Document:

Exhibit 10.12C

                                 AMENDMENT NO. 2

         This Amendment No. 2 dated as of December 5, 2006 (this "Amendment") is
among Oil States International, Inc., a Delaware corporation (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"), each of the Guarantors, the lenders party to the
Credit Agreement described below (the "Lenders"), Wells Fargo Bank, N.A. ("Wells
Fargo"), as administrative agent (in such capacity, the "Administrative Agent")
for the Lenders, and The Bank of Nova Scotia ("BNS"), as administrative agent
(in such capacity, the "Canadian Administrative Agent") for the Canadian Lenders
(as defined in Credit Agreement described below).

                                  INTRODUCTION

         A.       The Borrowers, the Lenders and the Agents are parties to the
Credit Agreement dated as of October 30, 2003, as amended by Amendment No. 1
dated as of January 31, 2005 (the "Credit Agreement").

         B.       The Borrower has requested that the Lenders agree to (1)
increase the Total Commitments to $400,000,000, (2) extend the Maturity Date
from January 31, 2010 to December 5, 2011 and (3) make certain other amendments
to the Credit Agreement.

         THEREFORE, the Borrower, the Agents and the Lenders hereby agree as
follows:

         Section 1.      Definitions. Unless otherwise defined in this
                         -----------
Amendment, terms used in this Amendment that are defined in the Credit Agreement
shall have the meanings assigned to such terms in the Credit Agreement.

         Section 2.      Amendments. The Credit Agreement shall be amended as
                         ----------
follows:

         (a)      The second paragraph of the Credit Agreement shall be amended
by replacing (i) "U.S.$280,000,000" with "U.S.$300,000,000" and (ii)
"U.S.$45,000,000" with "U.S.$100,000,000".

         (b)      Section 1.01 of the Credit Agreement shall be amended as
follows:

                  (i)    the definition of "Administrative Fee Letter" shall be
         amended by replacing "December 13, 2004" with "October 23, 2006";

                  (ii)   the definition of "Applicable Percentage" shall be
         amended by replacing the table set forth therein in its entirety as
         follows:

<PAGE>

<TABLE>
<CAPTION>
                                                         ABR, Canadian
                                                         Prime Rate and
                                    Eurocurrency/B/A     U.S. Base Rate      Commitment
         Leverage Ratio                  Spread              Spread         Fee Percentage
---------------------------------   -----------------   ----------------   ----------------
<S>                                            <C>                   <C>              <C>
Category 1
----------
   Less than 1.00 to 1.00                        0.50%                 0%             0.175%
    Category 2

   Greater than or equal to                      0.75%                 0%              0.20%
    1.00 to 1.00 but less than
    1.50 to 1.00

Category 3
----------
   Greater than or equal to                      1.00%                 0%              0.20%
    1.50 to 1.00 but less than
    2.00 to 1.00

Category 4
----------
   Greater than or equal to                     1.125%                 0%              0.25%
    2.00 to 1.00 but less than
    2.50 to 1.00
Category 5
----------
   Greater than or equal to                      1.25%                 0%              0.25%
    2.50 to 1.00
</TABLE>

                  (iii)  the definition of "Canadian Lender" shall be amended in
         its entirety as follows:

                  "Canadian Lenders" shall mean Lenders having Canadian
         Commitments or outstanding Canadian Loans. Each Canadian Lender at all
         times shall be a resident of Canada for the purposes of the ITA.

                  (iv)   the definition of "Confidential Information Memorandum"
         shall be amended by replacing "October 2003" with "November 2006";

                  (v)    the definition of "Material Indebtedness" shall be
         amended by replacing "U.S.$5,000,000" with "U.S.$25,000,000";

                  (vi)   the definition of "Maturity Date" shall be amended in
         its entirety as follows:

                  "Maturity Date" shall mean December 5, 2011, or, with respect
         to each Consenting Lender, the latest date (not later than December 5,
         2012) to which the Maturity Date shall have been extended pursuant to
         Section 2.09(d).

                  (vii)  the definitions of "Mortgaged Properties", and
         "Mortgages" shall be deleted;

                                       -6-
<PAGE>

                  (viii) the definition of "Security Documents" shall be amended
         by deleting "the Mortgages"; and

                  (ix)   the following new definitions shall be added in
         appropriate alphabetical order:

                  "Incremental Assumption Agreement" shall mean an Incremental
         Assumption Agreement in form and substance reasonably satisfactory to
         the Administrative Agent, among either or both of the Borrowers, the
         Applicable Administrative Agent and one or more Incremental Lenders.

                  "Incremental Commitment" shall mean the commitment of any
         Lender, established pursuant to Section 2.23, to make Loans to either
         or both of the Borrowers.

                  "Incremental Commitment Amount" shall mean, at any time, the
         excess, if any, of (a) U.S.$100,000,000 over (b) the aggregate amount
         of all Incremental Commitments established prior to such time pursuant
         to Section 2.23.

                  "Incremental Lender" shall have the meaning assigned to such
         term in Section 2.23.

                  "SEC" means the Securities and Exchange Commission, and any
         successor entity.

                  "Second Amendment Effective Date" means the date that
         Amendment No. 2 dated as of December 5, 2006 among the U.S. Borrower,
         the Canadian Borrower, the Guarantors, the Lenders and the
         Administrative Agents, becomes effective.

         (c)      Section 2.05(c) is amended by replacing "$600" with "$450";

         (d)      A new section 2.09(d) is hereby added as follows:

                  (d) The Borrowers may, by notice to the Administrative Agent
         (which shall promptly deliver a copy to each of the Lenders) given not
         more than 60 days but not less than 30 days prior to the date that is
         one (1) year prior to the Maturity Date, request that the Lenders
         extend the Maturity Date for an additional period of not more than one
         year as specified in such notice. Each Lender shall, by notice to the
         Borrowers and the Administrative Agent given not later than 15 days
         following receipt of the Borrowers' request, advise the Borrowers
         whether or not it agrees to such extension. Any Lender that has not so
         advised the Borrowers and the Administrative Agent by such day shall be
         deemed to have declined to agree to such extension. Each such Lender
         that agrees to such extension is referred to herein as a "Consenting
         Lender" and each such Lender that does not agree to such extension is
         referred to herein as a "Non-Consenting Lender". If the Borrowers shall
         have requested and if the Required Lenders shall have agreed to an
         extension of the Maturity Date, then the Maturity Date for each such
         Consenting Lender's Loans shall be extended for the additional period
         specified in the Borrowers' request. The decision to agree or withhold
         agreement to any extension of the Maturity Date hereunder shall be at
         the sole discretion of each Lender.

                                       -7-
<PAGE>

         Notwithstanding the foregoing provisions of this paragraph, (i) the
         Maturity Date may not be extended to a date later than December 5,
         2012, (ii) the Borrowers shall have the right, pursuant to Section
         2.20(a), to replace any Non-Consenting Lender that has declined to
         agree to any requested extension of the Maturity Date with a Consenting
         Lender or other financial institution that will agree to such extension
         of the Maturity Date, (iii) if Lenders holding at least a majority but
         less than 100% of the Commitments of a Class shall have agreed to such
         requested extension, the applicable Borrower may prepay at any time
         before the then existing Maturity Date or shall repay on the then
         existing Maturity Date, on a non-pro rata basis, the Loans (together
         with accrued and unpaid interest and Fees), and terminate the
         Commitments, of the Non-Consenting Lenders of such Class and (iv) the
         Borrowers shall have the right, any time prior to the Maturity Date
         then in effect, to withdraw their request for an extension under this
         paragraph by notice to the Administrative Agent (which shall promptly
         deliver a notice to each Lender), in which case the Maturity Date will
         not be so extended. Notwithstanding the foregoing, no extension of the
         Maturity Date shall become effective under this Section 2.09(d) unless
         (A) the representations and warranties set forth in Article III hereof
         and in each other Loan Document shall be true and correct in all
         material respects on and as of the date of such extension with the same
         effect as though made on and as of such date, except to the extent such
         representations and warranties expressly relate to an earlier date, (B)
         each Borrower and each other Loan Party shall be in compliance with all
         the terms and provisions set forth herein and in each other Loan
         Document on its part to be observed or performed, and at the time of
         and immediately after such extension, no Event of Default or Default
         shall have occurred and be continuing, and (C) there shall have 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, 2005, and the
         Administrative Agent shall have received a certificate to that effect
         dated such date and executed by a Financial Officer of the U.S.
         Borrower.

         (e)      Section 2.21(b) is amended by replacing (i) "U.S.$25,000,000"
with "U.S.$50,000,000" and (ii) "U.S.$7,500,000" with "U.S.$10,000,000";

         (f)      Section 2.21(c) is amended by replacing "12 months" with "24
months";

         (g)      Section 2.22(h) is amended by adding the following at the end
thereof:

         Each B/A Equivalent Loan shall be evidenced by a non-interest bearing
         promissory note of the Canadian Borrower, denominated in Canadian
         Dollars, executed and delivered by the Canadian Borrower to such
         Canadian Lender, substantially in the form of Exhibit L.

         (h)      A new Section 2.23 is hereby added as follows:

                                       -8-
<PAGE>

                  SECTION 2.23. Increase in Commitments. (a) The U.S. Borrower
         may, by written notice to the Administrative Agents from time to time
         after the Closing Date, request that the Total Commitment be increased
         by an amount not to exceed the Incremental Commitment Amount at such
         time by delivering a request to the Administrative Agent, who shall
         deliver a copy thereof to each Lender. Such notice shall set forth (a)
         the amount of the requested increase in the Total Commitment (which
         shall be in minimum increments of U.S.$1,000,000 and a minimum amount
         of U.S.$25,000,000 or equal to the remaining Incremental Commitment
         Amount), (b) the amount of the requested increase in the Total U.S.
         Commitment, the Total Canadian Commitment or both and (c) the date on
         which such increase is requested to become effective (which shall not
         be less than 10 Business Days nor more than 60 days after the date of
         such notice and which, in any event, must be on or prior to the
         Maturity Date), and shall offer one or more Lenders the opportunity to
         increase their U.S. Commitment or its Canadian Commitment, as
         applicable. Each Lender so agreeing to increase its Commitment by all
         or a portion of the offered amount (each such Lender being an
         "Increasing Lender") shall give notice to the Borrowers and the
         Administrative Agents not more than 10 days after the date of the
         Administrative Agent's notice. Any Lender that declines to increase its
         Commitment or does not deliver such a notice within such period of 10
         days, in which case such Lender shall be deemed to have declined to
         increase its Commitment, shall be a "Non-Increasing Lender". The
         decision to agree to increase its Commitment hereunder shall be at the
         sole discretion of each Lender. In the event that, on the 10th day
         after the Administrative Agent shall have delivered a notice pursuant
         to the second sentence of this paragraph, the Lenders shall have
         declined any increase or agreed pursuant to the preceding sentence to
         increase their Commitment by an aggregate amount less than the increase
         in the Total Commitment requested by the U.S. Borrower, the U.S.
         Borrower may arrange for one or more banks or other entities (any such
         bank or other entity referred to in this clause (a) being called an
         "Augmenting Lender" and, together with the Increasing Lenders, the
         "Incremental Lenders"), to extend the Commitment in an aggregate amount
         equal to the unsubscribed amount; provided that each Augmenting Lender
         shall be subject to the approval of the Administrative Agents and the
         Issuing Banks (which approvals shall not be unreasonably withheld or
         delayed). Any increase in the Total Commitment may be made in an amount
         which is less than the increase requested by the U.S. Borrower if the
         U.S. Borrower is unable to arrange for, or chooses not to arrange for,
         Augmenting Lenders.

                  (b) The Borrowers and each Incremental Lender shall execute
         and deliver to the Administrative Agent an Incremental Assumption
         Agreement and such other documentation as the Administrative Agent
         shall reasonably specify to evidence the Incremental Commitment of such
         Incremental Lender or its status as a Lender hereunder. The
         Administrative Agent shall promptly notify each Lender as to the
         effectiveness of each Incremental Assumption Agreement. Each of the
         parties hereto hereby agrees that, upon the effectiveness of any
         Incremental Assumption Agreement, this Agreement shall be deemed
         amended to the extent (but only to the extent) necessary to reflect the
         existence and terms of the Incremental Commitment evidenced thereby.

                                       -9-
<PAGE>

                  (c) Each of the parties hereto hereby agrees that the
         Administrative Agents may take any and all actions as may be reasonably
         necessary to ensure that, after giving effect to any increase in the
         Total Commitment pursuant to this Section 2.23, the outstanding U.S.
         Loans (if any) are held by the U.S. Lenders in accordance with their
         new U.S. Pro Rata Percentages and the outstanding Canadian Loans (if
         any) are held by the Canadian Lenders in accordance with their new
         Canadian Pro Rata Percentages. This may be accomplished at the
         discretion of the Administrative Agents (i) by requiring the
         outstanding Loans to be prepaid with the proceeds of a new Borrowing,
         (ii) by causing Non-Increasing Lenders to assign portions of their
         outstanding Loans to Incremental Lenders, (iii) by permitting the
         Borrowings outstanding at the time of any increase in the Total
         Commitment pursuant to this Section 2.23 to remain outstanding until
         the last days of the respective Interest Periods therefor, even though
         the Lenders would hold such Borrowings other than in accordance with
         their new Pro Rata Percentages, or (iv) by any combination of the
         foregoing. Any prepayment or assignment described in this paragraph (c)
         shall be subject to indemnification by the Borrowers pursuant to
         Section 2.15, but otherwise without premium or penalty.

                  (d) Notwithstanding the foregoing, no increase in the Total
         Commitment (or in the Commitment of any Lender) or addition of a new
         Lender shall become effective under this Section 2.23 unless, (i) (A)
         the representations and warranties set forth in Article III hereof and
         in each other Loan Document shall be true and correct in all material
         respects on and as of the date of such increase with the same effect as
         though made on and as of such date, except to the extent such
         representations and warranties expressly relate to an earlier date, (B)
         each Borrower and each other Loan Party shall be in compliance with all
         the terms and provisions set forth herein and in each other Loan
         Document on its part to be observed or performed, and at the time of
         and immediately after such increase, no Event of Default or Default
         shall have occurred and be continuing, and (C) there shall have 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, 2005, and the
         Administrative Agent shall have received a certificate to that effect
         dated such date and executed by a Financial Officer of the U.S.
         Borrower and (ii) the Administrative Agent shall have received (with
         sufficient copies for each of the Lenders) legal opinions, board
         resolutions and an officer's certificate consistent with those
         delivered on the Closing Date under clauses (a)(i) and (c)(ii)(B) of
         Section 4.02.

         (i)      Section 3.04 is amended by deleting "filings with the United
States Patent and Trademark Office and the United States Copyright Office,
recordation of the Mortgages in the offices specified in Schedule 3.19".

         (j)      Section 3.06 is amended by replacing "December 31, 2002" with
"December 31, 2005".

         (k)      Section 3.12 is amended in its entirety to read as follows:

                                      -10-
<PAGE>

                  SECTION 3.12. Investment Company Act. Neither Borrower nor any
         Subsidiary is an "investment company" as defined in, or subject to
         regulation under, the Investment Company Act of 1940.

         (l)      Sections 3.19(c) and (d) and 3.20 are deleted in their
entirety.

         (m)      Section 4.01(d) is amended by replacing "December 31, 2002"
with "December 31, 2005".

         (n)      Sections 5.02(c) and (d) are deleted in their entirety.

         (o)      Section 5.04(a) is amended by replacing "within 90 days after
the end of each fiscal year" with "within five Business Days after the date in
each fiscal year on which the Parent is required to file its Annual Report on
Form 10-K with the SEC (or would be required if the Parent is no longer required
to file regular and periodic reports with the SEC), in each case without giving
effect to any extension thereof".

         (p)      Section 5.04(b) is amended by replacing "within 45 days after
the end of each of the first three fiscal quarters of each fiscal year" with
"within five Business Days after each date in each fiscal year on which the
Parent is required to file a Quarterly Report on Form 10-Q with the SEC (or
would be required if the Parent is no longer required to file regular and
periodic reports with the SEC), in each case without giving effect to any
extension thereof".

         (q)      Section 5.09 is amended in its entirety as follows:

                  SECTION 5.09. Further Assurances. Execute any and all further
         documents, financing statements, agreements and instruments, and take
         all further action (including filing Uniform Commercial Code, Personal
         Property Security Act and other financing statements) that may be
         required under applicable law, or that the Administrative Agent or the
         Collateral Agent may reasonably request, in order to effectuate the
         transactions contemplated by the Loan Documents and in order to grant,
         preserve, protect and perfect the validity and first priority of the
         security interests created or intended to be created by the Security
         Documents. The U.S. Borrower will cause any subsequently acquired or
         organized Domestic Subsidiary that is a Material Subsidiary or any
         Domestic Subsidiary that was not a Material Subsidiary that
         subsequently becomes a Material Subsidiary to execute a supplement
         making it a party to the U.S. Subsidiary Guarantee Agreement and each
         applicable U.S. Security Document in favor of the Collateral Agent.
         Furthermore, if a Subsidiary, at any time, fails to meet any of the
         requirements set forth in the definition of "Inactive Subsidiary", the
         U.S. Borrower will, at its sole cost and expense, take all actions
         necessary or as requested by the either Collateral Agent, to cause such
         Collateral Agent to have a valid, first priority and perfected security
         interest in all of the Equity Interest (or 65% of the Equity Interest
         if such Subsidiary is a first-tier Foreign Subsidiary) in such
         Subsidiary. The Canadian Borrower will cause any subsequently acquired
         or organized Canadian Subsidiary that is a Material Subsidiary or any
         Canadian Subsidiary that was not a Material Subsidiary that
         subsequently becomes a Material Subsidiary to

                                      -11-
<PAGE>

         execute a supplement to the Canadian Subsidiary Guarantee Agreement and
         each applicable Canadian Security Document. In addition, from time to
         time, the Borrowers will, at their cost and expense, promptly secure
         the Obligations by pledging or creating, or causing to be pledged or
         created, perfected security interests with respect to such of their
         respective personal property located within the United States or Canada
         as the Administrative Agent shall designate (it being understood that
         it is the intent of the parties that the Obligations of the U.S.
         Borrower shall be secured by substantially all the material personal
         property of the U.S. Borrower and the U.S. Subsidiary Guarantors
         located in the United States (including 100% of the Equity Interests of
         Domestic Subsidiaries that are not Inactive Subsidiaries and 65% of the
         Equity Interests of Foreign Subsidiaries that are not Inactive
         Subsidiaries and that are directly owned by the U.S. Borrower or any
         Domestic Subsidiary), and the Obligations of the Canadian Borrower
         shall be secured by substantially all the material personal property of
         the Canadian Borrower and the Canadian Subsidiary Guarantors located in
         Canada (including personal property which, individually, has a fair
         market value in excess of U.S.$250,000). Such security interests and
         Liens will be created under the Security Documents and other security
         agreements, instruments and documents in form and substance reasonably
         satisfactory to the Collateral Agents, and the Borrowers shall deliver
         or cause to be delivered to the Lenders all such instruments and
         documents (including legal opinions and lien searches) as the
         Collateral Agents shall reasonably request to evidence compliance with
         this Section. The Borrowers agree to provide such evidence as the
         Collateral Agents shall reasonably request as to the perfection and
         priority status of each such security interest and Lien.
         Notwithstanding the foregoing, the parties agree that recordings in the
         United States Patent and Trademark Office, the United States Copyright
         Office and the Canadian Intellectual Property Office will not be
         required with respect to registered trademarks, trademark applications
         and copyrights of any Loan Party.

         (r)      Section 6.01 shall be amended as follows:

                  (i) Subsection (d) thereof shall be amended by (A) replacing
         "when combined with the aggregate principal amount of all Capital Lease
         Obligations incurred pursuant to Section 6.01(e)" with "when combined
         with the aggregate principal amount of all Capital Lease Obligations
         incurred pursuant to Section 6.01(e), all Permitted Seller Paper
         incurred pursuant to Section 6.01(h) and Subsidiary Indebtedness
         incurred pursuant to Section 6.01(k)" and (B) replacing
         "U.S.$10,000,000 at any time outstanding" with "10% of the U.S.
         Borrower's Consolidated Net Worth calculated on the date of incurrence
         as of the most recent fiscal quarter for which financial statements are
         available";

                  (ii) Subsection (e) thereof shall be amended by (A) replacing
         "when combined with the aggregate principal amount of all Indebtedness
         incurred pursuant to Section 6.01(d)" with "when combined with the
         aggregate principal amount of all Indebtedness incurred pursuant to
         Section 6.01(d), all Permitted Seller Paper incurred pursuant to
         Section 6.01(h) and Subsidiary Indebtedness incurred pursuant to
         Section 6.01(k)" and (B) replacing "U.S.$10,000,000 at any time
         outstanding" with "10% of the U.S. Borrower's Consolidated Net Worth
         calculated on the date of incurrence as of the most recent fiscal
         quarter for which financial statements are available";

                                      -12-
<PAGE>

                  (iii) Subsection (h) thereof shall be amended by replacing
         "U.S.$10,000,000 at any time outstanding" with ", when combined with
         the aggregate principal amount of all Indebtedness incurred pursuant to
         Section 6.01(d), all Capital Lease Obligations incurred pursuant to
         Section 6.01(e) and Subsidiary Indebtedness incurred pursuant to
         Section 6.01(k), 10% of the U.S. Borrower's Consolidated Net Worth
         calculated on the date of incurrence as of the most recent fiscal
         quarter for which financial statements are available";

                  (iv) Subsection (j) thereof shall be amended by (A) deleting
         "in an aggregate principal amount not to exceed $200,000,000" and (B)
         deleting the "and" before subclause (iii) thereof and adding the
         following new subsection (iv):

                  and (iv) such Indebtedness shall contain terms and conditions
                  that are customary for such transactions; and any extensions,
                  renewals or replacements of such Indebtedness; provided that
                  (A) neither the final maturity nor the weighted average life
                  to maturity of such Indebtedness is decreased, and (B) the
                  other requirements of this Section 6.01(j) are satisfied

                  (v) Subsection (k) thereof shall be amended by adding after
         "Indebtedness of the Subsidiaries in an aggregate principal amount not
         to exceed", "when combined with the aggregate principal amount of all
         Indebtedness incurred pursuant to Section 6.01(d), all Capital Lease
         Obligations incurred pursuant to Section 6.01(e) and Permitted Seller
         Paper incurred pursuant to Section 6.01(h)";

         (s)      Section 6.04(f) shall be amended in its entirety as follows:

                  (f) (i) any Subsidiary may make intercompany loans to a
         Borrower or any Subsidiary Guarantor, (ii) each Borrower may make
         intercompany loans and advances to the other Borrower or any Subsidiary
         Guarantor and (iii) the U.S. Borrower may make intercompany loans and
         advances to 3045843 Nova Scotia Company provided that the proceeds of
         such loans and advances are subsequently loaned or advanced, directly
         or indirectly, to the Canadian Borrower or a Canadian Subsidiary
         Guarantor;

         (t)      Section 6.04(i) shall be amended by adding "and" before
subclause (iii) thereof and deleting subclause (iv) thereof in its entirety up
to the parenthetical definition of "Permitted Acquisition".

         (u)      Section 6.05(b) shall be amended in its entirety as follows:

                  (b) Engage in any Asset Sale otherwise permitted under
         paragraph (a) above unless (i) such consideration is at least equal to
         the fair market value of the assets being sold, transferred, leased or
         disposed of and (ii) the fair market value of all assets sold,
         transferred, leased or disposed of pursuant to this paragraph (b) after
         the Second Amendment Effective Date shall not exceed 10% of
         Consolidated Net Worth calculated on the date of incurrence as of the
         most recent fiscal quarter for which financial statements are available
         in the aggregate.

                                      -13-
<PAGE>

         (v)      Section 6.06(a)(iii) shall be amended in its entirety as
                  follows:

                  (iii) so long as (A) no Event of Default or Default shall have
                  occurred and be continuing or result therefrom, (B)
                  U.S.$10,000,000 of the Total Commitment is unused and
                  available after giving effect to such Restricted Payment, and
                  (C) the Borrowers would be in pro forma compliance with the
                  covenants set forth in Sections 6.10 and 6.11 after giving
                  effect to such Restricted Payment, the U.S. Borrower and, with
                  respect to the Exchangeable Shares, PTI Holdco (with funds
                  advanced by the U.S. Borrower) may make Restricted Payments in
                  any amount.

         (w)      Section 6.11 shall be amended in its entirety as follows:

                         SECTION 6.11. Maximum Leverage Ratio. Permit the
                  Leverage Ratio for any period of four consecutive fiscal
                  quarters of the U.S. Borrower, in each case taken as one
                  accounting period, to be greater than (a) 3.5 to 1.0 for each
                  fiscal quarter ending from December 31, 2006 through December
                  31, 2008, (b) 3.25 to 1.0 for each fiscal quarter ending from
                  March 31, 2009 through December 31, 2009 and (c) 3.00 to 1.00
                  for each fiscal quarter thereafter.

         (x)      Section 6.12 shall be amended in its entirety to read
"[Reserved]".

         (y)      Subsections (i) and (j) of Article VII are amended by
replacing "U.S.$5,000,000" with "U.S.$25,000,000".

         (z)      Schedule 2.01 to the Credit Agreement shall be amended in its
entirety with Schedule 2.01 attached to this Amendment.

         (aa)     Schedules 1.01(d), 3.20(a), and 3.20(b) and Exhibits D-1, D-2
and D-3 are deleted in their entirety.

         (bb)     The Credit Agreement shall be amended by adding Exhibit L
attached hereto as Exhibit L to the Credit Agreement.

         Section  3. Release. Each of the Secured Parties hereby acknowledges
                     -------
and agrees that (a) all security interests and other Liens in favor of the
Collateral Agents for the benefit of the Secured Parties in the Mortgaged
Properties pursuant to the Mortgages and other Collateral described in the
Mortgages and encumbered thereby are hereby released, and (b) all of the
recordings in the United States Patent and Trademark Office, the United States
Copyright Office and the Canadian Intellectual Property Office with respect to
registered trademarks, trademark applications and copyrights of any Loan Party
shall be terminated. Each Administrative Agent hereby agrees from time to time,
upon request, without further consideration, other than the reimbursement for
any reasonable and necessary costs, to execute, deliver, acknowledge and file
all such further releases, termination statements, documents, agreements,
certificates and instruments and do such further acts as any Loan Party may
reasonably require to more effectively evidence or effectuate the releases
contemplated by this Section 3.

                                      -14-
<PAGE>

         Section  4. Representations and Warranties. The Borrowers represent and
                     ------------------------------
warrant to the Administrative Agent and the Lenders 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 such date, 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 on its part to be observed or performed, and as of the date
hereof, no Event of Default or Default has occurred and is continuing;

         (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, 2005; and

         (d)      (i) the execution, delivery, and performance of this Amendment
are within the corporate power and authority of the Borrowers and have been duly
authorized by appropriate proceedings, and (ii) this Amendment constitutes a
legal, valid, and binding obligation of the Borrowers, enforceable in accordance
with its terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws affecting the rights of creditors
generally and general principles of equity.

         Section  5. Effectiveness. This Amendment shall become effective, and
the Credit Agreement shall be amended as provided in this Amendment, upon the
occurrence of the following conditions precedent:

         (a)      the Agents shall have received, on behalf of themselves, the
Lenders and the Issuing Banks;

                  (i) duly and validly executed originals of this Amendment to
         the Administrative Agent;

                  (ii) if requested by any Lender, a new promissory note or
         promissory notes payable to such Lender in the amount of its U.S.
         Commitment and/or Canadian Commitment, as applicable, and in form and
         substance reasonably acceptance to the Applicable Administrative Agent
         and the applicable Borrower;

                                       -15-
<PAGE>

                  (iii) a favorable written opinion of (A) Vinson & Elkins
         L.L.P., U.S. counsel for the Borrowers, and (B) Fraser Milner Casgrain,
         Canadian counsel to the Canadian Borrower, in each case (1) dated the
         date of this Amendment, (2) addressed to the Issuing Banks, the
         Administrative Agents and the Lenders, and (3) covering such matters
         relating to the Loan Documents as the Administrative Agent shall
         reasonably request;

                  (iv) a certificate as to the good standing or tax status of
         each Loan Party as of a recent date, from the Secretary of State or
         other relevant Governmental Authority of the state or jurisdiction of
         its organization;

                  (v) a certificate of the Secretary or Assistant Secretary of
         each Loan Party dated the date of this Amendment and certifying (A)
         that that there have been no changes to the organizational documents of
         such Loan Party since the Closing Date or attaching such amendments,
         (B) that attached thereto is a true and complete copy of resolutions
         duly adopted by the Board of Directors of such Loan Party authorizing
         the execution, delivery and performance of this Amendment and the other
         Loan Documents to which such person is a party and that such
         resolutions have not been modified, rescinded or amended and are in
         full force and effect, and (C) as to the incumbency and specimen
         signature of each officer executing this Amendment or any Loan Document
         or any other document delivered in connection herewith on behalf of
         such Loan Party;

                  (vi) a certificate, dated the date of this Amendment and
         signed by a Financial Officer of the U.S. Borrower, confirming
         compliance with Section 4(a), (b) and (c) of this Amendment;

                  (vii) each document (including each financing statement)
         required by law or reasonably requested any Collateral Agent to be
         filed, registered or recorded in order to create in favor of the
         Applicable Collateral Agent for the benefit of the Secured Parties a
         valid, legal and perfected first-priority security interest in and lien
         on the Collateral (subject to any Lien expressly permitted by Section
         6.02) described in such agreement shall have been delivered to the
         Applicable Collateral Agent; and

                  (viii) such other documents, governmental certificates,
         agreements, and lien searches as any Lender or any Agent may reasonably
         request;

         (b)      the Administrative Agent shall have received all Fees and
other amounts due and payable on or prior to the date of this Amendment,
including, (i) an upfront fee payable to the Administrative Agent for the
account of each Lender in an amount equal to 10 basis points of such Lender's
final allocated Commitment, as modified by this Amendment, 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) required to be reimbursed or paid by
the Borrowers hereunder or under any other Loan Document; and

         (c)      all requisite Governmental Authorities and third parties shall
have approved or consented to the transactions contemplated hereby to the extent
required and there shall be no litigation, governmental or judicial action,
actual or threatened, that could reasonably be expected to restrain, prevent or
impose burdensome conditions on the transactions contemplated hereby.

                                      -16-
<PAGE>

         Section  6. Reaffirmation of Guaranty and Liens.
                     -----------------------------------

         (a)      Each Subsidiary of the U.S. Borrower that is listed on the
signature pages to this Amendment (each, a "Guarantor") (i) is party to a
Guarantee Agreement, guaranteeing payment of the Obligations, (ii) has reviewed
the Amendment and related documents, and (iii) waives any defenses to the
enforcement of its Guaranty that it may have, and agrees that according to its
terms such Guarantee will continue in full force and effect to guaranty the
Obligations under the Loan Documents, as the same may be amended, supplemented,
or otherwise modified, and such other amounts in accordance with the terms of
such Guaranty.

         (b)      The Borrowers and each Guarantor (i) are parties to certain
Security Documents securing and supporting the Obligations, (ii) have reviewed
the Amendment and related documents, (iii) waive any defenses that it may have
to the enforcement of the Security Documents to which they are party, and (iv)
agree that according to their terms the Security Documents to which they are
party such Security Documents (as such term is modified by this Amendment) will
continue in full force and effect to secure the Obligations under the Loan
Documents, as the same may be amended, supplemented, or otherwise modified, and
(v) acknowledge, represent, and warrant that the Liens and security interests
created by the Security Documents are valid and subsisting and create a first
priority perfected security interest subject to Liens expressly permitted by
Section 6.02 in the Collateral to secure the Obligations.

         (c)      The delivery of this Amendment does not indicate or establish
a requirement that any Guarantee or Security Document requires any Borrower's or
any Guarantor's approval of amendments to the Credit Agreement, but has been
furnished to the Agents and the Lenders as a courtesy at the Administrative
Agent's request.

         Section  7. Effect on Credit Documents.
                     --------------------------

         (a)      Except as amended herein, the Credit Agreement and the Loan
Documents remain in full force and effect as originally executed, and nothing
herein shall act as a waiver of any of the Administrative Agent's or Lenders'
rights under the Loan Documents, as amended, including the waiver of any Default
or Event of Default, however denominated.

         (b)      This Amendment is a Loan Document for the purposes of the
provisions of the other Loan Documents. Without limiting the foregoing, any
breach of representations, warranties, and covenants under this Amendment may be
a Default or Event of Default under other Loan Documents.

         Section  8. Choice of Law. This Amendment shall be governed by and
                     -------------
construed and enforced in accordance with the laws of the State of Texas.

         Section  9. Counterparts. This Amendment may be signed in any number of
                     ------------
counterparts, each of which shall be an original. Delivery of an executed
signature page to this Amendment by facsimile transmission shall be as effective
as delivery of a manually signed counterpart of this Amendment.

         Section  10. Return of Notes. Each Lender that has requested a new
                      ---------------
promissory note or promissory notes payable to such Lender in the amount of its
U.S. Commitment and/or Canadian Commitment, as applicable, pursuant to Section
5(a)(ii) hereof hereby agrees to return its original promissory note(s), if any,
in exchange for the new requested promissory notes; provided, however that the
failure of any Lender to do so shall not affect the effectiveness of this
Amendment.

         [The remainder of this page has been left blank intentionally.]

                                      -17-
<PAGE>

        EXECUTED to be effective as of the date first above written.

                                         BORROWER:

                                         OIL STATES INTERNATIONAL, INC.

                                         by
                                                 -------------------------------
                                         Name:   Bradley J. Dodson
                                         Title:  Vice President,
                                                 Chief Financial Officer
                                                 and Treasurer

                                         PTI GROUP INC.

                                         by
                                                 -------------------------------
                                         Name:   Mark Menard
                                         Title:  CFO and Treasurer

                                         OIL STATES SKAGIT SMATCO, LLC
                                         OIL STATES INDUSTRIES, INC.

                                         each by
                                                 -------------------------------
                                         Name:   Robert W. Hampton
                                         Title:  Vice President
                                                 and Assistant Secretary

                                         SOONER PIPE LP, L.L.C.
                                         CAPSTAR DRILLING LP, L.L.C.

                                         by
                                                 -------------------------------
                                         Name:   Mary Alice Avery
                                         Title:  Sole Manager/President

<PAGE>

                                         A - Z TERMINAL CORPORATION
                                         CAPSTAR DRILLING, L.P.

                                         By:     Oil States Energy
                                                 Services, Inc.,
                                                 its general partner

                                         CAPSTAR DRILLING GP, L.L.C.

                                         By:     Oil States Energy
                                                 Services, Inc.,
                                                 its sole member

                                         ELENBURG EXPLORATION COMPANY, INC.
                                         GENERAL MARINE LEASING, LLC
                                         OIL STATES ENERGY SERVICES, INC.
                                         STINGER WELLHEAD PROTECTION
                                           (CANADA) INCORPORATED
                                         STINGER WELLHEAD PROTECTION
                                           INCORPORATED
                                         SOONER HOLDING COMPANY
                                         SOONER INC.
                                         SOONER PIPE GP, L.L.C.
                                         SOONER PIPE, L.P.,

                                         By:     Sooner Pipe GP, L.L.C.,
                                                 its general partner

                                         SPECIALTY RENTAL TOOLS & SUPPLY, L.P.

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

                                         each by
                                                 -------------------------------
                                         Name:   Cindy B. Taylor
                                         Title:  Senior Vice President

                                         OIL STATES SKAGIT SMATCO, LLC
                                         OIL STATES INDUSTRIES, INC.

                                         each by
                                                 -------------------------------
                                         Name:   Robert W. Hampton
                                         Title:  Vice President
                                                 and Assistant Secretary

                                         SOONER PIPE LP, L.L.C.
                                         CAPSTAR DRILLING LP, L.L.C.

                                         by
                                                 -------------------------------
                                         Name:   Mary Alice Avery
                                         Title:  Sole Manager/President

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         PTI REMOTE SITE SERVICES USA, INC.
                                         PTI INTERNATIONAL INC.
                                         PTI PREMIUM CAMP SERVICES LTD.
                                         PTI TRAVCO MODULAR STRUCTURES LTD.
                                         CROWN CAMP SERVICES LTD.
                                         PTI CAMP INSTALLATIONS LTD.
                                         PTI INTERNATIONAL LTD.
                                         892489 ALBERTA INC.

                                         each by
                                                 -------------------------------
                                         Name:   Mark Menard
                                         Title:  Chief Financial Officer
                                                 and Treasurer

                                         OIL STATES MANAGEMENT, INC.

                                         by
                                                 -------------------------------
                                         Name:   Cindy B. Taylor
                                         Title:  President and Secretary

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         WELLS FARGO BANK, N.A.,
                                         as a U.S. Lender,
                                         and Administrative Agent

                                         by
                                                 -------------------------------
                                         Name:   Eric Hollingsworth
                                         Title:  Vice President

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         WELLS FARGO FINANCIAL CORPORATION
                                         CANADA, as a Canadian Lender

                                         by
                                                 -------------------------------
                                                 Nick Scarfo
                                                 Vice President and
                                                 General Counsel

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         THE BANK OF NOVA SCOTIA, as a Canadian
                                         Lender and as Canadian
                                         Administrative Agent,

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         SCOTIABANC INC., as a U.S. Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         [CAPITAL ONE], as a U.S. Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         ROYAL BANK OF CANADA, as a U.S. Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         ROYAL BANK OF CANADA,
                                         as a Canadian Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         JPMORGAN CHASE BANK, N.A., as a U.S.
                                         Lender and a Canadian Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         CALYON NEW YORK BRANCH,
                                         as a U.S. Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         CREDIT SUISSE FIRST BOSTON,
                                         ACTING THROUGH ITS CAYMAN ISLANDS
                                         BRANCH, as a U.S. Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         CREDIT SUISSE FIRST BOSTON
                                         TORONTO BRANCH, as a Canadian Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         THE TORONTO-DOMINION BANK,
                                         as a U.S. Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         THE TORONTO-DOMINION BANK,
                                         as a Canadian Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         AMEGY BANK N.A., as a U.S. Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         Barclays Bank Plc, as a U.S. Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                         COMERICA BANK, as a U.S. Lender

                                         by
                                                 -------------------------------
                                         Name:
                                         Title:

                        Signature Page to Amendment No. 2
                        (Oil States International, Inc.)

<PAGE>

                                  SCHEDULE 2.01

                             LENDERS AND COMMITMENTS
                             -----------------------

                                   COMMITMENTS

<TABLE>
<CAPTION>
                                                 U.S.          Canadian          Total
                  Bank                       Commitment       Commitment       Commitment
----------------------------------------   --------------   --------------   --------------
<S>                                        <C>              <C>              <C>
Wells Fargo Bank, N.A.                     $   50,000,000   $            0   $   50,000,000
Wells Fargo Financial Corporation Canada   $            0   $   30,000,000   $   30,000,000
Royal Bank of Canada                       $   25,000,000   $   15,000,000   $   40,000,000
[Capital One]                              $   40,000,000   $            0   $   40,000,000
JPMorgan Chase Bank, N.A.                  $   35,000,000   $    5,000,000   $   40,000,000
Calyon New York Branch                     $   40,000,000   $            0   $   40,000,000
The Bank of Nova Scotia                    $            0   $   25,000,000   $   25,000,000
Scotiabanc Inc.                            $   15,000,000   $            0   $   15,000,000
Credit Suisse First Boston                 $   15,000,000   $   10,000,000   $   25,000,000
Amegy Bank N.A                             $   15,000,000   $            0   $   15,000,000
The Toronto-Dominion Bank                  $   15,000,000   $   15,000,000   $   30,000,000
Barclays Bank PLC                          $   25,000,000   $            0   $   25,000,000
Comerica Bank                              $   25,000,000   $            0   $   25,000,000
TOTAL                                      $  300,000,000   $  100,000,000   $  400,000,000
</TABLE>

<PAGE>

                                    EXHIBIT L

                              FORM OF DISCOUNT NOTE

Cdn. $__________________                             Date:  ____________________

          FOR VALUE RECEIVED, the undersigned unconditionally promises to pay on
__________ 20____ to or to the order of [NAME OF CANADIAN LENDER MAKING B/A
EQUIVALENT LOANS] ("Holder"), the sum of Cdn. $____________ with no interest
thereon.

          The undersigned hereby waives presentment, protest and notice of every
kind and waives any defenses based upon indulgences which may be granted by the
Holder to any party liable hereon and or days of grace.

          This promissory note evidences a B/A Equivalent Loan, as defined in
the Credit Agreement dated October 30, 2003 among Oil States International,
Inc., a Delaware corporation, and PTI Group Inc., a corporation amalgamated
under the laws of the Province of Alberta, as Borrowers, each of the Guarantors,
a syndicate of financial institutions, as Lenders, Wells Fargo Bank, N.A., as
Administrative Agent for the Lenders, and The Bank of Nova Scotia, as Canadian
Administrative Agent for the Canadian Lenders, and constitutes evidence of
indebtedness to the Holder arising from such B/A Equivalent Loan.

                                           PTI GROUP INC.

                                           By:    ______________________________

                                           Name:  ______________________________

                                           Title: ______________________________Exhibit 10.47

CONFIDENTIAL
Our Ref: WBG/06/3707
 Date  : 5 July 2006

BAK International Limited
BAK Industrial Park,
 Kuichong Street, Longgang District,
 Shenzhen, China.

Attention: Mr. Yongbin Han, Vice President

Dear Sirs,

Re:   Facility Letter

We, CITIC Ka Wah Bank Limited (the “Bank”), are pleased to offer you (the “Borrower”) the general banking facilities (the “Facilities”) on the following terms and conditions.

	
  
1.
  	
  
Facilities
  
	
  
 
  	
  
 
  
	
  
1.1
  	
  
The   facilities are available by way of the following:
  

	
   
  	
  
Extent of Facilities
  
	
  
 
  	
  
Documentary   Credit (“L/C”) Facility plus Trust Receipt (“T/R”) Facility (120 days   inclusive of usance period) plus Negotiation of Export Bills under L/C with   discrepancies supported by Letter of Indemnity Facility (“NEGT”) up to the   extent of USD6,000,000.00.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
[within   which:
  
	
  
 
  	
  
Packing   Credit Facility (“P/L”) up to the extent of USD3,000,000.00.]
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Remarks:
  
	
  
 
  	
  
i.
  	
  
Utilization   of the above trade facilities is subject to 20% cash margin placed with the   Bank.
  
	
   
  	
  
ii.
  	
  
The above   trade facilities is used for purchase of raw materials.
  
	
  
 
  	
  
iii.
  	
  
Maximum   tenor of P/L is 120 days and maximum amount is 70% of export L/C amount.
  
	
  
 
  	
  
iv.
  	
  
P/L is   against lodgment of the export L/C.
  

	
  
1.2
  	
  
The   Facilities will be subject to periodic review, as the Bank deems fit at its sole   and absolute discretion. The Facilities shall expire and be repayable   forthwith as and when the Bank has given the Borrower notice of termination.   Nevertheless, the Bank reserves the right at its sole and absolute discretion   to increase, reduce, cancel and/or demand repayment of the Facilities or any   part or parts thereof at any time to be effective forthwith by notice to the   Borrower.
  

CONFIDENTIAL
 Our Ref: WBG/06/3707
 Borrower: BAK International Limited

	
  
2.
  	
  
Interest
  
	
  
 
  	
  
 
  
	
  
2.1
  	
  
Interest   will be charged on the Facilities, subject to fluctuation, at the following   rate (the “Contract Rate”):
  

	
  
 
  	
  
Contract Rate
  
	
  
 
  	
  
1.5% over   and above Hong Kong Inter Bank Offered Rate (“HIBOR”) per annum as quoted by   the Bank on the first day of each period, subject to market availability.
  

	
  2.2
  	
  
Interest   will accrue from day to day and be calculated on the basis of the actual   number of days elapsed and a 365-day year for Hong Kong Dollar of 360-day   year for United States Dollar or according to the market practice for   calculation of other currencies.
  
	
  
 
  	
  
 
  
	
  
3.
  	
  
Charges and Commissions
  
	
  
 
  	
  
 
  
	
  
3.1
  	
  
Charges and   commissions will be levied and payable as set out in the following table.   Once paid, such charges and commissions shall not be refundable under any   circumstances.
  

	
  
 
  	
  
Charges and Commissions
  
	
  
 
  	
  
i.
  	
  
Commission   for Import and Export Bills charged at 1/4% on the first USD50,000.00 or   equivalent and 1/16% thereafter shall be paid per each transaction.
  
	
   
  	
  
ii.
  	
  
Arrangement   Fee of USD3,000.00 shall be payable by the Borrower to the Bank upon   acceptance of this Facility Letter.
  

	
  
3.2
  	
  
Notwithstanding   anything herein contained, the Bank reserves the right to vary the amount of   the charges and commissions set out in the aforesaid table from time to time   at the Bank’s absolute discretion by giving prior written notice.
  
	
  
 
  	
  
 
  
	
  
3.3
  	
  
If   applicable, the Borrower is also required to pay those charges set out in the   Banking Charges Schedule published by the Bank from time to time.
  
	
  
 
  	
  
 
  
	
  
4.
  	
  
Repayment
  
	
  
 
  	
  
 
  
	
  4.1
  	
  
Without   prejudice to Clause 1.2, the Facilities together with accrued interest shall   be repaid according to the following Repayment Schedule:
  

	
  
 
  	
  
Repayment Schedule
  
	
  
 
  	
  
Each advance   together with accrued interest shall be repaid on or before the date   specified in the relevant application.
  

	
  
5.
  	
  
Default Interest
  
	
  
 
  	
  
 
  
	
  
5.1
  	
  
The Bank   reserves the right to collect default interest on any sum (whether principal   or interest) overdue and not paid under any of the Facilities at the   following rate:
  

2

CONFIDENTIAL
 Our Ref: WBG/06/3707
 Borrower: BAK International Limited

	
  
 
  	
  
Default Interest Rate
  
	
  
 
  	
  
4% per annum   over and above the Contract Rate.
  

	
  
5.2
  	
  
Default   interest shall be calculated on basis of the actual number of days elapsed   and a 365-day year for Hong Kong Dollar or 360-day year for United States   Dollar or according to the market practice for calculation of other   currencies.
  
	
  
 
  	
  
 
  
	
  
6.
  	
  
Security
  
	
  
 
  	
  
 
  
	
  6.1
  	
  
The   Facilities are granted against the following securities (the “Securities”)
  

	
  
 
  	
  
Security
  
	
  
 
  	
  
i.
  	
  
A Corporate   Guarantee from Shenzhen BAK Battery Company Limited (the “Corporate   Guarantor”) for repayment of principal amount up to the extent of   USD6,000,000.00 and accrued interest and default interest thereon and all   other costs and expenses.
  
	
  
 
  	
  
ii.
  	
  
A Personal Guarantee from Xiangqian Li
(the “Personal Guarantor”) for repayment of principal amount up to the
extent of USD6,000,000.00 and accrued interest and default interest thereon and
all other costs and expenses.
 

	
  6.2
  	
  
The Bank   reserves the right to request for any additional securities as the Bank may   deem fit at its sole and absolute discretion from time to time.
  
	
  
 
  	
  
 
  
	
  
6.3
  	
  
Nothing in   this Facility Letter shall release, terminate or invalidate any security   given or security document signed before the date of this Facility Letter. If   there is any such security or security document, the same shall continue to   secure the Facilities granted or to be granted under this Facility Letter.
  
	
  
 
  	
  
 
  
	
  
7.
  	
  
Conditions Precedent
  
	
  
 
  	
  
 
  
	
  
7.1
  	
  
The   Facilities will be available for drawing when the Bank has received the   following documents in form and substance satisfactory to the Bank:
  

	
   
  	
  
Documents
  
	
  
 
  	
  
i.
  	
  
The   duplicate copy of this Facility Letter duly signed by the Borrower indicating   its acceptance of the Facilities on terms and conditions set out herein and   duly signed by the Corporate Guarantor and the Personal Guarantor.
  
	
  
 
  	
  
ii.
  	
  
Borrower’s   Board Resolutions and Shareholders’ Resolutions certified by any director(s)   of the Borrower.
  
	
  
 
  	
  
iii.
  	
  
General   Commercial Agreement duly signed by the Borrower.
  

3

CONFIDENTIAL
 Our Ref: WBG/06/3707
 Borrower: BAK International Limited

	
  
 
  	
  
iv.
  	
  
Guarantee and Indemnity duly executed by the Corporate Guarantor together with Board Resolutions and Shareholders’ Resolutions (if
applicable).
  
	
   
  	
  
v.
  	
  
Guarantee and   Indemnity duly signed by the Personal Guarantor.
  
	
  
 
  	
  
vi.
  	
  
Guarantor/   Security Provider (Individual) Acknowledgement duly signed by the Personal   Guarantor.
  
	
  
 
  	
  
vii.
  	
  
Certified   true copies of identity documents of all authorized signers of the Borrower   and the Corporate Guarantor.
  
	
  
 
  	
  
viii.
  	
  
Supporting   Documents given by the Corporate Guarantor:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
a)
  	
  
Certificate   of Approval;
  
	
   
  	
  
 
  	
  
b)
  	
  
Business   License;
  
	
  
 
  	
  
 
  	
  
c)
  	
  
Up-to-date   Articles of Association; and
  
	
  
 
  	
  
 
  	
  
d)
  	
  
List of all   directors and shareholders.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
If any one   of the above-mentioned documents are submitted in copies, certified as true   and complete copies by legal representative plus a seal is required.
  
	
  
 
  	
  
ix.
  	
  
A legal   opinion to be issued by the Bank’s appointed lawyer in China on the validity   and enforceability of the Guarantee and Indemnity given by the Corporate   Guarantor in form and substance satisfactory to the Bank. All cost should be   borne by the Borrower.
  
	
   
  	
  
x.
  	
  
The   Corporate Guarantee from the Corporate Guarantor to be filed with State   Administration of Foreign Exchange (SAFE).
  
	
  
 
  	
  
xi
  	
  
Certified   true copy of Memorandum and Articles of Association of the Borrower.
  
	
  
 
  	
  
xii
  	
  
Certified   true copy of Business Registration Certificate of the Borrower.
  
	
  
 
  	
  
xiii.
  	
  
Certified   true copy of Certificate of Incorporation of the Borrower.
  
	
  
 
  	
  
xiv.
  	
  
Any other   documents as may reasonably be requested by the Bank from time to time.
  

	
  8.
  	
  
Language
  
	
  
 
  	
  
 
  
	
  
8.1
  	
  
The Chinese   version of the Facility Letter, if produced, is for reference only and if   there is any conflict between the English and Chinese version, the English   version shall prevail.
  
	
  
 
  	
  
 
  
	
  
9.
  	
  
Governing Law
  
	
  
 
  	
  
 
  
	
  
9.1
  	
  
The Facility   Letter shall be governed by the laws of Hong Kong SAR. Each party hereby   irrevocably submits to the non-exclusive jurisdiction of the courts of Hong   Kong SAR as regards any claim or matter arising hereunder.
  

Kindly sign and return to us the duplicate copy of this Facility Letter to indicate your acceptance of this credit facility arrangement by 26 July 2006 and if not accepted by that date, unless extended by us at our sole and absolute discretion, this offer will be deemed to have lapsed.

4

CONFIDENTIAL
 Our Ref: WBG/06/3707
 Borrower: BAK International Limited

Should you have any queries on the completion of the required documents, please do feel free to contact our Ms. Daphne Fong at 3603 2047. For queries on banking arrangements, please contact our Ms. Betty Loo at 2909 6202 or Mr. Silas Ma at 2909 6617 at any time. 

Yours faithfully,

	
  
For and on   behalf of
  	
  
 
  	
  
For and on   behalf of
  
	
  
CITIC Ka Wah   Bank Limited
  	
  
 
  	
  
CITIC Ka Wah   Bank Limited
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
/s/ Billy   Wong
  	
  
 
  	
  
/s/ Benson   Lee
  
	
  

  	
   
  	
  

  
	
  Billy Wong
  	
   
  	
  Benson Lee
  
	
  Manager
  	
   
  	
  Senior Vice   President and Group Head
  
	
  Credit   Administration
  	
   
  	
  China   Corporates, HK
  

5

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