EXTERRAN HOLDINGS INC.
CANADIAN COLLATERAL AGREEMENT
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>8
<FILENAME>h49421exv10w7.htm
<DESCRIPTION>CANADIAN COLLATERAL AGREEMENT
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT&nbsp;10.7
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CANADIAN COLLATERAL AGREEMENT</B>
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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Dated as of</B></FONT><BR>
<FONT style="font-variant: SMALL-CAPS"><B>August&nbsp;20, 2007</B></FONT>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>made by</B></FONT>
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<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>EXTERRAN CANADA, LIMITED PARTNERSHIP,</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>in favour of</B></FONT>
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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Wachovia Capital Finance Corporation (Canada),</B></FONT><BR>
<FONT style="font-variant: SMALL-CAPS"><B>As Canadian Administrative Agent</B></FONT>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;I Definitions</B></DIV></TD>
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    <TD align="right"><B>1</B></TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.01 Terms Defined Above</DIV></TD>
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    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.02 Certain Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.03 Rules of Interpretation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;II Grant of Security Interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>3</B></TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.01 Grant of Security Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.02 No Subrogation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.03 Amendments, Etc. with respect to the Obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.04 Waivers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.05 Pledge Absolute and Unconditional</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.06 Reinstatement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.07 Attachment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;III Representations and Warranties</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.01 Title; No Other Liens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.02 Perfected First Priority Liens</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.03 Grantor Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.04 Instruments and Chattel Paper</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.05 Truth of Information; Books and Records</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.06 Governmental Obligors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;IV Covenants</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>10</B></TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.01 Maintenance of Perfected Security Interest; Further Documentation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.02 Changes in Locations, Name, Etc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.03 Instruments, Certificated Securities, Documents of Title and Chattel Paper</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.04 Motor Vehicles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;V Remedial Provisions</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>11</B></TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.01 PPSA and Other Remedies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.02 Collections on Accounts, Etc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.03 Proceeds</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.04 Deficiency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.05 Non-Judicial Enforcement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;VI The Canadian Administrative Agent</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.01 Canadian Administrative Agent&#146;s Appointment as Attorney-in-Fact, Etc.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.02 Duty of Canadian Administrative Agent</DIV></TD>
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    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.03 Filing of Financing Statements</DIV></TD>
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    <TD align="right">17</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.04 Authority of Canadian Administrative Agent</DIV></TD>
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    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;VII Subordination of Indebtedness</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>17</B></TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.01 Subordination of All Grantor Claims</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.02 Claims in Bankruptcy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.03 Payments Held in Trust</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.04 Liens Subordinate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.05 Notation of Records</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Article&nbsp;VIII Miscellaneous</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>19</B></TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.01 Waiver</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.02 Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.03 Amendments in Writing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.04 Successors and Assigns</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.05 Survival; Revival; Reinstatement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.06 Counterparts; Integration; Effectiveness; Conflicts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.07 Severability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.08 Governing Law; Submission to Jurisdiction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.09 Headings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.10 Acknowledgments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.11 Additional Grantor</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.12 Releases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
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    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.13 Acceptance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
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<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.14 English Language</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ANNEXES:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Annex I Supplement
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>SCHEDULES:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Schedule&nbsp;1 Notice Addresses of Grantors
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Schedule&nbsp;2 Filings and Other Actions Required to Perfect Security Interests
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Schedule&nbsp;3 Location of Jurisdiction of Organization and Chief Executive Office / OTHER COLLATERAL
LOCATIONS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Schedule&nbsp;4 Location of Records
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">-ii-
</DIV>

</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This CANADIAN COLLATERAL AGREEMENT, dated as of August&nbsp;20, 2007 is made by EXTERRAN CANADA,
LIMITED PARTNERSHIP, a Nova Scotia limited partnership (the &#147;<U>Canadian Borrower</U>&#148;, together
with any other Significant Canadian Subsidiary that executes a joinder agreement in the form of
Annex I hereto and becomes a party to this Agreement in accordance with Section&nbsp;8.11 hereof, the
&#147;<U>Grantors</U>&#148;), in favour of WACHOVIA CAPITAL FINANCE CORPORATION (CANADA), as Canadian
administrative agent (in such capacity, together with its successors in such capacity, the
&#147;<U>Canadian Administrative Agent&#148;</U>), for the &#147;Canadian Tranche Revolving Lenders&#148; (as defined
in the Credit Agreement referred to below, and as so defined, the &#147;<U>Canadian Lenders</U>&#148;) from
time to time parties to the Senior Secured Credit Agreement dated August&nbsp;20, 2007 (as amended,
supplemented or otherwise modified from time to time, the &#147;<U>Credit Agreement</U>&#148;), among
Exterran Holdings Inc., as the US borrower and Canadian guarantor, the Canadian Borrower, Wachovia
Bank, National Association, as US Administrative Agent, the Canadian Administrative Agent, the
Canadian Lenders, the other lenders party thereto from time to time and the other agents party
thereto.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>R E C I T A L S</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A. The Canadian Borrower has requested that the Canadian Lenders make certain loans to and
extensions of credit on behalf of the Canadian Borrower.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">B. The Canadian Lenders have agreed to make such loans and extensions of credit subject to the
terms and conditions of the Credit Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C. It is a condition precedent and a continuing covenant to the obligation of the Lenders to make
their loans and extensions of credit to the Canadian Borrower under the Credit Agreement that the
Grantors shall have executed and delivered this Agreement to the Canadian Administrative Agent for
the rateable benefit of the Secured Creditors (defined below).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">D. NOW, THEREFORE, in consideration of the premises herein and to induce the Canadian
Administrative Agent and the Canadian Lenders to enter into the Credit Agreement and to induce the
Canadian Lenders and Secured Creditors to make their respective extensions of credit to the
Canadian Borrower thereunder and in connection therewith, the parties hereto agree as follows:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;I
Definitions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;1.01 <u>Terms Defined Above.</u>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As used in this Agreement, the terms defined above shall have the meanings respectively assigned to
them.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;1.02 <U>Certain Definitions.</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unless otherwise defined herein, terms defined in the Credit Agreement and used
herein have the meanings given to them in the Credit Agreement, and all terms which are
defined in the PPSA are used herein (when capitalized) as so defined.</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As used in this Agreement, the following terms shall have the following
meanings, unless the context otherwise requires:</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Account Debtor</U>&#148; means any Person (other than any Grantor) obligated to pay on any
Account, Chattel Paper, Intangible or Instrument included in the Collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148; means this Canadian Collateral Agreement, as the same may from time to
time be amended, supplemented or otherwise modified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrower Obligations</U>&#148; means the collective reference to the payment and performance
when due of all indebtedness, liabilities, obligations and undertakings of the Canadian Borrower
and all Restricted Subsidiaries that are Canadian Subsidiaries (including, without limitation, all
Indebtedness) of every kind or description arising out of or outstanding under, advanced or issued
pursuant, or evidenced by, the Secured Documents, including, without limitation, the unpaid
principal of and interest on the Canadian Tranche Credit Exposure and all other obligations and
liabilities of the Canadian Borrower and all Restricted Subsidiaries that are Canadian Subsidiaries
(including, without limitation, interest accruing at the then applicable rate provided in the
Credit Agreement after the maturity of the Canadian Tranche Loans and interest accruing after the
filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to the Canadian Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) to the Secured Creditors, whether direct or
indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred,
arising out of or outstanding under, advanced or issued pursuant, or evidenced by, the Secured
Documents, whether on account of principal, interest, premium, reimbursement obligations, payments
in respect of an early termination date, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all reasonable costs, fees and disbursements that are required to
be paid by the Canadian Borrower pursuant to the terms of any Secured Document).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Collateral</U>&#148; has the meaning assigned such term in Section&nbsp;2.01 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Grantor Claims</U>&#148; has the meaning assigned to such term in Section&nbsp;7.01 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Obligations</U>&#148; means with respect to any Grantor, the collective reference to (a)&nbsp;the
Borrower Obligations and (b)&nbsp;the payment and performance when due of all indebtedness, liabilities,
obligations and undertakings of such Grantor of every kind or description, whether direct or
indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred,
arising out of or outstanding under, advanced or issued pursuant, or evidenced by, any Secured
Document to which such Grantor is a party, in each case, whether on account of principal, interest,
guarantee obligations, reimbursement obligations, payments in respect of an early termination date,
fees, indemnities, costs, expenses or otherwise (including, without limitation, all reasonable fees
and disbursements that are required to be paid pursuant to the terms of any Secured Document).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>PPSA</U>&#148; means the <I>Personal Property Security Act </I>(Alberta) as from time to time in
effect in the Province of Alberta; provided, however, that, in the event that, by reason of
mandatory provisions of law, any of the attachment, perfection or priority of the Secured
Creditors&#146; security interest in any Collateral is governed by personal property security
legislation as in effect in a jurisdiction other than the Province of Alberta, the term &#147;PPSA&#148;
shall mean the
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 3 -<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">personal property security legislation as in effect in such other jurisdiction for purposes of
the provisions hereof relating to such attachment, perfection, the effect thereof or priority and
for purposes of definitions related to such provisions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Secured Creditors</U>&#148; means the collective reference to the Canadian Administrative
Agent and the Canadian Lenders and Affiliates of Canadian Lenders that are parties to Secured
Hedging Agreements and Secured Treasury Management Agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Secured Documents</U>&#148; means the collective reference to the Credit Agreement, the other
Loan Documents, each Secured Hedging Agreement, each Secured Treasury Management Agreement and any
other document made, delivered or given in connection with any of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Secured Hedging Agreement</U>&#148; means any Hedging Agreement between the Canadian Borrower
or any Canadian Subsidiary and any Lender or any Affiliate of any Lender while such Person (or, in
the case of an Affiliate of a Lender, the Person affiliated therewith) is a Lender, including any
Hedging Agreement between such Persons in existence prior to the date hereof, but excluding any
Hedging Agreement now existing or hereafter arising in connection with the ABS Facility. For the
avoidance of doubt, a Hedging Agreement ceases to be a Secured Hedging Agreement if the Person that
is the counterparty to the Canadian Borrower or the applicable Canadian Subsidiary ceases to be a
Lender under the Credit Agreement (or, in the case of an Affiliate of a Lender, the Person
affiliated therewith ceases to be a Lender under the Credit Agreement).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Secured Treasury Management Agreement</U>&#148; means any Treasury Management Agreement
between the Canadian Borrower or any Canadian Subsidiary and any Lender or any Affiliate of any
Lender while such Person (or, in the case of an Affiliate of a Lender, the Person affiliated
therewith) is a Lender, including any Treasury Management Agreement between such Persons in
existence prior to the date hereof, but excluding any Treasury Management Agreement now existing or
hereafter arising in connection with the ABS Facility. For the avoidance of doubt, a Treasury
Management Agreement ceases to be a Secured Treasury Management Agreement if the Person that is the
counterparty to the Canadian Borrower or the applicable Canadian Subsidiary under a Treasury
Management Agreement ceases to be a Lender under the Credit Agreement (or, in the case of an
Affiliate of a Lender, the Person affiliated therewith ceases to be a Lender under the Credit
Agreement).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;1.03 <U>Rules of Interpretation.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With the exception of the first sentence thereof, Section&nbsp;1.04 of the Credit Agreement is
hereby incorporated herein by reference and shall apply to this Agreement, mutatis mutandis.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;II<BR>
Grant of Security Interest</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;2.01 <U>Grant of Security Interest.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor hereby pledges, assigns and transfers to the Canadian Administrative Agent, and
hereby grants to the Canadian Administrative Agent, for the rateable benefit of the
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 4 -<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Secured Creditors, a security interest in the undertaking of the Grantor and all of the
Grantor&#146;s present and after-acquired Personal Property, including without limitation all of the
following Personal Property now owned or at any time hereafter acquired by such Grantor or in which
such Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the &#147;<U>Collateral</U>&#148;), as collateral security for the prompt and complete
payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of
the Obligations:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Accounts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Chattel Paper;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Documents of Title;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Equipment;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Goods;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Intangibles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Instruments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Inventory;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Investment Property;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all Money;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all books and records pertaining to the Collateral; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the extent not otherwise included, all Proceeds and products
of any and all of the foregoing and all collateral security and guarantees
given by any Person with respect to any of the foregoing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each reference to Collateral or to any relevant type or item of Personal Property constituting
Collateral shall be deemed to exclude (i)&nbsp;any general intangibles or other rights arising under any
contract, instrument, license or other document if (but only to the extent that) the grant of a
security interest therein would constitute a violation of a valid and enforceable restriction in
favour of a third party, unless and until all required consents shall have been obtained (and where
such consents have not been obtained, such general intangibles or other rights shall be held in
trust for the Canadian Administrative Agent and shall be subject to the direction of the Canadian
Administrative Agent upon the occurrence and continuance of an Event of Default), (ii)&nbsp;Personal
Property owned by or assigned to the ABS Subsidiaries as permitted under the Credit Agreement;
provided that, upon the transfer of such Personal Property (owned or assigned to any ABS
Subsidiary) to a Grantor, such Personal Property shall become Collateral, (iii)&nbsp;any Personal
Property subject to a Lien permitted by Section&nbsp;10.02(b) or (g)&nbsp;of the Credit Agreement, so long as
such Lien is in effect, (iv)&nbsp;any Personal Property owned by a member of the EPLP Group as permitted
under the Credit Agreement, (v)&nbsp;Consumer Goods, (vi)&nbsp;any Personal Property contemplated by Section
9.07(b)(i)(B) and (C)&nbsp;of the Credit Agreement (to the extent not already provided for hereunder)
and (vii)&nbsp;any property which would constitute
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;serial number goods&#148; under the <I>Personal Property Security Act </I>(Alberta) or other applicable
Canadian provinces.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The security interest granted hereby shall not extend or apply to and the Collateral shall
exclude the last day of the term of any lease or any agreement now held or hereafter acquired by
any Grantor, but should the Canadian Administrative Agent enforce this Security Interest, such
Grantor will thereafter stand possessed of such last day and must hold it in trust to assign it to
any Person acquiring such term in the course of the enforcement of this assignment and mortgage and
charge. The security interest created hereby will not render the Canadian Administrative Agent
liable to observe or perform any term, covenant or condition of any agreement, document or
instrument to which any Grantor is a party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;2.02 <U>No Subrogation.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any payment made by any Grantor hereunder or any set-off or application of
funds of any Grantor by any Secured Creditor, no Grantor shall be entitled to exercise any right of
subrogation to any Secured Creditor against the Canadian Borrower or any other Grantor or any
collateral security or pledge or guarantee or right of offset held by any Secured Creditor for the
payment of the Obligations, nor shall any Grantor seek or be entitled to exercise any right to seek
any indemnity, exoneration, participation, contribution or reimbursement from the Canadian Borrower
or any other Grantor in respect of payments made by such Grantor hereunder, until all amounts owing
to the Secured Creditors on account of the Obligations are irrevocably and indefeasibly paid in
full in cash and all of the Canadian Allocated Aggregate Commitments are terminated. If any amount
shall be paid to any Grantor on account of such subrogation rights at any time when all of the
Obligations shall not have been irrevocably and indefeasibly paid in full in cash or any of the
Canadian Allocated Aggregate Commitments are in effect, such amount shall be held by such Grantor
in trust for the Secured Creditors, and shall, forthwith upon receipt by such Grantor, be turned
over to the Canadian Administrative Agent in the exact form received by such Grantor (duly endorsed
by such Grantor to the Canadian Administrative Agent, if required), to be applied against the
Obligations, whether matured or unmatured, in accordance with Section&nbsp;11.02(d) of the Credit
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;2.03 <U>Amendments, Etc. with respect to the Obligations.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor shall remain obligated hereunder, and such Grantor&#146;s obligations hereunder shall
not be released, discharged or otherwise affected, notwithstanding that, without any reservation of
rights against any Grantor and without notice to, demand upon or further assent by any Grantor
(which notice, demand and assent requirements are hereby expressly waived by such Grantor), (a)&nbsp;any
demand for payment of any of the Obligations made by any Secured Creditor may be rescinded by such
Secured Creditor or otherwise and any of the Obligations continued; (b)&nbsp;the Obligations, the
liability of any other Person upon or for any part thereof or any collateral security or pledge or
guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or
released by, or any indulgence or forbearance in respect thereof granted by, any Secured Creditor;
(c)&nbsp;any Secured Document may be amended, modified, supplemented or terminated, in whole or in part,
as the Secured Creditors may deem advisable from time to time; (d)&nbsp;any collateral security, pledge,
guarantee or right of offset at any time held by any Secured Creditor for the payment of the
Obligations may be sold, exchanged, waived,
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 6 -<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">surrendered or released; (e)&nbsp;any additional guarantors, makers or endorsers of the Obligations
may from time to time be obligated on the Obligations or any additional security or collateral for
the payment and performance of the Obligations may from time to time secure the Obligations; and
(f)&nbsp;any other event shall occur which constitutes a defence or release of sureties generally. No
Secured Creditor shall have any obligation to protect, secure, perfect or insure any Lien at any
time held by it as security for the Obligations or for the pledge and security grants contained in
this Article&nbsp;II or any Personal Property subject thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;2.04 <U>Waivers.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor hereby waives any and all notice of the creation, renewal, extension or accrual
of any of the Obligations and notice of or proof of reliance by any Secured Creditor upon the
pledge and security grants contained in this Article&nbsp;II or acceptance of the pledge and security
grants contained in this Article&nbsp;II; the Obligations, and any of them, shall conclusively be deemed
to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance
upon the pledge and security grants contained in this Article&nbsp;II and no notice of creation of the
Obligations or any extension of credit already or hereafter contracted by or extended to the
Canadian Borrower need be given to any Grantor; and all dealings between the Canadian Borrower and
any of the Grantors, on the one hand, and the Secured Creditors, on the other hand, likewise shall
be conclusively presumed to have been had or consummated in reliance upon the pledge and security
grants contained in this Article&nbsp;II. Each Grantor waives diligence, presentment, protest, demand
for payment and notice of default or nonpayment to or upon the Canadian Borrower or any of the
Grantors with respect to the Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;2.05 <U>Pledge Absolute and Unconditional.</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as provided in Section&nbsp;2.01 and Section&nbsp;8.12 hereof, each Grantor
understands and agrees that the pledge and security grants contained in this Article&nbsp;II
is, and shall be construed as, a continuing, completed, absolute and unconditional
pledge and security grant, and each Grantor hereby waives any defence of a surety or
guarantor or Grantor or any other obligor on any obligations arising in connection with
or in respect of any of the following and hereby agrees that its obligations hereunder
shall not be discharged or otherwise affected as a result of, any of the following, to
the extent permitted by applicable law:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the invalidity or unenforceability of any Secured
Document, any of the Obligations or any other collateral security therefor
or pledge or guarantee or right of offset with respect thereto at any time
or from time to time held by any Secured Creditor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any defence, set-off or counterclaim (other than a
defence of payment or performance) which may at any time be available to or
be asserted by the Canadian Borrower or any other Person against any Secured
Creditor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the insolvency, bankruptcy arrangement, reorganization,
adjustment, composition, liquidation, disability, dissolution or lack of
power of the Canadian Borrower or any other Grantor or any other Person at
any time</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 7 -<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>liable for the payment of all or part of the Obligations, including any
discharge of, or bar or stay against collecting, any Borrower Obligation (or
any part of them or interest therein) in or as a result of such proceeding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any sale, lease or transfer of any or all of the assets
of the Canadian Borrower or any other Grantor, or any changes in the
shareholders of the Canadian Borrower or any other Grantor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any change in the corporate existence (including its
constitution, laws, rules, regulations or power), structure or ownership of
any Grantor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the fact that any Collateral or Lien contemplated or
intended to be given, created or granted as security for the repayment of
the Obligations shall not be properly perfected or created, or shall prove
to be unenforceable or subordinate to any other Lien, it being recognized
and agreed by each of the Grantors that it is not entering into this
Agreement in reliance on, or in contemplation of the benefits of, the
validity, enforceability, collectibility or value of any of the Collateral
for the Obligations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the absence of any attempt to collect the Obligations or
any part of them from any Grantor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(A)&nbsp;the avoidance of any Lien in favour of the Secured Creditors or any of
them for any reason; or (B)&nbsp;failure by any Secured Creditor to file or
enforce a claim against the Canadian Borrower&#146;s or any Grantor&#146;s estate in
any bankruptcy or insolvency case or proceeding; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ix)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other circumstance or act whatsoever, including any
action or omission of the type described in Section&nbsp;2.03 hereof (with or
without notice to or knowledge of the Canadian Borrower or such Grantor),
which constitutes, or might be construed to constitute, an equitable or
legal discharge of Canadian Borrower for the Obligations, or of such Grantor
under the pledge and security grants contained in this Article&nbsp;II, in
bankruptcy or in any other instance.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When making any demand hereunder or otherwise pursuing its rights and remedies
hereunder against any Grantor, any Secured Creditor may, but shall be under no
obligation to, join or make a similar demand on or otherwise pursue or exhaust such
rights and remedies as it may have against the Canadian Borrower, any other Grantor or
any other Person or against any collateral security or pledge or guarantee for the
Obligations or any right of offset with respect thereto, and any failure by any Secured
Creditor to make any such demand, to pursue such other rights or remedies or to collect
any payments from the Canadian Borrower, any other Grantor or any other Person or to
realize upon any such collateral security or pledge or guarantee or to exercise any
such right of offset, or any release of the Canadian Borrower, any other Grantor or any
other Person or any such collateral security, guarantee or pledge or right of offset,
shall not relieve any Grantor of any obligation or liability hereunder, and shall not
impair or affect</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 8 -<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the rights and remedies, whether express, implied or available as a matter of law,
of any Secured Creditor against any Grantor. For the purposes hereof &#147;demand&#148; shall
include the commencement and continuance of any legal proceedings.</TD>
</TR>
<TR style="font-size: 6pt">
    <TD>&nbsp;</TD>
</TR>


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The security granted hereunder is in addition to and not in substitution for
any other security now or hereafter held by the Canadian Administrative Agent as
security for the Obligations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;2.06 <U>Reinstatement.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The pledge and security grants contained in this Article&nbsp;II shall continue to be effective, or
be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the
Obligations is rescinded or must otherwise be restored or returned by any Secured Creditor upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of the Canadian Borrower or any
Grantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or
trustee or similar officer for, the Canadian Borrower or any Grantor or any substantial part of its
property, or otherwise, all as though such payments had not been made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;2.07 <U>Attachment</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor acknowledges and agrees that (i)&nbsp;value has been given by the Secured Creditors,
(ii)&nbsp;it has rights in the Collateral or the power to transfer rights in the Collateral, (iii)&nbsp;the
security interest will attach to the Grantor&#146;s existing property forming part of the Collateral
when such Grantor signs this Agreement and to the Grantor&#146;s after-acquired property forming part of
the Collateral at the time the Grantor acquires rights in such property, and (iv)&nbsp;it has not
otherwise agreed to postpone the time of attachment.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;III<BR>
Representations and Warranties</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To induce the Canadian Administrative Agent and the Canadian Lenders to enter into the Credit
Agreement and to induce the Canadian Lenders to make their respective extensions of credit to the
Canadian Borrower thereunder and to induce the Secured Creditors to enter into Hedging Agreements
and Treasury Management Agreements with the Canadian Borrower and the Significant Canadian
Subsidiaries, each Grantor hereby represents and warrants to the Canadian Administrative Agent and
each Canadian Lender for itself only that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;3.01 <U>Title; No Other Liens.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for Permitted Liens and the security interest granted to the Canadian Administrative
Agent for the rateable benefit of the Secured Creditors pursuant to this Agreement, such Grantor is
the registered and beneficial owner of its Collateral free and clear of any and all Liens and has
the power to transfer each item of the Collateral in which a Lien is granted by it hereunder, free
and clear of any Lien. Except with respect to Liens permitted by Section&nbsp;10.02(b), (c), (e)&nbsp;or (g)
of the Credit Agreement, no financing statement or other public notice with respect to all or any
part of the Collateral is on file or of record in any public office, except such as have been filed
in favour of the Canadian Administrative Agent, for the rateable
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 9 -<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">benefit of the Secured Creditors, pursuant to this Agreement or as are filed to secure Liens
permitted by Section&nbsp;10.02 of the Credit Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;3.02 <U>Perfected First Priority Liens.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The security interests granted pursuant to this Agreement (a)&nbsp;upon the completion of the
filings and the other actions specified on Schedule&nbsp;2 constitute valid perfected security interests
in all of the Collateral in favour of the Canadian Administrative Agent, for the rateable benefit
of the Secured Creditors, as collateral security for the Obligations, enforceable in accordance
with the terms hereof against all creditors of such Grantor and any Persons purporting to purchase
any Collateral from such Grantor and (b)&nbsp;are prior to all other Liens on the Collateral in
existence on the date hereof, except, in each case, for Liens expressly permitted by the Credit
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;3.03 <U>Grantor Information.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the date hereof, the correct legal name of such Grantor, such Grantor&#146;s jurisdiction of
organization and organizational number, the location(s) of such Grantor&#146;s chief executive office or
sole place of business and all other Canadian provinces or territories where Collateral is stored
or located are specified on Schedule&nbsp;3. The Grantor does not have a French form of name or a
combined French/English or English/French form of name.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;3.04 <U>Instruments and Chattel Paper.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such Grantor has delivered to the Canadian Administrative Agent all Collateral constituting a
Document of Title, Instrument, Certificated Security or Chattel Paper in excess of $5,000,000 that
is required to be delivered under Section&nbsp;4.03 hereof. No Collateral constituting a Document of
Title, Chattel Paper, Certificated Security or Instrument contains any statement therein to the
effect that such Collateral has been assigned to an identified party other than the Canadian
Administrative Agent, and the grant of a security interest in such Collateral in favour of the
Canadian Administrative Agent hereunder does not violate the rights of any other Person as a
secured party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;3.05 <U>Truth of Information; Books and Records.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All information with respect to the Collateral set forth in any schedule or certificate at any
time heretofore or hereafter furnished by such Grantor to the Canadian Administrative Agent is and
will be true and correct in all material respects as of the date furnished. On the date hereof,
the place where each Grantor keeps its records concerning its Accounts and Intangibles is set forth
on Schedule&nbsp;4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;3.06 <U>Governmental Obligors.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the Initial Funding Date, none of the Account Debtors on a material portion of such
Grantor&#146;s Accounts, Chattel Paper, Intangibles or Instruments is a Governmental Authority.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 10 -<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;IV<BR>
Covenants</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor covenants and agrees with the Canadian Administrative Agent and the Canadian
Lenders for itself only that, from and after the date of this Agreement until the Obligations under
the Credit Agreement shall have been paid in full in cash, and all of the Canadian Allocated
Aggregate Commitments shall have been permanently terminated:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;4.01 <U>Maintenance of Perfected Security Interest; Further Documentation.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in the Credit Agreement, including, without limitation, any merger,
consolidation, liquidation, sale, assignment, transfer or other disposition permitted by Section
10.08 or 10.14 of the Credit Agreement, each Grantor agrees that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it shall maintain the security interest created by this Agreement as a
perfected security interest having at least the priority described in Section&nbsp;3.02
hereof and shall defend such security interest against the claims and demands of all
Persons whomsoever;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it will furnish to the Canadian Administrative Agent and the Canadian Lenders
from time to time statements and schedules further identifying and describing the
Collateral and such other reports in connection with the Collateral as the Canadian
Administrative Agent may reasonably request, all in reasonable detail, provided that
upon any Account Debtor that is a Governmental Authority having a material portion of
all the Grantors&#146; Accounts, Chattel Paper, Instruments or Intangibles, taken as a
whole, it will promptly furnish such statement to the Canadian Administrative Agent all
in reasonable detail, as the Canadian Administrative Agent may reasonably request; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at any time and from time to time, upon the written request of the Canadian
Administrative Agent, and at the sole expense of such Grantor, it will promptly and
duly execute and deliver, and have recorded, such further instruments and documents and
take such further actions as the Canadian Administrative Agent may reasonably deem
necessary for the purpose of obtaining or preserving the full benefits of this
Agreement and of the rights and powers herein granted, including, without limitation,
the filing of any financing or continuation statements under the PPSA (or other similar
domestic laws) in effect in any jurisdiction with respect to the security interests
created hereby.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;4.02 <U>Changes in Locations, Name, Etc.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such Grantor recognizes that financing statements pertaining to the Collateral have been or
may be filed where such Grantor has its chief executive office and/or where it owns assets.
Without limitation of Section&nbsp;9.03 of the Credit Agreement or any other covenant herein, such
Grantor will not cause or permit any change in (a)&nbsp;its corporate or legal name, (b)&nbsp;its identity or
corporate structure or the jurisdiction in which it is incorporated, organized or formed, (c)&nbsp;its
chief executive office or registered office or principal place of business or (d)&nbsp;any other
location of its business or any Collateral, unless, in each case, such Grantor shall have first (i)
notified the
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 11 -<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Canadian Administrative Agent of such change prior to the effective date of such change and
(ii)&nbsp;taken all action reasonably requested by the Canadian Administrative Agent for the purpose of
maintaining the perfection and priority of the Canadian Administrative Agent&#146;s security interests
under this Agreement. In any notice furnished pursuant to this Section&nbsp;4.02, such Grantor will
expressly state in a conspicuous manner that the notice is required by this Agreement and contains
facts that may require additional filings of financing statements or other notices for the purposes
of continuing perfection of the Canadian Administrative Agent&#146;s security interest in the
Collateral. In the case of the Canadian Borrower, it shall provide prompt advance notice of any
change in the corporate or legal name of its general partner.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;4.03 <U>Instruments, Certificated Securities, Documents of Title and Chattel Paper.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any amount payable under or in connection with any of the Collateral shall be or become
evidenced by any Instrument, Certificated Security (excluding any Investment Property which is
already provided for separately in Section&nbsp;9.07 of the Credit Agreement), Document of Title or
Chattel Paper having a value in excess of $5,000,000, such item shall be immediately delivered to
the Canadian Administrative Agent, duly endorsed in a manner satisfactory to the Canadian
Administrative Agent, to be held as Collateral pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;4.04 <U>Motor Vehicles</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Canadian Administrative Agent&#146;s request, the Grantors will provide a list of all motor
vehicles owned by each of the Grantors by model, model year, location (i.e., jurisdiction) and
vehicle identification number.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;V<BR>
Remedial Provisions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;5.01 <U>PPSA and Other Remedies.</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Upon the occurrence and during the continuance of an Event of Default, the
Canadian Administrative Agent, on behalf of the Secured Creditors, may exercise, in
addition to all other rights and remedies granted to them in this Agreement, the other
Loan Documents and in any other instrument or agreement securing, evidencing or
relating to the Obligations, all rights and remedies of a secured party under the PPSA
or any other applicable law or otherwise available at law or equity. Without limiting
the generality of the foregoing, the Canadian Administrative Agent, without demand of
performance or other demand, presentment, protest, advertisement or notice of any kind
(except any notice required by applicable law referred to below) to or upon any Grantor
or any other Person (all and each of which demands, defences, advertisements and
notices are hereby waived), may in such circumstances forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith
sell, lease, assign, give option or options to purchase, or otherwise dispose of and
deliver the Collateral or any part thereof (or contract to do any of the foregoing), in
one or more parcels at public or private sale or sales, at any exchange, broker&#146;s board
or office of any Secured Creditor or elsewhere upon such commercially reasonable terms
and conditions as it may deem advisable and at such</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 12 -<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>commercially reasonable prices as it may deem best, for cash or on credit or for
future delivery without assumption of any credit risk. Any Secured Creditor shall
have the right upon any such public sale or sales, and, to the extent permitted by
applicable law, upon any such private sale or sales, to purchase the whole or any
part of the Collateral so sold, free of any right or equity of redemption in any
Grantor, which right or equity is hereby waived and released. If applicable to any
particular item of Collateral, each Grantor further agrees, at the Canadian
Administrative Agent&#146;s request following an acceleration of the Indebtedness under
Section&nbsp;11.02(a) of the Credit Agreement, to assemble the Collateral and make it
available to the Canadian Administrative Agent at places which the Canadian
Administrative Agent shall reasonably select, whether at such Grantor&#146;s premises or
elsewhere, unless prohibited by agreements with unaffiliated third parties. Any
such sale or transfer by the Canadian Administrative Agent either to itself or to
any other Person shall, to the fullest extent permitted under applicable law, be
absolutely free from any claim of right by Grantor, including any equity or right of
redemption, stay or appraisal which Grantor has or may have under any rule of law,
regulation or statute now existing or hereafter adopted (and such Grantor hereby
waives any rights it may have in respect thereof). Upon any such sale or transfer,
the Canadian Administrative Agent shall have the right to deliver, assign and
transfer to the purchaser or transferee thereof the Collateral so sold or
transferred. The Canadian Administrative Agent shall apply the net proceeds of any
action taken by it pursuant to this Section&nbsp;5.01, after deducting all reasonable
costs and expenses of every kind incurred in connection therewith or incidental to
the care or safekeeping of any of the Collateral or in any way relating to the
Collateral or the rights of the Canadian Administrative Agent and the Secured
Creditors hereunder, including, without limitation, reasonable attorneys&#146; fees and
disbursements, to the payment in whole or in part of the Obligations, in accordance
with the Credit Agreement, and only after such application and after the payment by
the Canadian Administrative Agent of any other amount required by any provision of
law need the Canadian Administrative Agent account for the surplus, if any, to any
Grantor. To the extent permitted by applicable law, each Grantor waives all claims,
damages and demands it may acquire against the Canadian Administrative Agent or any
Secured Creditor arising out of the exercise by them of any rights hereunder. If
any notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given at least ten (10)
days before such sale or other disposition.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that the Canadian Administrative Agent elects not to sell the
Collateral, the Canadian Administrative Agent retains its rights to dispose of or
utilize the Collateral or any part or parts thereof in any manner authorized or
permitted by law or in equity, and to apply the proceeds of the same towards payment of
the Obligations. Each and every method of disposition of the Collateral described in
this Agreement shall constitute disposition in a commercially reasonable manner.</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Canadian Administrative Agent may appoint any Person as agent to perform
any act or acts necessary or incident to any sale or transfer of the Collateral.
Without limitation, the Canadian Administrative Agent may by appointment in writing
appoint a receiver, interim receiver, receiver and manager or agent (each referred to
as a &#147;<B>Receiver</B>&#148;) of the Collateral (which term when used in this Section will include
the whole or any part of the Collateral) and may remove or replace such Receiver from
time to time or may institute proceedings in any court of competent jurisdiction for
the appointment of a Receiver of the Collateral; and the terms &#147;Canadian Administrative
Agent&#148; and &#147;Secured Creditor&#148; when used in this Article&nbsp;V and other sections of this
Agreement granting remedies to the Canadian Administrative Agent and the Secured
Creditors will include any Receiver so appointed and the agents, officers and employees
of such Receiver; and no Secured Creditor will be in any way responsible for any
misconduct or negligence of any such Receiver.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;5.02 <U>Collections on Accounts, Etc.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Canadian Administrative Agent hereby authorizes each Grantor to collect upon the
Collateral that is represented by Accounts, Instruments, Investment Property, Intangibles, Chattel
Paper and Documents of Title subject to the Canadian Administrative Agent&#146;s direction and control,
and the Canadian Administrative Agent may curtail or terminate said authority at any time after the
occurrence and during the continuance of an Event of Default. Upon the request of the Canadian
Administrative Agent at any time after the occurrence and during the continuance of an Event of
Default, each Grantor shall notify the Account Debtors that the applicable Accounts, Chattel Paper,
Intangibles and Instruments have been assigned to the Canadian Administrative Agent for the
rateable benefit of the Secured Creditors and that payments in respect thereof shall be made
directly to the Canadian Administrative Agent. The Canadian Administrative Agent may in its own
name or in the name of others communicate with the Account Debtors to verify with them to its
satisfaction the existence, amount and terms of any such Accounts, Chattel Paper, Intangibles or
Instruments. Anything herein to the contrary notwithstanding, each Grantor shall remain liable
under each of its Accounts to observe and perform all the conditions and obligations to be observed
and performed by it thereunder, all in accordance with the terms of any agreement giving rise
thereto. Neither the Canadian Administrative Agent nor any Canadian Lender shall have any
obligation or liability under any Account (or any agreement giving rise thereto) by reason of or
arising out of this Agreement or the receipt by the Canadian Administrative Agent or any Canadian
Lender of any payment relating thereto, nor shall the Canadian Administrative Agent or any Lender
be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to
any Account (or any agreement giving rise thereto) to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the sufficiency of any
performance by any party thereunder, to present or file any claim, to take any action to enforce
any performance or to collect the payment of any amounts which may have been assigned to it or to
which it may be entitled at any time or times. Where any Investment Property is held in or
credited to an account that has been established with a Securities Intermediary, the Canadian
Administrative Agent may, at any time upon the occurrence and during the continuance of an Event of
Default, give a notice of exclusive control to any such Securities Intermediary with respect to
such Investment Property.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;5.03 <U>Proceeds.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If required by the Canadian Administrative Agent at any time after the occurrence and during
the continuance of an Event of Default, any payments of Collateral composed of Accounts,
Instruments, Chattel Paper, Investment Property and Documents of Title, when collected or received
by each Grantor, and any other cash or non-cash Proceeds received by each Grantor upon the sale or
other disposition of any Collateral, shall be forthwith (and, in any event, within two Business
Days) deposited by such Grantor in the exact form received, duly endorsed by such Grantor to the
Canadian Administrative Agent if required, in a special collateral account maintained by the
Canadian Administrative Agent, subject to withdrawal by the Canadian Administrative Agent for the
rateable benefit of the Secured Creditors only, as hereinafter provided, and, until so turned over,
shall be held by such Grantor in trust for the Canadian Administrative Agent for the rateable
benefit of the Secured Creditors, segregated from other funds of any such Grantor. Each deposit of
any such Proceeds shall be accompanied by a report identifying in reasonable detail the nature and
source of the payments included in the deposit. All Proceeds (including, without limitation,
Proceeds constituting collections of Accounts, Chattel Paper and Instruments) while held by the
Canadian Administrative Agent (or by any Grantor in trust for the Canadian Administrative Agent for
the rateable benefit of the Secured Creditors) shall continue to be collateral security for all of
the Obligations and shall not constitute payment thereof until applied as hereinafter provided. At
such intervals as may be agreed upon by each Grantor and the Canadian Administrative Agent, or, if
an Event of Default shall have occurred and be continuing, at any time at the Canadian
Administrative Agent&#146;s election, the Canadian Administrative Agent shall apply all or any part of
the funds on deposit in said special collateral account on account of the Obligations in such order
as the Canadian Administrative Agent may elect, and any part of such funds which the Canadian
Administrative Agent elects not so to apply and deems not required as collateral security for the
Obligations shall be paid over from time to time by the Canadian Administrative Agent to each
Grantor or to whomsoever may be lawfully entitled to receive the same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;5.04 <U>Deficiency.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay the Obligations and the fees and
disbursements of any attorneys employed by the Canadian Administrative Agent or any Secured
Creditor to collect such deficiency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;5.05 <U>Non-Judicial Enforcement.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Canadian Administrative Agent may enforce its rights hereunder without prior judicial
process or judicial hearing, and to the extent permitted by law, each Grantor expressly waives any
and all legal rights which might otherwise require the Canadian Administrative Agent to enforce its
rights by judicial process.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;VI<BR>
The Canadian Administrative Agent</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;6.01 <U>Canadian Administrative Agent&#146;s Appointment as Attorney-in-Fact, Etc.</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Anything in this Section&nbsp;6.01(a) to the contrary notwithstanding, the Canadian
Administrative Agent agrees that it will not exercise any rights under the power of
attorney provided for in this Section&nbsp;6.01(a) unless an Event of Default shall have
occurred and be continuing. Each Grantor hereby irrevocably constitutes and appoints
the Canadian Administrative Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable power and
authority in the place and stead of such Grantor and in the name of such Grantor or in
its own name, for the purpose of carrying out the terms of this Agreement, to take any
and all reasonably appropriate action and to execute any and all documents and
instruments which may be reasonably necessary or desirable to accomplish the purposes
of this Agreement, and, without limiting the generality of the foregoing, each Grantor
hereby gives the Canadian Administrative Agent the power and right, on behalf of such
Grantor, without notice to or assent by such Grantor, to do any or all of the
following:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unless being disputed under Section&nbsp;9.03(a) of the Credit
Agreement, pay or discharge Taxes and Liens levied or placed on or
threatened against the Collateral, effect any repairs or any insurance
called for by the terms of this Agreement or any other Loan Document and pay
all or any part of the premiums therefor and the costs thereof; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(A)&nbsp;direct any party liable for any payment under any of
the Collateral to make payment of any and all moneys due or to become due
thereunder directly to the Canadian Administrative Agent or as the Canadian
Administrative Agent shall direct; (B)&nbsp;ask or demand for, collect, and
receive payment of and receipt for, any and all moneys, claims and other
amounts due or to become due at any time in respect of or arising out of any
Collateral; (C)&nbsp;in the name of such Grantor or its own name, or otherwise,
take possession of and indorse and collect any cheque, draft, note,
acceptance or other instrument for the payment of moneys due with respect to
any Collateral and commence and prosecute any suits, actions or proceedings
at law or in equity in any court of competent jurisdiction to collect the
Collateral or any portion thereof and to enforce any other right in respect
of any Collateral; (D)&nbsp;defend any suit, action or proceeding brought against
such Grantor with respect to any Collateral; (E)&nbsp;settle, compromise or
adjust any such suit, action or proceeding and, in connection therewith,
give such discharges or releases as the Canadian Administrative Agent may
deem appropriate; and (F)&nbsp;generally, sell, transfer, pledge and make any
agreement with respect to or otherwise deal with any of the Collateral as
fully and completely as though the Canadian Administrative Agent were the
absolute owner thereof for all purposes, and do, at the Canadian
Administrative Agent&#146;s option and such Grantor&#146;s expense, at any time, or
from time to time, all acts and things which the</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Canadian Administrative Agent deems necessary to protect, preserve or
realize upon the Collateral and the Canadian Administrative Agent&#146;s and the
Secured Creditors&#146; security interests therein and to effect the intent of
this Agreement, all as fully and effectively as such Grantor might do.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any Grantor fails to perform or comply with any of its agreements contained
herein within the applicable grace periods, the Canadian Administrative Agent, at its
option, but without any obligation so to do, may perform or comply, or otherwise cause
performance or compliance, with such agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The reasonable expenses of the Canadian Administrative Agent incurred in
connection with actions undertaken as provided in this Section&nbsp;6.01, together with
interest thereon at a rate per annum equal to the Post-Default Rate, but in no event to
exceed the Highest Lawful Rate, from the date of payment by the Canadian Administrative
Agent to the date reimbursed by the relevant Grantor, shall be payable by such Grantor
to the Canadian Administrative Agent on demand.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the
security interests created hereby are released.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;6.02 <U>Duty of Canadian Administrative Agent.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Canadian Administrative Agent&#146;s sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession shall be to deal with it in the same
manner as the Canadian Administrative Agent deals with similar property for its own account and
shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral
in its possession if the Collateral is accorded treatment substantially equal to that which
comparable secured parties accord comparable collateral. To the fullest extent permitted under
applicable law, neither the Canadian Administrative Agent, any Secured Creditor nor any of their
respective officers, directors, employees or agents shall be liable for failure to demand, collect
or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person
or to take any other action whatsoever with regard to the Collateral or any part thereof. The
powers conferred on the Canadian Administrative Agent and the Secured Creditors hereunder are
solely to protect the Canadian Administrative Agent&#146;s and the Secured Creditors&#146; interests in the
Collateral and shall not impose any duty upon the Canadian Administrative Agent or any Secured
Creditor to exercise any such powers. The Canadian Administrative Agent and the Secured Creditors
shall be accountable only for amounts that they actually receive as a result of the exercise of
such powers, and neither they nor any of their officers, directors, employees or agents shall be
responsible to any Grantor for any act or failure to act hereunder, except for their own gross
negligence or wilful misconduct. To the fullest extent permitted by applicable law, the Canadian
Administrative Agent shall be under no duty whatsoever to make or give any presentment, notice of
dishonour, protest, demand for performance, notice of non-performance, notice of intent to
accelerate, notice of acceleration or other notice or demand in connection with any Collateral or
the Obligations, or to take any steps necessary to preserve any rights against any Grantor or other
Person or ascertaining or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relative to any Collateral, whether or not it has or
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 17 -<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">is deemed to have knowledge of such matters. Each Grantor, to the extent permitted by
applicable law, waives any right of marshalling in respect of any and all Collateral, and waives
any right to require the Canadian Administrative Agent or any Secured Creditor to proceed against
any Grantor or other Person, exhaust any Collateral or enforce any other remedy which the Canadian
Administrative Agent or any Secured Creditor now has or may hereafter have against each Grantor,
any Grantor or other Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;6.03 <U>Filing of Financing Statements.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the PPSA and any other applicable law, each Grantor authorizes the Canadian
Administrative Agent or its agents to file or record financing statements and other filing or
recording documents or instruments with respect to the Collateral in such form and in such offices
as the Canadian Administrative Agent reasonably determines appropriate to perfect the security
interests of the Canadian Administrative Agent under this Agreement. A photographic or other
reproduction of this Agreement shall be sufficient as a financing statement or other filing or
recording document or instrument for filing or recording in any jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor waives its right to receive a copy of a financing statement or financing change
statement registered by the Canadian Administrative Agent or its agents or any verification
statement pertaining to such registration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;6.04 <U>Authority of Canadian Administrative Agent.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor acknowledges that the rights and responsibilities of the Canadian Administrative
Agent under this Agreement with respect to any action taken by the Canadian Administrative Agent or
the exercise or non-exercise by the Canadian Administrative Agent of any option, voting right,
request, judgment or other right or remedy provided for herein or resulting or arising out of this
Agreement shall, as between the Canadian Administrative Agent and the Secured Creditors, be
governed by the Credit Agreement and by such other agreements with respect thereto as may exist
from time to time among them, but, as between the Canadian Administrative Agent and the Grantors,
the Canadian Administrative Agent shall be conclusively presumed to be acting as agent for the
Secured Creditors with full and valid authority so to act or refrain from acting, and no Grantor
shall be under any obligation, or entitlement, to make any inquiry respecting such authority.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;VII<BR>
Subordination of Indebtedness</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;7.01 <U>Subordination of All Grantor Claims.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used herein, the term &#147;<B>Grantor Claims</B>&#148; shall mean all debts and obligations of the Canadian
Borrower or any other Grantor to any other Grantor, whether such debts and obligations now exist or
are hereafter incurred or arise, or whether the obligation of the debtor thereon be direct,
contingent, primary, secondary, several, joint and several, or otherwise, and irrespective of
whether such debts or obligations be evidenced by note, contract, open account, or otherwise, and
irrespective of the Person or Persons in whose favour such debts or obligations may, at their
inception, have been, or may hereafter be created, or the manner in which they have been or may
hereafter be acquired. Except for payments permitted by the Credit Agreement,
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 18 -<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">after and during the continuation of an Event of Default, no Grantor shall receive or collect,
directly or indirectly, from any obligor in respect thereof any amount upon the Grantor Claims.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;7.02 <U>Claims in Bankruptcy.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of receivership, bankruptcy, reorganization, arrangement, debtor&#146;s relief or
other insolvency proceedings involving any Grantor, the Canadian Administrative Agent on behalf of
the Canadian Administrative Agent and the Secured Creditors shall have the right to prove their
claim in any proceeding, so as to establish their rights hereunder and receive directly from the
receiver, trustee or other court custodian, dividends and payments which would otherwise be payable
upon Grantor Claims. Each Grantor hereby assigns such dividends and payments to the Canadian
Administrative Agent for the benefit of the Canadian Administrative Agent and the Secured Creditors
for application against the Obligations as provided under the Credit Agreement. Should the
Canadian Administrative Agent or Secured Creditor receive, for application upon the Obligations,
any such dividend or payment which is otherwise payable to any Grantor, and which, as between such
Grantors, shall constitute a credit upon the Grantor Claims, then upon payment in full in cash of
the Obligations, and the permanent termination of all of the Canadian Allocated Aggregate
Commitments, the intended recipient shall become subrogated to the rights of the Canadian
Administrative Agent and the Secured Creditors to the extent that such payments to the Canadian
Administrative Agent and the Canadian Lenders on the Grantor Claims have contributed toward the
liquidation of the Obligations, and such subrogation shall be with respect to that proportion of
the Obligations which would have been unpaid if the Canadian Administrative Agent and the Secured
Creditors had not received dividends or payments upon the Grantor Claims.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;7.03 <U>Payments Held in Trust.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that notwithstanding Section&nbsp;7.01 and Section&nbsp;7.02 hereof, any Grantor should
receive any funds, payments, claims or distributions which is prohibited by such Sections, then it
agrees: (a)&nbsp;to hold in trust for the Canadian Administrative Agent and the Secured Creditors an
amount equal to the amount of all funds, payments, claims or distributions so received and (b)&nbsp;that
it shall have absolutely no dominion over the amount of such funds, payments, claims or
distributions except to pay them promptly to the Canadian Administrative Agent, for the benefit of
the Secured Creditors; and each Grantor covenants promptly to pay the same to the Canadian
Administrative Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;7.04 <U>Liens Subordinate.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor agrees that, until the Obligations are paid in full in cash, and the permanent
termination of all of the Canadian Allocated Aggregate Commitments, any Liens securing payment of
the Grantor Claims shall be and remain inferior and subordinate to any Liens securing payment of
the Obligations, regardless of whether such encumbrances in favour of such Grantor, the Canadian
Administrative Agent or any Secured Creditor presently exist or are hereafter created or attach.
Without the prior written consent of the Canadian Administrative Agent, no Grantor, during the
period in which any of the Obligations are outstanding or the Aggregate Commitments are in effect,
shall (a)&nbsp;exercise or enforce any creditor&#146;s right it may have against any debtor in respect of the
Grantor Claims or (b)&nbsp;foreclose, repossess, sequester or otherwise take steps or institute any
action or proceeding (judicial or otherwise, including
</DIV>
</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 19 -<!-- /Folio -->
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">without limitation the commencement of or joinder in any liquidation, bankruptcy,
rearrangement, debtor&#146;s relief or insolvency proceeding) to enforce any Lien held by it that
secures Grantor Claims.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;7.05 <U>Notation of Records.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the request of the Canadian Administrative Agent, all promissory notes and all accounts
receivable ledgers or other evidence of the Grantor Claims accepted by or held by any Grantor shall
contain a specific written notice thereon that the indebtedness evidenced thereby is subordinated
under the terms of this Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;VIII<BR>
Miscellaneous</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.01 <U>Waiver.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No failure on the part of the Canadian Administrative Agent or any Secured Creditor to
exercise and no delay in exercising, and no course of dealing with respect to, any right, power,
privilege or remedy or any abandonment or discontinuance of steps to enforce such right, power,
privilege or remedy under this Agreement or any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, power, privilege or remedy under
this Agreement or any other Loan Document preclude or be construed as a waiver of any other or
further exercise thereof or the exercise of any other right, power, privilege or remedy. The
remedies provided herein are cumulative and not exclusive of any remedies provided by law or
equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.02 <U>Notices.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All notices and other communications provided for herein shall be given in the manner and
subject to the terms of Section&nbsp;13.02 of the Credit Agreement; provided that any such notice,
request or demand to or upon any Grantor shall be addressed to such Grantor at its notice address
set forth on Schedule&nbsp;1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.03 <U>Amendments in Writing.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the terms or provisions of this Agreement may be waived, amended, supplemented or
otherwise modified except in accordance with Section&nbsp;13.04 of the Credit Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.04 <U>Successors and Assigns.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of this Agreement shall be binding upon the Grantors and their successors and
permitted assigns and shall inure to the benefit of the Canadian Administrative Agent and the
Secured Creditors and their respective successors and permitted assigns; provided that no Grantor
may assign, transfer or delegate any of its rights or obligations under this Agreement without the
prior written consent of the Canadian Administrative Agent and the Lenders unless otherwise
permitted by the terms of the Credit Agreement or this Agreement, and any such purported
assignment, transfer or delegation shall be null and void.
</DIV>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 20 -<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.05 <U>Survival; Revival; Reinstatement.</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All covenants, agreements, representations and warranties made by any Grantor
herein and in the certificates or other instruments delivered in connection with or
pursuant to this Agreement or any other Loan Document to which it is a party shall be
considered to have been relied upon by the Canadian Administrative Agent and the other
Secured Creditors and shall survive the execution and delivery of this Agreement and
the making of any Canadian Tranche Loans, regardless of any investigation made by any
such other party or on its behalf and notwithstanding that the Canadian Administrative
Agent and the other Secured Creditors may have had notice or knowledge of any Default
or incorrect representation or warranty at the time any credit is extended hereunder,
and shall continue in full force and effect as long as the principal of or any accrued
interest on any Canadian Tranche Loan or any fee or any other amount payable under the
Credit Agreement is outstanding and unpaid and so long as the Canadian Allocated
Aggregate Commitments have not expired or been permanently terminated.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the extent that any payments on the Obligations or proceeds of any
Collateral are subsequently invalidated, declared to be fraudulent or preferential, set
aside or required to be repaid to a trustee, debtor in possession, receiver or other
Person under any bankruptcy law, common law or equitable cause, then to such extent,
the Obligations so satisfied shall be revived and continue as if such payment or
proceeds had not been received and the Canadian Administrative Agent&#146;s and the Secured
Creditors&#146; Liens, security interests, rights, powers and remedies under this Agreement
and each other Loan Document shall continue in full force and effect. In such event,
each Loan Document shall be automatically reinstated and the Grantors shall take such
action as may be reasonably requested by the Canadian Administrative Agent and the
Secured Creditors to effect such reinstatement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.06 <U>Counterparts; Integration; Effectiveness; Conflicts. </U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement may be executed in counterparts (and by different parties hereto
on different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-variant: SMALL-CAPS"><B>This Agreement and the other Loan Documents embody the entire agreement and
understanding between the parties and supersede all other agreements and understandings
between such parties relating to the subject matter hereof and thereof. This Agreement
and the Loan Documents represent the final agreement between the parties and may not be
contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the
parties. There are no unwritten oral agreements between the parties.</B></FONT></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall become effective when it shall have been executed by the
Canadian Administrative Agent and when the Canadian Administrative Agent</TD>
</TR>

</TABLE>
</DIV></DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 21 -<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shall have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding upon
and inure to the benefit of the parties hereto, the Lenders and their respective
successors and assigns. Delivery of an executed counterpart of a signature page of
this Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a conflict between the provisions hereof and the provisions of
the Credit Agreement, the provisions of the Credit Agreement shall control.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.07 <U>Severability.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any provision of this Agreement or any other Loan Document held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof or thereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.08 <U>Governing Law; Submission to Jurisdiction.</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE PROVINCE OF ALBERTA AND THE FEDERAL LAWS OF CANADA APPLICABLE THEREIN.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE PROVINCE OF ALBERTA, AND, BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HEREBY ACCEPTS FOR ITSELF AND (TO THE
EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED
ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS
SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM
OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>EACH GRANTOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF
BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH GRANTOR AT ITS ADDRESS SET
FORTH ON SCHEDULE 1 HERETO OR AS UPDATED FROM TIME TO TIME, SUCH SERVICE TO BECOME
EFFECTIVE THIRTY (30)&nbsp;DAYS AFTER SUCH MAILING.</TD>
</TR>

</TABLE>
</DIV></DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 22 -<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE CANADIAN ADMINISTRATIVE AGENT OR
ANY CANADIAN LENDER OR ANY HOLDER OF A NOTE TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE
GRANTORS IN ANY OTHER JURISDICTION.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>EACH PARTY HEREBY (i)&nbsp;IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO
THIS AGREEMENT OR ANY SECURITY INSTRUMENT AND FOR ANY COUNTERCLAIM THEREIN; (ii)
IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE
TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; (iii)
CERTIFIES THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OF THE CANADIAN ADMINISTRATIVE
AGENT OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR
IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVERS AND (iv)&nbsp;ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS
AGREEMENT, THE SECURITY INSTRUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS
SECTION 8.08.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.09 <U>Headings.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article and Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.10 <U>Acknowledgments.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor hereby acknowledges that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has been advised by counsel in the negotiation, execution and delivery of
this Agreement and the other Loan Documents to which it is a party;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>neither the Canadian Administrative Agent nor any Secured Creditor has any
fiduciary relationship with or duty to any Grantor arising out of or in connection with
this Agreement or any of the other Loan Documents, and the relationship between the
Grantors, on the one hand, and the Canadian Administrative Agent and Secured Creditors,
on the other hand, in connection herewith or therewith is solely that of debtor and
creditor;</TD>
</TR>

</TABLE>
</DIV></DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 23 -<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Secured Creditors or
among the Grantors and the Secured Creditors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has received a copy of this Agreement; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each of the parties hereto specifically agrees that it has a duty to read this
Agreement and the other Loan Documents and agrees that it is charged with notice and
knowledge of the terms of this Agreement and the other Loan Documents; that it has in
fact read this Agreement and the other Loan Documents and is fully informed and has
full notice and knowledge of the terms, conditions and effects thereof; that it has
been represented by independent legal counsel of its choice throughout the negotiations
preceding its execution of this Agreement and the Loan Documents; and has received the
advice of its attorney in entering into this Agreement and the Loan Documents; and that
it recognizes that certain of the terms of this Agreement and the Loan Documents result
in one party assuming the liability inherent in some aspects of the transaction and
relieving the other party of its responsibility for such liability. <B>EACH PARTY HERETO
AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY
EXCULPATORY PROVISION OF THIS AGREEMENT AND THE LOAN DOCUMENTS ON THE BASIS THAT THE
PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT
&#147;CONSPICUOUS.&#148;</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.11 <U>Additional Grantor.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Significant Canadian Subsidiary that is required to become a party to this Agreement
pursuant to Section&nbsp;9.07(b) of the Credit Agreement shall become a Grantor for all purposes of this
Agreement upon execution and delivery by such Subsidiary of a Supplement in the form of Annex I
hereto and shall thereafter have the same rights, benefits and obligations as a Grantor party
hereto on the date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.12 <U>Releases.</U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Full Release</U>. The grant of a security interest hereunder and all of
rights, powers and remedies in connection herewith shall remain in full force and
effect until the Canadian Administrative Agent has (i)&nbsp;retransferred and delivered all
Collateral in its possession to the Grantors and (ii)&nbsp;executed a written release or
termination statement and reassigned to the Grantors without recourse or warranty any
remaining Collateral and all rights conveyed hereby in accordance with the next
sentence. Pursuant to the satisfaction of the conditions set forth in Section
9.07(d)(iv) of the Credit Agreement or upon the complete payment of the Obligations
under the Credit Agreement and the compliance by the Grantors with all covenants and
agreements hereof and the permanent termination of the Canadian Allocated Aggregate
Commitments, the Canadian Administrative Agent, at the written request and expense of
the Canadian Borrower, will promptly release, reassign and transfer pursuant to Section
9.07(d) of the Credit</TD>
</TR>

</TABLE>
</DIV></DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->- 24 -<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Agreement the Collateral to the Grantors and declare this Agreement to be of no
further force or effect.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Partial Release</U>. Notwithstanding anything contained herein to the
contrary, the Grantors are authorized to release pursuant to Section&nbsp;9.07(d) of the
Credit Agreement any Collateral that is Transferred in compliance with Sections&nbsp;10.08
and 10.14 of the Credit Agreement at which point the liens and security interests shall
terminate with respect to such Collateral and this Agreement shall have no further
force or effect with respect to such released Collateral; provided that so long as the
lien in favour of the Canadian Administrative Agent continues in the proceeds of such
Transfer of such Collateral, or to the extent such Collateral is Transferred to the
Canadian Borrower or any other Grantor, such lien continues in such Collateral.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Retention in Satisfaction</U>. No action taken or omission to act by the
Canadian Administrative Agent or the Secured Creditors hereunder, including, without
limitation, any exercise of voting or consensual rights or any other action taken or
inaction, shall be deemed to constitute a retention of the Collateral in satisfaction
of the Obligations or otherwise to be in full satisfaction of the Obligations, and the
Obligations shall remain in full force and effect, until the Canadian Administrative
Agent and the Secured Creditors shall have applied payments (including, without
limitation, collections from Collateral) towards the Obligations in the full amount
then outstanding or until such subsequent time as is provided in Section&nbsp;8.12(a)
hereof.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.13 <U>Acceptance.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Grantor hereby expressly waives notice of acceptance of this Agreement, acceptance on the
part of the Canadian Administrative Agent and the Secured Creditors being conclusively presumed by
their request for this Agreement and delivery of the same to the Canadian Administrative Agent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Section&nbsp;8.14 <U>English Language</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto confirm that it is their wish that this Agreement, as well as any other
documents relating to this Agreement, including Notices, Schedules, Exhibits and authorizations,
have been and shall be drawn up in the English language only. Les Parties aux pr&#233;sentes confirment
leur volont&#233; que cette convention, de m&#234;me que tous les documents, y compris tous avis, annexes et
autorisations s&#146;y rattachant, soient r&#233;dig&#233;s en anglais seulement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B><I>&#091;Signature Pages to Follow&#093;</I></B></FONT>
</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each of the undersigned has caused this Canadian Collateral Agreement to
be duly executed and delivered as of the date first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><B>GRANTOR:</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>EXTERRAN CANADA, LIMITED</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>PARTNERSHIP</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>By: EXTERRAN CANADIAN PARTNERSHIP</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="3" valign="top" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>HOLDINGS
GP ULC, its general partner</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ David L. Edelmaier&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David L. Edelmaier</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Signature
Page &#150; Canadian Collateral Agreement
</DIV>


</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Acknowledged and Agreed to as<BR>
of the date hereof by:

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><B>CANADIAN ADMINISTRATIVE AGENT:</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>WACHOVIA CAPITAL FINANCE</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>CORPORATION (CANADA)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Raymond Eghobamien&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Raymond Eghobamien</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Acknowledgement
Page &#150; Canadian Collateral Agreement
</DIV>


</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Annex I</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><U><B>Supplement</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This SUPPLEMENT, dated as of &#091; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;, 200&#091; &#093;, made by &#091; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;,
a &#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093; (the &#147;<U>Additional Grantor</U>&#148;), in favour of Wachovia Capital Finance
Corporation (Canada), as Canadian Administrative Agent (in such capacity, the &#147;<U>Canadian
Administrative Agent</U>&#148;) for the &#147;Canadian Tranche Revolving Lenders&#148; (the &#147;<U>Lenders</U>&#148;)
from time to time party to the Credit Agreement (defined below) and, in the case of any Secured
Hedging Agreement or any Secured Treasury Management Agreement referred to in the Canadian
Collateral Agreement (defined below), any Lender Affiliate of a Canadian Tranche Revolving Lender
(in each case as defined in the Credit Agreement). All capitalized terms not defined herein shall
have the meaning ascribed to them in such Credit Agreement or in the Canadian Collateral Agreement
(defined below), as applicable.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>W I T N E S S E T H:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Exterran Holdings, Inc., a Delaware corporation (the &#147;<U>US Borrower</U>&#148;) and
Exterran Canada, Limited Partnership, a Nova Scotia limited partnership (the &#147;<U>Canadian
Borrower</U>&#148; and together with the US Borrower, the &#147;<U>Borrowers</U>&#148;), the Administrative
Agents, the Lenders and the other Agents party thereto have entered into a Senior Secured Credit
Agreement dated August&nbsp;20, 2007 (as amended, supplemented or otherwise modified from time to time,
the &#147;<U>Credit Agreement</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, in connection with the Credit Agreement the Canadian Borrower and any of its other
Significant Canadian Subsidiaries (each a &#147;<U>Grantor</U>&#148;) have entered into a Canadian
Collateral Agreement, dated as of August&nbsp;20, 2007 (as amended, supplemented or otherwise modified
from time to time, the &#147;<U>Canadian Collateral Agreement</U>&#148;) in favour of the Canadian
Administrative Agent for the benefit of the Secured Creditors;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Credit Agreement requires the Additional Grantor to become a party to the
Canadian Collateral Agreement; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Additional Grantor has agreed to execute and deliver this Supplement in order to
become a party to the Canadian Collateral Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, IT IS AGREED:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. <U>Collateral Agreement</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By executing and delivering this Supplement, the Additional Grantor, as provided in Section
8.11 of the Canadian Collateral Agreement, hereby becomes a party to the Canadian Collateral
Agreement as a Grantor thereunder with the same force and effect as if originally named therein as
a Grantor and, without limiting the generality of the foregoing, (a)&nbsp;hereby expressly assumes all
obligations and liabilities of a Grantor thereunder and (b)&nbsp;expressly hereby pledges, assigns and
transfers to the Canadian Administrative Agent, and hereby grants to the
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">Annex I
- 1</DIV>

</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Canadian Administrative Agent, for the rateable benefit of the Secured Creditors, a security
interest in all of the Collateral now owned or at any time hereafter acquired by such Additional
Grantor or in which such Additional Grantor now has or at any time in the future may acquire any
right, title or interest, as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or otherwise) of the Borrower
Obligations. The information set forth in Annex 1 hereto is hereby added to the information set
forth in Schedules 1 through 3 to the Canadian Collateral Agreement. The Additional Grantor hereby
represents and warrants that each of the representations and warranties as they relate to such
Additional Grantor or to the Loan Documents to which such Additional Grantor is a party contained
in Article&nbsp;III of the Canadian Collateral Agreement is true and correct on and as the date hereof
(after giving effect to this Supplement) as if made on and as of such date except to the extent any
such representations and warranties are expressly limited to an earlier date, in which case, on and
as of such date, such representations and warranties shall continue to be true and correct as of
such specified earlier date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;<U>Governing Law</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Supplement shall be governed by, and construed in accordance with, the laws of the
Province of Alberta.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the undersigned has caused this Supplement to be duly executed and
delivered as of the date first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>&#091;ADDITIONAL GRANTOR&#093;</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->Annex I - 2<!-- /Folio -->
</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Schedule&nbsp;1</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>NOTICE ADDRESSES OF GRANTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Exterran Canada, Limited Partnership
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4949 76<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue SE<BR>
Calgary, Alberta T2C 3C6<BR>
Attention: Country Manager<BR>
Facsimile: 403-279-1348

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With a copy to:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4444 Brittmoore Rd.<BR>
Houston, Texas 77041<BR>
Attention: General Counsel<BR>
Facsimile: 713-335-7867<BR>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Schedule&nbsp;1 - 1
</DIV>



</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Schedule&nbsp;2</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>FILINGS AND OTHER ACTIONS<BR>
REQUIRED TO PERFECT SECURITY INTERESTS</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing of applicable PPSA financing statements with respect to the Collateral in the
provinces of British Columbia, Alberta, Saskatchewan and Nova Scotia.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Schedule&nbsp;2 -  1
</DIV>


</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Schedule&nbsp;3</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>LOCATION OF JURISDICTION OF ORGANIZATION<BR>
AND CHIEF EXECUTIVE OFFICE / OTHER COLLATERAL LOCATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Exterran Canada, Limited Partnership (formed under the laws of Nova Scotia)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Chief Executive Office</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4949 76<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue SE<BR>
Calgary, Alberta T2C 3C6

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Other Collateral Locations</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">British Columbia<BR>
Saskatchewan<BR>
Nova Scotia
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Schedule&nbsp;3  - 1
</DIV>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Schedule&nbsp;4</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>LOCATION OF RECORDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">4949 76<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Avenue SE
<BR>
Calgary, Alberta T2C 3C6
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Schedule&nbsp;3 -  1
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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