note
Guarantee (other than by reason of release of a Guarantor from its Note
Guarantee in accordance with the terms of this Indenture and the Note
Guarantee).

 

The Issuer is
required to deliver to the Trustee annually a statement regarding compliance
with this Indenture and, upon. any Officer of the Issuer becoming aware of any
Default, a statement specifying such Default and what action the Issuer is
taking or proposes to take with respect thereto.

 

Subject to Sections 7.01 and 7.02, the Trustee shall not be charged
with knowledge of any Default, Event of Default, Change of Control or Asset
Sale or the requirement

 

71

 

for payment of
Additional Interest unless written notice thereof shall have been given to a
Responsible Officer at the Corporate Trust Office of the Trustee by the Issuer
or any other Person.

 

SECTION
6.02               Acceleration.

 

If an Event of Default (other than an Event of Default specified in
clause (7) or (8) of Section 6.01 with respect to the Issuer), shall have
occurred and be continuing under this Indenture, the Trustee, by written notice
to the Issuer, or the Holders of at least 25% in aggregate principal amount of
the Notes then outstanding by written notice to the Issuer and the Trustee, may
declare all amounts owing under the Notes to be due and payable immediately.
Upon such declaration of acceleration, the aggregate principal of and accrued
and unpaid interest on the outstanding Notes shall immediately become due and payable;
provided, however, that after such acceleration, but before a judgment
or decree based on acceleration, the Holders of a majority in aggregate
principal amount of such outstanding Notes may, under certain circumstances,
rescind and annul such acceleration if all Events of Default, other than the
nonpayment of accelerated principal and interest, have been cured or waived as
provided in this Indenture. If an Event of Default specified in clause (7) or
(8) of Section 6.01 with respect to the Issuer occurs, all outstanding Notes
shall become due and payable without any further action or notice.

 

The Trustee shall, within 30 days after the occurrence of any Default
with respect to the Notes, give the Holders notice of all uncured Defaults
thereunder known to it; provided, however, that, except in the
case of an Event of Default in payment with respect to the Notes or a Default
in complying with Section 5.01, the Trustee shall be protected in withholding
such notice if and so long as a committee of its trust officers in good faith
determines that the withholding of such notice is in the interest of the
Holders.

 

SECTION
6.03               Other Remedies.

 

If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy by proceeding at law or in equity to collect the payment
of principal of, or premium, if any, and interest on the Notes or to enforce
the performance of any provision of the Notes or this Indenture.

 

The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative to the
extent permitted by law. Any costs associated with actions taken by the Trustee
under this Section 6.03 shall be reimbursed to the Trustee by the Issuer.

 

72

 

SECTION
6.04               Waiver of Past
Defaults and Events of Default.

 

Subject to
Sections 6.02, 6.08 and 8.02, the Holders of a majority in principal amount of
the Notes then outstanding by written notice to the Trustee have the right to
waive any existing Default or Event of Default or compliance with any provision
of this Indenture or the Notes. The Issuer shall deliver to the Trustee an
Officers’ Certificate stating that the requisite percentage of Holders has
consented to such waiver. Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured for every purpose of this Indenture; provided that no such waiver
shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereto.

 

SECTION
6.05               Control by
Majority.

 

The Holders of a majority in principal amount of the Notes outstanding
shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee by this Indenture. The Trustee, however, may
refuse to follow any direction that conflicts with law or this Indenture or
that the Trustee determines may be unduly prejudicial to the rights of another
Holder not taking part in such direction, and the Trustee shall have the right
to decline to follow any such direction if the Trustee, being advised by
counsel, determines that the action so directed may not lawfully be taken or if
the Trustee in good faith shall, by a Responsible Officer, determine that the
proceedings so directed may involve it in personal liability; provided
that the Trustee may take any other action deemed proper by the Trustee which
is not inconsistent with such direction.

 

SECTION
6.06               Limitation on
Suits.

 

Subject to Section 6.08, a Holder may not institute any proceeding or
pursue any remedy with respect to this Indenture or the Notes unless:

 

(1)          the Holder gives to the
Trustee written notice of a continuing Event of Default;

 

(2) the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding make a written request to the Trustee to pursue the
remedy;

 

(3) such Holder or Holders offer and if requested provide to the
Trustee indemnity reasonably satisfactory to the Trustee against any loss,
liability or expense;

 

(4) the Trustee does not comply with the request within 60 days after
receipt of the request and the offer, and, if requested, provision of,
indemnity; and

 

73

 

(5) no direction which in the reasonable opinion of the Trustee is
inconsistent with such written request has been given to the Trustee during
such 60 day period by the Holders of a majority in aggregate principal amount
of the Notes then outstanding.

 

However, such
limitations do not apply to a suit instituted by a Holder of any Note for
enforcement of payment of the principal of or interest on such Note on or after
the due date therefore (in the case of any interest payment, after giving
effect to the grace period specified in clause (1) of Section 6.01.

 

A Holder may not use this Indenture to prejudice the rights of another
Holder or to obtain a preference or priority over another Holder.

 

SECTION
6.07               No Personal
Liability of Directors, Officers, Employees and Stockholders.

 

No director, officer, employee, incorporator or stockholder of the
Issuer or any Guarantor shall have any liability for any obligations of the
Issuer under the Notes or this Indenture or of any Guarantor under its Note
Guarantee or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes and the Note Guarantees. The waiver may
not be effective to waive liabilities under the federal securities laws. It is
the view of the SEC that this type of waiver is against public policy.

 

SECTION
6.08               Rights of
Holders To Receive Payment.

 

Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal of, or premium, if any, and
interest on such Note (including Additional Interest) on or after the
respective due dates expressed on such Note, or to bring suit for the
enforcement of any such payment on or after such respective dates, is absolute
and unconditional and shall not be impaired or affected without the consent of
such Holder.

 

SECTION
6.09               Collection Suit
by Trustee.

 

If an Event of Default in payment of principal, premium or interest
specified in clause (1) or (2) of Section 6.01 occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Issuer or any Guarantor for the whole amount of unpaid principal
and accrued interest remaining unpaid, together with interest on overdue
principal and, to the extent that payment of such interest is lawful, interest
on overdue installments of interest, in each case at the rate set forth in the
Notes, and such further amounts as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

 

74

 

SECTION
6.10               Trustee May File
Proofs of Claim.

 

The Trustee
may file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07) and the Holders allowed in any judicial proceedings relative to
the Issuer or any Guarantor, its creditors or its property and shall be
entitled and empowered to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same after
deduction of its charges and expenses to the extent that any such charges and
expenses are not paid out of the estate in any such proceedings and any
custodian in any such judicial proceeding is hereby authorized by each Holder
to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07 hereof.

 

Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan or
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceedings.

 

SECTION
6.11               Priorities.

 

If the Trustee collects any money pursuant to this Article Six, it
shall payout the money in the following order:

 

FIRST:                  to
the Trustee for amounts due under Section 7.07;

 

SECOND:             to Holders for
amounts due and unpaid on the Notes for principal, premium, if any, and
interest (including Additional Interest, if any) as to each, ratably, without
preference or priority of any kind, according to the amounts due and payable on
the Notes; and

 

THIRD:                 to the Issuer or,
to the extent the Trustee collects any amount from any Guarantor, to such
Guarantor.

 

The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 6.11.

 

SECTION
6.12               Undertaking for
Costs.

 

In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the

 

75

 

costs of the
suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.12 does not apply to a suit by the Trustee, a suit by
a Holder pursuant to Section 6.08 or a suit by Holders of more than 10% in
aggregate principal amount of the Notes then outstanding.

 

ARTICLE SEVEN

 

TRUSTEE

 

SECTION
7.01               Duties of Trustee.

 

(a) If an Event of Default actually known to a Responsible Officer of
the Trustee has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture and use the same degree of
care and skill in their exercise as a prudent person would exercise or use
under the same circumstances in the conduct of such person’s own affairs.

 

(b) Except
during the continuance of an Event of Default:

 

(1) The Trustee need perform only those duties that are specifically
set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture.

 

(2) In the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture but, in the case
of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform on
their face to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations, the accuracy of the
signatures or other facts stated therein).

 

(c) The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

(1) This
paragraph does not limit the effect of paragraph (b) of this Section 7.01.

 

(2) The Trustee shall not be liable for any error of judgment made in
good faith, unless it is proved that the Trustee was negligent in ascertaining
the pertinent facts.

 

76

 

(3) The Trustee shall not be liable with respect to any action it takes
or omits to take in good faith in accordance with a direction received by it
pursuant to the terms of Sections 6.04 and 6.05.

 

(4) No provision of this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur any financial liability in the
performance of any of its rights, powers or duties if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
satisfactory to it against such risk or liability is not reasonably assured to
it.

 

(d) Whether or
not therein expressly so provided, paragraphs (a), (b) and (c) of this Section
7.01 shall govern every provision of this Indenture that in any way relates to
the Trustee; provided that the Trustee’s conduct does not constitute
gross negligence or bad faith.

 

(e) The Trustee shall not be liable for interest on any money received
by it except as the Trustee may agree in writing with the Issuer or any
Guarantor. Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by the law.

 

SECTION
7.02               Rights of
Trustee.

 

Subject to
Section 7.01:

 

(1) The Trustee may rely on any document reasonably believed by it to
be genuine and to have been signed or presented by the proper person. The
Trustee need not investigate any fact or matter stated in the document.

 

(2) Any request or direction of the Issuer mentioned herein shall be
sufficiently evidenced by a Issuer Request and any resolution of the Board of
Directors shall be sufficiently evidenced by a Board Resolution.

 

(3) Before the Trustee acts or refrains from acting, it may require an
Officers’ Certificate or an Opinion of Counsel, or both, which shall conform in
all material respects to the provisions of Section 11.05. The Trustee shall be
protected and shall not be liable for any action it takes or omits to take in
good faith in reliance on such certificate or opinion.

 

(4) The Trustee may act through its attorneys and agents and shall not
be responsible for the misconduct or negligence of any agent appointed by it
with due care.

 

(5) The Trustee shall not be liable for any action it takes or omits to
take in good faith,
which it reasonably believes to be authorized or within its rights or powers.

 

(6) The Trustee may consult with counsel of its selection, and the
advice or opinion of such counsel as to matters of law shall be full and
complete authorization and

 

77

 

protection
from liability in respect of any action taken, omitted or suffered by it
hereunder in good faith and in accordance with the advice or opinion of such
counsel.

 

(7) Whenever in the administration of this Indenture the Trustee shall
deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its
part, rely upon an Officers’ Certificate.

 

(8) The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, coupon or other paper or document.

 

(9) The Trustee shall not be deemed to have notice of any Event of
Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless the Trustee shall have received written notice thereof at the
Corporate Trust Office of the Trustee, and such notice references the Notes and
this Indenture. As used herein, the term “actual knowledge” means the
actual fact or statement of knowing, without any duty to make any investigation
with regard thereto.

 

(10) The Trustee shall not be required to give any bond or surety in
respect of the performance of its powers and duties hereunder.

 

(11) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Holders, pursuant to the provisions of this Indenture,
unless such Holders shall have offered to the Trustee reasonable security or
indemnity against any loss, liability or expense which may be incurred therein
or thereby.

 

(12) The Trustee shall not be responsible for any information contained
in any notice provision provided to the Trustee by the Issuer for distribution
to the Holders.

 

SECTION
7.03               Individual
Rights of Trustee.

 

The Trustee in
its individual or any other capacity may become the owner or pledgee of Notes
and may make loans to, accept deposits from, perform services for or otherwise
deal with the either of the Issuer or any Guarantor, or any Affiliates thereof,
with the same rights it would have if it were not Trustee. Any Agent may do the
same with like rights. The Trustee, however, shall be subject to Sections 7.10
and 7.11.

 

SECTION
7.04               Trustee’s
Disclaimer.

 

The Trustee shall not be responsible for and makes no representation as
to the validity or adequacy of this Indenture or the Notes or any Note
Guarantee, it shall not be

 

78

 

accountable
for the Issuer’s or any Guarantor’s use of the proceeds from the sale of Notes
or any money paid to the Issuer or any Guarantor pursuant to the terms of this
Indenture and it shall not be responsible for any statement in the Notes, any
Note Guarantee or this Indenture other than the Trustee’s certificate of
authentication.

 

SECTION
7.05               Notice of Defaults.

 

If a Default occurs and is continuing and if the Trustee has actual
knowledge of such default, the Trustee shall mail to each Holder notice of the
Default within 90 days after it occurs. Except in the case of a Default in
payment of the principal of, or premium, if any, or interest on any Note or a
default in the observance or performance of any of the obligations of the Issuer
under Article Five, the Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the best interest of the Holders.

 

SECTION
7.06               Reports by
Trustee to Holders.

 

If required by TIA § 313(a), within 90 days after December 31 of any
year, commencing December 31, 2001 the Trustee shall mail to each Holder a
brief report dated as of such December 31 that complies with TIA § 313(a). The
Trustee also shall comply with TIA § 313(b )(2). The Trustee shall also
transmit by mail all reports as required by TIA § 313(c) and TIA § 313(d).

 

Reports
pursuant to this Section 7.06 shall be transmitted by mail:

 

(1) to all Holders of Notes, as the names and addresses of such Holders
appear on the Registrar’s books; and

 

(2) to such Holders of Notes as have, within the two years preceding
such transmission, filed their names and addresses with the Trustee for that
purpose.

 

A copy of each report at the time of its mailing to Holders shall be
filed with the SEC and each stock exchange on which the Notes are listed. The
Issuer shall promptly notify the Trustee when the Notes are listed on any stock
exchange.

 

SECTION
7.07               Compensation and
Indemnity.

 

The Issuer and any Guarantors shall pay to the Trustee and each Agent
from time to time reasonable compensation for its services hereunder (which
compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust). The Issuer and any Guarantors
shall reimburse the Trustee and each Agent upon request for all reasonable
disbursements, expenses and advances incurred or made by it in connection with
its duties under this Indenture, including the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

 

79

 

The Issuer and
any Guarantors shall indemnify each of the Trustee and any predecessor Trustee
and each Agent for, and hold each of them harmless against, any and all loss,
damage, claim, liability or expense, including without limitation taxes (other
than taxes based on the income of the Trustee or such Agent) and reasonable
attorneys’ fees and expenses incurred by each of them in connection with the
acceptance or performance of its duties under this Indenture including the
reasonable costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of any of its powers
or duties hereunder (including, without limitation, settlement costs). The
Issuer and any Guarantor need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld. The Trustee or
Agent, as the case may be, shall notify the Issuer and any Guarantors in
writing promptly of any claim asserted against the Trustee or such Agent for
which it may seek indemnity. However, the failure by the Trustee or such Agent
to so notify the Issuer and any Guarantors shall not relieve the Issuer and any
Guarantors of their obligations hereunder.

 

Notwithstanding the foregoing, the Issuer and any Guarantors need not
reimburse the Trustee or any Agent for any expense or indemnify it against any
loss or liability incurred by the Trustee or such Agent, as the case may be,
resulting from its own negligence, willful misconduct or bad faith. To secure
the payment obligations of the Issuer and any Guarantors in this Section 7.07,
the Trustee shall have a lien prior to the Notes on all money or property held
or collected by the Trustee except such money or property held in trust to pay
principal of and interest on particular Notes. The obligations of the Issuer
and any Guarantors under this Section 7.07 to compensate and indemnify the
Trustee and each predecessor Trustee and to payor reimburse the Trustee and
each predecessor Trustee for expenses, disbursements and advances shall be
joint and several liabilities of the Issuer and any Guarantors and shall
survive the resignation or removal of the Trustee and the satisfaction,
discharge or other termination of this Indenture, including any termination or
rejection hereof under any Bankruptcy Law.

 

When the Trustee incurs expenses (including reasonable fees and
expenses of its Agents and counsel) or renders services after an Event of
Default specified in clause (7) or (8) of Section 6.01 hereof occurs, the
expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

 

For purposes of this Section 7.07, the term “Trustee” shall include any
trustee appointed pursuant to Article Nine.

 

SECTION
7.08               Replacement of
Trustee.

 

The Trustee may resign by so notifying the Issuer and any Guarantors in
writing. The Holders of a majority in principal amount of the outstanding Notes
may remove the Trustee by notifying the Issuer and the removed Trustee in
writing and may appoint a successor Trustee with the Issuer’s written consent,
which consent shall not be unreasonably withheld. The Issuer may remove the
Trustee at its election if:

 

(1)          the
Trustee fails to comply with Section 7.10 hereof;

 

80

 

(2)            the
Trustee is adjudged a bankrupt or an insolvent;

 

(3)            a
receiver or other public officer takes charge of the Trustee or its property;
or

 

(4)            the Trustee otherwise
becomes incapable of performing its duties hereunder.

 

If the Trustee
resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Issuer shall notify the Holders of such event and shall promptly
appoint a successor Trustee. Within one year after such successor Trustee takes
office, the Holders of a majority in aggregate principal amount of the Notes
then outstanding may appoint a successor Trustee to replace such successor
Trustee appointed by the Issuer.

 

If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Issuer or the
Holders of a majority in principal amount of the outstanding Notes may petition
any court of competent jurisdiction for the appointment of a successor Trustee.

 

If the Trustee fails to comply with Section 7.10, any Holder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Issuer. Immediately following
such delivery, the retiring Trustee shall, subject to its rights under Section
7.07, transfer all property held by it as Trustee to the successor Trustee, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. A successor Trustee shall mail notice of its succession
to each Holder. Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Issuer’s and any Guarantor’s obligations under Section 7.07
shall continue for the benefit of the retiring Trustee.

 

SECTION
7.09               Successor
Trustee by Consolidation, Merger, Etc.

 

If the Trustee consolidates with, merges or converts into, or transfers
all or substantially all of its corporate trust assets to, another corporation,
subject to Section 7.10, the successor corporation without any further act
shall be the successor Trustee; provided such entity shall be otherwise
qualified and eligible under this Article Seven.

 

SECTION
7.10               Eligibility;
Disqualification.

 

This Indenture shall always have a Trustee who satisfies the
requirements of TIA § 31 0(a)(1) and (2) in every respect. The Trustee
(together with its corporate parent) shall have a combined capital and surplus
of at least $100,000,000 as set forth in the most recent applicable

 

81

 

published
annual report of condition. The Trustee shall comply with TIA § 31 O (b),
including the provision in § 31 O(b)(1).

 

SECTION
7.11               Preferential
Collection of Claims Against Issuer.

 

The Trustee shall comply with TIA § 311(a), excluding any creditor
relationship listed in TIA § 311 (b). A Trustee who has resigned or been
removed shall be subject to TIA § 311(a) to the extent indicated therein.

 

SECTION
7.12               Paving Agents.

 

The Issuer shall cause each Paying Agent other than the Trustee to
execute and deliver to it and the Trustee an instrument in which such agent
shall agree with the Trustee, subject to the provisions of this Section 7.12:

 

(1) that it shall hold all sums held by it as agent for the payment of
principal of, or premium, if any, or interest on, the Notes (whether such sums
have been paid to it by the Issuer, any Guarantor or by any other obligor on
the Notes) in trust for the benefit of Holders of the Notes or the Trustee;

 

(2) that it shall at any time during the continuance of any Event of
Default, upon written request from the Trustee, deliver to the Trustee all sums
so held in trust by it together with a full accounting thereof; and

 

(3) that it shall give the Trustee written notice within three Business
Days of any failure of the Issuer, any Guarantor or by any obligor on the Notes
in the payment of any installment of the principal of, premium, if any, or
interest on, the Notes when the same shall be due and payable.

 

ARTICLE EIGHT

 

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

SECTION
8.01               Without Consent of
Holders.

 

The Issuer and any Guarantors, when authorized by a Board Resolution of
each of them, and the Trustee, when an Officers’ Certificate is provided
stating that such amendment or supplement complies with the provisions of this
Section 8.01, may amend, waive or supplement this Indenture or the Notes
without notice to or consent of any Holder:

 

(1)          to
comply with Section 5.01;

 

(2)          to
provide for uncertificated Notes in addition to or in place of certificated Notes;

 

82

 

(3)            [Reserved];

 

(4)            to
cure any ambiguity, defect or inconsistency;

 

(5) to release any Guarantor from any of its obligations under its Note
Guarantee or this Indenture (to the extent permitted by this Indenture);

 

(6) to provide for the issuance of the Exchange Notes or the Private
Exchange Notes in accordance with Section 2.01 in a manner that does not
adversely affect the rights of any Holder;

 

(7) to provide for the assumption of the Issuer’s obligations to
Holders in the case of a merger or acquisition in accordance with the terms of
this Indenture;

 

(8) to make any other change that does not materially adversely affect
the rights of any Holders hereunder; or

 

(9) [Reserved].

 

The Trustee is
hereby authorized to join with the Issuer and any Guarantors in the execution
of any supplemental indenture authorized or permitted by the terms of this
Indenture and to make any further appropriate agreements and stipulations which
may be therein contained, but the Trustee shall not be obligated to enter into
any such supplemental indenture which adversely affects its own rights, duties
or immunities under this Indenture.

 

SECTION
8.02               With Consent of
Holders.

 

The Issuer (when authorized by a Board Resolution) and any Guarantors
(when authorized by a Board Resolution) may, subject to Section 8.06, direct
the Trustee to modify or supplement this Indenture, the Note Guarantees and/or
the Notes with the written consent of the Holders of at least a majority in
aggregate principal amount of the outstanding Notes, provided that:

 

(a) no such amendment may, without the consent of the Holders of
two-thirds in aggregate principal amount of Notes then outstanding, amend the
obligation of the Issuer under Section 4.15 or the related definitions that
could adversely affect the rights of any Holder;

 

The Holders of not less than a majority in aggregate principal amount
of the outstanding Notes may waive compliance in a particular instance by the
Issuer or any Guarantor with any provision of this Indenture or the Notes.
Subject to Section 8.04 hereof, without the consent of each Holder affected,
however, an amendment, supplement or waiver, including a waiver pursuant to
Section 6.04, may not:

 

83

 

(b) without the consent of each Holder affected, the Issuer and the
Trustee may not:

 

(1) change the
maturity of any Note;

 

(2) reduce the amount, extend the due date or otherwise affect the
terms of any scheduled payment of interest on or principal of the Notes;

 

(3) reduce any premium payable upon optional redemption of the Notes,
change the date on which any Notes are subject to redemption or otherwise alter
the provisions with respect to the redemption of the Notes;

 

(4) make any Note payable in money or currency other than that stated
in the Notes;

 

(5) modify or change any provision of this Indenture or the related
definitions to affect the ranking of the Notes or any Note Guarantee in a
manner that adversely affects the Holders;

 

(6) reduce the percentage of Holders necessary to consent to an
amendment or waiver to this Indenture or the Notes;

 

(7) impair the rights of Holders to receive payments of principal of or
interest on the Notes;

 

(8) release any Guarantor that is a Significant Subsidiary from any of
its obligations under its Note Guarantee or this Indenture, except as permitted
by this Indenture; or

 

(9) make any
change in these amendment and waiver provisions.

 

After an
amendment, supplement or waiver under this Section 8.02 becomes effective, the
Issuer shall mail to the Holders a notice briefly describing the amendment,
supplement or waiver.

 

Upon the written request of the Issuer, accompanied by a Board
Resolution authorizing the execution of any such supplemental indenture, and
upon the receipt by the Trustee of evidence reasonably satisfactory to the
Trustee of the consent of the Holders as aforesaid and upon receipt by the
Trustee of the documents described in Section 8.06, the Trustee shall join with
the Issuer and any Guarantors in the execution of such supplemental indenture
unless such supplemental indenture affects the Trustee’s own rights, duties or
immunities under this Indenture, in which case the Trustee may, but shall not
be obligated to, enter into such supplemental indenture.

 

84

 

It shall not
be necessary for the consent of the Holders under this Section 8.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it
shall be sufficient if such consent approves the substance thereof.

 

SECTION
8.03               Compliance with
Trust Indenture Act.

 

Every amendment or supplement to this Indenture or the Notes shall
comply with the TIA as then in effect.

 

SECTION
8.04               Revocation and
Effect of Consents.

 

Until an amendment, supplement, waiver or other action becomes
effective, a consent to it by a Holder is a continuing consent conclusive and
binding upon such Holder and every subsequent Holder of the same Note or
portion thereof, and of any Note issued upon the transfer thereof or in
exchange therefore or in place thereof, even if notation of the consent is not
made on any such Note. Any such Holder or subsequent Holder, however, may
revoke the consent as to his Note or portion of a Note, if the Trustee receives
the written notice of revocation before the date the amendment; supplement,
waiver or other action becomes effective.

 

The Issuer may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders entitled to consent to any amendment,
supplement, or waiver. If a record date is fixed, then, notwithstanding the
preceding paragraph, those Persons who were Holders at such record date (or
their duly designated proxies), and only such Persons, shall be entitled to
consent to such amendment, supplement, or waiver or to revoke any consent
previously given, whether or not such Persons continue to be Holders after such
record date. No such consent shall be valid or effective for more than 120 days
after such record date unless the consent of the requisite number of Holders
has been obtained.

 

An amendment, supplement, waiver or other action becomes effective in
accordance with its terms and thereafter shall bind every Holder, unless it
makes a change described in any of clauses (1) through (9) of Section 8.02(b).
In that case the amendment, supplement, waiver or other action shall bind each
Holder who has consented to it and every subsequent Holder or portion of a Note
that evidences the same debt as the consenting Holder’s Note.

 

SECTION
8.05               Notation on or
Exchange of Notes.

 

If an amendment, supplement, or waiver changes the terms of a Note, the
Trustee (in accordance with the specific written direction of the Issuer) shall
request the Holder of the Note (in accordance with the specific written
direction of the Issuer) to deliver it to the Trustee. In such case, the
Trustee shall at the expense of the Issuer place an appropriate notation on the
Note about the changed terms and return it to the Holder. Alternatively, if the
Issuer or the Trustee so determines, the Issuer in exchange for the Note shall
issue, any Guarantors shall endorse and the Trustee shall authenticate a new
Note that reflects the changed terms. Failure to

 

85

 

make the
appropriate notation or issue a new Note shall not affect the validity and
effect of such amendment, supplement or waiver.

 

SECTION
8.06               Trustee To Sign
Amendments, Etc.

 

The Trustee shall sign any amendment, supplement or waiver authorized
pursuant to this Article Eight if the amendment, supplement or waiver does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may, but need not, sign it. In signing or refusing to
sign such amendment, supplement or waiver the Trustee shall be entitled to
receive and, subject to Sections 7.01 and 7.02, shall be fully protected in
relying upon an Officers’ Certificate and an Opinion of Counsel stating, in
addition to the matters required by Section 11.04, that such amendment,
supplement or waiver is authorized or permitted by this Indenture and is a
legal, valid and binding obligation of the Issuer and any Guarantors,
enforceable against the Issuer and any Guarantors in accordance with its terms
(subject to customary exceptions).

 

ARTICLE NINE

 

DISCHARGE OF INDENTURE; DEFEASANCE

 

SECTION
9.01               Discharge of
Indenture.

 

The Issuer may terminate its obligations under the Notes and this
Indenture as well as the obligations of any Guarantors under their respective
Note Guarantees, except those obligations referred to in the penultimate
paragraph of this Section 9.01 if:

 

(1) all the Notes that have been authenticated and delivered (except
lost, stolen or destroyed Notes which have been replaced or paid and Notes for
whose payment money has been deposited in trust or segregated and held in trust
by the Issuer and thereafter repaid to the Issuer or discharged from this
trust) have been delivered to the Trustee for cancellation, or

 

(2)          (a)           all
Notes not delivered to the Trustee for cancellation otherwise have become due
and payable or have been called for redemption pursuant to Section 3.07 and the
Issuer has irrevocably deposited or caused to be deposited with the Trustee
trust funds in trust in an amount of money sufficient to pay and discharge the
entire Indebtedness (including all principal and accrued interest) on the Notes
not theretofore delivered to the Trustee for cancellation, and

 

(b) the Issuer has delivered irrevocable instructions to the Trustee to
apply the deposited money toward the payment of the Notes at maturity or on the
date of redemption, as the case may be.

 

86

 

Notwithstanding
the first paragraph of this Section 9.01, the Issuer’s obligations in Sections
2.06, 2.07, 2.08, 2.09, 4.16, 7.07, 9.05 and 9.06 shall survive until the Notes
are no longer outstanding pursuant to the last paragraph of Section 2.09. After
the Notes are no longer outstanding, the Issuer’s obligations in Section
7.07,9.05 and 9.06 shall survive.

 

After such delivery or irrevocable deposit, the Trustee upon written
request of the Issuer shall acknowledge in writing the discharge of the
Issuer’s and each Guarantor’s obligations under the Notes, the Note Guarantees
and this Indenture, as the case may be, except for those surviving obligations
specified above.

 

SECTION
9.02               Legal
Defeasance.

 

The Issuer may at its option at any time, by Board Resolution of the
Issuer, be discharged from its obligations with respect to the Notes and any
Guarantors discharged from their obligations under their respective Note
Guarantees on the date the conditions set forth in Section 9.04 are satisfied
(hereinafter, “Legal Defeasance”). For this purpose, “Legal Defeasance”
means that the Issuer and any Guarantors shall be deemed to have paid and
discharged the entire Indebtedness represented by the Notes and the Note
Guarantees, which shall thereafter be deemed to be “outstanding” only for the
purposes of Section 9.08 and the other Sections of this Indenture referred to
in clauses (A) and (B) below, and to have satisfied all of its other
obligations under such Notes, such Note Guarantees and this Indenture, as the
case may be, insofar as such Notes are concerned (and the Trustee, at the
expense of the Issuer, shall, subject to Section 9.06 hereof, execute
instruments in form and substance reasonably satisfactory to the Trustee and
the Issuer acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (A) the rights of
Holders of outstanding Notes to receive solely from the trust funds described
in Section 9.04, and as more fully set forth in such Section, payments in
respect of the principal of, premium, if any, and interest on such Notes when
such payments are due, (B) the Issuer’s obligations with respect to such Notes
under Sections 2.04, 2.05, 2.07 and 2.11, (C) the rights, powers, trusts,
duties and immunities of the Trustee hereunder (including claims of, or
payments to, the Trustee pursuant to Section 7.07) and (D) this Article Nine.
Subject to compliance with this Article Nine, the Issuer may exercise its
option under this Section 9.02 with respect to the Notes notwithstanding the
prior exercise of its option under Section 9.03 with respect to the Notes.

 

SECTION
9.03               Covenant
Defeasance.

 

At the option of the Issuer, pursuant to a Board Resolution of the
Issuer, the Issuer and any Guarantors shall be released from their respective
obligations under Sections 4.02 (except for obligations mandated by the TIA),
4.06 through 4.13, inclusive, and 4.15 and clause (a)(iii) of Section 5.01 with
respect to the outstanding Notes on and after the date the conditions set forth
in Section 9.04 are satisfied (hereinafter, “Covenant Defeasance”), and
the Notes shall thereafter be deemed not “outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed “outstanding” for all other purposes hereunder (it

 

87

 

being
understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, “Covenant Defeasance” means that the Issuer and
any Guarantors may omit to comply with and shall have no liability in respect
of any term, condition or limitation set forth in any such specified Section or
portion thereof, whether directly or indirectly by reason of any reference
elsewhere herein to any such specified Section or portion thereof or by reason
of any reference in any such specified Section or portion thereof to any other
provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under clause (3) or (4) of Section
6.01, but, except as specified above, the remainder of this Indenture and the
Notes shall be unaffected thereby. If the funds deposited with the Trustee to
effect Covenant Defeasance are insufficient to pay all remaining principal and
interest on the Notes when due, the Issuer’s obligations and the obligations of
the Guarantors under the Indenture will be reinstated and no such Covenant
Defeasance shall be deemed to have occurred.

 

SECTION
9.04               Conditions to
Legal Defeasance or Covenant Defeasance.

 

The following shall be the conditions to application of Section 9.02 or
Section 9.03 hereof to the outstanding Notes:

 

(1) the Issuer must irrevocably deposit with the Trustee, in trust, for
the benefit of the Holders, U.S. legal tender, U.S. Government Obligations or a
combination thereof, in such amounts as shall be sufficient (without
reinvestment) in the opinion of a nationally recognized firm of independent
public accountants selected by the Issuer, to pay the principal of and interest
on the Notes on the stated date for payment or on the redemption date of the
principal or installment of principal of or interest on the Notes, and the
Holders must have a valid, perfected, exclusive security interest in such
trust,

 

(2) in the case of Legal Defeasance, Section 9.02, the Issuer shall
have delivered to the Trustee an opinion of counsel in the United States
reasonably acceptable to the Trustee confirming that:

 

(a) the Issuer has received from, or there has been published by the
Internal Revenue Service, a ruling, or

 

(b) since the date of this Indenture, there has been a change in the
applicable U.S. federal income tax law,

 

in either case
to the effect that, and based thereon this opinion of counsel shall confirm
that, the Holders shall not recognize income, gain or loss for U.S. federal
income tax purposes as a result of the Legal Defeasance and shall be subject to
U.S. federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred,

 

(3) in the case of Covenant Defeasance, Section 9.03, the Issuer shall
have delivered to the Trustee an opinion of counsel in the United States
reasonably acceptable

 

88

 

to the Trustee
confirming that the Holders shall not recognize income, gain or loss for U.S.
federal income tax purposes as a result of such Covenant Defeasance and shall
be subject to U.S. federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if the Covenant Defeasance had
not occurred,

 

(4) no Default shall have occurred and be continuing on the date of
such deposit (other than a Default resulting from the borrowing of funds to be
applied to such deposit and the grant of any Lien securing such borrowing) or,
in so far as Section 6.01(7) or Section 6.01(8) hereof is concerned, at any
time in the period ending on the 91st day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until the
expiration of such period),

 

(5) the Legal Defeasance or Covenant Defeasance shall not result in a
breach or violation of, or constitute a default under this Indenture or any
other material agreement or instrument to which the Issuer or any of its
Subsidiaries is a party or by which the Issuer or any of its Subsidiaries is
bound,

 

(6) the Issuer shall have delivered to the Trustee an Officers’
Certificate stating that the deposit was not made by it with the intent of
preferring the Holders over any other of its creditors or with the intent of defeating,
hindering, delaying or defrauding any other of its creditors or others, and

 

(7) the Issuer shall have delivered to the Trustee an Officers’
Certificate and an opinion of counsel, each stating that the conditions
provided for in, in the case of the Officers’ Certificate, clauses (1) through
(6) and, in the case of the opinion of counsel, clauses (l){with respect to the
validity and perfection of the security interest), (2) and/or (3) and (5) of
this paragraph have been complied with.

 

	
  SECTION 9.05

  	
  Deposited
  Money and U.S. Government Obligations To Be Held in Trust; Other
  Miscellaneous Provisions.

  

 

All money and
U.S. Government Obligations (including the proceeds thereof) deposited with the
Trustee pursuant to Section 9.04 in respect of the outstanding Notes shall be
held in trust and applied by the Trustee, in accordance with the provisions of
such Notes and this Indenture, to the payment, either directly or through any
Paying Agent, to the Holders of such Notes, of all sums due and to become due thereon
in respect of principal, premium, if any, and accrued interest, but such money
need not be segregated from other funds except to the extent required by law.

 

The Issuer and any Guarantors shall (on a joint and several basis) pay
and indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the U.S. Government Obligations deposited pursuant to Section
9.04 or the principal, premium, if any, and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of the outstanding Notes.

 

89

 

Anything in
this Article Nine to the contrary notwithstanding, the Trustee shall deliver or
pay to the Issuer from time to time upon a Company Request any money or U.S.
Government Obligations held by it as provided in Section 9.04 which, in the
opinion of a nationally-recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance.

 

SECTION
9.06               Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any money or U.S. Government
Obligations in accordance with this Article Nine by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Issuer’s and each Guarantor’s obligations under this Indenture, the Notes and
the Note Guarantees, as the case may be, shall be revived and reinstated as
though no deposit had occurred pursuant to this Article Nine until such time as
the Trustee or Paying Agent is permitted to apply all such money or U.S.
Government Obligations in accordance this Article Nine; provided that if
the Issuer or any Guarantors have made any payment of principal of, premium, if
any, or accrued interest on any Notes because of the reinstatement of their
obligations, the Issuer or such Guarantor, as the case may be, shall be
subrogated to the rights of the Holders of such Notes to receive such payment
from the money or U.S. Government Obligations, as the case may be, held by the
Trustee or Paying Agent.

 

SECTION
9.07               Moneys Held by
Paying Agent.

 

In connection with the satisfaction and discharge of this Indenture,
all moneys then held by any Paying Agent under the provisions of this Indenture
shall, upon written demand of the Issuer, be paid to the Trustee, or if
sufficient moneys have been deposited pursuant to Section 9.04 hereof, to the
Issuer upon a Company Request (or, if such moneys had been deposited by any
Guarantors, to such Guarantors), and thereupon such Paying Agent shall be
released from all further liability with respect to such moneys.

 

SECTION
9.08               Moneys Held by
Trustee.

 

Any moneys deposited with the Trustee or any Paying Agent or then held
by the Issuer or any Guarantor in trust for the payment of the principal of, or
premium, if any, or interest on any Note that are not applied but remain
unclaimed by the Holder of such Note for two years after the date upon which
the principal of, or premium, if any, or interest on such Note shall have
respectively become due and payable, shall be repaid to the Issuer (or, if
appropriate, any Guarantor) upon a Company Request, or if such moneys are then
held by the Issuer or any Guarantor in trust, such moneys shall be released
from such trust; and the Holder of such Note entitled to receive such payment
shall thereafter, as an unsecured general creditor, look only to the Issuer and
any Guarantors for the payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money shall thereupon cease; provided
that the Trustee or any such Paying Agent, before being required to make any
such repayment, may, at the

 

90

 

expense of the
Issuer and any Guarantors, either mail to each Holder affected, at the address
shown in the register of the Notes maintained by the Registrar pursuant to
Section 2.04 hereof, or cause to be published once a week for two successive
weeks, in a newspaper published in the English language, customarily published
each Business Day and of general circulation in the City of New York, New York,
a notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such mailing or
publication, any unclaimed balance of such moneys then remaining shall be
repaid to the Issuer. After payment to the Issuer or any Guarantor or the
release of any money held in trust by the Issuer or any Guarantor, as the case
may be, Holders entitled to the money must look only to the Issuer and any
Guarantors for payment as general creditors unless applicable abandoned
property law designates another Person.

 

ARTICLE TEN

 

GUARANTEE OF NOTES

 

SECTION
10.01             Note Guarantee.

 

Subject to the provisions of this Article Ten each Guarantor hereby
jointly and severally unconditionally guarantees, on a senior unsecured basis,
to each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors, irrespective of (i) the validity and enforceability
of this Indenture, the Notes or the obligations of the Issuer or any other
Guarantors to the Holders or the Trustee hereunder or thereunder or (ii) the
absence of any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or default of a Guarantor,
that: (a) the principal of, premium, if any, interest and Additional Interest,
if any, on and any Additional Amounts, if any, with respect to the Notes shall
be duly and punctually paid in full when due, whether at maturity, by
acceleration or otherwise, and interest on the overdue principal and (to the
extent permitted by law) interest or Additional Interest, if any, on or
Additional Amounts, if any, with respect to the Notes and all other obligations
of the Issuer or any Guarantor to the Holders or the Trustee hereunder or
thereunder (including amounts due the Trustee under Section 7.07) and all other
obligations under this Indenture or the Notes shall be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or any of such
other obligations, the same shall be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise. Failing payment when due of any
amount so guaranteed, or failing performance of any other obligation of the
Issuer to the Holders, for whatever reason, each Guarantor shall be obligated
to pay, or to perform or cause the performance of, the same immediately. An
Event of Default under this Indenture or the Notes shall constitute an event of
default under this Note Guarantee, and shall entitle the Holders of Notes or
the Trustee to accelerate the obligations of the Guarantors hereunder in the
same manner and to the same extent as the obligations of the Issuer.

 

91

 

Each
Guarantor, by execution of the Note Guarantee, agrees that its obligations
hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of this Indenture or the Notes, the absence of any action to
enforce the same, any waiver or consent by any Holder with respect to any
provisions hereof or thereof, any release of any other Guarantor, the recovery
of any judgment against the Issuer, any action to enforce the same, whether or
not a Note Guarantee is affixed to any particular Note, or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of a Guarantor. Each Guarantor, by execution of the Note Guarantee,
waives the benefit of diligence, presentment, demand for payment, filing of
claims with a court in the event of insolvency or bankruptcy of the Issuer, any
right to require a proceeding first against the Issuer, protest, notice and all
demands whatsoever and covenant that such Note Guarantee shall not be
discharged except by complete performance of the obligations contained in the
Notes, this Indenture and such Note Guarantee. The Note Guarantee is a guarantee
of payment and not of collection. If any Holder or the Trustee is required by
any court or otherwise to return to the Issuer or to any Guarantor, or any
custodian, trustee, liquidator or other similar official acting in relation to
the Issuer or such Guarantor, any amount paid by the Issuer or such Guarantor
to the Trustee or such Holder, the Note Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect. Each Guarantor further
agrees that, as between it, on the one hand, and the Holders and the Trustee,
on the other hand, (a) subject to this Article Ten, the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article Six
hereof for the purposes of the Note Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
obligations guaranteed hereby, and (b) in the event of any acceleration of such
obligations as provided in Article Six hereof, such obligations (whether or not
due and payable) shall forthwith become due and payable by the Guarantors for
the purpose of such Note Guarantee.

 

The Note Guarantee shall remain in full force and effect and continue
to be effective should any petition be filed by or against the Issuer for liquidation
or reorganization, should the Issuer become insolvent or make an assignment for
the benefit of creditors or should a receiver or trustee be appointed for all
or any significant part of the Issuer’s assets, and shall, to the fullest
extent permitted by law, continue to be effective or be reinstated, as the case
may be, if at any time payment and performance of the Notes are pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned by any obligee on the Notes, whether as a “voidable preference,”
“fraudulent transfer” or otherwise, all as though such payment or performance
had not been made. In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Notes shall, to the fullest
extent permitted by law, be reinstated and deemed reduced only by such amount
paid and not so rescinded, reduced, restored or returned.

 

No shareholder, officer, director, employee or incorporator, past,
present or future, or any Guarantor, as such, shall have any personal liability
under this Note Guarantee by reason of his, her or its status as such
shareholder, officer, director, employee or incorporator.

 

92

 

SECTION
10.02             Execution and
Delivery of Note Guarantee.

 

To further
evidence the Note Guarantee set forth in Section 10.01, each Guarantor hereby
agrees that a notation of such Note Guarantee, substantially in the form
included in Exhibit F hereto, shall be endorsed on each Note
authenticated and delivered by the Trustee after this Article Ten with respect
to such Guarantor becomes effective in accordance with Section 10.04 and such
Note Guarantee shall be executed by either manual or facsimile signature of an
Officer of each Guarantor. The validity and enforceability of any Note
Guarantee shall not be affected by the fact that it is not affixed to any
particular Note.

 

Each of the Guarantors hereby agrees that its Note Guarantee set forth
in Section 10.01 shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Note Guarantee.

 

If an Officer of a Guarantor whose signature is on this Indenture or a
Note Guarantee no longer holds that office at the time the Trustee authenticate
the Note on which such Note Guarantee is endorsed or at any time thereafter,
such Guarantor’s Note Guarantee of such Note shall be valid nevertheless.

 

The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of any Note Guarantee set
forth in this Indenture on behalf of the Guarantor.

 

SECTION
10.03             Limitation of Note
Guarantee.

 

The obligations of each Guarantor are limited to the maximum amount as
shall, after giving effect to all other contingent and fixed liabilities of
such Guarantor and after giving effect to any collections from or payments made
by or on behalf of any other Guarantor in respect of the obligations of such
other Guarantor under its Note Guarantee or pursuant to its contribution
obligations under this Indenture, result in the obligations of such Guarantor
under the Note Guarantee not constituting a fraudulent conveyance or fraudulent
transfer under federal or state law. Each Guarantor that makes a payment or
distribution under a Note Guarantee shall be entitled to a contribution from
each other Guarantor in a pro rata amount based on the net assets of each
Guarantor, determined in accordance with GAAP.

 

SECTION
10.04             Additional
Guarantors.

 

If, after the Issue Date, any Restricted Subsidiary shall become a
guarantor or a borrower under the Credit Agreement, the Issuer shall cause such
Restricted Subsidiary to:

 

(1) execute and deliver to the Trustee (a) a supplemental indenture in
form and substance satisfactory to the Trustee pursuant to which such Restricted
Subsidiary shall unconditionally guarantee all of the Issuer’s obligations
under the Notes and this Indenture and (b) a notation of guarantee in respect
of its Note Guarantee; and

 

93

 

(2) deliver to the Trustee one or more opinions of counsel that such
supplemental indenture (a) has been duly authorized, executed and delivered by
such Restricted Subsidiary and (b) constitutes a valid and legally binding
obligation of such Restricted Subsidiary in accordance with its terms.

 

SECTION
10.05             Release of Guarantor.

 

A Guarantor
shall be released from all of its obligations under its Note Guarantee if:

 

(i) the Guarantor has sold all of its assets or the Issuer and its
Restricted Subsidiaries have sold all of the Equity Interests of the Guarantor
owned by them, in each case in a transaction in compliance with the terms of
this Indenture (including Sections 4.10 and 5.01);

 

(ii) the Guarantor merges with or into or consolidates with, or
transfers all or substantially all of its assets to, the Issuer or another
Guarantor in a transaction in compliance with Section 5.01; or

 

(iii) the Guarantor is designated an Unrestricted Subsidiary in
compliance with the terms of this Indenture;

 

and in each
such case, the Guarantor has delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to such transactions have been complied with and that
such release is authorized and permitted hereunder.

 

If all of the conditions to release contained in this Section 10.05
have been satisfied, the Trustee shall execute any documents reasonably
requested by the Issuer or any Guarantor in order to evidence the release of
such Guarantor from its obligations under its Note Guarantee endorsed on the
Notes and under this Article Ten.

 

SECTION 10.06             Waiver
of Subrogation.

 

Each Guarantor, by execution of its Note Guarantee, waives to the
extent permitted by law any claim or other rights which it may now or hereafter
acquire against the Issuer that arise from the existence, payment, performance
or enforcement of such Guarantor’s obligations under such Note Guarantee and
this Indenture, including, without limitation, any right of subrogation,
reimbursement, exoneration, indemnification, and any right to participate in
any claim or remedy of any Holder against the Issuer, whether or not such
claim, remedy or right arises in equity, or under contract, statute or common
law, including, without limitation, the right to take or receive from the
Issuer, directly or indirectly, in cash or other property or by set-off or in
any other manner, payment on account of such claim or other rights. If any
amount shall be paid to any Guarantor in violation of the preceding sentence
and the Notes shall not have been

 

94

 

paid in full,
such amount shall have been deemed to have been paid to such Guarantor for the
benefit of, and held in trust for the benefit of, the Holders of the Notes, and
shall forthwith be paid to the Trustee for the benefit of such Holders to be
credited and applied upon the Notes, whether matured or unmatured, in
accordance with the. terms of this Indenture. Each Guarantor, by execution of
its Note Guarantee, shall acknowledge that it shall receive direct and indirect
benefits from the financing arrangements contemplated by this Indenture and
that the waiver set forth in this Section 10.06 is knowingly made in
contemplation of such benefits.

 

ARTICLE ELEVEN

 

MISCELLANEOUS

 

SECTION
11.01             Trust Indenture Act
Controls.

 

If any provision of this Indenture limits, qualifies or conflicts with
another provision which is required to be included in this Indenture by the
TIA, the required provision shall control.

 

SECTION
11.02             Notices.

 

Except for notice or communications to Holders, any notice or
communication shall be given in writing and delivered in person, sent by
facsimile, delivered by commercial courier service or mailed by first-class
mail, postage prepaid, addressed as follows:

 

If to the
Issuer or any Guarantor:

 

IPSCO INC.

650
Warrenville Road

Suite 500

Lisle,
Illinois 60532

 

Attention:
Chief Financial Officer

 

Fax Number:
(630) 810-4602

 

with, in the
case of any notice furnished pursuant to Article Six hereof, a copy to:

 

MacPherson
Leslie & Tyerman LLP

1500, 1874
Scarth Street

Regina,
Saskatchewan

S4P 4E9

 

Attention:
Aaron D. Runge

 

95

 

Fax Number:
(306) 352-5250

 

and

 

Kirkland &
Ellis

200 East
Randolph Drive

Chicago,
Illinois 60601

 

Attention:
Carter Emerson

 

Fax Number:
(312) 861-2200

 

If to the
Trustee:

 

WELLS FARGO
BANK MINNESOTA, N.A.

MAC N9303-11 0

6th &
Marquette Avenue

Minneapolis,
Minnesota 55479

 

Attention:
Wells Fargo Corporate Trust Services

Michael G.
Slade, Corporate Trust Officer

 

Fax Number:
(612) 667-2160

 

Such notices
or communications shall be effective when received and shall be sufficiently
given if so given within the time prescribed in this Indenture.

 

The Issuer,
any Guarantor or the Trustee by written notice to the others may designate
additional or different addresses for subsequent notices or communications.

 

Any notice or communication mailed to a Holder shall be mailed to him
by first-class mail, postage prepaid, at his address shown on the register kept
by the Registrar.

 

Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders. If a notice
or communication to a Holder is mailed in the manner provided above, it shall
be deemed duly given, whether or not the addressee receives it.

 

In case by reason of the suspension of regular mail service, or by
reason of any other cause, it shall be impossible to mail any notice as
required by this Indenture, then such method of notification as shall be made
with the approval of the Trustee shall constitute a sufficient mailing of such
notice.

 

96

 

SECTION
11.03             Communications by
Holders with Other Holders.

 

Holders may
communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Notes. The Issuer, the Guarantors, the
Trustee, the Registrar and anyone else shall have the protection of

TIA § 312( c).

 

SECTION
11.04             Certificate and
Opinion as to Conditions Precedent.

 

Upon any request or application by the Issuer or any Guarantor to the
Trustee to take any action under this Indenture, the Issuer or such Guarantor
shall furnish to the Trustee:

 

(1) an Officers’ Certificate (which shall include the statements set
forth in Section 11.05) stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

 

(2) an Opinion of Counsel (which shall include the statements set forth
in Section 11.05) stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

 

SECTION
11.05             Statements
Required in Certificate and Opinion.

 

Each certificate and opinion with respect to compliance by or on behalf
of the Issuer or any Guarantor with a condition or covenant provided for in
this Indenture shall include:

 

(1) a statement that the Person making such certificate or opinion has
read such covenant or condition;

 

(2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;

 

(3) a statement that, in the opinion of such Person, it or he has made
such examination or investigation as is necessary to enable it or him to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and

 

(4) a statement as to whether or not, in the opinion of such Person,
such covenant or condition has been complied with.

 

SECTION
11.06             Rules by Trustee
and Agents.

 

The Trustee may make reasonable rules for action by or meetings of
Holders. The Registrar and Paying Agent may make reasonable rules for their
functions.

 

97

 

SECTION
11.07             [Reserved].

 

SECTION
11.08             Governing Law.

 

THIS INDENTURE
AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LA WS
OF THE ST ATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE
STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW
TO THE EXTENT THAT THE APPLICATION OF LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

 

SECTION
11.09             Agent for Service;
Submission to Jurisdiction; Waiver of Immunities.

 

By the execution and delivery of this Indenture, each of the Issuer and
each Guarantor (i) acknowledges that it has, by separate written instrument,
designated and appointed CT Corporation System as its authorized agent upon
which process may be served in any suit, action or proceeding arising out of or
relating to the Notes or this Indenture that may be instituted in any Federal
or State court in the State of New York, Borough of Manhattan, or brought under
Federal or State securities laws or brought by the Trustee (whether in its
individual capacity or in its capacity as Trustee hereunder), and acknowledges
that CT Corporation System has accepted such designation, (ii) submits to the
jurisdiction of any such court in any such suit, action or proceeding, and
(iii) agrees that service of process upon CT Corporation System and written
notice of said service to it (mailed or delivered to its Executive Director at
its principal office as specified in Section 11.02 hereof), shall be deemed in
every respect effective service of process upon it in any such suit or
proceeding. The Issuer and each Guarantor further agree to take any and all
action, including the execution and filing of any and all such documents and
instruments as may be necessary to continue such designation and appointment of
CT Corporation System, in full force and effect so long as this Indenture shall
be in full force and effect; provided that the Issuer may and shall (to
the extent CT Corporation System ceases to be able to be served on the basis
contemplated herein), by written notice to the Trustee, designate such
additional or alternative agent for service of process under this Section 11.09
that (i) maintains an office located in the Borough of Manhattan, The City of
New York in the State of New York, (ii) is either (x) counsel for the Issuer or
(y) a corporate service company which acts as agent for service of process for
other Persons in the ordinary course of its business and (iii) agrees to act as
agent for service of process in accordance with this Section 11.09. Such notice
shall identify the name of such agent for process and the address of such agent
for process in the Borough of Manhattan, The City of New York, State of New
York. Upon the request of any Holder, the Trustee shall deliver such
information to such Holder. Notwithstanding the foregoing, there shall, at all
times, be at least one agent for service of process for the Issuer and any
Guarantors, if any, appointed and acting in accordance with this Section 11.09.

 

98

 

To the extent
that the Issuer or any Guarantor has or hereafter may acquire any immunity from
jurisdiction of any court or from any legal process (whether through service of
notice, attachment prior to judgment, attachment in aid of execution, execution
or otherwise) with respect to itself or its property, the Issuer and such
Guarantor hereby irrevocably waives such immunity in respect of its obligations
under this Indenture and the Securities, to the extent permitted by law.

 

SECTION
11.10             No Adverse
Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another indenture, loan,
security or debt agreement of the Issuer or any Subsidiary thereof. No such
indenture, loan, security or debt agreement may be used to interpret this
Indenture.

 

SECTION
11.11             No Recourse
Against Others.

 

No recourse for the payment of the principal of or premium, if any, or
interest, including Additional Interest, on any of the Notes, or for any claim
based thereon or otherwise in respect thereof, and no recourse under or upon
any obligation, covenant or agreement of the Issuer or any Guarantor in this
Indenture or in any supplemental indenture, or in any of the Notes, or because
of the creation of any Indebtedness represented thereby, shall be had against
any stockholder, officer, director or employee, as such, past, present or
future, of the Issuer or any Guarantor or of any successor corporation or
against the property or assets of any such stockholder, officer, employee or
director, either directly or through the Issuer or any Guarantor, or any
successor corporation thereof, whether by virtue of any constitution, statute
or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture and the Notes are
solely obligations of the Issuer and the Guarantors, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, any
shareholder, officer, employee or director of the Issuer or any Guarantor, or
any successor corporation thereof, because of the creation of the indebtedness
hereby authorized, or under or by reason of the obligations, covenants or
agreements contained in this Indenture or the Notes or implied therefrom, and that
any and all such personal liability of, and any and all claims against every
stockholder, officer, employee and director, are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issuance of the Notes. It is understood that this limitation
on recourse is made expressly for the benefit of any such shareholder,
employee, officer or director and may be enforced by any of them.

 

SECTION
11.12             Successors.

 

All agreements of the Issuer and any Guarantors in this Indenture and
the Notes shall bind their respective successors. All agreements of the
Trustee, any additional trustee and any Paying Agents in this Indenture shall
bind its successor.

 

99

 

SECTION 11.13
      Multiple Counterparts.

 

The parties
may sign multiple counterparts of this Indenture. Each signed counterpart shall
be deemed an original, but all of them together represent one and the same
agreement.

 

SECTION 11.14
     Table of Contents. Headings. Etc.

 

The table of contents, cross-reference sheet and headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.

 

SECTION 11.15
      Separability.

 

Each provision of this Indenture shall be considered separable and if
for any reason any provision which is not essential to the effectuation of the
basic purpose of this Indenture or the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

SECTION 11.16
      Judgment Currency.

 

The Issuer and each of the Guarantors, jointly and severally, each
agree to indemnify each Holder against any loss incurred by such party as a
result of any judgment or order being given or made for any amount due under
this Indenture and such judgment or order being expressed and paid in a
currency (the “Judgment Currency”) other than United States dollars and
as a result of any variation as between (i) the rate of exchange at which the
United States dollar amount is converted into the Judgment Currency for the
purpose of such judgment or order and (ii) the spot rate of exchange in The
City of New York at which such party on the date of payment of such judgment or
order is able to purchase United States dollars with the amount of the Judgment
Currency actually received by such party. The foregoing indemnity shall
continue in full force and effect notwithstanding any such judgment or order as
aforesaid. The term “spot rate of exchange” shall include any premiums and
costs of exchange payable in connection with the purchase of, or conversion
into, United States dollars.

 

[Remainder of
page intentionally left blank]

 

100

 

IN WITNESS WHEREOF~ the
parties have caused this Indenture to be duly executed all as of the date aud
year first written above.

 

	
   

  	
  The Issuer:

  
	
   

  	
   

  
	
   

  	
  IPSCO INC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Ratliff

  	
   

  
	
   

  	
   

  	
  Name:  Robert Ratliff

  
	
   

  	
   

  	
  Title:  

  	
  Vice President and Chief Financial

  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Valentine

  	
   

  
	
   

  	
   

  	
  Name:  George Valentine

  
	
   

  	
   

  	
  Title:  

  	
  Vice President, General Counsel and

  Corporate Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Guarantors:

  
	
   

  	
   

  
	
   

  	
  IPSCO STEEL (ALABAMA) INC.

  
	
   

  	
  IPSCO MINNESOTA INC

  
	
   

  	
  IPSCO TUBULARS INC.

  
	
   

  	
  IPSCO TEXAS INC.

  
	
   

  	
  IPSCO INC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Valentine

  	
   

  	 

	
   

  	
   

  	
  Name: George Valentine

  
	
   

  	
   

  	
  Title:  

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IPSCO INVESTMENTS INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Valentine

  	
   

  	 

	
   

  	
   

  	
  Name: George Valentine

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
									

 

S-1

 

	
   

  	
  IPSCO ENTERPRISES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Valentine

  	
   

  
	
   

  	
   

  	
  Name:  George Valentine

  
	
   

  	
   

  	
  Title:  

  	
  Vice President

  
					

 

 

	
   

  	
  IPSCO ONTARIO INC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Ratliff

  	
   

  
	
   

  	
   

  	
  Name:  Robert Ratliff

  
	
   

  	
   

  	
  Title: Vice President

  

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Valentine

  	
   

  
	
   

  	
   

  	
  Name:  George Valentine

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  IPSCO RECYCLING INC

  
	
   

  	
   

  

 

	
   

  	
  By:

  	
  /s/ Robert Ratliff

  	
   

  
	
   

  	
   

  	
  Name:  Robert Ratliff

  
	
   

  	
   

  	
  Title:

  	
  Chairman, President and Chief Executive

  Officer

  
					

 

	
   

  	
  By:

  	
  /s/ George Valentine

  	
   

  
	
   

  	
   

  	
  Name:  George Valentine

  
	
   

  	
   

  	
  Title:  

  	
  Vice President

  
					

 

	
   

  	
  IPSCO SASKATCHEWAN INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Ratliff

  	
   

  
	
   

  	
   

  	
  Name:  Robert Ratliff

  
	
   

  	
   

  	
  Title:  

  	
   Vice President

  
					

 

S-2

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Comrie

  	
   

  
	
   

  	
   

  	
  Name: John Comrie

  
	
   

  	
   

  	
  Title: Secretary

  

 

 

 

	
   

  	
  IPSCO ALABAMA LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  IPSCO STEEL (ALABAMA) INC.

  
	
   

  	
   

  	
    its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Ratliff

  	
   

  
	
   

  	
   

  	
  Name:  Robert Ratliff

  
	
   

  	
   

  	
  Title:  

  	
  Treasurer

  
					

 

S-3

 

	
   

  	
  WELS FARGO BANK MNNESOTA. N.A..

  
	
   

  	
  as trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael G. Slade

  	
   

  
	
   

  	
   

  	
  Name:  Michael G. Slade

  
	
   

  	
   

  	
  Title:  

  	
  Corporate Trust Officer

  
					

 

 

 

EXHIBIT
A

 

CUSIP    

 

IPSCO
INC.

	
  No.

  	
   

  	
  $[            ]

  

 

8
3/4% SENIOR NOTE DUE 2013

 

IPSCO INC., a company
incorporated under the laws of Canada (the “Company,” which term
includes any successor corporation under the Indenture hereinafter referred
to), for value received, promises to pay to [           ]
or registered assigns the principal sum of [            DOLLARS]
($[           ]) on June
1,2013 at the office or agency of
the Company referred to below.

 

Interest Payment Dates: June
1 and December 1.

 

Record Dates: May 15 and
November 15.

 

Reference is made to the
further provisions of this Note contained herein, which shall for all purposes
have the same effect as if set forth at this place.

 

IN WITNESS WHEREOF, the
Company has caused this Note to be signed manually or by facsimile by its duly
authorized officers.

 

	
   

  	
  IPSCO
  INC.

  

 

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:

 

A-1

 

Certificate of
Authentication

 

This
is one of the 8 3/4% Senior Notes due 2013 referred to in the within mentioned
Indenture.

 

	
   

  	
  WELLS FARGO BANK
  MINNESOTA, N.A., 

  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:

 

A-2

 

[FORM OF REVERSE OF NOTE] 

 

IPSCO INC.

83/4% SENIOR NOTE DUE 2013

 

1. Interest.
IPSCO INC., a company incorporated under the laws of Canada (the “Company”),
promises to pay, until the principal hereof is paid or made available for
payment, interest on the principal amount set forth on the face hereof at a
rate of 8 3/4% per annum. Interest hereon shall accrue from and including the
most recent date to which interest has been paid or, if no interest has been
paid, from and including [                ]
to but excluding the date on which interest is paid. Interest shall be payable
in arrears on each June 1 and December 1, commencing [               ].
Interest shall be computed on the basis of a 360-day year consisting of twelve
30-day months. The Company shall pay interest on overdue principal and on overdue
interest (to the full extent permitted by law) at a rate of2.0% per annum.

 

2. Method of Payment. If a Holder has given wire transfer
instructions to the Issuer at least ten Business Days prior to the applicable
Interest Payment Date, the Issuer will make all payments on such Holder’s Notes
by wire transfer of immediately available funds to the account specified in
those instructions. The Company shall pay interest hereon (except defaulted
interest) to the Persons who are registered Holders at the close of business on
the May 15 or November 15 next preceding the interest payment date (whether or
not a Business Day). Holders must surrender Notes to a Paying Agent to collect
principal payments. The Company shall pay principal and interest in money of the
United States of America that at the time of payment is legal tender for
payment of public and private debts. Interest may be paid by check mailed to
the Holder entitled thereto at the address indicated on the register maintained
by the Registrar for the Notes.

 

3. Paying Agent and Registrar. Initially, Wells Fargo Bank
Minnesota, N.A. (the “Trustee”) shall act as a Paying Agent and
Registrar. The Company may change any Paying Agent or Registrar without notice.
The Company or any of its Affiliates may act as Paying Agent or Registrar.

 

4. Indenture. This Note is one of a duly authorized issue of
Notes of the Company, designated as its 8 3/4% Senior Notes due 2013 (herein
called the “Notes”). The Company issued the Notes under an Indenture dated as
of June 18,2003 (the “Indenture”) among the Company, the Guarantors and
the Trustee. This is one of an issue of Notes of the Company issued, or to be
issued, under the Indenture. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as in effect on the date
of the Indenture (the “Act”). The Notes are subject to all such terms,
and Holders are referred to the Indenture and the Act for a statement of them.
To the extent any provision of this Note conflicts with the express provisions
of the Indenture, the provisions of the Indenture shall govern and be
controlling. Capitalized and certain other terms used herein and not otherwise
defined have the meanings set forth in the

 

A-3

 

Indenture. The
Company shall be entitled to issue Additional Notes pursuant to Section 2.19 of
the Indenture. All Notes issued under the Indenture are treated as a single class
of securities under the Indenture. The Notes are general unsecured obligations
of the Company.

 

5. Additional Amounts. The Company shall pay to the Holders of
Notes such Additional Amounts as may become payable under Section 4.16 of the
Indenture.

 

6. Optional Redemption. The Company, at its option, may redeem
the Notes, in whole at any time, or in part from time to time on or after June
1, 2008 upon not less than 30 nor more than 60 days’ notice, at the redemption
prices (expressed as percentages of principal amount thereof) set forth below,
together, in each case, with accrued and unpaid interest to the Redemption
Date, if redeemed during the twelve month period beginning on June 15 of each
year listed below:

 

	
  Year

  	
   

  	
  Redemption Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.375

  	
  %

  
	
  2009

  	
   

  	
  102.916

  	
  %

  
	
  2010

  	
   

  	
  101.458

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Notwithstanding the foregoing, the Company may redeem in the aggregate
up to 35% of the original principal amount of Notes at any time and from time
to time prior to June 1, 2006 at a
redemption price equal to 108.75% of the aggregate principal amount so
redeemed, plus accrued and unpaid interest to the Redemption Date, out of the
net cash proceeds of one or more Qualified Equity Offerings; provided that
(1) at least 65% of the principal amount of Notes originally issued remains
outstanding immediately after the occurrence of any such redemption and (2) any
such redemption occurs within 180 days following the closing of any such
Qualified Equity Offering.

 

7. Tax Redemption. The Notes are redeemable, in whole but not in
part, at the option of the Company at any time, upon not less than 30 nor more
than 60 days’ prior written notice, mailed by first class mail to each Holder
at its last address appearing in the register maintained by the Registrar of
Notes, at 100% of the principal amount thereof, plus accrued and unpaid
interest thereon to the Redemption Date, if the Company is or would become
obligated to pay, on the next date on which any amount would be payable with
respect to the Notes, any Additional Amounts as a result of a change in, or
amendment to, the laws (or any regulations promulgated thereunder) of any
Taxing Authority, or any changes in, or amendment to, any official position
regarding the application or interpretation of such laws or regulations.

 

Prior to the publication of any notice of redemption pursuant to this
provision, the Company shall deliver to the Trustee (a) an Officer’s
Certificate stating that the Company is entitled to effect such redemption and
setting forth a statement of facts showing that the conditions precedent to the
right of the Company so to redeem have occurred and (b) an opinion of legal
counsel qualified under the laws of the relevant jurisdiction to the effect
that the

 

A-4

 

Company or
such Guarantor has or shall become obligated to pay such Additional Amounts as
a result of such amendment or change as described above.

 

8. Notice of Redemption. Notice of redemption shall be mailed at
least 30 days but not more than 60 days before the Redemption Date to each
Holder of Notes to be redeemed at his registered address. On and after the
Redemption Date, unless the Company defaults in making the redemption payment,
interest ceases to accrue on Notes or portions thereof called for redemption,
unless the Company shall fail to redeem any Notes.

 

9. Offers to Purchase. The Indenture provides that upon the
occurrence of a Change of Control or an Asset Sale and subject to further
limitations contained therein, the Company shall make an offer to purchase
outstanding Notes in accordance with the procedures set forth in the Indenture.

 

10. [Reserved].

 

11. [Registration Rights. Pursuant to a Registration Rights
Agreement among the Company, the Guarantors, UBS Securities LLC, RBC Dominion
Securities Corporation, ABN AMRO Incorporated, CIBC World Markets Corp., TD
Securities (USA) Inc. and Well Fargo Securities, LLC as Initial Purchasers of
the Notes, the Company and the Guarantors shall be obligated to consummate an
exchange offer pursuant to which the Holder of this Note shall have the right
to exchange this Note for notes of a separate series issued under the Indenture
(or a trust indenture substantially identical to the Indenture in accordance
with the terms of the Registration Rights Agreement) which have been registered
under the Securities Act, in like principal amount and having substantially
identical terms as the Notes. The Holders shall be entitled to receive certain
additional interest payments in the event such exchange offer is not
consummated and upon certain other conditions, all pursuant to and in
accordance with the terms

of the
Registration Rights Agreement. 

 

12. Denominations, Transfer, Exchange. The Notes are in
registered form without coupons in denominations of $1,OOO and integral
multiples of $1,OOO. A Holder may transfer or exchange Notes in accordance with
the Indenture. The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay to it any
taxes and fees required by law or permitted by the Indenture. The Registrar
need not register the transfer of or exchange any Notes or portion of a Note
selected for redemption, or register the transfer of or exchange any Notes for
a period of 15 days before a mailing of notice of redemption.

 

13. Persons Deemed Owners. The registered Holder of this Note
may be treated as the owner of this Note for all purposes.

 

Include corresponding terms
of applicable registration rights agreement, if any.

 

A-5

 

14. Unclaimed
Money. If money for the payment of principal or interest remains unclaimed
for two years, the Trustee or Paying Agent shall pay the money back to the
Company at its written request. After that, Holders entitled to the money must
look to the Company for payment as general creditors unless an “abandoned
property” law designates another Person.

 

15. Amendment. Supplement. Waiver, Etc. The Company, any
Guarantors and the Trustee may, without the consent of the Holders of any
outstanding Notes, amend, waive or supplement the Indenture or the Notes for
certain specified purposes, including, among other things, curing ambiguities,
defects or inconsistencies, maintaining the qualification of the Indenture under
the Act and making any change that does not materially and adversely affect the
rights of any Holder. Other amendments and modifications of the Indenture or
the Notes may be made by the Company, any Guarantors and the Trustee with the
consent of the Holders of not less than a majority of the aggregate principal
amount of the outstanding Notes, subject to certain exceptions requiring the
consent of the Holders of the particular Notes to be affected.

 

16. Restrictive Covenants. The Indenture imposes certain
limitations on the ability of the Company and its Restricted Subsidiaries to,
among other things, incur additional Indebtedness, make payments in respect of
their Equity Interests or certain Indebtedness, make certain Investments,
create or incur liens, enter into transactions with Affiliates, enter into
agreements restricting the ability of Restricted Subsidiaries to pay dividends
and make distributions, issue Equity Interests of any Restricted Subsidiaries
of the Company, and on the ability of the Company to merge or consolidate with
any other Person or transfer all or substantially all of the Company’s or any
Guarantor’s assets. Such limitations are subject to a number of important
qualifications and exceptions. Pursuant to Section 4.04 of the Indenture, the
Company must annually report to the Trustee on compliance with such
limitations.

 

17. Successor Corporation. When a successor corporation assumes
all the obligations of its predecessor under the Notes and the Indenture and
the transaction complies with the terms of Article Five of the Indenture, the
predecessor corporation shall, except as provided in Article Five, be released
from those obligations.

 

18. Defaults and Remedies. Events of Default are set forth in
the Indenture. Subject to certain limitations in the Indenture, if an Event of
Default (other than an Event of Default specified in clause (7) or (8) of
Section 6.01 of the Indenture with respect to the Company) occurs and is
continuing, the Trustee or the Holders of not less than 25% in aggregate
principal amount of the then outstanding Notes, by written notice to the
Trustee and the Company, may declare to be immediately due and payable the
entire principal amount of all the Notes then outstanding plus accrued and
unpaid interest to the date of acceleration and the same shall become
immediately due and payable. If an Event of Default specified in clause (7) or
(8) of Section 6.01 of the Indenture occurs with respect to the Company, the
principal amount of and interest on, all Notes shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder. Holders may not enforce the Indenture or the
Notes except as provided in the Indenture. The Trustee may require indemnity

 

A-6

 

satisfactory
to it before it enforces the Indenture or the Notes. Subject to certain
limitations, Holders of a majority in principal amount of the then outstanding
Notes may direct the Trustee in its exercise of any trust or power. The Trustee
may withhold from Holders notice of any continuing default (except a default in
payment of principal, premium, if any, or interest or a default in the
observance or performance of any of the obligations of the Company under
Article Five of the Indenture) if it determines that withholding notice is in
their best interests.

 

19. Trustee Dealings with Company. The Trustee, in its
individual or any other capacity, may make loans to, accept deposits from, and
perform services for the Company or its Affiliates, and may otherwise deal with
the Company or its Affiliates, as if it were not Trustee.

 

20. No Recourse Against Others. No past, present or future
director, officer, employee, partner, incorporator or shareholder, of the Company
or any Guarantor or any corporate successor thereto shall have any liability
for any obligations of the Company under the Notes, the Note Guarantees, the
Indenture or for a claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of Notes by accepting a Note waives
and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

 

21. Discharge. The Company’s obligations pursuant to the
Indenture shall be discharged, except for obligations pursuant to certain
sections thereof, subject to the terms of the Indenture, upon the payment of
all the Notes or upon the irrevocable deposit with the Trustee of money in
United States dollars or U.S. Government Obligations sufficient to pay when due
principal of and interest on the Notes to maturity or redemption, as the case
may be.

 

22. Note Guarantees. The Note is entitled to the benefits of
certain Note Guarantees made for the benefit of the Holders. Reference is
hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and obligations thereunder of the Guarantors, the
Trustee and the Holders.

 

23. Authentication. This Note shall not be valid until the
Trustee signs the certificate of authentication on the other side of this Note.

 

24. Governing Law. THIS NOTE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LA WS OF THE ST ATE
OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW
YORK, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

The Company and the Guarantors agree to submit to the jurisdiction of
the courts of the State of New York in any action or proceeding arising out of
or relating to the Indenture or the Notes.

 

A-7

 

25. Abbreviations.
Customary abbreviations may be used in the name of a Holder or an assignee,
such as: TEN COM (= tenants in common), TENANT (= tenants by the entireties),
JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian), and U/G/M/ A (= Uniform Gifts to Minors Act).

 

26. CUSIP Numbers. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP
numbers in notices of

redemption as
a convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

The Company shall furnish to any Holder upon written request and without
charge a copy of the Indenture. Requests may be made to:

 

IPSCO INC.

650
Warrenville Road

Suite 500

Lisle,
Illinois 60532

 

Attention:
Chief Financial Officer

 

A-8

 

[FORM OF ASSIGNMENT FOR UNRESTRICTED NOTES]

 

I or we assign
and transfer this Note to:

 

(Insert
assignee’s social security or tax J.D. number)

 

 

(Print or type
name, address and zip code of assignee)

 

and
irrevocably appoint:

 

 

Agent to transfer this Note on
the books of the Company. The Agent may substitute another to act for him.

 

	
  Date:

  	
  Your
  Signature:

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the other side of this Note)

  

 

Signature Guaranteed

(Signature must be guaranteed
by a participant in a recognized signature guaranty medallion program or other
signature guarantor acceptable to the Trustee)

 

A-9

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to
elect to have all or any part of this Note purchased by the Company pursuant to
Section 4.10 or Section 4.15 of the Indenture, check the appropriate box:

 

	
  o

  	
   

  	
  Section 4.10

  	
   

  	
  o

  	
   

  	
  Section 4.15

  

 

If you want to have only part of the Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you
elect to have purchased:

 

$

(multiple of
$1 ,000)

 

Date:

 

Your
Signature:

(Sign exactly
as your name appears on the face of this Note)

 

Signature
Guaranteed

(Signature
must be guaranteed by a participant in a recognized signature guaranty
medallion program or other signature guarantor acceptable to the Trustee)

 

A-10

EXHIBIT B

 

[FORM OF PRIVATE PLACEMENT LEGEND]

 

THIS NOTE HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND ACCORDINGLY, MA Y NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR
TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT
(A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED
IN RULE 501 (a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT)
(AN “INSTITUTIONAL ACCREDITED INVESTOR”) OR (C) IT IS NOT A U.S. PERSON AND IS
ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S
UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD
REFERRED TO UNDER RULE 144(k) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE
OF TRANSFER OF THIS NOTE, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO
IPSCO INC. OR ANY OF ITS SUBSIDIARIES, (B) TO A QUALIFIED INSTITUTIONAL BUYER
IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED
STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER,
FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND
AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF
WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE), AND, IF REQUESTED BY IPSCO INC.
OR THE TRUSTEE, AN OPINION OF COUNSEL ACCEPTABLE TO THEM THAT SUCH TRANSFER IS
IN COMPLIANCE WITH THE SECURITIES ACT, (D) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT
(PROVIDED THAT SUCH NON-U.S. PERSONS AGREE NOT TO RESELL OR OTHERWISE TRANSFER
THE NOTE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT, EXCEPT IN
ACCORDANCE WITH APPLICABLE SECURITIES LA WS IN CANADA), (E) PURSUANT TO THE
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE) OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN
CONNECTION WITH ANY TRANSFER OF THIS NOTE WITHIN THE TIME PERIOD REFERRED TO IN
RULE 144(k) UNDER THE SECURITIES ACT AFTER THE ORIGINAL ISSUANCE OF THE NOTE,
THE HOLDER MUST TRANSFER AND SUBMIT THIS CERTIFICATE TO THE TRUSTEE. IF THE
PROPOSED TRANSFEREE IS AN INSTITUTIONAL ACCREDITED INVESTOR OR NON-U.S. PERSON,
THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND IPSCO INC.
SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER

 

B-1

 

INFORMATION AS
EITHER OF THEM MA Y REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING
MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION”, “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION
REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION
OF THE FOREGOING RESTRICTIONS.

 

THIS NOTE HAS
NOT BEEN THE SUBJECT OF ANY PROSPECTUS FILED UNDER THE SECURITIES LAWS OF ANY
CANADIAN PROVINCE OR TERRITORY. THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE
HEREOF REPRESENTS, IF IT IS A RESIDENT OF CANADA, THAT IT IS PURCHASING THE
NOTE IN A TRANSACTION, WHICH IS EXEMPT FROM THE PROSPECTUS REQUIREMENTS OF
APPLICABLE SECURITIES LAWS IN CANADA. THE SALE OF THE NOTE TO IT QUALIFIES (BY
REASON OF THE AMOUNT OF THE CONSIDERATION BEING PAID BY THE PURCHASER OF THE
SECURITIES OR BY REASON OF THE STATUS OF THE PURCHASER, AS THE CASE MAYBE) FOR
AN EXEMPTION FROM THE PROSPECTUS FILING AND DELIVERY OBLIGATIONS UNDER
APPLICABLE CANADIAN PROVINCIAL OR TERRITORIAL SECURITIES LA WS (PROVIDED THAT
APPLICABLE REGISTRATION REQUIREMENTS AND FILING OBLIGATIONS ARE SATISFIED AND
ANY APPLICABLE FEES ARE PAID), AND IT HAS PROVIDED SUCH INFORMATION AND MADE
SUCH REPRESENTATIONS TO THE SELLER OF THE SECURITIES AS MA Y BE REASONABLY
NECESSARY FOR THE SELLER TO RELY ON SUCH EXEMPTIONS AND AGREES THAT IT WILL
GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND.

 

THIS LEGEND
WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE DATE ON WHICH RESALE
RESTRICTIONS TERMINATE UNDER APPLICABLE SECURITIES LAWS.

 

B-2

 

[FORM OF ASSIGNMENT FOR RESTRICTED NOTES]

 

I or we assign
and transfer this Note to:

 

(Insert
assignee’s social security or tax J.D. number)

 

 

(Print or type
name, address and zip code of assignee)

 

and
irrevocably appoint:

 

Agent to
transfer this Note on the books of the Company. The Agent may substitute
another to act for him. 

 

In connection
with any transfer of this Note occurring prior to the date which is the earlier
of (i) the date the Shelf Registration Statement is declared effective or (ii)
the end of the period referred to in Rule 144(k) under the Securities Act, the
undersigned confirms without utilizing any general solicitation or general
advertising that:

 

[Check One]

 

	
  o (a)

  	
   

  	
  This Note is
  being transferred in compliance with the exemption from registration under
  the Securities Act provided by Rule 144A thereunder.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  or

  
	
   

  	
   

  	
   

  
	
  o (b)

  	
   

  	
  This Note is
  being transferred other than in accordance with (a) above and documents are
  being furnished which comply with the conditions of transfer set forth in
  this Note and the Indenture.

  
	
   

  	
   

  	
   

  

 

If neither of the foregoing
boxes is checked, the Trustee or Registrar shall not be obligated to register
this Note in the name of any person other than the Holder hereof unless and
until the conditions to any such transfer of registration set forth herein and
in Sections 2.16 and 2.17 of the Indenture shall have been satisfied.

 

	
  Date:

  	
   

  	
  Your
  Signature:

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  

 

Signature Guaranteed

(Signature must be guaranteed
by a participant in a recognized signature guaranty medallion program or other
signature guarantor acceptable to the Trustee)

 

B-3

 

TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED

 

The
undersigned represents and warrants that it is purchasing this Note for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional buyer”
within the meaning of Rule 144A under the Securities Act and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

Dated:

NOTICE: To be executed by 

an executive officer

 

B-4

 

EXHIBIT C

 

[FORM OF LEGEND FOR GLOBAL NOTE]

 

Any Global
Note authenticated and delivered hereunder shall bear a legend (which would be
in addition to any other legends required in the case of a Restricted Note) in
substantially the following form:

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A
NOMINEE OF A DEPOSITORY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN
THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE
(OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE TO A NOMINEE OF THE DEPOSITORY
OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE) MAYBE REGISTERED EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (A NEW YORK CORPORATION) (“DTC”) TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

C-1

 

EXHIBIT D

 

Form of Certificate To Be Delivered in Connection with

Transfers to Non-OIB Institutional Accredited Investors

 

 

WELLS FARGO BANK
MINNESOTA, N.A. IPSCO INC.

c/o Wells
Fargo Bank Minnesota, N.A. MAC N9303-110

6th &
Marquette Avenue

Minneapolis,
Minnesota 55479

 

Attention:
Corporate Trust Department

 

Re:          IPSCO
Inc. (the “Company”)

8 3/4% Senior
Notes due 2013 (the ‘‘Notes’’)

 

Dear Sirs:

 

In connection with our proposed purchase of $      
aggregate principal amount of the Notes, we confirm that:

 

1.             We
are not a resident of Canada or a corporation or other entity governed by the
laws of Canada or any province or territory thereof.

 

2.             We
understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture dated as of June 18,
2003 relating to the Notes and we agree to be bound by, and not to resell,
pledge or otherwise transfer the Notes except in compliance with, such
restrictions and conditions and the Securities Act of 1933, as amended (the “Securities
Act”), and any applicable securities laws of any province or territory of
Canada.

 

3.             We
understand that the Notes have not been registered under the Securities Act or
any other applicable securities laws, have not been and shall not be qualified
for sale under the securities laws of any province or territory of Canada or
any other non-U.S. jurisdiction and that the Notes may not be offered, sold,
pledged or otherwise transferred except as permitted in the following sentence.
We agree, on our own behalf and on behalf of any accounts for which we are
acting as hereinafter stated, that if we should sell any Notes within the time
period referred to in Rule 144(k) of the Securities Act, we shall do so only
(i) to the Company or any subsidiary thereof, (ii) in accordance with Rule 144A
under the Securities Act to a “qualified institutional buyer”

 

D-1

 

(as defined in
Rule 144A), (iii) to an institutional “accredited investor” (as defined below)
that, prior to such transfer, furnishes (or has furnished on its behalf by a
U.S. broker-dealer) to you a signed letter substantially in the form of this
letter and, at your request, an opinion of counsel acceptable to you and the
Company that such transfer is in compliance with the Securities Act, (iv)
outside the United States to persons other than U.S. persons in offshore
transactions meeting the requirements of Rule 904 of Regulation S under the
Securities Act, (v) pursuant to the exemption form registration provided by
Rule 144 under the Securities Act (if applicable) or (vi) pursuant to an
effective registration statement, and we further agree to provide to any person
purchasing any of the Notes from us a notice advising such purchaser that
resales of the Notes are restricted as stated herein.

 

4.              We understand
that, on any proposed resale of any Notes, we shall be required to furnish to
you and the Company such certifications, legal opinions and other information
as you and the Company may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. We further understand that the Notes
purchased by us shall bear a legend to the foregoing effect.

 

5.             We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Notes, and we and any accounts for
which we are acting each are able to bear the economic risk of our or its
investment, as the case may be.

 

6.              We are acquiring
the Notes purchased by us for our account or for one or more accounts (each of
which is an institutional “accredited investor”) as to each of which we
exercise sole investment discretion.

 

                7.             We have no intention of
transferring the Notes to a resident of Canada and (a) we acknowledge that
transfers of Notes to residents of Canada may be restricted under certain
circumstances and (b) we agree to comply with any applicable Canadian
provincial securities laws in respect of any transfer of Notes to a resident of
Canada.

 

You are entitled
to rely upon this letter and are irrevocably authorized to produce this letter
or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.

 

Very truly
yours,

 

[Name of
Transferee]

 

By:

 

D-2

 

EXHIBIT E

 

Form of Certificate To Be Delivered 

in Connection with Transfers

Pursuant to Regulation S

 

 

WELLS FARGO
BANK MINNESOTA, N.A. IPSCO INC.

c/o Wells
Fargo Bank Minnesota, N.A. MAC N9303-110

6th &
Marquette Avenue

Minneapolis,
Minnesota 55479

 

Attention:
Corporate Trust Department

 

Re:          IPSCO
Inc. (the “Company”)

8 3/4% Senior
Notes due 2013 (the ‘‘Notes’’)

 

Dear Sirs:

 

In connection with our proposed sale of $
        aggregate principal amount of the
Notes, we confirm that such sale has been effected pursuant to and in
accordance with Regulation S under the U.S. Securities Act of 1933, as amended
(the “Securities AcC), and,
accordingly, we represent that:

 

(1) the offer of the Notes was not made to a U.S. person or to a person
in the United States;

 

(2) either (a) at the time the buy offer was originated, the transferee
was outside the United States or we and any person acting on our behalf
reasonably believed that the transferee was outside the United States, or (b)
the transaction was executed in, on or through the facilities of a designated
offshore securities market and neither we nor any person acting on our behalf
knows that the transaction has been prearranged with a buyer in the United
States;

 

(3) no directed selling efforts have been made in the United States in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation
S, as applicable;

 

E-1

 

(4) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act; and

 

(5) we have advised the transferee of the transfer restrictions
applicable to the Notes.

 

You and the
Company are each entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

 

Very truly
yours,

 

[Name of
Transferor]

 

By:

 

E-2

 

EXHIBIT F

 

[FORM OF NOTE GUARANTEE]

 

Each of the
undersigned (the “Guarantors”) hereby jointly and severally unconditionally
guarantees, to the extent set forth in the Indenture dated as of June 18, 2003,
by and between IPSCO Inc., as issuer, the Guarantors and Wells Fargo Bank
Minnesota, N.A., as Trustee (as amended, restated or supplemented from time to
time, the “Indenture”), and subject to the provisions of the Indenture, (a) the
due and punctual payment of the principal of, and premium, if any, and interest
on the Notes, when and as the same shall become due and payable, whether at
maturity, by acceleration or otherwise, the due and punctual payment of
interest on overdue principal of, and premium and, to the extent permitted by
law, interest, and the due and punctual performance of all other obligations of
the Company to the Holders or the Trustee, all in accordance with the terms set
forth in Article Ten of the Indenture, and (b) in case of any extension of time
of payment or renewal of any Notes or any of such other obligations, that the
same shall be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

 

The obligations of the Guarantors to the Holders and to the Trustee
pursuant to this Note Guarantee and the Indenture are expressly set forth in
Article Ten of the Indenture and reference is hereby made to the Indenture for
the precise terms and limitations of this Note Guarantee.

 

[Signatures on Following Pages]

 

F-1

 

IN WITNESS
WHEREOF, each of the Guarantors has caused this Note Guarantee to be signed by
a duly authorized officer.

 

The
Guarantors:

 

[GUARANTORS]

 

Dated:

 

F-2

 

EXHIBIT G

 

FORM OF LEGEND APPLICABLE TO CANADIAN HOLDERS

 

 

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, ANY HOLDER OF THIS NOTE IN CANADA SHALL
NOT TRADE THE NOTE BEFORE THE DATE THAT IS FOUR MONTHS AND ADA Y AFTER THE
DISTRIBUTION DATE OF THE NOTES.

 

G-1

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