Document:

EX-10.9.4

Exhibit 10.9.4

FOURTH
AMENDMENT TO THE LOAN AND SECURITY AGREEMENT

EXECUTED by the parties hereto as of the 28th day of April, 2008,

			
	AMONG:	 	MIDFIELD SUPPLY ULC

	 	 	 
		 	(the “Borrower”)
	 	 	 
	AND:	 	MEGA PRODUCTION TESTING INC.

HAGAN OILFIELD SUPPLY LTD.

	 	 	 
		 	(collectively the “Guarantors”, and individually a “Guarantor”)
	 	 	 
	AND:	 	BANK OF AMERICA, N.A. (acting through its Canada branch)

	 	 	 
		 	in its capacity as agent for Lenders and in its capacity as collateral agent for
Secured Parties under the Security Documents

	 	 	 
		 	(the “Agent”)
	 	 	 
	AND:	 	THE FINANCIAL INSTITUTIONS PARTY TO THE LOAN AND SECURITY
AGREEMENT, as Lenders

	 	 	 
		 	(collectively the “Lenders”)

     WHEREAS Borrower, the other Obligors thereto, Lenders and Agent, in its capacity as agent for
and on behalf of Lenders and in its capacity as collateral agent for Secured Parties under the
Security Documents, entered into a Loan and Security Agreement made as of November 2, 2006 (as amended
pursuant to a Consent and First Amendment to the Loan and Security Agreement dated as of April 26,
2007, a Second Amendment to the Loan and Security Agreement dated as of May 17, 2007, a Third
Amendment, Consent and Waiver to the Loan and Security Agreement dated as of October 31, 2007, and
as the same has or may be further amended, modified, restated, supplemented or replaced from time
to time, the “Loan and Security Agreement”);

     AND WHEREAS the Borrower has requested that Agent and Lenders consider certain amendments to
the Loan and Security Agreement;

     AND WHEREAS the parties hereto have agreed to amend certain provisions of the Loan and
Security Agreement but only to the extent and subject to the limitations set forth in this Fourth
Amendment to the Loan and Security Agreement (hereinafter this
“Amendment Agreement”) and without
prejudice to Agent’s, Lenders’ and Secured Parties’ other rights;

     NOW THEREFORE for good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the parties hereby agree as follows:

ARTICLE I — INTERPRETATION

	1.1	 	All capitalized terms used herein and not otherwise defined
herein shall have the meanings
ascribed to such terms in the Loan and Security Agreement.

Fourth
Amendment to the Loan and Security Agreement - Midfield Supply ULC (2008)

 

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ARTICLE II — AMENDMENTS

	2.1	 	As of the Amendment Effective Date, the defined term
“Fixed Charges” contained in Section 1.1
of the Loan and Security Agreement is deleted and the following substituted therefor:

	 	 	 	“Fixed Charges — the sum, when actually paid in the period, of interest expense,
principal payments on Borrowed Money (other than Revolving Loans and Closing Date
Debt Repayments), income taxes (other than income taxes in the amount of $3,448,878
paid by Borrower in June 2007 which, for the purposes of this definition, shall be
deemed to have been paid in February 2007), Capital Expenditures (except those
financed with Borrowed Money other than Revolver Loans), Bonuses and Net
Distributions less, when applicable, the one time payment in the amount of
$2,500,000 paid by Borrower in February 2008 relating to the Northern Debt and
less, when applicable, the one time payment in the amount of $500,000 paid (or to
be paid) by Borrower in July 2008 relating to the Hagan Debt.”

ARTICLE III — CONDITIONS TO EFFECTIVENESS

	3.1	 	This Amendment Agreement shall become effective upon satisfaction of the following conditions
precedent (the date of satisfaction of all such conditions being referred to herein as the
“Amendment Effective Date”):

	 	(a)	 	Borrower and each Guarantor delivering to Agent five originally executed copies of this
Amendment Agreement; and

	 	(b)	 	in consideration of the Agent and those Lenders entering into this Amendment Agreement,
the Borrower hereby agrees to pay to the Agent, on behalf of itself and such Lenders, an
amendment fee in the amount of $5,000 for each of the Lenders so entering into this
Amendment Agreement, which fee shall be non-refundable and fully earned when paid and which
fee shall be charged as Revolver Loan and be added to and form part of the Loans upon
completion of the conditions precedent contemplated by paragraph
3.1(a) of this Amendment
Agreement.

ARTICLE
IV — REPRESENTATIONS AND WARRANTIES

	4.1	 	Borrower and each Guarantor warrant and represent to Agent and Lenders that the following
statements are true, correct and complete:

	 	(a)	 	Authorization, Validity, and Enforceability of this Amendment Agreement. Each of
Borrower and each Guarantor has the corporate power and authority to execute and deliver
this Amendment Agreement and to perform the Loan and Security Agreement.
Each of Borrower and each Guarantor has taken all necessary corporate action
(including, without limitation, obtaining approval of its shareholders if
necessary) to authorize its execution and delivery of this Amendment Agreement and
the performance of the Loan and Security Agreement. This Amendment Agreement has
been duly executed and delivered by the each of Borrower and each Guarantor and
this Amendment Agreement and the Loan and Security Agreement constitute the legal,
valid and binding obligations of each of Borrower and each Guarantor, enforceable
against them in accordance with their
respective terms without defence, compensation, setoff or counterclaim.
Borrower’s and each Guarantor’s execution and delivery of this Amendment Agreement
and the performance by Borrower and each Guarantor of the Loan and Security
Agreement do

Fourth
Amendment to the Loan and Security Agreement - Midfield Supply ULC
(2008)

 

- 3 -

	 	 	 	not and will not conflict with, or constitute a violation or breach of, or
constitute a default under, or result in the creation or imposition of any Lien upon
the property of Borrower or any Subsidiaries or Guarantor by reason of the terms of
(a) any contract, mortgage, hypothec, Lien, lease, agreement, indenture, or instrument
to which any of Borrower or any Guarantor is a party or which is binding on any of
them, (b) any requirement of law applicable to Borrower or any Subsidiaries or any
Guarantor, or (c) the certificate or articles of incorporation or amalgamation or
bylaws of Borrower or any Subsidiaries or any Guarantor.
	 	 	 	 
	 	(b)	 	Governmental Authorization. No approval, consent, exemption, authorization, or other
action by, or notice to, or filing with, any governmental authority or other person is
necessary or required in connection with the execution, delivery or performance by, or
enforcement against Borrower or any Subsidiaries or any Guarantor of this Amendment
Agreement or the Loan Security Agreement except for such as have been obtained or made and
filings required in order to perfect and render enforceable the Agent’s Liens.
	 	 	 	 
	 	(c)	 	Incorporation of Representations and Warranties From Loan and Security Agreement.
The representations and warranties contained in the Loan and Security Agreement are
and will be true, correct and complete in all material respects on and as of the
Amendment Effective Date to the same extent as though made on and as of that date,
except to the extent such representations and warranties specifically relate to an
earlier date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.
	 	 	 	 
	 	(d)	 	Absence of Default. No event has occurred and is continuing or will result from the
consummation of the transactions contemplated by this Amendment Agreement that would
constitute an Event of Default.
	 	 	 	 
	 	(e)	 	Security. All security delivered to or for the benefit of Agent on behalf of Secured
Parties pursuant to the Loan and Security Agreement and the other Loan Documents remain in
full force and effect and secure all Obligations of Borrower and each Guarantor under the
Loan and Security Agreement and the other Loan Documents to which they are a party.

ARTICLE V — MISCELLANEOUS

	5.1	 	Borrower (i) reaffirms its Obligations under the Loan and Security Agreement and the other
Loan Documents to which it is a party, and (ii) agrees that the Loan and Security Agreement
and the other Loan Documents to which it is a party remain in full force and effect, except as
amended hereby, and are hereby ratified and confirmed.

	5.2	 	Each Guarantor (i) consents to and approves the execution and delivery of this Amendment
Agreement by the parties hereto, (ii) agrees that this Amendment Agreement does not and shall not
limit or diminish in any manner the obligations of each Guarantor under its Guarantee
(collectively, the “Guarantees”) and that such obligations would not be limited or diminished in
any manner even if such Guarantor had not executed this Amendment Agreement, (iii) agrees that this
Amendment Agreement shall not be construed as requiring the consent of a Guarantor in any other
circumstance, (iv) reaffirms each of its obligations under the Guarantees and the other Loan
Documents to which it is a party, and (v) agrees that the Guarantees and the other Loan Documents
to which it is a party remain in full force and effect and are hereby ratified and confirmed.

Fourth
Amendment to the Loan and Security Agreement - Midfield Supply ULC (2008)

 

- 4 -

	5.3	 	Nothing contained in this Amendment Agreement or any other communication between Agent and/or
Lenders and/or Secured Parties and Borrower (or any other Obligor) shall be a waiver of any present
or future violation, Default or Event of Default under the Loan and Security
Agreement or any other Loan Document (collectively, “Violations”). Similarly, nothing
contained in this Amendment Agreement shall directly or indirectly in any way whatsoever
either: (i) impair, prejudice or otherwise adversely affect Agent’s or Lenders’ or Secured
Parties’ right at any time to exercise any right, privilege or remedy in connection with
the Loan and Security Agreement or any other Loan Document with respect to any Violations
(including, without limiting the generality of the foregoing, in respect of the
non-conformity to any representation, warranty or covenant contained in any Loan
Documents), (ii) except as specifically provided in Article II hereof, amend or alter any
provision of the Loan and Security Agreement or any other Loan Document or any other
contract or instrument, or (iii) constitute any course of dealing or other basis for
altering any obligation of Borrower or any other Obligor under the Loan Documents or any
right, privilege or remedy of Agent or Lenders or Secured Parties under the Loan and
Security Agreement or any other Loan Document or any other contract or instrument with
respect to Violations. Nothing in this Amendment Agreement shall be construed to be a
consent by Agent or Lenders or Secured Parties to any Violations.

	5.4	 	This Amendment Agreement shall be interpreted and the rights and liabilities of the parties
hereto shall be determined in accordance with the laws of the Province of Ontario and the federal
laws of Canada applicable therein.

	5.5	 	This Amendment Agreement may be executed in original and/or facsimile counterparts and all such
counterparts taken together shall be deemed to constitute one and the same instrument.

[Remainder of page intentionally left blank; signatures begin on following page]

Fourth
Amendment to the Loan and Security Agreement - Midfield Supply ULC (2008)

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Third Amendment to the
Loan and Security Agreement as of the date first above written.

	 	 	 	 	 
	 	MIDFIELD SUPPLY ULC,

as Borrower 

 	 
	 	Per:     /s/ Dan Endersby
 	 
	 	Name:  	Dan Endersby 	 
	 	Title:  	President 	 
	 
	 	MEGA PRODUCTION TESTING INC.,

as Guarantor 

 	 
	 	Per:     /s/ Dan Endersby
 	 
	 	Name:  	Dan Endersby  	 
	 	Title:  	President 	 
	 
	 	HAGAN OILFIELD SUPPLY LTD.,

as Guarantor	 
	 	                                                    Per:     /s/ Dan Endersby
 	 
	 	Name:  	Dan Endersby 	 
	 	Title:  	President 	 
	 
	 	

BANK OF AMERICA, N.A.

(acting through its Canada Branch), as Agent 

 	 
	 	Per:      /s/
 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Fourth
Amendment to the Loan and Security Agreement — Midfield Supply ULC (2008)

 

 

IN WITNESS
WHEREOF, the parties hereto have executed and delivered this Third Amendment to the
Loan and Security Agreement as of the date first above written.

	 	 	 	 	 
	 	MIDFIELD SUPPLY ULC,

as Borrower

 	 
	 	
Per: 	 
	 	Name:  	Dan Endersby 	 
	 	Title:  	President 	 
	 
	 	MEGA PRODUCTION TESTING INC.,

as Guarantor

 	 
	 	
Per: 	 
	 	Name:  	Dan Endersby 	 
	 	Title:  	President 	 
	 
	 	RAGAN OILFIELD SUPPLY LTD.,

as Guarantor

 	 
	 	Per: 	 
	 	Name:  	Dan Endersby 	 
	 	Title:  	President 	 
	 
	 	BANK OF AMERICA, N.A.

(acting through its Canada branch),

as Agent

 	 
	 	
Per:        /s/ Nelson Lam
 	 
	 	Name:  	Nelson Lam 	 
	 	Title:  	Vice resident 	 
	 

Fourth Amendment to the Loan and Security Agreement · Midfield Supply ULC (2008)

 

AGREED AND ACCEPTED by the following Lenders:

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

(acting through its Canada branch),

as Lender

 	 
	 	
Per:        /s/ Nelson Lam
 	 
	 	Name:  	Nelson Lam 	 
	 	Title:  	Vice President 	 
	 
	 	ALBERTA TREASURY BRANCHES,

as Lender

 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	ROYAL BANK OF CANADA

(Asset Based Finance),

as Lender

 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	HSBC BANK CANADA, as

Lender

 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Fourth Amendment to the Loan and Security Agreement — Midfield Supply ULC (2008)

 

AGREED AND ACCEPTED by the following Lenders:

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

(acting through its Canada branch),

as Lender

 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	ALBERTA TREASURY BRANCHES,

as Lender

 	 
	 	Per:  /s/ D.A. (Dwayne) Hoopfer
 	 
	 	Name:  	D.A. (Dwayne) Hoopfer 	 
	 	Title:  	Director
Energy Group 	 
	 
	 	 	 
	 	                                                     Per:      /s/ Gerald Buhler
 	 
	 	Name:  	Gerald Buhler  	 
	 	Title:  	Associate Director
Energy Group 	 
	 
	 	ROYAL BANK OF CANADA

(Asset Based Finance),

as Lender

 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	HSBC BANK CANADA,

as Lender

 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Fourth Amendment to the Loan and Security Agreement — Midfield Supply ULC (2008)

 

AGREED AND ACCEPTED by the following Lenders:

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

(acting through its Canada branch)

as Lender

 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	ALBERTA TREASURY BRANCHES,

as Lender

 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	ROYAL BANK OF CANADA

(Asset Based Finance),

as Lender

 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	 	 
	 	Per: 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	 	HSBC BANK CANADA,

as Lender

 	 
	 	Per:   /s/ Garth Evans
 	 
	 	Name:  	Garth Evans 	 
	 	Title:  	Assistant Vice President

Commercial Financial Services 	 
	 
	 	 	 
	 	                                                      Per:   /s/ Wade Schuler
 	 
	 	Name:  	Wade Schuler 	 
	 	Title:  	Senior Account Manager

Commercial Financial Services 	 
	 

Fourth Amendment to the Loan and Security Agreement — Midfield Supply ULC (2008)

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

TORONTO BRANCH,6

as Lender

 	 
	 	Per:        /s/ Barry Walsh
 	 
	 	Name:  	Barry Walsh
 	 
	 	Title:  	Vice President 	 
	 

Fourth Amendment to the Loan and Security Agreement — Midfield Supply ULC (2008)EX-10.10

Exhibit 10.10

300, 239 8 Ave SW

Calgary, AB T2P 1B9

Phone: 403-974-5131

Fax: 403-974-5784

May 17, 2007

Midfield Supply ULC

1600 101 6th Ave SW

Calgary, Alberta

T2P 3P4

Attn: Rick Endersby

Dear Sir:

Alberta Treasury Branches has approved and offers financial assistance on the terms and conditions
in the attached Commitment Letter.

You may accept our offer by returning the enclosed duplicate of this letter, signed as indicated
below, by 4:00 p.m. on or before May 31, 2007 or our offer will automatically expire. We reserve
the right to cancel our offer at any time prior to acceptance.

Thank you for your continued business.

Yours truly,

	 	 	 	 	 
	ALBERTA TREASURY BRANCHES	 	 
	 
	 	 	 	 
	By:
	 	/s/ Dwayne Hoopfer	 	 
	 

	 	 

D.A. (Dwayne) Hoopfer
	 	 
	 

	 	Relationship Manager	 	 
	 
	By:
	 	/s/ Gerald Buhler	 	 
	 

	 	 

Gerald Buhler
	 	 
	 

	 	Account Manager	 	 
	 
	 	 	 	 
	Encl.	 	 
	 
	 	 	 	 
	Accepted this 17th day of May, 2007	 	 
	 
	 	 	 	 
	Midfield Supply ULC	 	 
	 
	 	 	 	 
	Per:
	 	/s/ Dan Endersby	 	 
	 

	 	 

Dan Endersby
	 	 
	 

	 	President	 	 

 

 

Exhibit 10.10

COMMITMENT
LETTER

LENDER: ALBERTA TREASURY BRANCHES

BORROWER: MIDFIELD SUPPLY ULC

	1.	 	AMOUNTS AND TYPES OF FACILITIES (each referred to as a “Facility”)
	 
	 	 	Facility #1 – Revolving Term Loan Facility – Cdn. $15,000,000

	 	–	 	Facility #1 is available by way of:

	 	–	 	Prime-based loans in Canadian dollars
	 
	 	–	 	Guaranteed Notes in Canadian dollars

	 	–	 	Notwithstanding the amount of Facility #1 (and except as otherwise provided in
the Repayment section hereof), advances will be limited to the amount equal to the
lesser of:

	 	–	 	the maximum principal amount of Facility #1; and
	 
	 	–	 	an amount equal to 50% of the Tangible Asset Value of Tangible
Assets then subject to the Security Documents.

	 	–	 	Facility #1 is to be used for the acquisition of Tangible Assets. Each advance
shall be supported by an officer’s certificate detailing the Tangible Asset being
acquired, and shall not exceed 100% of the cost of the asset being acquired less GST
and all appropriate taxes. The initial advance can be used to reimburse Borrower for
the cost of Tangible Assets previously acquired by it, subject to the approval of
Lender as to the assets, including their acquisition date.

	2.	 	INTEREST RATES AND PREPAYMENT:
	 
	 	 	Facility #1:

	 	–	 	Pricing applicable to Facility #1 is as follows:

	 	–	 	Prime-based loans: Interest is payable in
Canadian dollars at Prime plus the Applicable Facility #1 Margin per
365-day period
	 
	 	–	 	Guaranteed Notes: Acceptance fee is payable in
Canadian dollars at the Applicable Facility #1 Margin per 365-day
period

	 	–	 	The Applicable Facility #1 Margin shall be equal to the
percentage rate per annum set out in the following table opposite the
applicable ratio for the Borrower at the time of determination:

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 2	 	 

	 	 	 	 	 
	Ratio of Tangible Asset	 	 	 	 
	Value to outstanding

Borrowings	 	Prime-based loans	 	Guaranteed Notes
	≤ 3.00:1
	 	0%
	 	1.50%
	>2.50 but < 3.00:1
	 	0.25%
	 	1.75%
	> 2.00:1 but < 2.50:1
	 	0.50%
	 	2.00%

	 	–	 	The effective date of any change to the Applicable Facility #1
Margin shall be the 1st day of the fiscal quarter immediately following the
last day of the period during which the Borrower is required to deliver
financial statements hereunder. If financial statements are not delivered as
required hereunder, the Applicable Facility #1 Margin shall immediately be the
highest rate applicable, until such time as such financial statements are
delivered and the ratio determined. If the Applicable Facility #1 Margin
changes during the term of any Guaranteed Note, the acceptance fee paid shall
be adjusted to reflect the Applicable Facility #1 Margin for the remaining
term, and the parties shall forthwith make whatever payments are necessary to
reflect such adjustment.
	 
	 	–	 	The Applicable Facility #1 Margin shall be subject to a 0.50%
increase on and after the Term Date.
	 
	 	–	 	Facility #1 may be prepaid in whole or in part at any time
(subject to the notice periods provided hereunder) without penalty, except that
Guaranteed Notes cannot be prepaid prior to their maturity.

	3.	 	REPAYMENT:
	 
	 	 	Facility #1:

	 	–	 	Facility #1 is a committed term facility, as detailed herein.
	 
	 	–	 	The “Term Date” is initially February 28, 2008, subject to extension as herein
provided.
	 
	 	–	 	Prior to the Term Date, Facility #1 may revolve in multiples as permitted
hereunder, and Borrower may borrow, repay, reborrow and convert between types of
Borrowings, up to the amount and subject to the notice periods provided herein.
	 
	 	–	 	On the Term Date, any unutilized amount of Facility #1 will be cancelled, and
the amount of Facility #1 will be reduced to the aggregate Borrowings outstanding on
that date. On and after the Term Date, Facility #1 is non-revolving, and amounts
repaid may not be re-borrowed, but Borrower can convert between types of Borrowings
subject to the notice periods provided hereunder. All amounts outstanding under
Facility #1 are due and payable in full on the date falling one (1) year after the Term
Date.
	 
	 	–	 	Borrower may request an extension of the Term Date by sending Lender a written
request for extension in the form attached as Schedule “C” by no later than 90 days
prior to the

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 3	 	 

	 	 	then current Term Date, and Lender may in its sole discretion agree to extend the
Term Date for a further period of up to 364 days. Lender shall advise Borrower of
its decision regarding the extension by no later than 30 days prior to the then
current Term Date.

	4.	 	FEES:

	 	–	 	Non-refundable application fee of $45,000 is payable on acceptance of this
offer. Lender is hereby authorized to debit Borrower’s current account for any unpaid
portion of the fee.
	 
	 	–	 	Any amount in excess of established credit facilities may be subject to a fee
where Lender in its sole discretion permits excess Borrowings, if any.
	 
	 	–	 	For monthly or quarterly reports or statements not received within the
stipulated periods (and without limiting Lender’s rights by virtue of such default),
Borrower will be subject to a fee of $50 per month (per report or statement) for each
late reporting occurrence, which will be deducted from Borrower’s account.
	 
	 	–	 	For annual reports or statements not received within the stipulated periods
(and without limiting Lender’s rights by virtue of such default), Borrower will be
subject to a fee of $250 per month (per report or statement) for each late reporting
occurrence, which will be deducted from Borrower’s account.

	5.	 	SECURITY DOCUMENTS:
	 
	 	 	All Security Documents (whether now held or later delivered) shall secure all Facilities and
all other obligations of Borrower to Lender (whether present or future, direct or indirect,
contingent or matured).
	 
	 	 	The Security Documents required at this time are as follows:

	 	(a)	 	Solicitor prepared debenture from Borrower in the amount of $15,000,000
providing a fixed charge over all present real property and a floating charge over all
after-acquired real property;
	 
	 	(b)	 	Solicitor prepared security agreement from Borrower providing a security
interest over all present and after-acquired equipment of the Borrower, and
specifically listing all equipment having a net book value of $250,000 or more;
	 
	 	(c)	 	Solicitor prepared inter-creditor agreement (the “Intercreditor Agreement”)
with Bank of America, N.A. as agent under the Syndicated Facility;
	 
	 	(d)	 	Solicitor prepared subordination agreement from all shareholders of Borrower;
and
	 
	 	(e)	 	Confirmation of Insurance Coverage on the Tangible Assets with first loss
payable to Lender.

	 	 	All Security Documents shall be in form and substance acceptable to Lender and shall be
supported by satisfactory legal opinions from Borrower’s counsel. The Security Documents
have or are to be registered in Alberta, British Columbia and Saskatchewan, with specific
registrations against all real property, and against equipment having a net book value of
$250,000 or more.

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 4	 	 

	6.	 	REPRESENTATIONS AND WARRANTIES:
	 
	 	 	Borrower represents and warrants to Lender that:

	 	(a)	 	it is an unlimited liability corporation duly incorporated, validly existing
and duly registered or qualified to carry on business in the Province of Alberta and in
each other jurisdiction where it carries on any material business;
	 
	 	(b)	 	as of the date hereof, the only shareholders of Borrower are Red Man Pipe and
Supply Canada Ltd. (“Red Man”) and Midfield Holdings (Alberta) Ltd. (“Midfield
Holdings”);
	 
	 	(c)	 	the execution, delivery and performance by it of this agreement and each
Security Document to which it is a party have been duly authorized by all necessary
actions and do not violate its governing documents or any applicable laws or agreements
to which it is subject or by which it is bound;
	 
	 	(d)	 	if, after the date hereof, any person (a “Guarantor”) provides a guarantee of
Borrower’s obligations to Lender, such Guarantor will be a corporation duly
incorporated, validly existing and duly registered or qualified to carry on business in
the Province of Alberta and in each other jurisdiction where it carries on any material
business, and the execution, delivery and performance by such Guarantor of this
agreement and each Security Document to which it becomes a party will have been duly
authorized by all necessary actions and will not violate its governing documents or any
applicable laws or agreements to which it will be subject or by which it will be bound;
	 
	 	(e)	 	no Default or Event of Default has occurred;
	 
	 	(f)	 	the most recent financial statements of Borrower and, if applicable, any
Guarantor, provided to Lender fairly present its financial position as of the date
thereof and its results of operations and cash flows for the fiscal period covered
thereby, and since the date of such financial statements, there has occurred no
material adverse change in its business or financial condition;
	 
	 	(g)	 	each Loan Party has good and marketable title to all of its properties and
assets, free and clear of any encumbrances, other than Permitted Encumbrances; and
	 
	 	(h)	 	each Loan Party is in compliance in all material respects with all applicable
laws including, without limitation, all environmental laws, and there is no existing
material impairment to its properties and assets as a result of environmental damage,
except to the extent disclosed in writing to Lender and acknowledged by Lender.

	 	 	All representations and warranties are deemed to be repeated by Borrower on each request for
an advance hereunder.
	 
	7.	 	POSITIVE COVENANTS:
	 
	 	 	Borrower covenants with Lender that so long as it is indebted or otherwise obligated
(contingently or otherwise) to Lender, it will do and perform the following covenants:

	 	(a)	 	Borrower will pay to Lender when due all amounts (whether principal, interest
or other sums) owing by it to Lender from time to time;

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 5	 	 

	 	(b)	 	Borrower will deliver to Lender the Security Documents, in all cases in form
and substance satisfactory to Lender and Lender’s solicitor;
	 
	 	(c)	 	Borrower will ensure that (i) all Tangible Assets, and (ii) at least 95% of its
consolidated assets, are held by Borrower directly or by any Guarantors which have
provided security in favour of and to the extent required by Lender;
	 
	 	(d)	 	Borrower will, prior to acquiring any Subsidiary or allowing any Subsidiary to
have assets of a type or in an amount which would otherwise violate subsection 7(c)
above, cause such Subsidiary to provide a guarantee in favour of Lender as well as
grant similar Security Documents in favour of Lender as those delivered by Borrower
hereunder;
	 
	 	(e)	 	Borrower will use the proceeds of loans only for the purposes approved by
Lender;
	 
	 	(f)	 	each Loan Party will maintain its valid existence as a corporation (and, in the
case of Borrower, as an unlimited liability corporation) and except to the extent any
failure to do so could not reasonably be expected to have a Material Adverse Effect,
will maintain all licenses and authorizations required from regulatory or governmental
authorities or agencies to permit it to carry on its business, including, without
limitation, any licenses, certificates, permits and consents for the protection of the
environment;
	 
	 	(g)	 	each Loan Party will maintain appropriate books of account and records relative
to the operation of its business and financial condition;
	 
	 	(h)	 	each Loan Party will maintain and defend title to all of its property and
assets, will maintain, repair and keep in good working order and condition all of its
property and assets and will continuously carry on and conduct its business in a
proper, efficient and businesslike manner;
	 
	 	(i)	 	each Loan Party will maintain appropriate types and amounts of insurance with
Lender shown as first loss payee on any property insurance covering any assets on which
Lender has security, and promptly advise Lender in writing of any significant loss or
damage to its property;
	 
	 	(j)	 	each Loan Party will provide evidence of insurance to Lender on all Tangible
Assets, and otherwise, on request;
	 
	 	(k)	 	each Loan Party will permit Lender, by its officers or authorized
representatives at any reasonable time and on reasonable prior notice, to enter its
premises and to inspect its plant, machinery, equipment and other real and personal
property and their operation, and to examine and copy all of its relevant books of
accounts and records;
	 
	 	(l)	 	each Loan Party will remit all sums when due to tax and other governmental
authorities (including, without limitation, any sums in respect of employees and GST)
and will pay when due all other Potential Prior-Ranking Claims, and upon request, will
provide Lender with such information and documentation in respect thereof as Lender may
reasonably require from time to time;
	 
	 	(m)	 	each Loan Party will comply with all applicable laws, including without
limitation, environmental laws, except to the extent any failure to do so could not
reasonably be expected to have a Material Adverse Effect;

 

 

			
	 	 	 
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	 	(n)	 	Borrower will promptly advise Lender in writing, giving reasonable details, of:

	 	i)	 	the discovery of any contaminant or any spill, discharge or
release of a contaminant into the environment from or upon its property which
could reasonably be expected to result in a Material Adverse Effect;
	 
	 	ii)	 	the occurrence or existence of any Default or Event of Default;
	 
	 	iii)	 	each event which has or is reasonably likely to have a Material Adverse Effect;
	 
	 	iv)	 	any amendment to and any breach or default under the Syndicated Facility;
	 
	 	v)	 	any change in its shareholders or other holders of its Equity
Interests; and
	 
	 	vi)	 	any proposed Purchase Money Security Interest, Capital Lease or
sale-leaseback transaction involving a Tangible Asset (which for greater
certainty, requires Lender’s consent prior to the entering into thereof); and

	 	(o)	 	Borrower undertakes that, upon request from Lender, it will, or will cause a
Guarantor to, grant a fixed mortgage and charge to Lender on any or all real property
of a Loan Party and a specifically registered security interest on any or all equipment
of a Loan Party, in each case as so designated by Lender. Each Loan Party shall
promptly provide to Lender all information reasonably requested by Lender to assist it
in that regard. Each Loan Party acknowledges that this undertaking constitutes present
and continuing security in favour of Lender, and that Lender may file such caveats,
security notices, financing statements or other filings in regard thereto at any time
and from time to time as Lender may determine.

	 	 	If any such covenant is to be done or performed by a Guarantor, Borrower also covenants with
Lender to cause Guarantor to do or perform such covenant.
	 
	8.	 	NEGATIVE COVENANTS:
	 
	 	 	Borrower covenants with Lender that while it is indebted or otherwise obligated
(contingently or otherwise) to Lender, it will not do any of the following, without the
prior written consent of Lender:

	 	(a)	 	a Loan Party will not create or permit to exist any mortgage, charge, lien,
encumbrance or other security interest on any of its present or future assets, other
than Permitted Encumbrances;
	 
	 	(b)	 	a Loan Party will not create, incur, assume or allow to exist any Indebtedness
other than Permitted Indebtedness;
	 
	 	(c)	 	a Loan Party will not sell, lease or otherwise dispose of any assets except
(i) inventory sold, leased or disposed of in the ordinary course of business,
(ii) obsolete equipment which is being replaced with equipment of an equivalent value,
and (iii) assets (other than real property) sold, leased or disposed of during a fiscal
year having an aggregate fair market value not exceeding $2,500,000 for such fiscal
year;

 

 

			
	 	 	 
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	 	(d)	 	a Loan Party will not provide financial assistance (by means of a loan,
guarantee or otherwise) to any person (other than Lender), other than (i) guarantees
granted to support Indebtedness arising under the Syndicated Facility, and (ii) other
financial assistance not in excess of $5,500,000 in aggregate at any one time;
	 
	 	(e)	 	a Loan Party will not make any Distributions or any payments to persons having
an Equity Interest in Borrower (except a Distribution by a Subsidiary to Borrower), and
will not create or suffer to exist any encumbrance or restriction on the ability of a
Subsidiary to make any Distribution to Borrower, except for restrictions under
applicable law, provided, however, that Borrower may pay Bonuses to its employees, pay
principal and interest to persons having an Equity Interest in Borrower who are holders
of Shareholders’ Notes and pay interest to Red Man on Class R Note; but only if no
Default or Event of Default exists at the time of making such payment and no Default or
Event of Default would occur as a consequence of the making of such payment, and
provided further, that in the case of payments of principal or interest on
Shareholders’ Notes, that the persons holding such Shareholders’ Notes have entered in
to a subordination agreement on terms acceptable to Lender;
	 
	 	(f)	 	a Loan Party will not amalgamate, consolidate, or merge with any person other
than a Loan Party and then only if no Default or Event of Default is then in existence
or would be caused as a result thereof;
	 
	 	(g)	 	a Loan Party will not acquire any assets in, or move or allow any of its assets
to be moved to, a jurisdiction where Lender has not registered or perfected the
Security Documents;
	 
	 	(h)	 	a Loan Party will not change the present nature of its business;
	 
	 	(i)	 	a Loan Party will not enter into any Hedging Agreement which is not used for
risk management in relation to its business or which is not entered into in the
ordinary course of its business but is entered into for speculative purposes, or which,
in the case of commodity swaps or similar transactions of either a financial or
physical nature, have a term exceeding two years;
	 
	 	(j)	 	a Loan Party will not allow any pollutant (including any pollutant now on,
under or about such land) to be placed, handled, stored, disposed of or released on,
under or about any of its lands unless done in the normal course of its business and
then only as long as it complies with all applicable laws in placing, handling,
storing, transporting, disposing of or otherwise dealing with such pollutants, except
to the extent any failure to do so could not reasonably be expected to have a Material
Adverse Effect; and
	 
	 	(k)	 	Borrower will not utilize Borrowings to finance a hostile takeover.

	 	 	If a Guarantor is not to do an act, Borrower also covenants with Lender not to permit
Guarantor to do such act.
	 
	9.	 	REPORTING COVENANTS
	 
	 	 	Borrower will provide to Lender:

	 	(a)	 	within 120 days after the end of each of its fiscal years:

 

 

			
	 	 	 
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	Page 8	 	 

	 	i)	 	financial statements of Borrower on an audited, consolidated
basis prepared by a firm of qualified accountants;
	 
	 	ii)	 	a compliance certificate executed by a senior officer of
Borrower in the form attached hereto as Schedule “A”;
	 
	 	iii)	 	an environmental questionnaire and disclosure statement in the
form requested by Lender.

	 	(b)	 	within 60 days following the end of each of its first 3 fiscal quarters:

	 	i)	 	internally produced consolidated financial statements of
Borrower for that quarter, and
	 
	 	ii)	 	a compliance certificate executed by a senior officer of
Borrower in the form attached hereto as Schedule “A”;

	 	(c)	 	within 60 days after the end of each of its fiscal quarters, a list of all real
property and a list of all other assets constituting Tangible Assets broken down by
category of asset and providing details for any asset having a net book value of
$250,000 or more;
	 
	 	(d)	 	within 120 days after the end of each of its fiscal year ends, annual
consolidated and non-consolidated capital and revenue budgets, projected balance sheet,
income statement and cash flow statement from Borrower for the next following fiscal
year; and
	 
	 	(e)	 	on request, any further information regarding its assets, operations and
financial condition that Lender may from time to time reasonably require.

	10.	 	FINANCIAL COVENANTS:
	 
	 	 	Borrower will at all times comply with the following financial covenants on a consolidated
basis:

	 	(a)	 	Borrower must maintain a Leverage Ratio not greater than 3.50:1;
	 
	 	(b)	 	Borrower must maintain a Fixed Charge Coverage Ratio of at least 1.15:1; and
	 
	 	(c)	 	Borrower must maintain a ratio of Tangible Asset Value to Borrowings
outstanding of at least 2.00:1.

	 	 	Each of the above financial ratios shall be maintained at all times and shall be detailed in
the compliance certificate required to be delivered hereunder.
	 
	11.	 	CONDITIONS PRECEDENT:
	 
	 	 	No Facilities will be available until the following conditions precedent have been
satisfied, unless waived by Lender:

	 	(a)	 	Lender has received all Security Documents and all registrations and filings
have been completed in Alberta, British Columbia and Saskatchewan, in all cases in form
and substance satisfactory to Lender. Specific charges to be registered against
capital assets having a value in excess of $250,000;

 

 

			
	 	 	 
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	Page 9	 	 

	 	(b)	 	Borrower and Guarantors (if any) have provided all authorizations and all
financial statements, appraisals, environmental reports and any other information that
Lender may require;
	 
	 	(c)	 	Borrower has provided a copy of the Shareholders Agreement and the Class R
Note;
	 
	 	(d)	 	Lender has received confirmation that the second amendment to the Syndicated
Facility has become effective in the form agreed to by the Lender;
	 
	 	(e)	 	Lender has received payment of all fees due in respect hereof;
	 
	 	(f)	 	Lender is satisfied as to the value of Borrower’s and any Guarantor’s assets
and financial condition, and Borrower’s and any Guarantor’s ability to carry on
business and repay any amount owed to Lender from time to time;
	 
	 	(g)	 	There is no default hereunder or under any Security Document, and all
representations and warranties hereunder are true and correct in all material respects
as if made on such date;
	 
	 	(h)	 	Lender has received an environmental assessment and appraisal report for all
real estate projects (both old and new) having a value greater than $500,000; and
	 
	 	(i)	 	Advances under Facility #1 are subject to a minimum of $100,000 and will be
advanced against an officers certificate detailing the Tangible Asset acquired.

	 	 	It is a condition precedent to each subsequent advance hereunder that, at the time of such
advance, all representations and warranties hereunder must be true and correct in all
material respects as if made on such date, and there must be no default hereunder or under
any Security Document. As noted above, condition precedent (h) applies for each advance
hereunder.
	 
	12.	 	AUTHORIZATIONS AND SUPPORTING DOCUMENTS
	 
	 	 	Borrower has delivered or will deliver the following authorizations and supporting documents
to Lender on behalf of Borrower and any Guarantor:

	 	(a)	 	Incorporation documents including Certificate of Incorporation/Amalgamation,
Articles of Incorporation/Amalgamation (including any amendments) and last Notice of
Directors;
	 
	 	(b)	 	Business Corporation Agreement;
	 
	 	(c)	 	Environmental Questionnaire & Disclosure Statement;
	 
	 	(d)	 	Sunlife Group Creditor’s Life Insurance – application or waiver;
	 
	 	(e)	 	Credit Information and Alberta Land Titles Office Name Search Consent Form.

	13.	 	DRAWDOWNS, PAYMENTS AND EVIDENCE OF INDEBTEDNESS

	 	–	 	Interest on Prime-based loans is calculated on the daily outstanding principal
balance, and is payable on the last day of each month.

 

 

			
	 	 	 
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	 	–	 	If Guaranteed Notes are available hereunder, Borrower will issue non-interest
bearing promissory notes to Lender in multiples of $100,000, subject to a minimum of
$1,000,000, with a minimum term of 30 days and up to 90 day maturity dates. Borrower
agrees to be bound by the power of attorney set out in Schedule “B” hereto. On the
date of drawdown, Lender shall make an advance to Borrower in an amount equal to the
proceeds which would have been realized from a hypothetical sale of those Guaranteed
Notes at the Discount Rate, less the acceptance fees payable hereunder. Lender is
authorized to hold or negotiate any such promissory notes. Guaranteed Notes shall
remain in effect until the maturity of the term selected and notwithstanding anything
to the contrary contained herein, may not be repaid prior to their maturity. On the
maturity date thereof, Borrower shall pay Lender the face amount of each Guaranteed
Note. If Lender does not receive written instructions from Borrower prior to maturity
concerning the renewal of the Guaranteed Notes, then the face amount of the Guaranteed
Notes shall be automatically deemed to be outstanding as a Prime-based loan under the
relevant Facility until written instructions are received from Borrower.
	 
	 	–	 	Borrower shall monitor its Borrowings (including the face amount and maturity
date of each Guaranteed Note) to ensure that the Borrowings hereunder do not exceed the
maximum amount available hereunder. Lender shall have no obligation to make any
Borrowing available in excess of amounts available hereunder.
	 
	 	–	 	Borrower shall provide notice to Lender prior to requesting an advance or
making a repayment or conversion of Borrowings hereunder, as follows:
	 
	 	 	 	For Borrowings:

	 	–	 	under Cdn. $5,000,000 – same day notice
	 
	 	–	 	Cdn. $5,000,000 and over – one Business Day prior written notice

	 	–	 	Borrower may cancel the availability of any unused portion of a Facility on
five Business Days’ notice. Any such cancellation is irrevocable.
	 
	 	–	 	The annual rates of interest or fees to which the rates calculated in
accordance with this agreement are equivalent, are the rates so calculated multiplied
by the actual number of days in the calendar year in which such calculation is made and
divided by 365.
	 
	 	–	 	If any amount due hereunder is not paid when due, Borrower shall pay interest
on such unpaid amount (including without limitation, interest on interest) if and to
the fullest extent permitted by applicable law, at a rate per annum equal to Prime plus
5%.
	 
	 	–	 	The branch of Lender (the “Branch of Account”) where Borrower maintains an
account and through which the Borrowings will be made available is located at 219 — 2nd
Street West, Brooks, Alberta T1R 1B5. Funds under the Credit Facilities will be
advanced into and repaid from account no. 752-1090003-24 at the Branch of Account, or
such other branch or account as Borrower and Lender may agree upon from time to time.
	 
	 	–	 	Lender shall open and maintain at the Branch of Account accounts and records
evidencing the Borrowings made available to Borrower by Lender under this agreement.
Lender shall record the principal amount of each Borrowing and the payment of
principal, interest and fees and all other amounts becoming due to Lender under this
agreement. Lender’s accounts and records constitute, in the absence of manifest error,

 

 

			
	 	 	 
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	Page 11	 	 

	 	 	 	conclusive evidence of the indebtedness of Borrower to Lender pursuant to this
agreement.
	 
	 	–	 	Borrower authorizes and directs Lender to automatically debit, by mechanical,
electronic or manual means, any bank account of Borrower for all amounts payable by
Borrower to Lender pursuant to this agreement. Any amount due on a day other than a
Business Day shall be deemed to be due on the Business Day next following such day, and
interest shall accrue accordingly.

	14.	 	EVENTS OF DEFAULT:
	 
	 	 	If any of the events set forth below (an “Event of Default”) occurs and is continuing,
Lender may at its option, by notice to Borrower, terminate any or all of the Facilities
hereunder and demand immediate payment in full of all or any part of the amounts owed by
Borrower thereunder:

	 	(a)	 	if Borrower defaults in paying when due all or any part of the principal amount
due hereunder;
	 
	 	(b)	 	if Borrower or any Guarantor defaults in paying when due all or any part of its
indebtedness or other liability to Lender (other than as provided under section (a)
above) and such default continues for 3 business days after notice from Lender;
	 
	 	(c)	 	if Borrower or any Guarantor defaults in the observance or performance of any
of its covenants or obligations hereunder or in any of the Security Documents (other
than as provided under section (a) or (b) above), or in any other document under which
Borrower or such Guarantor is obligated to Lender, and in any such cases, the default
continues for 15 days after notice from Lender;
	 
	 	(d)	 	if any charge or encumbrance on any Tangible Assets of Borrower or any
Guarantor becomes enforceable and steps are taken to enforce it;
	 
	 	(e)	 	if any charge or encumbrance on any property of Borrower or any Guarantor
(other than the Tangible Assets) having a fair market value in excess of $5,000,000
becomes enforceable and steps are taken to enforce it;
	 
	 	(f)	 	if Borrower or any Guarantor defaults in any obligation under the Syndicated
Facility;
	 
	 	(g)	 	if a Remedial Action Notice (as defined in the Intercreditor Agreement) is
delivered under the Intercreditor Agreement;
	 
	 	(h)	 	if an Activation Notice (as defined in the Blocked Account Agreement) is
delivered under the Blocked Account Agreement;
	 
	 	(i)	 	if Borrower or any Guarantor defaults in any obligation to any person (other
than Lender or under the Syndicated Facility) which involves or may involve a sum
exceeding $5,000,000, and the default has not been cured within 5 days of the date
Borrower first knew or should have known of the default;
	 
	 	(j)	 	if any other creditor of Borrower or any Guarantor takes collection steps
against Borrower or such Guarantor or its assets;

 

 

			
	 	 	 
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	 	(k)	 	if final judgment or judgments should be entered against Borrower or any
Guarantor for the payment of any amount of money exceeding $5,000,000, and the judgment
or judgments are not discharged within 20 days after entry;
	 
	 	(l)	 	if an order is made, an effective resolution passed, or a petition is filed for
the winding up the affairs of Borrower or any Guarantor or if a receiver or liquidator
of Borrower or any Guarantor or any part of its assets is appointed;
	 
	 	(m)	 	if Borrower or any Guarantor becomes insolvent or makes a general assignment
for the benefit of its creditors or an assignment in bankruptcy or files a proposal or
notice of intention to file a proposal under the Bankruptcy and Insolvency Act or
otherwise acknowledges its insolvency or if a bankruptcy petition is filed or receiving
order is made against Borrower or any Guarantor and is not being disputed in good
faith;
	 
	 	(n)	 	if Borrower or any Guarantor ceases or threatens to cease to carry on its
business or makes a bulk sale of its assets;
	 
	 	(o)	 	if any of the licences, permits or approvals granted by any government or
governmental authority or agency and material to the business of Borrower or any
Guarantor is withdrawn, cancelled, suspended or adversely amended;
	 
	 	(p)	 	if Red Man and Midfield Holdings cease to be shareholders of Borrower or there
is any other change in the ownership or control of Borrower which is not acceptable to
Lender, acting reasonably. A change in the ownership or control of Borrower will mean
any person acquiring more than 50% of the outstanding shares of Borrower; or
	 
	 	(q)	 	if any event or circumstance occurs which has or would reasonably be expected
to have a Material Adverse Effect (as determined by Lender in its sole discretion).

	 	 	Failing such immediate payment, Lender may, without further notice, realize under the
Security Documents to the extent Lender chooses.
	 
	15.	 	MISCELLANEOUS:

	 	(a)	 	All legal and other costs and expenses incurred by Lender in respect of the
Facilities, the Security Documents and other related matters will be paid or reimbursed
by Borrower on demand by Lender. Lender is authorized to debit Borrower’s current
account for any such unpaid legal and other costs and expenses.
	 
	 	(b)	 	All Security Documents will be prepared by or under the supervision of Lender’s
solicitors, unless Lender otherwise permits. Acceptance of this offer will authorize
Lender to instruct Lender’s solicitors to prepare all necessary Security Documents and
proceed with related matters.
	 
	 	(c)	 	Lender, without restriction, may waive in writing the satisfaction, observance
or performance of any of the provisions of this Commitment Letter. The obligations of a
Guarantor (if any) will not be diminished, discharged or otherwise affected by or as a
result of any such waiver, except to the extent that such waiver relates to an
obligation of such Guarantor. Any waiver by Lender of the strict performance of any
provision hereof will not be deemed to be a waiver of any subsequent default, and any
partial exercise of

 

 

			
	 	 	 
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	Page 13	 	 

	 	 	 	any right or remedy by Lender shall not be deemed to affect any other right or
remedy to which Lender may be entitled.
	 
	 	(d)	 	Borrower shall reimburse Lender for any additional cost or reduction in income
arising as a result of (i) the imposition of, or increase in, taxes on payments due to
Lender hereunder (other than taxes on the overall net income of Lender), (ii) the
imposition of, or increase in, any reserve or other similar requirement, (iii) the
imposition of, or change in, any other condition affecting the Facilities imposed by
any applicable law or the interpretation thereof.
	 
	 	(e)	 	Lender is authorized but not obligated, at any time, to apply any credit
balance, whether or not then due, to which Borrower or Guarantor is entitled on any
account in any currency at any branch or office of Lender in or towards satisfaction of
the obligations of Borrower or such Guarantor due to Lender under this agreement or any
guarantee granted in support hereof, as applicable. Lender is authorized to use any
such credit balance to buy such other currencies as may be necessary to effect such
application.
	 
	 	(f)	 	Words importing the singular will include the plural and vice versa, and words
importing gender will include the masculine, feminine and neuter, and anything
importing or referring to a person will include a body corporate and a partnership and
any entity, in each case all as the context and the nature of the parties requires.
	 
	 	(g)	 	If any portion of this agreement is held invalid or unenforceable, the
remainder of this agreement will not be affected and will be valid and enforceable to
the fullest extent permitted by law. In the event of a conflict between the provisions
hereof and of any Security Documents, the provisions hereof shall prevail to the extent
of the conflict.
	 
	 	(h)	 	Where the interest rate for a credit is based on Prime, the applicable rate on
any day will depend on the Prime rate in effect on that day. The statement by Lender as
to Prime and as to the rate of interest applicable to a credit on any day will be
binding and conclusive for all purposes. All interest rates specified are nominal
annual rates. The effective annual rate in any case will vary with payment frequency.
All interest payable hereunder bears interest as well after as before maturity, default
and judgment with interest on overdue interest at the applicable rate payable
hereunder. To the extent permitted by law, Borrower waives the provisions of the
Judgment Interest Act (Alberta).
	 
	 	(i)	 	Any written communication which a party may wish to serve on any other party
may be served personally (in the case of a body corporate, on any officer or director
thereof) or by leaving the same at or couriering or mailing the same by registered mail
to the Branch of Account (for Lender) or to the last known address (for Borrower or any
Guarantor), and in the case of mailing will be deemed to have been received two (2)
Business Days after mailing except in the case of postal disruption.
	 
	 	(j)	 	Unless otherwise specified, references herein to “$” and “dollars” mean
Canadian dollars.
	 
	 	(k)	 	Lender shall have the right to assign, sell or participate its rights and
obligations in the Facilities or in any Borrowing thereunder, in whole or in part, to
one or more persons, provided that the consent of Borrower shall be required if no
default is then in existence, such consent not to be unreasonably withheld or delayed.

 

 

			
	 	 	 
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	 	(l)	 	Borrower shall indemnify Lender against all losses, liabilities, claims,
damages or expenses (including without limitation legal expenses on a solicitor and his
own client basis) (i) incurred in connection with the entry into, performance or
enforcement of this agreement, the use of the Facility proceeds or any breach by
Borrower or any Guarantor of the terms hereof or any document related hereto, or (ii)
arising out of or in respect of: (A) the release of any hazardous or toxic waste or
other substance into the environment from any property of Borrower or any of its
Subsidiaries, and (B) the remedial action (if any) taken by Lender in respect of any
such release, contamination or pollution. This indemnity will survive the repayment or
cancellation of any of the Facilities or any termination of this agreement.
	 
	 	(m)	 	For certainty, the permission to create a Permitted Encumbrance shall not be
construed as a subordination or postponement, express or implied, of Lender’s Security
Documents to such Permitted Encumbrance.
	 
	 	(n)	 	Borrower’s information, corporate or personal, may be subject to disclosure
without its consent pursuant to provincial, federal, national or international laws as
they apply to the product or service Borrower has with Lender or any third party acting
on behalf of or contracting with Lender.
	 
	 	(o)	 	Time shall be of the essence in all provisions of this agreement.
	 
	 	(p)	 	This agreement may be executed in counterpart.
	 
	 	(q)	 	This agreement shall be governed by the laws of Alberta.

	16.	 	DEFINITIONS:

“Adjusted EBITDA”, for the period then calculated, means, EBITDA plus Bonuses, to the extent
deducted in calculating EBITDA, plus the EPSPs, to the extent deducted in calculating EBITDA.

“Blocked Account Agreement” means the blocked accounts agreement dated on or about the date hereof
among the Borrower, the Lender and the agent under the Syndicated Facility, as amended from time to
time.

“Bonuses” means bonuses payable by Borrower to its employees in respect of Borrower’s most recently
ended fiscal year, which bonuses are calculated in accordance with the Shareholders Agreement.

“Borrowed Money” means with respect to any Loan Party, without duplication, its:

	 	(a)	 	Indebtedness that:

	 	i)	 	arises from the lending of money by any person to such Loan
Party;
	 
	 	ii)	 	is evidenced by notes, drafts, bonds, debentures, credit
documents or similar instruments;
	 
	 	iii)	 	accrues interest or is a type upon which interest charges are
customarily paid (excluding trade payables owing in the ordinary course of
business); or
	 
	 	iv)	 	was issued or assumed as full or partial payment for property;

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 15	 	 

	 	(b)	 	Capital Leases;
	 
	 	(c)	 	reimbursement obligations with respect to letters of credit; and
	 
	 	(d)	 	guarantees of any Indebtedness of the foregoing types owing by another person.

“Borrower” shall mean Midfield Supply ULC, a corporation duly amalgamated pursuant to the laws of
the Province of Alberta.

“Borrowings” means all amounts outstanding under the Facilities, or if the context so requires, all
amounts outstanding under one or more of the Facilities or under one or more borrowing options of
one or more of the Facilities.

“Business Day” means a day, excluding Saturday and Sunday, on which banking institutions are open
for business in the province of Alberta.

“Capital Expenditures” means all liabilities incurred, expenditures made or payments due (whether
or not made) by Borrower or Subsidiary for the acquisition of any fixed assets, or any
improvements, replacements, substitutions or additions thereto with a useful life of more than one
year, including the principal portion of Capital Leases.

“Capital Leases” means any leases that are required to be capitalized for financial reporting
purposes in accordance with GAAP.

“Class R Note” means the unsecured subordinated demand promissory note, classified as the Class R
Note, dated as of June 15, 2005, issued to Red Man by Borrower in the amount of $37,283,833,
bearing interest at the rate of 12% per annum (which interest is payable annually in the month of
April).

“Discount Rate” means, with respect to Guaranteed Notes, the per annum rate of interest which is
the arithmetic average of the rates per 365-day period applicable to Canadian dollar bankers’
acceptances having identical issue and comparable maturity dates as the Guaranteed Notes proposed
to be issued by Borrower displayed and identified as such on the display referred to as the “CDOR
Page” (or any display substituted therefor) of Reuter Monitor Money Rates Service as at
approximately 8:00 a.m. (Calgary time) on such day, or if such day is not a Business Day, then on
the immediately preceding Business Day, or if the rate referred to is not available, then the rate
quoted by the Lender.

“Distribution” means any declaration or payment of a distribution, interest or dividend on any
Equity Interest (other than payment-in-kind); any distribution, advance or repayment of
Indebtedness to a holder of Equity Interests; or any purchase, redemption, or other acquisition or
retirement for value of any Equity Interest.

“EBITDA” as determined on a consolidated basis for Borrower and Subsidiaries, means net income,
calculated before interest expense, provision for income taxes, depreciation and amortization
expense, gains or losses arising from the sale of capital assets, gains arising from the write-up
of assets, and any extraordinary gains (in each case, to the extent included in determining net
income).

“EPSPs” means the Employee Profit Sharing Plan distributions made in accordance with the
Shareholders Agreement which are, for greater certainty:

	 	(a)	 	the EPSP first allocation which is an amount equal to the interest payable by
Borrower on the Class R Note in each fiscal year multiplied by the common stock
ownership ratio of

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 16	 	 

	 	 	 	the number of shares held by Midfield Holdings in Borrower, divided by the number of
 shares held by Red Man in Borrower, outstanding during the fiscal year, and
	 
	 	(b)	 	the EPSP second allocation which is an amount equal to taxable earnings of
Borrower before deduction of the EPSP second allocation in each fiscal year multiplied
by the common stock ownership ratio of the number of shares held by Midfield Holdings
in Borrower, divided by the total number of shares of Borrower outstanding during the
fiscal year.

“Equity Interest” means the interest of any (a) shareholder in a corporation or company, (b)
partner in a partnership (whether general, limited, special, limited liability or joint venture),
(c) member in a limited liability company or unlimited liability corporation, or (d) other person
having any other form of equity security or ownership interest.

“Fixed Charge Coverage Ratio” means the ratio, determined and calculated on a consolidated basis
for Borrower and Subsidiaries and on a rolling historical twelve month basis, of (a) Adjusted
EBITDA, to (b) Fixed Charges.

“Fixed Charges” means the sum, when actually paid in the period, of interest expense, principal
payments on Borrowed Money (other than the Borrowings), income taxes, Capital Expenditures (except
those financed with Borrowed Money other than the Borrowings), Bonuses and Net Distributions.

“Generally Accepted Accounting Principles” or “GAAP” means generally accepted accounting principles
as may be described in the Canadian Institute of Chartered Accountants Handbook and other primary
sources recognized from time to time by the Canadian Institute of Chartered Accountants.

“Guaranteed Notes” means the non-interest bearing promissory notes issued hereunder by Borrower to
Lender under Lender’s guaranteed note program.

“Hedging Agreement” means any swap, hedging, interest rate, currency, foreign exchange or commodity
contract or agreement, or confirmation thereunder, entered into from time to time in connection
with:

	 	(c)	 	interest rate swaps, forward rate transactions, interest rate options, cap
transactions, floor transactions and similar rate-related transactions;
	 
	 	(d)	 	forward rate agreements, foreign exchange forward agreements, cross currency
transactions and other similar currency-related transactions; or
	 
	 	(e)	 	commodity swaps, hedging transactions and other similar commodity-related
transactions (whether physically or financially settled), including without limitation,
commodity swaps;

the purpose of which is to hedge (a) interest rate, (b) currency exchange, and/or (c) commodity
price exposure, as the case may be.

“Indebtedness” means all present and future obligations and indebtedness of a person, whether
direct or indirect, absolute or contingent, including all indebtedness for borrowed money, all
obligations in respect of swap or hedging arrangements and all other liabilities which in
accordance with GAAP would appear on the liability side of a balance sheet (other than items of
capital, retained earnings and surplus or deferred tax reserves).

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 17	 	 

“Leverage Ratio” means the ratio, determined as of the end of any calendar month, of (a) Borrowed
Money (other than contingent obligations of the Loan Parties) as of the last day of such calendar
month less the Shareholders’ Notes and the Class R Note outstanding, to (b) Adjusted EBITDA
for the rolling historical twelve month period then ending.

“Loan Parties” means the Borrower and all Guarantors, and “Loan Party” means any of them.

“Material Adverse Effect” means a material adverse effect on:

	 	(a)	 	the financial condition of Borrower and any Guarantors on a consolidated basis;
or
	 
	 	(b)	 	the ability of Borrower to repay amounts owing hereunder.

“Net Distributions” means the sum, when actually paid in the period, of EPSPs, dividends and any
other such Distributions (excluding Bonuses and interest on the Shareholders’ Notes and the Class R
Note) made by the Borrower less Shareholder Reinvestments actually made at the time of such
Distributions being made.

“Permitted Encumbrances” means, in respect of the Borrower and any Guarantors on a consolidated
basis, the following:

	 	(a)	 	liens for taxes, assessments or governmental charges not yet due or delinquent
or the validity of which is being contested in good faith;
	 
	 	(b)	 	liens arising in connection with workers’ compensation, unemployment insurance,
pension, employment or other social benefits laws or regulations which are not yet due
or delinquent or the validity of which is being contested in good faith;
	 
	 	(c)	 	liens under or pursuant to any judgment rendered or claim filed which are or
will be appealed in good faith provided any execution thereof has been stayed;
	 
	 	(d)	 	undetermined or inchoate liens and charges incidental to construction or
current operations which have not at such time been filed pursuant to law or which
relate to obligations not due or delinquent;
	 
	 	(e)	 	liens arising by operation of law such as builders’ liens, carriers’ liens,
materialmens’ liens and other liens of a similar nature which relate to obligations not
due or delinquent;
	 
	 	(f)	 	easements, rights-of-way, servitudes or other similar rights in land
(including, without in any way limiting the generality of the foregoing, 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 or taken by other persons
which singularly or in the aggregate do not materially detract from the value of the
land concerned or materially impair its use in the operation of the business of
Borrower or such Guarantor;
	 
	 	(g)	 	security given to a public utility or any municipality or governmental or other
public authority when required by such utility or municipality or other authority in
connection with the operations of Borrower or such Guarantor, all in the ordinary
course of its business which singularly or in the aggregate do not materially impair
the operation of its business;

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 18	 	 

	 	(h)	 	the reservation in any original grants from the Crown of any land or interests
therein and statutory exceptions to title;
	 
	 	(i)	 	operating leases of assets other than the Tangible Assets;
	 
	 	(j)	 	Capital Lease transactions or sale-leaseback transactions involving an asset
other than a Tangible Asset, or, with the prior written consent of Lender, involving a
Tangible Asset, where the indebtedness represented by all such transactions does not at
any time exceed $100,000 in aggregate;
	 
	 	(k)	 	security interests granted or assumed to finance the purchase of any property
or asset (a “Purchase Money Security Interest”) other than a Tangible Asset, or, with
the prior written consent of Lender, of a Tangible Asset, where:

	 	i)	 	the security interest is granted at the time of or within 60
days after the purchase,
	 
	 	ii)	 	the security interest is limited to the property and assets
acquired, and
	 
	 	iii)	 	the indebtedness represented by all Purchase Money Security
Interests does not at any time exceed $100,000 in aggregate;

	 	(l)	 	security interests granted in connection with the Syndicated Facility on
properties and assets of the Borrower or such Guarantor other than the Tangible Assets;
and
	 
	 	(m)	 	security interests or liens (other than those hereinbefore listed) of a
specific nature (and excluding for greater certainty floating charges) on properties
and assets other than a Tangible Asset having a fair market value not in excess
of $100,000 in aggregate.

“Permitted Indebtedness” means, without duplication:

	 	(a)	 	trade payables incurred in the ordinary course of business;
	 
	 	(b)	 	any Indebtedness secured by a Permitted Encumbrance;
	 
	 	(c)	 	any unsecured advances from affiliates/shareholders (including Red Man and
Midfield Holdings) which are postponed in all respects to the Facilities pursuant to a
subordination agreement acceptable to Lender;
	 
	 	(d)	 	any Indebtedness arising under the Syndicated Facility;
	 
	 	(e)	 	any debt created in connection with an acquisition of a business or an asset
other than a Tangible Asset, providing the acquisition and the proposed debt have been
approved under the Syndicated Facility; and
	 
	 	(f)	 	any Indebtedness owing to Lender.

“Potential Prior-Ranking Claims” means:

	 	(a)	 	all amounts owing or required to be paid, where the failure to pay any such
amount could give rise to a claim pursuant to any law, statute, regulation or
otherwise, which ranks or is

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 19	 	 

	 	 	 	capable of ranking in priority to Lender’s security or otherwise in priority to any
claim by Lender for repayment of any amounts owing under this agreement; and
	 
	 	(b)	 	all amounts owing under or in connection with a Purchase Money Security
Interest, Capital Lease or sale-leaseback transaction involving equipment which is a
Tangible Asset.

“Prime” means the prime lending rate per annum established by Lender from time to time for
commercial loans denominated in Canadian dollars made by Lender in Canada.

“Security Documents” means those security documents listed in the “Security Documents” section of
this Agreement as well as any other security documents now or hereafter delivered by Borrower or a
Guarantor in favour of Lender hereunder.

“Shareholders Agreement” means the shareholders agreement among Borrower, Red Man and Midfield
Holdings dated as of June 15, 2005, as amended by a Shareholders Amending Agreement among the same
parties dated as of December 28, 2005.

“Shareholders Notes” means collectively:

	 	(a)	 	the unsecured demand promissory note, dated as of June 15, 2005, issued to Red
Man by Borrower in the amount of $9,855,750, bearing interest at 8% per annum (which
interest is payable annually in the month of January);
	 
	 	(b)	 	the unsecured demand promissory note dated as of April 25, 2006, issued to Red
Man by Borrower in the amount of $14,818,915, bearing interest at 8% per annum (which
interest is payable annually in the month of January);
	 
	 	(c)	 	the unsecured demand promissory note dated as of April 25, 2006, issued to
Midfield Holdings by Borrower in the amount of $31,389,499, bearing interest at 8% per
annum (which interest is payable annually in the month of January); and
	 
	 	(d)	 	all other promissory notes (other than the Class R Note) issued to any
shareholder of, or person holding an Equity Interest in, Borrower during the term of
this Agreement.

“Shareholder Reinvestments” means the annual loans (required pursuant to the Shareholders
Agreement) to be made to Borrower by each of the persons having an Equity Interest in Borrower in
the amounts calculated and set forth in the Shareholders Agreement.

“Subsidiaries” means:

	 	(a)	 	a person of which another person alone or in conjunction with its other
subsidiaries owns an aggregate number of voting shares sufficient to elect a majority
of the directors regardless of the manner in which other voting shares are voted; and
	 
	 	(b)	 	a partnership of which at least a majority of the outstanding income interests
or capital interests are directly or indirectly owned or controlled
by such person,

and includes a person in like relation to a Subsidiary.

 

 

			
	 	 	 
	Midfield Supply ULC
	 	May 17, 2007
	Page 20	 	 

“Syndicated Facility” means the credit facility made available to Borrower by a syndicate of
lenders under a loan and security agreement dated as of November 2, 2006, as amended April 26, 2007
and May ___, 2007, among Borrower, certain financial institutions and Bank of America, N.A.
(acting through its Canada branch) as agent, as amended from time to time.

“Tangible Asset” means all real property and equipment of Borrower and any Guarantors that is
subject to the Security Documents.

“Tangible Asset Value” means as determined by GAAP on a consolidated basis, the net book value of
all real property (unless the value is supported by a drive-by real estate appraisal or a formal
appraisal acceptable to Lender, in which case such value may be used) and equipment constituting
Tangible Assets, less leasehold improvements, Potential Prior-Ranking Claims and other Permitted
Encumbrances.

 

 

SCHEDULE “A”

COMPLIANCE CERTIFICATE

	 	 	 
	To:

	 	Alberta Treasury Branches
	 

	 	Corporate Financial Services
	 

	 	300, 239 8th Ave SW
	 

	 	Calgary, AB T2P 1B9
	 
	 	 
	 

	 	Attention: D.A. (Dwayne) Hoopfer

	 	 	 	I,                                          hereby certify as of the date of this certificate as
follows:
	 
	 	(a)	 	I am the                                          [insert title] of Midfield Supply ULC
(“Borrower”) and I am authorized to provide this certificate to you for and on behalf
of Borrower.
	 
	 	(b)	 	This certificate applies to the [month/fiscal quarter/fiscal year] ending
                                        .
	 
	 	(c)	 	I am familiar with and have examined the provisions of the letter agreement
(the “Agreement”) dated May 17, 2007 between the Borrower and Alberta Treasury Branches
(“Lender”), as lender, and have made reasonable investigations of corporate records and
inquiries of other officers and senior personnel of Borrower and any Guarantors. Terms
defined in the Agreement have the same meanings when used in this certificate.
	 
	 	(d)	 	No event or circumstance has occurred which constitutes or which, with the
giving of notice, lapse of time, or both, would constitute a breach of any covenant or
other term or condition of the Agreement and there is no reason to believe that during
the next fiscal quarter of Borrower, any such event or circumstance will occur.
	 
	 	 	 	OR
	 
	 	 	 	We are or anticipate being in default of the following terms or conditions, and our
proposed action to meet compliance is set out below:
	 
	 	 	 	Description of any breaches and proposed action to remedy:                                         
	 
	 	(e)	 	Our financial ratios are as follows:

	 	i)	 	the Leverage Ratio is ___:1, being not greater than the
required ratio of 3.50:1;
	 
	 	ii)	 	the Fixed Charge Coverage Ratio is ___:1, being not less
than the required ratio of 1.15:1;
	 
	 	iii)	 	the ratio of Tangible Asset Value to outstanding Borrowings is
___:1, being not less than the required ratio of 2:1.

	 	(f)	 	The detailed calculations of the foregoing ratios and covenants are set forth
in the addendum annexed hereto and are true and correct in all respects.

 

 

A-2

This certificate is given by the undersigned officer in his/her capacity as an officer of the
Borrower without any personal liability on the part of such officer.

Dated this ___day of ___, 20___.

	 	 	 	 	 
	MIDFIELD SUPPLY ULC	 	 
	 
	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

 

 

SCHEDULE “B”

POWER OF ATTORNEY APPLICABLE TO GUARANTEED NOTES

Borrower hereby appoints Lender, acting by its duly authorized signing officers (the “Attorney”)
for the time being at the Branch of Account, the attorney of Borrower:

	1.	 	To sign for and on behalf and in the name of Borrower as drawer, guaranteed notes in the
Lender’s standard form for advances in the nature of Guaranteed Note advances (the “Notes”)
payable to Lender or its order evidencing Guaranteed Note advances made by Lender to Borrower;
and
	 
	2.	 	To fill in the amount, date and maturity date of such Notes;

Provided that such acts in each case are to be undertaken by Lender in accordance with instructions
given to Lender by Borrower as provided in this power of attorney.

Instructions to Lender relating to the execution and completion by Lender on behalf of Borrower of
Notes which Borrower wishes to issue to Lender shall be communicated by Borrower to Lender in
writing at the Branch of Account following delivery by Borrower of a notice in respect of a
drawdown or conversion and shall specify the following information:

	1.	 	A Canadian Dollar amount, which shall be the aggregate face amount of the Guaranteed Note
advances to be made by Lender in respect of a particular drawdown or conversion;
	 
	2.	 	A specified period of time, which shall be the number of days after the date of such Notes
that such Notes are to be payable, and the dates of issue and maturity of such Notes; and
	 
	3.	 	Payment instructions specifying the account number of Borrower and the financial institution
at which the proceeds of such Guaranteed Note advances are to be credited.

The communication in writing by Borrower to Lender of the instructions referred to above shall
constitute the authorization and instruction of Borrower to Lender to complete and execute Notes in
accordance with such information as set out above. Borrower acknowledges that Lender shall not be
obligated to make any Guaranteed Note advances and therefore complete and execute any Notes
evidencing the same. Lender shall be and is hereby authorized to act on behalf of Borrower upon
and in compliance with instructions communicated to Lender as provided herein if Lender reasonably
believes them to be genuine.

Borrower agrees to indemnify Lender and its directors, officers, employees, affiliates and agents
and to hold it and them harmless from any loss, liability, expense or claim of any kind or nature
whatsoever incurred by any of them as a result of any action or inaction in any way relating to or
arising out of this power of attorney or the acts contemplated hereby; provided that this indemnity
shall not apply to any such loss, liability, expense or claim which results from the gross
negligence or willful misconduct of Lender or any of its directors, officers, employees, affiliates
or agents.

 

 

B-2

This power of attorney may be revoked by Borrower at any time upon not less than five (5) Business
Days’ written notice served upon Lender at the Branch of Account provided that (i) it may be
replaced with another power of attorney forthwith and (ii) no such revocation shall reduce, limit
or otherwise affect the obligations of Borrower in respect of any Note executed and completed in
accordance herewith prior to the time at which such revocation becomes effective. This power of
attorney may be terminated by Lender at any time upon not less than five (5) Business Days’ written
notice to Borrower.

Any revocation or termination of this power of attorney shall not affect the rights of Lender and
the obligations of Borrower with respect to the indemnities of Borrower above stated with respect
to all matters arising prior in time to any such revocation or termination.

This power of attorney shall be governed in all respects by the laws of the Province of Alberta and
the laws of Canada applicable therein and each of Borrower and Lender hereby irrevocably attorns to
the non-exclusive jurisdiction of the courts of such jurisdiction in respect of all matters arising
out of this power or attorney.

 

 

SCHEDULE “C”

REQUEST FOR EXTENSION

Date:

Alberta Treasury Branches

Corporate Financial Services
300, 239-8th Ave S.W.

Calgary, Alberta T2P 1B9

Attention: D.A. (Dwayne) Hoopfer

Dear Sirs:

We refer to the Commitment Letter dated as of May 17, 2007 between Midfield Supply ULC as Borrower
and Alberta Treasury Branches as lender (the “Letter Agreement”). Capitalized terms used herein
have the same meaning as in the Letter Agreement.

In accordance with Section 3 of the Letter Agreement, we hereby request that the Lender provide an
offer to extend the Term Date for a period of up to 364 days.

We hereby certify that:

	1.	 	except as disclosed to the Lender in writing, the representations and warranties contained in
the Letter Agreement are true and correct on the date hereof and will be true and correct on
the date of extension, as applicable, with the same effect as if such representations and
warranties were made on such dates; and
	 
	2.	 	no event or circumstance has occurred which constitutes or which, with the giving of notice,
lapse of time, or both, would constitute a breach of any covenant or other term or condition
of the Letter Agreement or any Security Document granted in connection therewith and there is
no reason to believe that during the next fiscal quarter of Borrower, any such event or
circumstance will occur.

If you will offer this extension on the existing terms and conditions, please execute the
counterpart of this request for extension and return it to us in accordance with the provisions of
the Letter Agreement.

Yours truly,

MIDFIELD SUPPLY ULC

	 	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

 

 

D-2

The Lender hereby offers to extend the Term Date under the Letter Agreement for a period of three
hundred sixty-four (364) days from the date of your acceptance of this offer. This offer is open
for acceptance until                     , being the day prior to the current Term Date.

	 	 	 	 	 
	ALBERTA TREASURY BRANCHES	 	 
	 
	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

Accepted on                                                             , ___.

	 	 	 	 	 
	MIDFIELD SUPPLY ULC	 	 
	 
	 	 	 	 
	Per:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:

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