Document:

exv10w12a

 

EXHIBIT 10.12A

INCREMENTAL ASSUMPTION AGREEMENT

     This Incremental Assumption Agreement dated as of May 10, 2004
(“Agreement”) is by and among Oil States International, Inc., a Delaware
corporation (the “U.S. Borrower”), Wells Fargo Bank, National Association and
each of the other lenders listed as an “Increasing Lender” on the signature
pages hereto (each an “Increasing Lender” and collectively, the “Increasing
Lenders”) and Wells Fargo Bank, National Association, as successor-by-merger to
Wells Fargo Bank Texas, National Association, as Administrative Agent for the
Lenders under the Credit Agreement described below (the “Administrative
Agent”).

	A.	 	Reference is made to the Credit Agreement dated as of October 30, 2003
(as amended, supplemented or otherwise modified on or before the date
hereof, “Credit Agreement”) among the U.S. Borrower, PTI Group Inc., a
corporation amalgamated under the laws of the province of Alberta (the
“Canadian Borrower, and, together with the U.S. Borrower, the
“Borrowers”), the Lenders, the Administrative Agent and The Bank of Nova
Scotia, as administrative agent for the Canadian Lenders (the “Canadian
Administrative Agent”). All capitalized terms used herein and not
otherwise defined shall have the meanings given such terms in the Credit
Agreement.

	B.	 	Pursuant to Section 2.23 of the Credit Agreement, the U.S. Borrower has
the right, subject to the terms and conditions thereof, to increase the
Total Commitment by allowing one or more Lenders to increase their
Commitments so that such added Commitments shall equal the increase in
Total Commitment requested by the U.S. Borrower.

	C.	 	The U.S. Borrower has given notice to the Administrative Agent of its
intention, pursuant to such Section 2.23 and with the consent of the
Increasing Lenders, to increase the Total U.S. Commitments from
$180,000,000 to $205,000,000.

     Accordingly, the parties hereto agree as follows:

     Section 1. Increase of Total U.S. Commitment. Pursuant to Section 2.23 of
the Credit Agreement, the amount of Total U.S. Commitment is hereby increased
from $180,000,000 to $205,000,000. Each Increasing Lender’s U.S. Commitment,
after giving effect to this Agreement is set forth on Schedule 1 attached
hereto and incorporated herein for all purposes.

     Section 2. Increasing Lenders. Each Increasing Lender (i) confirms that
it has received a copy of the Credit Agreement, together with copies of the
financial statements referred to in Section 3.05 thereof and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Agreement, (ii) agrees that it will,
independently and without reliance upon the Administrative Agent or any other
Lender or Agent and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, (iii) appoints and authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under the Loan Documents as are delegated to the

 

 

Administrative
Agent by the terms thereof, together with such
powers as are reasonably incidental thereto, (iv) represents that the
execution and delivery of this Agreement by such Increasing Lender is duly
authorized, and (v) agrees that it will perform in accordance with their terms
all of the obligations which by the terms of the Loan Documents are required to
be performed by it as a Lender.

     Section 3. Conditions Precedent. The effectiveness of this Agreement is
subject to the satisfaction or waiver of the following:

     (a) the Administrative Agent shall have received counterparts of, or
telecopied signature pages of, this Agreement executed by the U.S.
Borrower, the U.S. Subsidiary Guarantors and the Increasing Lenders;

     (b) if requested by any Increasing Lender, the Administrative Agent
shall have received a promissory note in the amount of its U.S.
Commitment as increased hereby;

     (c) the Administrative Agent shall have received, on behalf of
themselves, the Lenders and the Issuing Banks, a favorable written
opinion of Vinson & Elkins L.L.P., U.S. counsel for the U.S. Borrower and
the U.S. Subsidiary Guarantors, in form and substance reasonably
satisfactory to the Administrative Agent;

     (d) the Administrative Agent shall have received a certificate of
the Secretary or Assistant Secretary of the U.S. Borrower and each U.S.
Subsidiary Guarantor certifying (i) that there have been no changes to
the certificate of incorporation, including all amendments thereto, and
the by-laws of such Loan Party since the Closing Date and (ii) that
attached thereto is a true and complete copy of resolutions duly adopted
by the Board of Directors of such Loan Party authorizing the increase in
the Total U.S. Commitment and the borrowings relating thereto, and that
such resolutions have not been modified, rescinded or amended and are in
full force and effect; and

     (e) the Borrower shall have paid to the Administrative Agent (i) for
its own account, the fees set forth in the Administrative Agent Fee
Letter and (ii) to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses (including, without limitation, the reasonable
fees, charges and disbursements of counsel for the Administrative Agent).

     Section 4. Representations and Warranties. The U.S. Borrower hereby
represents and warrants that

     (a) the representations and warranties set forth in Article III of
the Credit Agreement and in each other Loan Document are true and correct
in all material respects on and as of the date hereof with the same
effect as though made on and as of the date hereof, except to the extent
such representations and warranties expressly relate to an earlier date;

     (b) each Borrower and each other Loan Party are in compliance with
all the terms and provisions set forth in the Credit Agreement and in
each other Loan Document

2

 

on its part to
be observed or performed, and at the time hereof and immediately
thereafter, no Event of Default or Default shall have occurred and be
continuing; and

     (c) there has been no material adverse change in the business,
assets, operations, condition (financial or otherwise) or prospects of
the Borrowers and the Subsidiaries, taken as a whole, since December 31,
2002.

     Section 5. Consents. Each of the U.S. Subsidiary Guarantors and the
Canadian Borrower hereby consent to the increase in the Total U.S. Commitment
effectuated hereby.

     Section 6. Governing Law; Credit Document. This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New
York. This Agreement is a “Loan Document” for all purposes.

     Section 7. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

     Section 8. Expenses. The U.S. Borrower agrees to pay on demand all costs
and expenses of the Administrative Agent in connection with the preparation,
negotiation, execution and delivery of this Agreement, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent with respect thereto.

3

 

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

	 	 	 	 	 
	 	 	OIL STATES INTERNATIONAL, INC.
	 
	 	 	 	 
	

	 	by	 	
/s/ CINDY B. TAYLOR 
	

	 	 	 	Name: Cindy B. Taylor
	

	 	 	 	Title: Senior Vice President & CFO
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as
an Increasing Lender and Administrative
Agent
	 
	 	 	 	 
	

	 	by	 	
/s/ ERIC R. HOLLINGSWORTH 
	

	 	 	 	Name: Eric R. Hollingsworth
	

	 	 	 	Title:
Vice President

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	SCOTIABANC INC.,

as an Increasing Lender
	 
	 	 	 	 
	

	 	by
	 	/s/ WILLIAM E. ZARRETT
	

	 	 	 	Name: William E. Zarrett
	

	 	 	 	Title: Managing Director

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA,

as an Increasing Lender
	 
	 	 	 	 
	

	 	by
	 	/s/ LORNE GARTNER
	

	 	 	 	Name: Lorne Gartner
	

	 	 	 	Title: Authorized Signatory

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	BANK ONE, NA,

as an Increasing Lender
	 
	 	 	 	 
	

	 	by
	 	/s/ DIANNE L. RUSSELL
	

	 	 	 	Name: Dianne L. Russell
	

	 	 	 	Title: Director

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	CALYON NEW YORK BRANCH,

as an Increasing Lender
	 
	 	 	 	 
	

	 	by
	 	/s/ OLIVIER AUDEMARD
	

	 	 	 	Name: Olivier Audemard
	

	 	 	 	Title: Managing Director

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON, 

acting through its Cayman Islands Branch

as an Increasing Lender
	 
	 	 	 	 
	

	 	by
	 	/s/ JAMES MORAN
	

	 	 	 	Name: James Moran
	

	 	 	 	Title: Director
	 	 	 
	 
	 	 	 	 
	

	 	by
	 	/s/ DENISE ALVAREZ
	

	 	 	 	Name: Denise Alvarez
	

	 	 	 	Title: Associate

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	THE TORONTO-DOMINION BANK,

as an Increasing Lender
	 
	 	 	 	 
	

	 	by
	 	/s/ STEPHEN D. WANNAMAKER
	

	 	 	 	Name: Stephen D. Wannamaker
	

	 	 	 	Title: Vice President, Credit Risk Management

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	SOUTHWEST BANK OF TEXAS, N.A.,

as an Increasing Lender
	 
	 	 	 	 
	

	 	by
	 	/s/ ROSS BARTLEY
	

	 	 	 	Name: Ross Bartley
	

	 	 	 	Title: Assistant Vice President

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	BARCLAYS BANK PLC,

as an Increasing Lender
	 
	 	 	 	 
	

	 	by
	 	/s/ L. PETER YETMAN
	

	 	 	 	Name: L. Peter Yetman
	

	 	 	 	Title: Director

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	A - Z TERMINAL CORPORATION
	 	 	GENERAL MARINE LEASING, LLC
	 	 	HWC ENERGY SERVICES, INC.
	 	 	HWC LIMITED
	 	 	HYDRAULIC WELL CONTROL, LLC
	 	 	OIL STATES MANAGEMENT, INC.
	 	 	SOONER HOLDING COMPANY
	 	 	SOONER INC.
	 	 	SOONER PIPE INC.
	 	 	CAPSTAR DRILLING, LP, L.L.C.
	

	 	By:
	 	HWC Energy Services, Inc.
	

	 	 	 	its general partner
	 	 	CAPSTAR DRILLING, GP, L.L.C.
	

	 	By:
	 	HWC Energy Services, Inc.

its sole member
	 	 	SPECIALTY RENTAL TOOLS & SUPPLY, L.P.
	

	 	By:
	 	HWC Energy Services, Inc.

its general partner
	 	 	CAPSTAR DRILLING, L.P.
	

	 	By:
	 	Capstar Drilling GP, L.L.C., its
general partner
	

	 	By:
	 	HWC Energy Services, Inc., its
sole member
	 	 	SPECIALTY RENTAL TOOLS & SUPPLY, L.P.
	

	 	By:
	 	Capstar Drilling GP, L.L.C., its
general partner
	

	 	By:
	 	HWC Energy Services, Inc., its
sole member
	 
	 	 	 	 
	

	 	Each by:
	 	/s/ CINDY B. TAYLOR
	

	 	 	 	Cindy B. Taylor, Senior Vice President
	 
	 	 	 	 
	 	 	OIL STATES SKAGIT SMATCO, LLC
	 	 	OIL STATES INDUSTRIES, INC.
	 
	 	 	 	 
	

	 	Each by:
	 	/s/ ROBERT W. HAMPTON
	

	 	 	 	Robert W. Hampton, Vice President and

Assistant Secretary

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

	 	 	 	 	 
	 	 	CROWN CAMP SERVICES, INC.
	 
	 	 	 	 
	 	 	By:	 	/s/ MARK MENARD
	

	 	 	 	Mark Menard,
	

	 	 	 	Chief Financial Officer and Treasurer
	 
	 	 	 	 
	 	 	PTI GROUP INC.
	 
	 	 	 	 
	 	 	By:	 	/s/ MARK MENARD
	

	 	 	 	Mark Menard,
	

	 	 	 	Chief Financial Officer and Treasurer

Signature Page to Incremental Assumption Agreement – Oil States International, Inc.

 

 

Schedule 1

U.S. Commitments

	 	 	 	 	 	 	 	 	 
	 	 	Existing U.S.	 	New U.S.
	U.S. Lenders
	 	Commitment
	 	Commitment

	Wells Fargo Bank Texas, National Association
	 	$	35,000,000	 	 	$	41,209,937.14	 
	Royal Bank of Canada
	 	$	15,000,000	 	 	$	18,033,848.31	 
	Hibernia National Bank
	 	$	25,000,000	 	 	$	25,000,000.00	 
	Bank One, NA
	 	$	15,000,000	 	 	$	17,082,500.00	 
	Calyon New York Branch
	 	$	25,000,000	 	 	$	28,970,111.02	 
	Scotiabanc Inc.
	 	$	5,000,000	 	 	$	5,694,444.44	 
	Credit Suisse First Boston
	 	$	10,000,000	 	 	$	11,388,888.89	 
	Southwest Bank of Texas, N.A.
	 	$	15,000,000	 	 	$	19,663,302.57	 
	The Toronto-Dominion Bank
	 	$	5,000,000	 	 	$	5,956,967.63	 
	Bank of Scotland
	 	$	15,000,000	 	 	$	15,000,000.00	 
	Barclays Bank PLC
	 	$	15,000,000	 	 	$	17,000,000.00	 
	 
	 	 	
 	 	 	 	
 	 
	TOTAL
	 	$	180,000,000	 	 	$	205,000,000.00exv10w1

 

Exhibit 10.1

[JP Morgan LOGO]

JPMorgan Chase Bank

4 Metrotech Center, 17th Floor

Brooklyn, New York 11245

Interest Rate Swap Confirmation

	 	 	 	 	 
	To

	 	:
	 	BAKER HUGHES INC

3900 ESSEX LANE SUITE 1200

HOUSTON TEXAS 77027-5177 USA

CONTACT: DOUG DOTY

T: 713-439-8678
	Attn

	 	:
	 	Swap Operations
	Fax

	 	:
	 	713-439-8678
	Date

	 	:
	 	7 April 2004
	Re

	 	:
	 	Transaction Reference No. 0004161145 / 68565083

     The purpose of this letter agreement is to confirm the terms and
conditions of the Transaction entered into between us on the Trade Date below.
It constitutes a “Confirmation” as referred to in the ISDA Master Agreement
described below.

     The definitions and provisions contained in the 2000 ISDA Definitions as
published by the International Swaps and Derivatives Association, Inc. (“ISDA”)
(the “Definitions”) are incorporated into this Confirmation. In the event of
any inconsistency between those definitions and provisions and this
Confirmation, this Confirmation will govern.

	1.	 	This Confirmation supplements, forms parts of, and is subject
to, the ISDA Master Agreement dated as of 6 March 2000, as amended
and supplemented from time to time (the “Agreement”), between
JPMorgan Chase Bank (“JPMorgan”) and Baker Hughes Inc
(“Counterparty”). All provisions contained in the Agreement govern
this Confirmation except as expressly modified below.

	2.	 	The terms of the particular Transaction to which this
Confirmation relates are as follows:

	 	 	 
	Notional Amount:

	 	USD 325,000,000.00
	 
	 	 
	Trade Date:

	 	7 April 2004
	 
	 	 
	Effective Date:

	 	13 April 2004
	 
	 	 
	Termination Date:

	 	15 January 2009, subject to adjustment in accordance
with the Modified Following Business Day Convention.

 

 

	 	 	 
	Confirmation – Swap Transaction

	 	JP Morgan Ref: 0004161145/68565083

	 	 	 
	Floating Amounts:
	 	 
	 
	 	 
	Floating Rate Payer:

	 	Counterparty
	 
	 	 
	Floating Rate Payer

Payment Dates:

	 	15 July, 15 January of each year commencing with 15
July 2004 and ending with, and including, the
Termination Date, subject to adjustment in
accordance with the Modified Following Business Day
Convention.
	 
	 	 
	Floating Rate for initial

Calculation Period:

	 	1.140000 percent (exclusive of spread)
	 
	 	 
	Floating Rate Option:

	 	USD – LIBOR – BBA
	 
	 	 
	Spread:

	 	Plus 2.741000 percent
	 
	 	 
	Designated Maturity:

	 	6 Months, except for the initial Calculation Period
which shall be interpolated
	 
	 	 
	Reset Dates:

	 	The first day of each Calculation Period
	 
	 	 
	Compounding:

	 	Not Applicable
	 
	 	 
	Floating Rate
	 	 
	 
	 	 
	Day Count Fraction:

	 	Actual/360
	 
	 	 
	Business Days:

	 	London, New York
	 
	 	 
	Fixed Amounts:
	 	 
	 
	 	 
	Fixed Rate Payer:

	 	JPMorgan
	 
	 	 
	Fixed Rate Payer

Payment Dates:

	 	15 July, 15 January of each year commencing with 15
July 2004 and ending with, and including, the
Termination Date, subject to adjustment in
accordance with the Modified Following Business Day
Convention
	 
	 	 
	Fixed Rate
	 	 
	 
	 	 
	Day Count Fraction:

	 	30/360
	 
	 	 
	Period End Date:

	 	No Adjustment
	 
	 	 
	Business Days:

	 	London, New York
	 
	 	 
	Calculation Agent:

	 	JPMorgan, unless otherwise specified in the Agreement

 

 

	 	 	 
	Confirmation – Swap Transaction

	 	JP Morgan Ref: 0004161145/68565083

	 	 	 	 	 
	3.

	 	Account Details	 	 
	 
	 	 	 	 
	

	 	Payments to JP Morgan:
	 
	

	 	 	JP MORGAN CHASE BANK, NEW YORK, JPMORGAN, NY ABA#
021000021, A/C#                      

	 
	

	 	Payments to Counterparty:
	 
	

	 	 	To JPMORGAN CHASE BANK HOUSTON, Account No:       
   
   
   
   
 

Favor BAKER HUGHES INC, Houston
	 
	 	 	 	 
	4.

	 	Office, address and telephone number for Notices in connection with this
Transaction
	 
	 	 	 	 
	

	 	(a)   Counterparty:
	 	its Office in

3900 ESSEX LANE, SUITE 1200

HOUSTON TEXAS 77027-5177 USA

CONTACT: DOUG DOTY

T: 713-439-8678

F: 713-439-8699
	 
	 	 	 	 
	

	 	(b)   JPMorgan:
	 	its head Office in

New York

c/o 4 Metrotech Center, 17th Floor

Brooklyn, New York 11245
	 
	 	 	 	 
	5.

	 	Documents to be
Delivered
	 
	 	 	 	 
	 

	 	Each party shall deliver to the other, at the time of its execution
of this Confirmation, evidence of the incumbency and specimen
signature of the person(s) executing this Confirmation, unless such
evidence has been previously supplied and remains true and in
effect.

 

 

	 	 	 
	Confirmation – Swap Transaction

	 	JP Morgan Ref: 0004161145/68565083

     Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing a copy of this Confirmation and returning it to us.

	 	 	 
	

	 	Yours sincerely,
	 
	 	 
	

	 	JPMORGAN CHASE BANK
	 
	 	 
	

	By:   	/s/Carmine Pilla

	 
	 	 
	

	Name: Carmine Pilla

Title: Vice President

Confirmed as of the date first

Above written:

BAKER HUGHES INC

	 	 	 
	By:
	 	/s/ Douglas C. Doty
		
 
	 	 	 
	Name:
	 	Douglas C. Doty
	 	 	 
	Title:
	 	V.P. & Treasurer

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