Document:

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                                                                    EXHIBIT 10.2

                 PLAN OF ARRANGEMENT PROPOSED BY PTI GROUP INC.
                                UNDER SECTION 186
                   OF THE BUSINESS CORPORATIONS ACT (ALBERTA)
                             INVOLVING AND AFFECTING
         PTI GROUP INC. AND THE HOLDERS OF ITS COMMON SHARES AND OPTIONS
              AND 892492 ALBERTA INC. AND THE HOLDERS OF ITS SHARES
              AND 892489 ALBERTA INC. AND THE HOLDERS OF ITS SHARES
                       AND OIL STATES INTERNATIONAL, INC.
                         AND 3045843 NOVA SCOTIA COMPANY

                                   ARTICLE 1
                                 INTERPRETATION

1.1      DEFINITIONS

         In this Plan of Arrangement, unless there is something in the subject
matter or context inconsistent therewith, the following terms shall have the
respective meanings set out below and grammatical variations of such terms shall
have corresponding meanings:

         "ABCA" means the Business Corporations Act (Alberta), as amended;

         "Amalgamation" means the amalgamation of PTI and PTI Amalco provided
for in Section 2.1(b) hereof;

         "Amalgamation Agreement" means the agreement attached hereto as
Appendix A, setting forth the terms and conditions of the Amalgamation;

         "Arrangement" means the arrangement under section 186 of the ABCA on
the terms and subject to the conditions set out in this Plan of Arrangement,
subject to any amendments thereto made (i) in accordance with Section 14.1 of
the Combination Agreement; (ii) in accordance with Section 5.1 hereof or (iii)
at the direction of the Court in the Final Order;

         "Arrangement Resolution" means the special resolution passed by the
Shareholders and the Optionholders at the Meeting or a resolution in writing
signed by all of the Shareholders and Optionholders in lieu of the Meeting;

         "Automatic Redemption Date" has the meaning provided in the
Exchangeable Share Provisions;

         "Business Day" has the meaning provided in the Exchangeable Share
Provisions;

         "Class A Common Shares" means Class A Common Shares in the capital of
New PTI;

         "Class B Common Shares" means Class B Common Shares in the capital of
New PTI;

         "Class C Common Shares" means Class C Common Shares in the capital of
New PTI;

         "Class D Common Shares" means Class D Common Shares in the capital of
New PTI;

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         "Combination Agreement" means the combination agreement by and among
OSI, HWC Energy Services, Inc., Merger Sub-HWC, Inc., Sooner Inc., Merger
Sub-Sooner, Inc. and PTI dated as of July 31, 2000, as amended and restated from
time to time, providing for, among other things, this Plan of Arrangement and
the Arrangement;

         "Court" means the Court of Queen's Bench of Alberta;

         "Depositary" means Montreal Trust Company of Canada at its principal
transfer offices in Calgary, Alberta;

         "Dissent Procedures" has the meaning provided in Section 3.1;

         "Effective Date" means the registration date shown on the registration
statement issued upon the filing of the Articles of Arrangement under the ABCA
giving effect to the Arrangement;

         "Effective Time" means 6:00 a.m. (Edmonton time) on the Effective Date;

         "Eligible Holders" has the meaning in Section 2.2(a);

         "Exchange Ratio" means 3.7731 Exchangeable Shares for each whole PTI
Common Share, subject to adjustment as provided in accordance with Section 4.2
of the Combination Agreement;

         "Exchangeable Share Provisions" means the rights, privileges,
restrictions and conditions attaching to the Exchangeable Shares as set forth in
Appendix B hereto;

         "Exchangeable Shares" means the Exchangeable Shares in the capital of
PTI Holdco;

         "Final Order" means the final order of the Court approving the
Arrangement, as such order may be amended by the Court at any time and from time
to time prior to the Effective Time;

         "Interim Order" means the interim order of the Court in relation to the
Arrangement, as such order may be amended by the Court at any time and from time
to time;

         "ITA" means the Income Tax Act (Canada), as amended;

         "Measurement Period" means the period of 10 consecutive Business Days
ending on the third trading day prior to the OSI IPO Date;

         "Meeting" means the special meeting of the Shareholders and of the
Optionholders of PTI to be held, if required, to consider this Plan of
Arrangement;

         "New PTI" means PTI Group Inc. a corporation amalgamated under the ABCA
pursuant to the Arrangement;

         "New PTI Shares" means the Class A Common Shares, the Class B Common
Shares, the Class C Common Shares and the Class D Common Shares;

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         "Non-Accredited U.S. PTI Shareholder" means Peter McEwen, a
Shareholder;

         "Option Agreements" mean the agreements between PTI and certain
directors and officers of PTI governing the Options;

         "Optionholders" means holders of Options;

         "Options" means all options to purchase PTI Common Shares outstanding
immediately prior to the Effective Date;

         "OSI" means Oil States International, Inc., a corporation organized and
existing under the laws of Delaware and any successor corporation;

         "OSI Common Stock" has the meaning provided in the Exchangeable Share
Provisions;

         "OSI IPO" means the initial public offering of OSI Common Stock;

         "OSI IPO Date" means the date the OSI IPO is completed;

         "OSI IPO Price" means the price per share at which OSI Common Stock is
initially offered for sale to the public under the OSI IPO;

         "OSI ULC" means 3045843 Nova Scotia Company, an unlimited liability
company organized and existing under the laws of Nova Scotia and any successor
corporation;

         "PTI" means PTI Group Inc., a corporation organized and existing under
the laws of Alberta;

         "PTI Amalco" means 892492 Alberta Inc., a corporation organized and
existing under the laws of Alberta and a wholly-owned subsidiary of PTI Holdco;

         "PTI Amalco Common Shares" means the common shares in the capital of
PTI Amalco;

         "PTI Common Shares" means the common shares in the capital of PTI;

         "PTI Holdco" means 892489 Alberta Inc., a corporation organized and
existing under the laws of Alberta and a wholly-owned subsidiary of OSI ULC
prior to giving effect to the Arrangement, and any successor corporation;

         "PTI Holdco Sub" means 892493 Alberta Inc., a corporation organized and
existing under the laws of Alberta and a wholly-owned subsidiary of PTI Holdco,
and any successor corporation;

         "Proxy Statement" means the Management Information Circular and Proxy
Statement of PTI prepared in connection with the Arrangement;

         "RJM" means R.J.M. Equities Inc., a Shareholder;

         "Shareholders" means holders of PTI Common Shares;

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         "Support Agreement" means the agreement so entitled between OSI and PTI
Holdco to be dated as of the Effective Date and provided for in the Combination
Agreement;

         "Transfer Agent" means the duly appointed transfer agent for the time
being of the Exchangeable Shares, and, if there is more than one such transfer
agent, then the principal Canadian transfer agent;

         "Unanimous Shareholder Agreement" means the Unanimous Shareholder
Agreement dated January 8, 1997 made among the Shareholders and PTI, as amended;

         "U.S. PTI Shareholders" means SCF-III, L.P. and William Nungesser, each
a Shareholder.

         "Voting and Exchange Trust Agreement" means the agreement so entitled
between OSI, PTI Holdco and the Trustee named therein to be dated as of the
Effective Date and provided for in the Combination Agreement;

         "Voting Share" has the meaning ascribed to such term in the Voting and
Exchange Trust Agreement; and

         "812375" means 812375 Alberta Ltd., a Shareholder.

1.2      SECTIONS, HEADINGS AND APPENDICES

         The division of this Plan of Arrangement into sections and the
insertion of headings are for reference purposes only and shall not affect the
interpretation of this Plan of Arrangement. Unless otherwise indicated, any
reference in this Plan of Arrangement to a section refers to the specified
section of this Plan of Arrangement. Appendix A is incorporated into and forms
an integral part of this Plan of Arrangement.

1.3      NUMBER, GENDER AND PERSONS

         In this Plan of Arrangement, unless the context otherwise requires,
words importing the singular number include the plural and vice versa, words
importing any gender include all genders and words importing persons include
individuals, bodies corporate, partnerships, associations, trusts,
unincorporated organizations, governmental bodies and other legal or business
entities of any kind.

1.4      DATE FOR ANY ACTION

         In the event that any date on or by which any action is required or
permitted to be taken hereunder is not a Business Day, such action shall be
required or permitted to be taken on or by the next succeeding day which is a
Business Day.

1.5      CURRENCY

         Unless otherwise expressly stated herein, all references to currency
and payments in cash or money in this Plan of Arrangement are to United States
dollars.

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1.6      STATUTORY REFERENCES

         Any reference in this Plan of Arrangement to a statute includes such
statute as amended, consolidated or re-enacted from time to time, all
regulations made thereunder, all amendments to such regulations from time to
time, and any statute or regulation which supersedes such statute or
regulations.

                                    ARTICLE 2
                                   ARRANGEMENT

2.1      ARRANGEMENT

         At the Effective Time, the following transactions shall occur and shall
be deemed to occur in the following order without any further act or formality:

         (a)  each Shareholder who has duly exercised the right of dissent as
              set forth in Article 3 shall be deemed to have transferred the PTI
              Common Shares held by such holder to PTI for cancellation and such
              shares shall be cancelled and any Options held by such Shareholder
              which have not been exercised prior to the time such Shareholder
              exercises such right of dissent shall be deemed to be transferred
              to PTI for no consideration and shall be cancelled and shall no
              longer be outstanding and in no case shall PTI or OSI be required
              to recognize such holders as Optionholders on and after the
              Effective Time and the names of such persons shall be deleted from
              the registers of Optionholders at the Effective Time;

         (b)  the Unanimous Shareholder Agreement shall be terminated and of no
              further force or effect;

         (c)  OSI shall acquire:

                  (i)  all of the PTI Common Shares held by the Non-Accredited
                       U.S. PTI Shareholder in exchange for a payment, in United
                       States dollars, equal to the OSI IPO Price less
                       underwriters' discounts and commissions applicable to the
                       OSI IPO, multiplied by the Exchange Ratio multiplied by
                       the number of PTI Common Shares held by the
                       Non-Accredited U.S. PTI Shareholder; and

                  (ii) all of the PTI Common Shares held by the U.S. PTI
                       Shareholders in exchange for the number of shares of OSI
                       Common Stock equal to the Exchange Ratio for each whole
                       PTI Common Share;

         (d)  OSI ULC shall acquire all of the PTI Common Shares acquired by OSI
              pursuant to Section 2.1(c) hereof in exchange for one common share
              in the capital of OSI ULC for each whole PTI Common Share;

         (e)  PTI Holdco shall acquire all of the PTI Common Shares acquired by
              OSI ULC pursuant to Section 2.1(d) hereof in exchange for one
              common share in the capital of PTI Holdco for each whole PTI
              Common Share;

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         (f)  PTI and PTI Amalco shall be amalgamated pursuant to the
              Amalgamation Agreement to form New PTI;

         (g)  Upon the amalgamation of PTI and PTI Amalco to form New PTI:

                  (i)    New PTI shall issue to PTI Holdco one Class A Common
                         Share for each of its PTI Common Shares;

                  (ii)   New PTI shall issue to PTI Holdco one Class A Common
                         Share for each of its PTI Amalco Common Shares;

                  (iii)  New PTI shall issue to 812375 one Class B Common Share
                         for each of its PTI Common Shares;

                  (iv)   New PTI shall issue to RJM one Class C Common Share for
                         each of its PTI Common Shares;

                  (v)    New PTI shall issue to each of the Shareholders other
                         than 812375, RJM, PTI Holdco and holders of PTI Common
                         Shares in respect of which rights of dissent have been
                         exercised pursuant to Article 3 hereof and which have
                         been cancelled pursuant to Section 2.1(a) hereof one
                         Class D Common Share for each of their PTI Common
                         Shares;

                  (vi)   the amount added to the stated capital account
                         maintained for the Class A Common Shares with respect
                         to the Class A Common Shares issued pursuant to
                         Sections 2.1(g)(i) and (ii) shall be equal to the
                         paid-up capital, for the purposes of the ITA, of the
                         PTI Common Shares and the PTI Amalco Common Shares held
                         by PTI Holdco;

                  (vii)  the amount added to the stated capital account
                         maintained for the Class B Common Shares with respect
                         to the Class B Common Shares issued pursuant to Section
                         2.1(g)(iii) shall be equal to the paid-up capital, for
                         the purposes of the ITA, of the PTI Common Shares held
                         by 812375;

                  (viii) the amount added to the stated capital account
                         maintained for the Class C Common Shares issued
                         pursuant to Section 2.1(g)(iv) shall be equal to the
                         paid-up capital, for the purposes of the ITA, of the
                         PTI Common Shares held by RJM;

                  (ix)   the amount added to the stated capital account
                         maintained for the Class D Common Shares with respect
                         to the Class D Common Shares issued pursuant to Section
                         2.1(g)(v) shall be equal to the paid-up capital, for
                         the purposes of the ITA, of the PTI Common Shares other
                         than (A) the PTI Common Shares held by PTI Holdco,
                         812375 and RJM and (B) PTI Common Shares in respect of
                         which rights of dissent have been exercised pursuant to
                         Article 3 hereof and which have been cancelled pursuant
                         to Section 2.1(a) hereof.

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         (h)  The stated capital account maintained for (i) the Class B Common
              Shares shall be increased by a portion of the amount credited to
              New PTI's retained earnings account equal to $6,794,359 and (ii)
              the Class C Common Shares shall be increased by a portion of the
              amount credited to New PTI's retained earnings account equal to
              $3,903,303;

         (i)  The Articles of Incorporation of PTI Holdco shall be amended to
              add (i) the Exchangeable Shares to the authorized capital of PTI
              Holdco, (ii) the Exchangeable Share Provisions and (iii) certain
              other provisions, set forth in Exhibit B to the Combination
              Agreement and to delete the private company provisions;

         (j)  OSI and PTI Holdco shall execute and deliver the Support
              Agreement;

         (k)  OSI, PTI Holdco and the Trustee shall execute and deliver the
              Voting and Exchange Trust Agreement;

         (l)  PTI Holdco shall acquire all of the issued and outstanding Class B
              Common Shares from the holders thereof in exchange for the number
              of Exchangeable Shares equal to the Exchange Ratio for each whole
              Class B Common Share;

         (m)  PTI Holdco shall acquire all of the issued and outstanding Class C
              Common Shares from the holders thereof in exchange for the number
              of Exchangeable Shares equal to the Exchange Ratio for each whole
              Class C Common Share;

         (n)  PTI Holdco shall acquire all of the issued and outstanding Class D
              Common Shares from the holders thereof in exchange for the number
              of Exchangeable Shares equal to the Exchange Ratio for each whole
              Class D Common Share;

         (o)  The amount added to the stated capital account maintained for the
              Exchangeable Shares with respect to the Exchangeable Shares issued
              pursuant to Section 2.1(l) shall be equal to the paid up capital,
              for the purposes of the ITA, of the Class B Common Shares;

         (p)  The amount added to the stated capital account maintained for the
              Exchangeable Shares with respect to the Exchangeable Shares issued
              pursuant to Section 2.1(m) shall be equal to the paid up capital,
              for the purposes of the ITA, of the Class C Common Shares;

         (q)  The amount added to the stated capital account maintained for the
              Exchangeable Shares with respect to the Exchangeable Shares issued
              pursuant to Section 2.1(n) shall be equal to the paid up capital,
              for the purposes of the ITA, of the Class D Common Shares;

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         (r)  Upon the transfer of New PTI Shares referred to in paragraphs (l),
              (m) and (n) above:

                  (i)    each holder of New PTI Shares shall cease to be such a
                         holder, shall have his name removed from the register
                         of holders of New PTI Shares and shall become a holder
                         of the number of fully paid Exchangeable Shares to
                         which he is entitled as a result of the transfer
                         referred to above and such holder's name shall be added
                         to the register of holders of Exchangeable Shares
                         accordingly; and

                  (ii)   PTI Holdco shall become the legal and beneficial owner
                         of all of the New PTI Shares so transferred.

         (s)  OSI shall issue to and deposit with the Depositary the Voting
              Share in consideration of the payment to OSI of US$1, to be
              thereafter held by the Depositary as trustee for and on behalf of,
              and for the use and benefit of, the holders of the Exchangeable
              Shares, in accordance with the Voting and Exchange Trust
              Agreement.

         (t)  The then outstanding Options will, without any further action on
              the part of any Optionholder: (i) if applicable, vest in
              accordance with the terms and conditions of the Option Agreements,
              and (ii) be converted into or exchanged for an option to purchase
              the number of shares of OSI Common Stock determined by multiplying
              the number of PTI Common Shares subject to such Option at the
              Effective Time by the Exchange Ratio, at an exercise price per
              share of OSI Common Stock equal to the exercise price per share of
              such Option immediately prior to the Effective Time divided by the
              Exchange Ratio, and expressed in U.S. dollars. For the purposes of
              determining the exercise price per share of OSI Common Stock, the
              exercise price per share of PTI Common Shares subject to such
              Option shall be adjusted using the Canadian dollar exchange rate
              based upon the average of the noon buying rate expressed to the
              fourth decimal place for each of the Business Days in the
              Measurement Period as reported by the Bank of Canada. If the
              foregoing calculation results in a converted Option being
              exercisable for a fraction of a share of OSI Common Stock, then
              the number of shares of OSI Common Stock subject to such Option
              will be rounded down to the nearest whole number of shares, and
              the exercise price per whole share of OSI Common Stock will be as
              determined above. The obligations of PTI under the Options as so
              converted shall be assumed by OSI and OSI shall be substituted for
              PTI under the Option Agreements. Except as provided in this
              paragraph (t), the term and all other terms and conditions of the
              Options in effect immediately prior to giving effect to the
              Arrangement shall govern the Options.

         (u)  PTI Holdco Sub shall acquire all of the issued and outstanding New
              PTI Shares from PTI Holdco in exchange for an equal number of
              common shares in the capital of PTI Holdco Sub.

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2.2      TAX MATTERS

         (a)  Holders of Exchangeable Shares who acquired them pursuant to the
              transfers referred to above (the "Eligible Holders") shall be
              entitled to make an election pursuant to subsection 85(1) of the
              ITA and any corresponding applicable provincial legislation with
              respect to the transfer of their New PTI Shares to PTI Holdco as
              provided above by providing two signed copies of the necessary
              election forms to PTI Holdco within 90 days following the
              Effective Date, duly completed with the details of the number of
              shares transferred, the adjusted cost base of those shares and
              such agreed amounts as shall be determined by the Eligible Holders
              for the purposes of such elections. Thereafter, subject to the
              election forms complying with the provisions of the ITA and any
              corresponding applicable provincial legislation, the forms will be
              signed by PTI Holdco and returned to the Eligible Holders within
              30 days of receipt of such elections by PTI Holdco for filing with
              Canada Customs and Revenue Agency or any corresponding applicable
              provincial agency.

         (b)  The applicable agreed amount for the purposes of any election to
              be made in accordance with Section 2.2(a) must comply with the
              following rules:

                  (i)      the agreed amount may not be less than the fair
                           market value, on the Effective Date, of the
                           consideration (other than Exchangeable Shares)
                           received by an Eligible Holder for the disposition to
                           PTI Holdco of the New PTI Shares to which the
                           election applies;

                  (ii)   the agreed amount may not be less than the lesser of
                         (A) the adjusted cost base to the Eligible Holder of
                         the New PTI Shares to which the election applies,
                         determined immediately before the time of the exchange,
                         and (B) the fair market value of such New PTI Shares at
                         that time;

                  (iii)  the agreed amount may not exceed the fair market value
                         of the New PTI Shares to which the election applies at
                         the time of the exchange.

                                   ARTICLE 3
                                RIGHTS OF DISSENT

3.1      RIGHTS OF DISSENT

         Registered Shareholders may exercise rights of dissent with respect to
their PTI Common Shares pursuant to and in the manner set forth in section 184
of the ABCA (as modified by the Interim Order) and this Section 3.1 (the
"Dissent Procedures") in connection with the Arrangement, and holders who duly
exercise such rights of dissent and who:

         (a)  are ultimately entitled to be paid fair value for the PTI Common
              Shares shall be deemed to have transferred such PTI Common Shares
              to PTI for cancellation on the Effective Date; or

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         (b)  are ultimately not entitled, for any reason, to be paid the fair
              value for their PTI Common Shares shall be deemed to have
              participated in the Arrangement on the same basis as any
              nondissenting Shareholder, as the case may be,

but in no case shall PTI be required to recognize such holders as Shareholders
on and after the Effective Time, and the names of such persons shall be deleted
from the registers of Shareholders at the Effective Time.

                                   ARTICLE 4
                       CERTIFICATES AND FRACTIONAL SHARES

4.1      ISSUANCE OF CERTIFICATES REPRESENTING EXCHANGEABLE SHARES

         At or promptly after the Effective Time, PTI Holdco shall deposit with
the Depositary, for the benefit of the Shareholders who ultimately exchanged
their PTI Common Shares for Exchangeable Shares pursuant to the Arrangement,
certificates representing the Exchangeable Shares issued pursuant to the
Arrangement upon the exchange. Upon surrender to the Depositary of a certificate
which immediately prior to the Effective Time represented outstanding PTI Common
Shares, and such additional documents and instruments as the Depositary may
reasonably require, the holder of such surrendered certificate shall be entitled
to receive in exchange therefor, and the Depositary shall forthwith deliver to
such holder, a certificate representing that number (rounded down to the nearest
whole number) of Exchangeable Shares which such holder has the right to receive
pursuant to the Arrangement (together with any dividends or distributions with
respect thereto pursuant to Section 4.2 and any cash in lieu of fractional
Exchangeable Shares pursuant to Section 4.3), and any certificate so surrendered
shall forthwith be canceled. In the event of a transfer of ownership of PTI
Common Shares which is not registered in the transfer records of PTI, a
certificate representing the proper number of Exchangeable Shares (together with
any dividends or distributions with respect thereto pursuant to Section 4.2 and
any cash in lieu of fractional Exchangeable Shares pursuant to Section 4.3)
shall be delivered to a transferee if the certificate representing such PTI
Common Shares is presented to the Depositary, accompanied by all documents
required to evidence and effect such transfer. Until surrendered as contemplated
by this Section 4.1, each certificate which immediately prior to the Effective
Time represented outstanding PTI Common Shares shall be deemed at any time after
the Effective Time, but subject to Section 4.8, to represent only the right to
receive upon such surrender (a) the certificate representing Exchangeable Shares
as contemplated by this Section 4.1, (b) a cash payment in lieu of any
fractional Exchangeable Shares as contemplated by Section 4.3 and (c) any
dividends or distributions with a record date after the Effective Time
theretofore paid or payable with respect to Exchangeable Shares as contemplated
by Section 4.2.

4.2      DIVIDENDS AND OTHER DISTRIBUTIONS

         No dividends or other distributions declared or made after the
Effective Time with respect to the Exchangeable Shares with a record date after
the Effective Time shall be paid to the holder of any formerly outstanding PTI
Common Shares which were not exchanged pursuant to Section 2.1, and no cash
payment in lieu of fractional shares shall be paid to any such holder pursuant
to Section 4.3 (and no interest will be earned and payable thereon), unless and
until the

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certificate representing such PTI Common Shares shall be surrendered in
accordance with Section 4.1. Subject to applicable law and to Section 4.8, at
the time of such surrender of any such certificate (or, in the case of clause
(c) below, at the appropriate payment date), there shall be paid to the holder
of the Exchangeable Shares resulting from such exchange, in all cases without
interest, (a) the amount of any cash payable in lieu of a fractional
Exchangeable Share to which such holder is entitled pursuant to Section 4.3, (b)
the amount of dividends or other distributions with a record date after the
Effective Time theretofore paid with respect to such Exchangeable Shares, and
(c) the amount of dividends or other distributions with a record date after the
Effective Time but prior to surrender and a payment date subsequent to surrender
payable with respect to such Exchangeable Shares.

4.3      NO FRACTIONAL SHARES

         No certificates or scrip representing fractional Exchangeable Shares
shall be issued upon the surrender for exchange of certificates pursuant to
Section 4.1, and such fractional interests shall not entitle the owner thereof
to vote or to possess or exercise any rights as a security holder of PTI Holdco.
In lieu of any such fractional interests, each person entitled thereto will
receive an amount of cash (rounded to the nearest whole cent), without interest,
equal to the product of (a) such fractional interest, multiplied by (b) the OSI
IPO Price, such amount to be provided to the Depositary by PTI Holdco upon
request.

4.4      ISSUANCE OF CERTIFICATES REPRESENTING OSI COMMON STOCK

         At or promptly after the Effective Time, OSI shall deposit with the
Depositary, for the benefit of the U.S. PTI Shareholders who ultimately
exchanged their PTI Common Shares for shares of OSI Common Stock pursuant to
Section 2.1(c) of the Arrangement, certificates representing the shares of OSI
Common Stock issued pursuant to the Arrangement upon the exchange. Upon
surrender to the Depositary of a certificate which immediately prior to the
Effective Time represented outstanding PTI Common Shares, and such additional
documents and instruments as the Depositary may reasonably require, the holder
of such surrendered certificate shall be entitled to receive in exchange
therefor, and the Depositary shall forthwith deliver to such holder, a
certificate representing that number (rounded down to the nearest whole number)
of shares of OSI Common Stock which such holder has the right to receive
pursuant to Section 2.1(c) of the Arrangement (together with any dividends or
distributions with respect thereto pursuant to Section 4.5 and any cash in lieu
of fractional Exchangeable Shares pursuant to Section 4.6), and any certificate
so surrendered shall forthwith be canceled. Until surrendered as contemplated by
this Section 4.4, each certificate held by a U.S. PTI Shareholder which
immediately prior to the Effective Time represented outstanding PTI Common
Shares shall be deemed at any time after the Effective Time, but subject to
Section 4.8, to represent only the right to receive upon such surrender (a) the
certificate representing shares of OSI Common Stock as contemplated by this
Section 4.4, (b) a cash payment in lieu of any fractional share of OSI Common
Stock as contemplated by Section 4.6 and (c) any dividends or distributions with
a record date after the Effective Time theretofore paid or payable with respect
to OSI Common Stock as contemplated by Section 4.5.

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4.5      DIVIDENDS AND OTHER DISTRIBUTIONS

         No dividends or other distributions declared or made after the
Effective Time with respect to the OSI Common Stock with a record date after the
Effective Time shall be paid to the U.S. PTI Shareholder of any formerly
outstanding PTI Common Shares which were not exchanged pursuant to Section 2.1,
and no cash payment in lieu of fractional shares shall be paid to any such
holder pursuant to Section 4.6 (and no interest will be earned and payable
thereon), unless and until the certificate representing such PTI Common Shares
shall be surrendered in accordance with Section 4.4. Subject to applicable law
and to Section 4.8, at the time of such surrender of any such certificate (or,
in the case of clause (c) below, at the appropriate payment date), there shall
be paid to the holder of the shares of OSI Common Stock resulting from such
exchange, in all cases without interest, (a) the amount of any cash payable in
lieu of a fractional share of OSI Common Stock to which such holder is entitled
pursuant to Section 4.6, (b) the amount of dividends or other distributions with
a record date after the Effective Time theretofore paid with respect to such OSI
Common Stock, and (c) the amount of dividends or other distributions with a
record date after the Effective Time but prior to surrender and a payment date
subsequent to surrender payable with respect to such OSI Common Stock.

4.6      NO FRACTIONAL SHARES

         No certificates or scrip representing fractional shares of OSI Common
stock shall be issued upon the surrender for exchange of certificates pursuant
to Section 4.4, and such fractional interests shall not entitle the owner
thereof to vote or to possess or exercise any rights as a security holder of
OSI. In lieu of any such fractional interests, each U.S. PTI Shareholder
entitled thereto will receive an amount of cash (rounded to the nearest whole
cent), without interest, equal to the product of (a) such fractional interest,
multiplied by (b) the OSI IPO Price, such amount to be provided to the
Depositary by OSI upon request.

4.7      LOST CERTIFICATES

         If any certificate which immediately prior to the Effective Time
represented outstanding PTI Common Shares which were exchanged pursuant to
Section 2.1 has been lost, stolen or destroyed, upon the making of an affidavit
of that fact by the person claiming such certificate to be lost, stolen or
destroyed, the Depositary will issue in exchange for such lost, stolen or
destroyed certificate, certificates representing Exchangeable Shares (together
with any dividends or distributions with respect thereto pursuant to Section 4.2
and any cash in lieu of a fractional Exchangeable Share pursuant to Section 4.3)
or, in the case of a U.S. PTI Shareholder, certificates representing shares of
OSI Common Stock (together with any dividends or distributions with respect
thereto pursuant to Section 4.5 and any cash in lieu of a fractional share of
OSI Common Stock pursuant to Section 4.6) deliverable in respect thereof as
determined in accordance with Section 2.1. When seeking such certificate and
payment in exchange for any lost, stolen or destroyed certificate, the person to
whom certificates representing Exchangeable Shares are to be issued shall, as a
condition precedent to the issuance thereof, give a bond satisfactory to PTI
Holdco, OSI and the Transfer Agent, as the case may be, in such sum as PTI
Holdco or OSI may direct or otherwise indemnify PTI Holdco, OSI and the Transfer
Agent in a manner satisfactory to PTI Holdco, OSI and the Transfer Agent against
any

                                       12
<PAGE>   13
claim that may be made against PTI Holdco, OSI or the Transfer Agent with
respect to the certificate alleged to have been lost, stolen or destroyed.

4.8      EXTINGUISHMENT OF RIGHTS

         Any certificate which immediately prior to the Effective Time
represented outstanding PTI Common Shares which were exchanged pursuant to
Section 2.1 and has not been deposited, with all other instruments required by
Section 4.1, on or prior to the sixth anniversary of the Effective Date shall
cease to represent a claim or interest of any kind or nature as a Shareholder or
a holder of Exchangeable Shares or shares of OSI Common Stock. On such date, (a)
the Exchangeable Shares (and any dividends or distributions with respect thereto
and any cash pursuant to Section 4.3) to which the former registered holder of
the certificate referred to in the preceding sentence (other than a U.S. PTI
Shareholder) was ultimately entitled (or, if the Automatic Redemption Date has
occurred, the resulting shares of OSI Common Stock) shall be deemed to have been
surrendered to PTI Holdco (or, in the event that the Automatic Redemption Date
has occurred, OSI), together with all entitlements to dividends, distributions,
cash and interest thereon held for such former registered holder, for no
consideration and such shares shall thereupon be canceled and the name of the
former registered holder shall be removed from the register of holders of such
shares; (b) the shares of OSI Common Stock (and any dividends or distributions
with respect thereto and any cash pursuant to Section 4.6) to which the former
U.S. PTI Shareholder referred to in the preceding sentence was ultimately
entitled shall be deemed to have been surrendered to OSI, together with all
entitlements to dividends, distributions, cash and interest thereon held for
such former U.S. PTI Shareholder for no consideration and such shares shall
thereupon be cancelled and the name of the former U.S. PTI Shareholder shall be
removed from the register of holders of such shares.

                                    ARTICLE 5
                                    AMENDMENT

5.1      PLAN OF ARRANGEMENT AMENDMENT

         PTI reserves the right to amend, modify and/or supplement this Plan of
Arrangement from time to time at any time prior to the Effective Time provided
that any such amendment, modification or supplement must be contained in a
written document that is (a) agreed to by OSI and PTI Holdco, (b) filed with the
Court and, if made following the Meeting, approved by the Court and (c)
communicated to Shareholders and Optionholders in the manner required by the
Court (if so required).

         Any amendment, modification or supplement to this Plan of Arrangement
may be proposed by PTI at any time prior to or at the Meeting (provided that OSI
and PTI Holdco shall have consented thereto) with or without any other prior
notice or communication, and if so proposed and accepted by the persons voting
at the Meeting (other than as may be required under the Interim Order), shall
become part of this Plan of Arrangement for all purposes.

         Any amendment, modification or supplement to this Plan of Arrangement
which is approved by the Court following the Meeting shall be effective only (a)
if it is consented to by PTI, (b) if it is consented to by OSI and PTI Holdco
and (c) if required by the Court or applicable

                                       13
<PAGE>   14
law, it is consented to by the Shareholders, Optionholders or the holders of
Exchangeable Shares, as the case may be.

         Notwithstanding the foregoing, this Plan of Arrangement may be amended
in the manner contemplated by Section 11.9(d) of the Combination Agreement prior
to, at or following the Meeting and prior to or following the approval of this
Plan of Arrangement by the Court without notice to or the consent or approval of
the Shareholders, Optionholders, holders of Exchangeable Shares, or the Court.

                                       14
<PAGE>   15

                                 APPENDIX "A" TO
                               PLAN OF ARRANGEMENT

                                       15
<PAGE>   16
THIS AGREEMENT OF AMALGAMATION is made this 14th day of February, 2001

AMONG:

                  PTI GROUP INC., a corporation, amalgamated under the laws of
                  the Province of Alberta (herein called "PTI")

                                                               OF THE FIRST PART

                  - and -

                  892492 ALBERTA INC., a corporation incorporated under the laws
                  of the Province of Alberta (herein called "PTI Amalco")

                                                             OF THE SECOND PART.

RECITALS:

A.   As part of an arrangement involving PTI, PTI Amalco and PTI Holdco Inc.
     ("PTI Holdco") (the "Arrangement") under Section 186 of the Business
     Corporations Act (Alberta) being Chapter B-15 of the Statutes of Alberta,
     1981 (the "Act") pursuant to a Plan of Arrangement (the "Plan") which was
     approved by an order of the Court of Queen's Bench of Alberta on the 8th
     day of September, 2000, PTI and PTI Amalco (herein sometimes referred to
     jointly as the "Amalgamating Corporations" and either one of which may
     hereinafter be referred to as an "Amalgamating Corporation"), each being a
     valid and subsisting corporation in good standing under the Act, have
     agreed to amalgamate upon the terms and conditions and in accordance with
     the mode of carrying the amalgamation into effect, as set out in the Plan
     and in this Agreement;

B.   PTI was amalgamated under the laws of Alberta the 8th day of January, 1997;

C.   PTI is authorized to issue an unlimited number of common shares (the "PTI
     Common Shares"), of which 7,798,900 PTI Common Shares are presently issued
     and outstanding as fully paid and non-assessable shares in the capital of
     PTI;

D.   PTI Amalco was incorporated under the laws of the Province of Alberta on
     the 11th day of August, 2000 and is a wholly owned subsidiary of PTI
     Holdco;

E.   PTI Amalco is authorized to issue an unlimited number of Class A Common
     Shares of which 100 Class A Common Shares are presently issued and
     outstanding as fully paid and non-assessable shares in the capital of PTI
     Amalco;

F.   Each of the Amalgamating Corporations has made full disclosure to the other
     of all their respective assets and liabilities.

NOW THEREFORE THIS AGREEMENT WITNESSETH that for and in consideration of the
mutual promises herein contained and other good and valuable consideration, the
parties agree each with the other as follows:

                                       16
<PAGE>   17
1.   The Amalgamating Corporations shall amalgamate and continue as one
     corporation (herein sometimes referred to as the "Amalgamated Corporation")
     under the provisions of the Act upon the terms and conditions, and in
     accordance with the mode of carrying the amalgamation into effect, as
     hereinafter set out;

2.   The name of the Amalgamated Corporation shall be "PTI Group Inc.";

3.   The Registered Office of the Amalgamated Corporation shall be 2900, 10180 -
     101 Street, Edmonton, Alberta, T5J 3V5;

4.   The Amalgamated Corporation shall be authorized to issue an unlimited
     number of Class A Common Shares, an unlimited number of Class B Common
     Shares, an unlimited number of Class C Common Shares and an unlimited
     number of Class D Common Shares of which 4,722,490 Class A Common Shares,
     1,500,000 Class B Common Shares, 904,200 Class C Common Shares and 634,265
     Class D Common Shares shall be issued and outstanding on the basis
     hereinafter set out;

5.   There shall be no restrictions on the business the Amalgamated Corporation
     may carry on or on the powers of the Amalgamated Corporation may exercise;

6.   The right to transfer shares of the Amalgamated Corporation shall be
     restricted in that no shares shall be transferred without the approval of
     the Board of Directors;

7.   The number of shareholders of the Amalgamated Corporation exclusive of
     persons who are in its employment and exclusive of persons who, having been
     formerly in the employment of the Amalgamated Corporation, were, while in
     that employment, and have continued after the termination of that
     employment to be shareholders of the Amalgamated Corporation, is limited to
     not more than fifty, two or more persons who are the joint registered
     owners of one or more shares being counted as one shareholder;

8.   Any invitation to the public to subscribe for any securities of the
     Amalgamated Corporation shall be prohibited;

9.   Upon the amalgamation of the Amalgamating Corporations and their
     continuance as one corporation becoming effective:

     (a)  the Amalgamating Corporations' property shall continue to be the
          property of the Amalgamated Corporation;

     (b)  the Amalgamated Corporation shall continue to be liable for the
          Amalgamating Corporations' obligations;

     (c)  an existing cause of action, claim or liability to the prosecution
          relating to one or both of the Amalgamating Corporations shall be
          unaffected;

     (d)  a civil, criminal or administrative action or proceeding pending by or
          against one or both of the Amalgamating Corporations may be continued
          to be prosecuted by or against the Amalgamated Corporation;

                                       17
<PAGE>   18
     (e)  a conviction against, or ruling, order or judgment in favour of or
          against, one or both of the Amalgamating Corporations may be enforced
          by or against the Amalgamated Corporation; and

     (f)  the Amalgamated Corporation's articles of amalgamation shall be deemed
          to be its articles of incorporation and the Amalgamated Corporation's
          certificate of amalgamation shall be deemed to be its certificate of
          incorporation;

10.  The names, occupations and places of residence of the first directors and
     officers of the Amalgamated Corporation shall be:

<TABLE>
<CAPTION>
              NAME AND OCCUPATION                        ADDRESS                                OFFICE HELD
         ------------------------------      ---------------------------------         -------------------------------
<S>                                          <C>                                       <C>
         Cindy B. Taylor                     333 Clay Street, Suite 3460               Director
                                             Houston, TX 77002

         Sandy Slator                        3050 Parsons Road N.W.                    Director, President and
                                             Edmonton, AB T6N 1B1                      Chief Executive Officer
</TABLE>

11.  The foregoing first directors shall hold office until the first meeting of
     shareholders of the Amalgamated Corporation, or until their successors are
     elected or appointed. Subject to the provisions of the Act and any
     unanimous shareholder agreement, the Board of Directors shall manage the
     business and affairs of the Amalgamated Corporation;

12.  The Articles of Amalgamation of the Amalgamated Corporation shall be those
     attached hereto as Schedule "A";

13.  Until repealed, amended, altered or added to, so far as applicable, the
     by-laws of PTI at the time of the Amalgamation becomes effective shall be
     the by-laws of the Amalgamated Corporation, a copy of which is attached
     hereto as Schedule "B";

14.  The manner of converting the authorized and issued capital of each of the
     Amalgamating Corporations into that of the Amalgamated Corporation shall be
     as follows:

     (a)  the Amalgamated Corporation shall issue to PTI Holdco one Class A
          Common Share for each of its PTI Common Shares;

     (b)  the Amalgamated Corporation shall issue to PTI Holdco one Class A
          Common Share for each of its common shares in the capital of PTI
          Amalco;

     (c)  the Amalgamated Corporation shall issue to 812375 Alberta Ltd.
          ("812375") one Class B Common Share for each of its PTI Common Shares;

     (d)  the Amalgamated Corporation shall issue to R.J.M. Equities Inc.
          ("RJM") one Class C Common Share for each of its PTI Common Shares;

     (e)  the Amalgamated Corporation shall issue to each of the holders of PTI
          Common Shares, other than 812375, RJM and PTI Holdco and holders of
          PTI Common Shares in respect of which rights of dissent have been
          exercised pursuant to

                                       18
<PAGE>   19
          Article 3 of the Plan and which have been cancelled pursuant to
          Section 2.1(a) thereof, one Class D Common Share for each of their PTI
          Common Shares;

15.  The Arrangement has been considered and ratified by the holders of the
     shares of the Amalgamating Corporations and of PTI at special meetings
     called for this purpose or by resolutions in writing signed by all
     shareholders entitled to vote on that resolution, as the case may be; and

16.  To the extent that there is any conflict or inconsistency between the terms
     of this Agreement and the Plan the terms of the Plan shall prevail and the
     terms of this Agreement shall be amended accordingly.

     IN WITNESS WHEREOF the Parties hereto have executed this Agreement as of
the day and year first written above.

                                             PTI GROUP INC.

                                             Per: /s/ SANDY SLATOR
                                                 -------------------------------

                                             892492 ALBERTA INC.

                                             Per: /s/ SANDY SLATOR
                                                 -------------------------------

                                       19
<PAGE>   20
--------------------------------------------------------------------------------
                        BUSINESS CORPORATIONS ACT                         FORM 9
                                  (SECTION 179)

ALBERTA

     MUNICIPAL AFFAIRS
            Registries                                  ARTICLES OF AMALGAMATION
--------------------------------------------------------------------------------
1.   NAME OF CORPORATION:                      2.   CORPORATE ACCESS NUMBER:

     PTI GROUP INC.
--------------------------------------------------------------------------------
3.   THE CLASSES, AND ANY MAXIMUM NUMBER OF SHARES THAT THE CORPORATION IS
     AUTHORIZED TO ISSUE:

     See attached "Share Capital".
--------------------------------------------------------------------------------
4.   RESTRICTIONS ON SHARE TRANSFERS (IF ANY):

     The transfer of shares is restricted; no share of the Corporation may be
     transferred without the approval of the Board of Directors.
--------------------------------------------------------------------------------
5.   NUMBER, OR MINIMUM AND MAXIMUM NUMBER, OF DIRECTORS THAT THE CORPORATION
     MAY HAVE:

     Minimum:  One (1);  Maximum:  Fifteen (15).
--------------------------------------------------------------------------------
6.   RESTRICTIONS IF ANY ON BUSINESS THE CORPORATION MAY CARRY ON:

     None.
--------------------------------------------------------------------------------
7.   OTHER PROVISIONS IF ANY:

     See attached "Other Rules and Provisions".
--------------------------------------------------------------------------------
8.   NAME OF AMALGAMATING CORPORATIONS.              CORPORATE ACCESS NO.
--------------------------------------------------------------------------------

     892492 ALBERTA INC.                                  208924928

     PTI GROUP INC.                                       207207770
--------------------------------------------------------------------------------
9.        DATE                     SIGNATURE                   TITLE

       FEBRUARY 14, 2001       /s/ SANDY SLATOR            President and
                             ----------------------        Chief Executive
                              R.A. (Sandy) Slator          Officer
--------------------------------------------------------------------------------
FOR DEPARTMENTAL USE ONLY                                      FILED
--------------------------------------------------------------------------------

                                       20
<PAGE>   21
                                  SHARE CAPITAL

A.   The Corporation is authorized to issue an unlimited number of Class A
     Common Shares, Class B Common Shares, Class C Common Shares and Class D
     Common Shares having attached thereto the following rights, privileges,
     restrictions and conditions:

I.   CLASS A COMMON SHARES

     1.1  Dividends

          (i)  Subject to the rights attaching to any other classes of shares
               ranking prior to the Class A Common Shares, holders of Class A
               Common Shares have a right to receive dividends when declared by
               the Board of Directors out of property of the Corporation legally
               available therefor.

     1.2  Liquidation

          (i)  Subject to the rights attaching to any other classes of shares
               ranking prior to the Class A Common Shares, the holders of Class
               A Common Shares shall, upon any liquidation, dissolution or
               winding-up of the Corporation, whether voluntary or involuntary,
               or other distribution of the assets of the Corporation for the
               purpose of winding-up its affairs, be entitled to receive the
               remaining property and assets of the Corporation pro rata with
               the Class B Common, Class C Common and Class D Common Shares.

     1.3  Voting

          (i)  The holders of the Class A Common Shares shall be entitled to
               receive notice of and to attend all meetings of shareholders
               (other than separate meetings of other classes or series of
               shares), and shall be entitled to one vote for each Class A
               Common Share held.

II.  CLASS B COMMON SHARES

     1.1  Dividends

          (i)  Subject to the rights attaching to any other classes of shares
               ranking prior to the Class B Common Shares,

                                       21
<PAGE>   22
               holders of Class B Common Shares have a right to receive
               dividends when declared by the Board of Directors out of property
               of the Corporation legally available therefor.

     1.2  Liquidation

          (i)  Subject to the rights attaching to any other classes of shares
               ranking prior to the Class B Common Shares, the holders of Class
               B Common Shares shall, upon any liquidation, dissolution or
               winding-up of the Corporation, whether voluntary or involuntary,
               or other distribution of the assets of the Corporation for the
               purpose of winding-up its affairs, be entitled to receive the
               remaining property and assets of the Corporation pro rata with
               the Class A Common, Class C Common and Class D Common Shares.

     1.3  Voting

          (i)  The holders of the Class B Common Shares shall be entitled to
               receive notice of and to attend all meetings of shareholders
               (other than separate meetings of other classes or series of
               shares), and shall be entitled to one vote for each Class B
               Common Share held.

III.     CLASS C COMMON SHARES

     1.1  Dividends

          (i)  Subject to the rights attaching to any other classes of shares
               ranking prior to the Class C Common Shares, holders of Class C
               Common Shares have a right to receive dividends when declared by
               the Board of Directors out of property of the Corporation legally
               available therefor.

     1.2  Liquidation

          (i)  Subject to the rights attaching to any other classes of shares
               ranking prior to the Class C Common Shares, the holders of Class
               C Common Shares shall, upon any liquidation, dissolution or
               winding-up of the Corporation, whether voluntary or involuntary,
               or other distribution of the assets of the Corporation for the
               purpose of winding-up its affairs, be entitled to receive

                                       22
<PAGE>   23
               the remaining property and assets of the Corporation pro rata
               with the Class A Common, Class B Common and Class D Common
               Shares.

     1.3  Voting

          (i)  The holders of the Class C Common Shares shall be entitled to
               receive notice of and to attend all meetings of shareholders
               (other than separate meetings of other classes or series of
               shares), and shall be entitled to one vote for each Class C
               Common Share held.

IV. CLASS D COMMON SHARES

     1.1  Dividends

          (i)  Subject to the rights attaching to any other classes of shares
               ranking prior to the Class D Common Shares, holders of Class D
               Common Shares have a right to receive dividends when declared by
               the Board of Directors out of property of the Corporation legally
               available therefor.

     1.2  Liquidation

          (i)  Subject to the rights attaching to any other classes of shares
               ranking prior to the Class D Common Shares, the holders of Class
               D Common Shares shall, upon any liquidation, dissolution or
               winding-up of the Corporation, whether voluntary or involuntary,
               or other distribution of the assets of the Corporation for the
               purpose of winding-up its affairs, be entitled to receive the
               remaining property and assets of the Corporation pro rata with
               the Class A Common, Class B Common and Class C Common Shares.

     1.3  Voting

          (i)  The holders of the Class D Common Shares shall be entitled to
               receive notice of and to attend all meetings of shareholders
               (other than separate meetings of other classes or series of
               shares), and shall be entitled to one vote for each Class D
               Common Share held.

                                       23
<PAGE>   24
                           OTHER RULES AND PROVISIONS

1.   The number of shareholders of the Corporation, exclusive of:

     (a)  persons who are in its employment and are shareholders of the
          Corporation; and

     (b)  persons who, having been formerly in the employment of the
          Corporation, were while in that employment, shareholders of the
          Corporation and have continued to be shareholders of the Corporation
          after termination of that employment;

     is limited to fifty persons, two or more persons who are joint registered
     owners of one or more shares being counted as one shareholder.

2.   Any invitation to the public to subscribe for the securities of the
     Corporation is prohibited.

3.   There is a lien on shares registered in the name of a shareholder for a
     debt to the Corporation.

4.   Subject to the provisions of the Business Corporations Act (Alberta), the
     directors may, between annual general meetings, appoint one or more
     additional directors to serve until the next annual general meeting, but
     the number of additional directors shall not at any time exceed one-third
     (1/3) of the number of directors who held office at the expiration of the
     last annual meeting of the Corporation.

                                       24
<PAGE>   25
                                  SCHEDULE "B"

                                 BY-LAW NUMBER 1

                           A BY-LAW RELATING GENERALLY
                            TO THE TRANSACTION OF THE
                             BUSINESS AND AFFAIRS OF
                                 PTI GROUP INC.

                                       25
<PAGE>   26
                                     PART I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1       DEFINITIONS

In the By-laws, unless the context otherwise requires:

(a)  "Act" means the Business Corporations Act (Alberta), .as amended, and all
     regulations under the Act in force from time to time;

(b)  "appoint" includes elect and vice versa;

(c)  "Articles" includes the original or restated articles of incorporation,
     articles of amendment, articles of amalgamation, articles of continuance,
     articles of reorganization, articles of arrangement, articles of
     dissolution and articles of revival of the Corporation, and any amendment
     to any of them;

(d)  "Board" means the board of directors of the Corporation;

(e)  "By-laws" means this by-law and all other by-laws of the Corporation from
     time to time in force;

(f)  "Corporation" means PTI Group Inc.;

(g)  "Director" means an individual who is duly elected or appointed as a
     director of the Corporation;

(h)  "Indemnified Party" has the meaning set out in section 5.2 for purposes of
     that section;

(i)  "Officer" means any officer of the Corporation appointed by the Board; and

(j)  "Shareholder" means a shareholder of the Corporation.

SECTION 1.2       INTERPRETATION

In the By-laws, except if defined in section 1.1 or the context does not permit:

(a)  words and expressions defined in the Act have the meaning given to them in
     the Act;

(b)  words importing the singular include the plural and vice versa;

(c)  words importing gender include masculine, feminine and neuter genders; and

(d)  words importing persons include bodies corporate.

SECTION 1.3       HEADINGS

The headings used in the By-laws are inserted for convenience of reference only.
The headings are not to be considered or taken into account in construing the
terms of the By-laws nor are they to be deemed in any way to clarify, modify or
explain the effect of any term of the By-laws.

                                       26
<PAGE>   27
SECTION 1.4       BY-LAWS SUBJECT TO THE ACT, ETC.

The By-laws are subject to the Act, any unanimous shareholder agreement relating
to the Corporation and the Articles, in that order.

                                     PART II
                                  SHAREHOLDERS

SECTION 2.1       PLACE AND TIME OF MEETINGS

Meetings of Shareholders may be held at the place within Alberta and at the time
the Board determines. A meeting of Shareholders may be held outside Alberta if
all the Shareholders entitled to vote at that meeting agree to holding the
meeting outside Alberta. A Shareholder who attends a meeting of Shareholders
held outside Alberta is deemed to have agreed to holding the meeting outside
Alberta, except when the Shareholder attends the meeting for the express purpose
of objecting to the transaction of any business on the grounds that the meeting
is not lawfully held.

SECTION 2.2       CALLING OF MEETINGS

The Board must call an annual meeting of Shareholders not later than 15 months
after holding the last preceding annual meeting and may at any time call a
special meeting of Shareholders to be held at the place within Alberta and at
the time the Board determines.

SECTION 2.3       NOTICE OF MEETINGS

Notice of the time and place of a meeting of Shareholders must be sent not less
than 21 days and not more than 50 days before the meeting:

(a)  to each Shareholder entitled to vote at the meeting;

(b)  to each Director; and

(c)  to the auditor of the Corporation.

SECTION 2.4       NOTICE TO JOINT SHAREHOLDERS

If two or more persons are registered as joint holders of any share, notice to
one of those persons is sufficient notice to all of them. A notice must be
addressed to all those joint holders and the address to be used by the
Corporation must be the address appearing in the securities register of the
Corporation in respect of that joint holding or the first address appearing if
there is more than one address.

SECTION 2.5       FAILURE TO GIVE NOTICE

The accidental failure to give notice of a meeting of Shareholders to any person
entitled to a notice or any error in a notice not affecting its substance does
not invalidate any action taken at the meeting to which the notice relates.

SECTION 2.6       WAIVER OF NOTICE

A Shareholder or any other person entitled to attend a meeting of Shareholders
may waive, in any manner, notice of a meeting of Shareholders. Attendance of a
Shareholder or other person at a meeting of

                                       27
<PAGE>   28
Shareholders is a waiver of notice of the meeting, except when the Shareholder
or other person attends the meeting for the express purpose of objecting to the
transaction of any business on the grounds that the meeting is not lawfully
called.

SECTION 2.7       NOTICE OF ADJOURNED MEETINGS

With the consent of the Shareholders present at a meeting of Shareholders, the
chairperson may adjourn that meeting to another fixed time and place. If a
meeting of Shareholders is adjourned by one or more adjournments for an
aggregate of less than 30 days, it is not necessary to give notice of the
adjourned meeting, other than by verbal announcement at the time of the
adjournment. If a meeting of Shareholders is adjourned by one or more
adjournments for an aggregate of 30 days or more, notice of the adjourned
meeting must be given as for the original meeting.

SECTION 2.8       PERSONS ENTITLED TO BE PRESENT

The only persons entitled to be present at a meeting of Shareholders are:

(a)  the Shareholders entitled to vote at the meeting;

(b)  any individual authorized by a resolution of the directors or governing
     body of a body corporate or association which is a Shareholder entitled to
     vote at the meeting;

(c)  the Directors and Officers;

(d)  the auditor of the Corporation; and

(e)  any others who, although not entitled to vote, are entitled or required
     under any provision of the Act, any unanimous shareholder agreement, the
     Articles or the By-laws to be present at the meeting.

Any other person may be admitted only on the invitation of the chairperson of
the meeting or with the consent of the meeting.

SECTION 2.9       MEETING BY TELEPHONE

Any person described in paragraphs (a) through (e) of section 2.8 may
participate in a meeting of the Shareholders by means of telephone or other
communication facilities that permit all persons participating in the meeting to
hear each other. A Shareholder participating in a meeting by means of telephone
or other communication facilities is deemed to be present at the meeting.

SECTION 2.10      QUORUM

A quorum of Shareholders is present at a meeting of Shareholders if the holders
of a majority of the shares entitled to vote at the meeting are present in
person or represented by proxy.

SECTION 2.11      LOSS OF QUORUM

If a quorum is present at the opening of a meeting of Shareholders, the
Shareholders present may proceed with the business of the meeting, even if a
quorum is not present throughout the meeting.

                                       28
<PAGE>   29
SECTION 2.12      CHAIRPERSON

The chairperson of any meeting of Shareholders will be the first mentioned of
the following Officers (if appointed) present at the meeting: Chairman of the
Board, President, Senior Vice-President or any other Vice-President. If none of
the Chairman of the Board, President or Senior Vice-President is present at the
meeting, and if more than one Vice-President is present, the first
Vice-President to arrive will be chairperson of the meeting. If none of the
foregoing Officers is present, the Shareholders present and entitled to vote at
the meeting may choose a chairperson from among those individuals present.

SECTION 2.13      PROCEDURE AT MEETINGS

The chairperson of any meeting of Shareholders will conduct the proceedings at
the meeting in all respects. The chairperson's decision on any matter or thing
relating to procedure, including, without limiting the generality of the
foregoing, any question regarding the validity of any instrument of proxy, is
conclusive and binding upon the Shareholders.

SECTION 2.14      VOTING

Voting at a meeting of Shareholders must be by a show of hands of those present
in person or represented by proxy or by a verbal poll of those present by
telephone or other communication facilities. If a ballot is required by the
chairperson of the meeting or is demanded by a Shareholder or proxy entitled to
vote at the meeting, either before or on. the declaration of the result of a
vote by a show of hands or verbal poll, voting must be by ballot. A demand for a
ballot may be withdrawn at any time before the ballot is taken. If a ballot is
taken on a question, a prior vote on that question by show of hands or verbal
poll has no effect. At every meeting a Shareholder present in person or
represented by proxy or present by telephone or other communication facilities
and entitled to vote has one vote on a show of hands and, subject to the
Articles, one vote on a ballot for each share held.

SECTION 2.15      DECISION ON QUESTIONS

At every meeting of Shareholders all questions proposed for the consideration of
Shareholders must be decided by the majority of votes, unless otherwise required
by the Act or the Articles. In the case of an equality of votes, the chairperson
does not, either on a show of hands or verbal poll or on a ballot, have a
casting vote in addition to the vote or votes to which the chairperson may be
entitled as a Shareholder or proxy.

SECTION 2.16      RESOLUTION IN LIEU OF MEETING

A resolution in writing signed by all the Shareholders entitled to vote on that
resolution is as valid as if it had been passed at a meeting of the
Shareholders. A resolution in writing may be signed in one or more counterparts,
all of which together constitute the same resolution. A facsimile of a signed
counterpart of a resolution in writing is as valid as an originally signed
counterpart.

                                    PART III
                                    DIRECTORS

SECTION 3.1       NUMBER OF DIRECTORS

The Board consists of that number of Directors as the Shareholders may determine
from time to time by ordinary resolution, but there must not be less than the
minimum and not more than the maximum number of Directors permitted by the
Articles at any one time.

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<PAGE>   30
SECTION 3.2       ELECTION AND TERM OF OFFICE

At each annual meeting of Shareholders at which an election of Directors is
required, the Shareholders, by ordinary resolution, must elect Directors to hold
office for a term expiring not later than the close of the next annual meeting
of Shareholders following the election.

SECTION 3.3       CALLING OF MEETINGS

The Chairman of the Board, if any, the President or any Director may call a
meeting of Directors. A meeting of Directors may be held at any place within the
municipality in which the registered office of the Corporation is located or at
any other place determined by the Board.

SECTION 3.4       NOTICE OF MEETINGS

Notice in writing of the time and place of a meeting of Directors must be sent
to each Director not less than 48 hours before the time fixed for that meeting.

SECTION 3.5       FAILURE TO GIVE NOTICE

The accidental failure to give notice of a meeting of Directors to any Director
entitled to a notice or any error in a notice not affecting its substance does
not invalidate any action taken at the meeting to which the notice relates.

SECTION 3.6       WAIVER OF NOTICE

A Director may waive, in any manner, notice of a meeting of Directors.
Attendance of a Director at a meeting of Directors is a waiver of notice of the
meeting, except when the Director attends the meeting for the express purpose of
objecting to the transaction of any business on the grounds that the meeting is
not lawfully called.

SECTION 3.7       MEETINGS WITHOUT NOTICE

No notice of meeting need be given:

(a)  to a newly elected Board following its election at an annual or special
     meeting of Shareholders; or

(b)  for a meeting of Directors at which a Director is appointed to fill a
     vacancy in the Board,

if a quorum is present.

SECTION 3.8       MEETING BY TELEPHONE

If all the Directors consent, a Director may participate in a meeting of
Directors or of a committee of Directors by means of telephone or other
communication facilities that permit all persons participating in the meeting to
hear each other. A Director participating in a meeting by means of telephone or
other communication facilities is deemed to be present at the meeting.

SECTION 3.9       QUORUM

From time to time the Directors may fix the quorum for meetings of Directors or
of a committee of Directors, but unless so fixed, a majority of the Directors or
of a committee of Directors constitutes a

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<PAGE>   31
quorum and, to the extent required by the Act, no business may be transacted
unless at least one-half of the Directors present are resident Canadians.

SECTION 3.10      CHAIRPERSON OF MEETINGS

The chairperson of any meeting of Directors will be the first mentioned of the
following Officers (if appointed) who is a Director and is present at the
meeting: Chairman of the Board, President, Senior Vice-President or any other
Vice-President. If none of the Chairman of the Board, President or Senior
Vice-President is present at the meeting, and if more than one Vice-President is
present, the first Vice-President to arrive will be chairperson of the meeting.
If none of the foregoing Officers is present, the Directors present may choose
one of their number to be chairperson of the meeting.

SECTION 3.11      DECISION ON QUESTIONS

At every meeting of Directors all questions proposed for the consideration of
the Directors must be decided by the majority of votes. In the case of an
equality of votes, the chairperson does not have a casting vote.

SECTION 3.12      RESOLUTION IN LIEU OF MEETING

A resolution in writing signed by all the Directors entitled to vote on that
resolution at a meeting of Directors or committee of Directors is as valid as if
it had been passed at a meeting of Directors or committee of Directors. A
resolution in writing may be signed in one or more counterparts, all of which
together constitute the same resolution. A facsimile of a signed counterpart of
a resolution in writing is as valid as an originally signed counterpart.

SECTION 3.13      BORROWING POWER

Without authorization of the Shareholders, the Directors may authorize the
Corporation to:

(a)  borrow money on the credit of the Corporation;

(b)  issue, reissue, sell or pledge debt obligations of the Corporation;

(c)  subject to section 42 of the Act, give a guarantee on behalf of the
     Corporation to secure performance of an obligation of any person; and

(d)  mortgage, hypothecate, pledge or otherwise create a security interest in
     all or any property of the Corporation, owned or subsequently acquired, to
     secure any obligation of the Corporation.

The Directors, by resolution, may delegate to a Director, a committee of
Directors or an Officer all or any of the powers conferred on them by this
section.

SECTION 3.14      COMPENSATION

The Corporation may pay to the Directors the remuneration fixed by the Board and
may reimburse the Directors in respect of transportation and other expenses
actually incurred in attending meetings of the Directors or in otherwise
performing the duties of their office.

                                       31
<PAGE>   32
                                     PART IV
                                    OFFICERS

SECTION 4.1       APPOINTMENT OF OFFICERS

The Directors may designate offices of the Corporation and appoint individuals
to those offices as they consider advisable. No Officer need be a Director. The
same individual may hold two or more offices of the Corporation.

SECTION 4.2       TERM OF OFFICE

All Officers are subject to removal by the Directors, with or without cause. An
Officer may resign at any time by giving notice to the Board.

SECTION 4.3       DUTIES OF OFFICERS

Subject to any limitations imposed by the Act, any unanimous shareholder
agreement or the Articles, an Officer has all the powers and authority and must
perform all the duties usually incident to, or specified by the By-laws or the
Board for, the office held.

                                     PART V
                          LIABILITY AND INDEMNIFICATION

SECTION 5.1       LIMITATION OF LIABILITY

Every Director and Officer in exercising the powers and discharging the duties
of office must act honestly and in good faith with a view to the best interests
of the Corporation and must exercise the care, diligence and skill that a
reasonably prudent person would exercise in comparable circumstances. No
Director or Officer is liable for:

(a)  the acts, omissions or defaults of any other Director or Officer or an
     employee of the Corporation,

(b)  any loss, damage or expense incurred by the Corporation through the
     insufficiency or deficiency of title to any property acquired for or on
     behalf of the Corporation,

(c)  the insufficiency or deficiency of any security in or upon which any of the
     money of the Corporation is invested,

(d)  any loss or damage arising from the bankruptcy, insolvency or tortious or
     criminal acts of any person with whom any of the Corporation's money is, or
     securities or other property are, deposited,

(e)  any loss occasioned by any error of judgment or oversight, or

(f)  any other loss, damage or misfortune which occurs in the execution of the
     duties of office or in relation to it,

unless occasioned by the wilful neglect or default of that Director or Officer.
Nothing in this By-law relieves any Director or Officer of any liability imposed
by the Act or otherwise by law.

                                       32
<PAGE>   33
SECTION 5.2       INDEMNITY

Subject to the Act, the Corporation indemnifies a Director or Officer, a former
Director or Officer and a person who acts or acted at the Corporation's request
as a director or officer of a body corporate of which the Corporation is or was
a shareholder or creditor (the "Indemnified Parties") and the heirs and legal
representatives of each of them, against all costs, charges and expenses, which
includes, without limiting the generality of the foregoing, the fees, charges
and disbursements of legal counsel on an
as-between-a-solicitor-and-his-own-client basis and an amount paid to settle an
action or satisfy a judgment, reasonably incurred by an Indemnified Party, or
the heirs or legal representatives of an Indemnified Party, or both, in respect
of any action or proceeding to which any of them is made a party by reason of an
Indemnified Party being or having been a director or officer of the Corporation
or that body corporate, if:

(a)  the Indemnified Party acted honestly and in good faith with a view to the
     best interests of the Corporation; and

(b)  in the case of a criminal or administrative action or proceeding that is
     enforced by a monetary penalty, the Indemnified Party had reasonable
     grounds for believing that the Indemnified Party's conduct was lawful.

The Corporation indemnifies an Indemnified Party and the heirs and legal
representatives of an Indemnified Party in any other circumstances that the Act
permits or requires. Nothing in this By-law limits the right of a person
entitled to indemnity to claim indemnity apart from the provisions of this
By-law.

SECTION 5.3       INSURANCE

The Corporation may purchase and maintain insurance for the benefit of a person
referred to in section 5.2 against the liabilities and in the amounts the Act
permits and the Board approves.

                                       33
<PAGE>   34

                                 APPENDIX "B" TO
                               PLAN OF ARRANGEMENT

                                       34
<PAGE>   35
                       SHARE CAPITAL AND OTHER PROVISIONS
                              TO BE INCLUDED IN THE
                RESTATED ARTICLES OF INCORPORATION OF PTI HOLDCO

                                A. SHARE CAPITAL

                    PROVISIONS ATTACHING TO THE COMMON SHARES

         The common shares ("Common Shares") in the capital of the Corporation
shall have attached thereto the following rights, privileges, restrictions and
conditions:

DIVIDENDS

         Subject to the prior rights of the Exchangeable Shares and any other
shares ranking prior to the Common Shares, holders of Common Shares have a right
to receive dividends when declared by the Board of Directors out of property of
the Corporation legally available therefor.

LIQUIDATION

         Subject to the prior rights of the Exchangeable Shares and any other
shares ranking prior to the Common Shares, the holders of Common Shares shall,
upon any liquidation, dissolution or winding-up of the Corporation, whether
voluntary or involuntary, or other distribution of the assets of the Corporation
for the purpose of winding-up its affairs, be entitled to receive the remaining
property and assets of the Corporation.

VOTING

         The holders of the Common Shares shall be entitled to receive notice of
and to attend all meetings of shareholders (other than separate meetings of
other classes or series of shares), and shall be entitled to one vote for each
Common Share held.

                 PROVISIONS ATTACHING TO THE EXCHANGEABLE SHARES

         The Exchangeable Shares in the capital of the Corporation shall have
the following rights, privileges, restrictions and conditions:

                                   ARTICLE 1
                                 INTERPRETATION

1.1      For the purposes of these rights, privileges, restrictions and
conditions:

         "Act" means the Business Corporations Act (Alberta), as amended,
consolidated or reenacted from time to time.

         "Aggregate Equivalent Vote Amount" means, with respect to any matter,
proposition or question on which holders of OSI Common Stock are entitled to
vote, consent or otherwise act, the product of (i) the number of Exchangeable
Shares then issued and outstanding and held by

                                       35
<PAGE>   36
holders (other than OSI and its Subsidiaries) multiplied by (ii) the number of
votes to which a holder of one share of OSI Common Stock is entitled with
respect to such matter, proposition or question.

         "Automatic Redemption Date" means the date for the automatic redemption
by the Corporation of Exchangeable Shares pursuant to Article 7 of these share
provisions, which date shall be the first to occur of (a) the date, if any,
selected pursuant to this clause (a) by the Board of Directors of the
Corporation, such date to be no earlier than the fifth anniversary of the
Effective Date, (b) the date selected by the Board of Directors of the
Corporation (such date to be no earlier than the third or fourth anniversary of
the Effective Date of the Arrangement) at a time when less than 10% or 20%,
respectively, of the number of Exchangeable Shares issuable on the Effective
Date (other than Exchangeable Shares held by OSI and its Subsidiaries, and as
such number of shares may be adjusted as deemed appropriate by the Board of
Directors to give effect to any subdivision or consolidation of or stock
dividend on the Exchangeable Shares, any issuance or distribution of rights to
acquire Exchangeable Shares or securities exchangeable for or convertible into
or carrying rights to acquire Exchangeable Shares, any issue or distribution of
other securities or rights or evidences of indebtedness or assets, or any other
capital reorganization or other transaction involving or affecting the
Exchangeable Shares), are outstanding, (c) the date the Board of Directors of
the Corporation selects if an OSI Control Transaction occurs and the Board of
Directors determines, in good faith and in its sole discretion, that it is not
reasonable to substantially replicate the terms and conditions of the
Exchangeable Shares in connection with such OSI Control Transaction and that the
redemption of all but not less than all of the outstanding Exchangeable Shares
is commercially or legally necessary to enable the completion of such OSI
Control Transaction in accordance with its terms, (d) the Business Day following
the day on which the holders of Exchangeable Shares fail to pass, at any meeting
or vote, a resolution regarding any matter on which the holders of Exchangeable
Shares are entitled to vote as shareholders of the Corporation and which has
been proposed by the Board of Directors of the Corporation, provided that this
clause (d) shall not apply to any resolution to amend the Exchangeable Share
Provisions, the Support Agreement or the Voting and Exchange Trust Agreement, or
(e) the Business Day following the day on which the holders of Exchangeable
Shares fail to take the necessary action at a meeting or other vote of holders
of Exchangeable Shares, if and to the extent such action is required, to approve
or disapprove, as applicable, any change to, or in the rights of the holders of,
Exchangeable Shares, if the approval or disapproval, as applicable, of such
change would be required to maintain the economic and legal equivalence of the
Exchangeable Shares and the OSI Common Stock.

         "Board of Directors" means the board of directors of the Corporation
and any committee thereof acting within its authority.

         "Business Day" means any day other than a Saturday, a Sunday or a day
when banks are not open for business in either or both of Houston, Texas and
Edmonton, Alberta.

         "Canadian Dollar Equivalent" means in respect of an amount expressed in
a foreign currency (the "Foreign Currency Amount") at any date the product
obtained by multiplying:

         (a)  the Foreign Currency Amount by,

                                       36
<PAGE>   37
         (b)  the noon spot exchange rate on such date for such foreign currency
              expressed in Canadian dollars as reported by the Bank of Canada
              or, in the event such spot exchange rate is not available, such
              spot exchange rate on such date for such foreign currency
              expressed in Canadian dollars as may be deemed by the Board of
              Directors to be appropriate for such purpose.

         "Combination Agreement" means the agreement so entitled dated as of
July 31, 2000 by and among OSI, HWC Energy Services, Inc., Merger Sub-HWC, Inc.,
Sooner Inc., Merger Sub-Sooner, Inc. and PTI.

         "Common Shares" means the common shares in the capital of the
Corporation.

         "Current Market Price" means, in respect of a share of OSI Common Stock
on any date, the average of the closing price per share (computed and rounded to
the third decimal point) of shares of OSI Common Stock during the period of 20
consecutive trading days ending not more than five trading days before such date
on the New York Stock Exchange, or, if OSI Common Stock is not then traded on
the New York Stock Exchange, on such other principal U.S. stock exchange or
automated quotation system on which the OSI Common Stock is then listed or
quoted, as the case may be, as may be selected by the Board of Directors for
such purpose; provided, however, that if, in the opinion of the Board of
Directors the public distribution or trading activity of OSI Common Stock during
such period does not create a market which reflects the fair market value of a
share of OSI Common Stock, then the Current Market Price of a share of OSI
Common Stock shall be determined by the Board of Directors based upon the advice
of such qualified independent financial advisors as the Board of Directors may
deem to be appropriate, and provided further any such selection, opinion or
determination by the Board of Directors shall be conclusive and binding.

         "Effective Date" has the meaning ascribed thereto in the Plan of
Arrangement.

         "Exchangeable Share Consideration" means, with respect to each
Exchangeable Share, for any acquisition of or redemption of or distribution of
assets of the Corporation in respect of or purchase pursuant to these share
provisions, the Plan of Arrangement, the Support Agreement or the Voting and
Exchange Trust Agreement:

         (a)  the Current Market Price of one share of OSI Common Stock
              deliverable in connection with such action;

         (b)  a cheque or cheques payable at par at any branch of the bankers of
              the payor in the amount of all declared, payable and unpaid, and
              all undeclared but payable, cash dividends deliverable in
              connection with such action; and

         (c)  such stock or other property constituting any declared and unpaid,
              and all undeclared but payable, non-cash dividends deliverable in
              connection with such action,

provided that (i) that part of the consideration which represents (a) above,
shall be fully paid and satisfied by the delivery of one share of OSI Common
Stock that is freely tradeable, such share to be duly issued as a fully paid and
non-assessable share, (ii) that part of the consideration

                                       37
<PAGE>   38
which represents (c), above, unpaid shall be fully paid and satisfied by
delivery of such non-cash items, and (iii) any such consideration shall be
delivered free and clear of any lien, claim, encumbrance, security interest or
adverse claim or interest less any tax required to be deducted and withheld
therefrom and without interest.

         "Exchangeable Share Price" means, for each Exchangeable Share, an
amount equal to the aggregate of:

         (a)  the Current Market Price of a share of OSI Common Stock; plus

         (b)  an additional amount equal to the full amount of all cash
              dividends declared, payable and unpaid on such Exchangeable Share;
              plus

         (c)  an additional amount equal to all dividends declared and payable
              on OSI Common Stock which have not been declared on Exchangeable
              Shares in accordance herewith; plus

         (d)  an additional amount representing non-cash dividends declared,
              payable and unpaid on such Exchangeable Share.

         "Exchangeable Shares" means the Exchangeable Shares of the Corporation
having the rights, privileges, restrictions and conditions set forth herein.

         "freely tradeable", with respect to OSI Common Stock, means freely
transferable under Canadian provincial securities laws and U.S. federal and
state securities laws (pursuant to an effective resale shelf registration
statement or otherwise and assuming the reasonable cooperation of the holder or
recipient of OSI Common Stock in connection with any required resale shelf
registration statement), except to the extent restrictions arise by reason of a
person being a "control person" of OSI for the purposes of Canadian provincial
securities laws or an "affiliate" of OSI for the purposes of United States
federal or state securities laws, provided any trades in such securities are
conducted through the facilities of a stock exchange outside Canada.

         "Liquidation Amount" has the meaning provided in Section 5.1.

         "Liquidation Call Right" has the meaning provided in the Restated
Articles of Incorporation of the Corporation.

         "Liquidation Call Purchase Price" has the meaning provided in the
Restated Articles of Incorporation of the Corporation.

         "Liquidation Date" has the meaning provided in Section 5.1.

         "OSI" means Oil States International, Inc., a corporation organized and
existing under the laws of the State of Delaware and includes any successor
corporation or any corporation in which the holders of OSI Common Stock hold
securities resulting from the application of Section 2.7 of the Support
Agreement.

         "OSI Call Notice" has the meaning provided in Section 6.3.

                                       38
<PAGE>   39
         "OSI Common Stock" means the shares of common stock of OSI, with a par
value of U.S. $0.01 per share, having voting rights of one vote per share, and
any other securities resulting from the application of Section 2.7 of the
Support Agreement.

         "OSI Control Transaction" means any merger or amalgamation involving
OSI, any tender offer for OSI, and any material sale of shares or rights or
interests therein or thereto by OSI or similar transactions, or any proposal to
do so, provided that upon completion of any such transaction the holders of OSI
Common Stock immediately before such transaction would hold, directly or
indirectly, less than 50% of the voting securities, or securities exchangeable
or exercisable for or convertible into voting securities, of the merged or
amalgamated corporation, the offeror or the purchaser, as the case may be.

         "OSI Dividend Declaration Date" means the date on which the board of
directors of OSI declares any dividend on the OSI Common Stock.

         "OSI Special Share" means the one share of Special Voting Stock of OSI,
with a par value of U.S. $0.01, and having voting rights at meetings of holders
of OSI Common Stock equal to the Aggregate Equivalent Voting Amount.

         "OSI ULC" has the meaning provided in the Voting and Exchange Trust
Agreement.

         "PTI" means PTI Group Inc., a corporation organized and existing under
the Act.

         "Plan of Arrangement" means the plan of arrangement involving and
affecting PTI and the holders of common shares and options, PTI Amalco and the
holders of its shares, the Corporation and the holders of its shares, OSI and
OSI ULC under section 186 of the Act contemplated in the Combination Agreement,
as further amended and restated from time to time.

         "Purchase Price" has the meaning provided in Section 6.3.

         "Redemption Call Purchase Price" has the meaning provided in the
Restated Articles of Incorporation of the Corporation.

         "Redemption Call Right" has the meaning provided in the Restated
Articles of Incorporation of the Corporation.

         "Redemption Price" has the meaning provided in Section 7.1.

         "Retracted Shares" has the meaning provided in subsection 6.1 (a).

         "Retraction Call Right" has the meaning provided in subsection 6.1 (c).

         "Retraction Date" has the meaning provided in subsection 6.1 (b).

         "Retraction Price" has the meaning provided in Section 6. 1.

         "Retraction Request" has the meaning provided in Section 6.1.

                                       39
<PAGE>   40
         "Subsidiary", in relation to any person, means any body corporate,
partnership, joint venture, association or other entity of which more than 50%
of the total voting power of shares of stock or units of ownership or beneficial
interest entitled to vote in the election of directors (or members of a
comparable governing body) is owned or controlled, directly or indirectly, by
such person.

         "Support Agreement" means the Support Agreement between OSI and the
Corporation, made as of the Effective Date.

         "Transfer Agent" means the duly appointed transfer agent for the time
being of the Exchangeable Shares at its offices in each of Calgary, Alberta and
Toronto, Ontario.

         "Trustee" means the Trustee appointed under the Voting and Exchange
Trust Agreement, and any successor trustee.

         "Voting and Exchange Trust Agreement" means the Voting and Exchange
Trust Agreement among the Corporation, OSI and the Trustee, made as of the
Effective Date.

                                   ARTICLE 2
                         RANKING OF EXCHANGEABLE SHARES

2.1  The Exchangeable Shares shall be entitled to a preference over the Common
     Shares and any other shares ranking junior to the Exchangeable Shares, with
     respect to the payment of dividends and the distribution of assets in the
     event of the liquidation, dissolution or winding-up of the Corporation,
     whether voluntary or involuntary, or any other distribution of the assets
     of the Corporation among its shareholders for the purpose of winding-up its
     affairs.

                                    ARTICLE 3
                                    DIVIDENDS

3.1  Subject to Section 3.2 below, a holder of an Exchangeable Share shall be
     entitled to receive and the Board of Directors shall, subject to applicable
     law, on each OSI Dividend Declaration Date, declare a dividend on each
     Exchangeable Share:

     (a)  in the case of a cash dividend declared on the OSI Common Stock, in an
          amount in cash for each Exchangeable Share in U.S. dollars, or the
          Canadian Dollar Equivalent thereof on the OSI Dividend Declaration
          Date, in each case corresponding to the cash dividend declared on each
          share of OSI Common Stock;

     (b)  in the case of a stock dividend declared on OSI Common Stock to be
          paid in shares of OSI Common Stock, in such number of Exchangeable
          Shares for each Exchangeable Share as is equal to the number of shares
          of OSI Common Stock to be paid on each share of OSI Common Stock; or

                                       40
<PAGE>   41
    (c)  in the case of a dividend declared on the OSI Common
         Stock in property other than cash or OSI Common Stock, in such
         type and amount of property for each Exchangeable Share as is
         the same as or economically equivalent to (to be determined by
         the Board of Directors as contemplated by Section 3.6 hereof)
         the type and amount of property declared as a dividend on each
         share of OSI Common Stock.

         Such dividends shall be paid out of money, assets or property of the
         Corporation properly applicable to the payment of dividends, or out of
         authorized but unissued shares of the Corporation, as applicable.

3.2  In the case of a stock dividend declared on the OSI Common Stock to be paid
     in shares of OSI Common Stock, in lieu of declaring the stock dividend
     contemplated by Section 3.1(b) on the Exchangeable Shares, the Board of
     Directors may, in its discretion and subject to applicable law, subdivide,
     redivide or change (the "subdivision") each issued and unissued
     Exchangeable Share on the basis that each Exchangeable Share before the
     subdivision becomes a number of Exchangeable Shares as is equal to the sum
     of (i) a share of OSI Common Stock and (ii) the number of shares of OSI
     Common Stock to be paid as a stock dividend on each share of OSI Common
     Stock. In such instance, and notwithstanding any other provision hereof,
     such subdivision shall become effective on the effective date specified in
     Section 3.4 hereof without any further act or formality on the part of the
     Board of Directors or of the holders of Exchangeable Shares. For greater
     certainty, no approval of the holders of Exchangeable Shares to an
     amendment to the articles of the Corporation shall be required to give
     effect to such subdivision.

3.3  Cheques of the Corporation payable at par at any branch of the bankers of
     the Corporation shall be issued in respect of any cash dividends
     contemplated by subsection 3.1 (a) hereof and the sending of such a cheque
     to each holder of an Exchangeable Share (less any tax required to be
     deducted and withheld from such dividends paid or credited by the
     Corporation) shall satisfy the cash dividends represented thereby unless
     the cheque is not paid on presentation. Certificates registered in the name
     of the registered holder of Exchangeable Shares shall be issued or
     transferred in respect of any stock dividends contemplated by subsections
     3.1 (b) or (c) hereof and the sending of such a certificate to each holder
     of an Exchangeable Share shall satisfy the stock dividend represented
     thereby or dividend payable in other securities represented thereby. Such
     other type and amount of property in respect of any dividends contemplated
     by subsection 3.1 (c) hereof shall be issued, distributed or transferred by
     the Corporation in such manner as it shall determine and the issuance,
     distribution or transfer thereof by the Corporation to each holder of an
     Exchangeable Share shall satisfy the dividend represented thereby. In all
     cases, any such dividends shall be subject to any reduction or adjustment
     for tax required to be deducted and withheld from such dividends, and the
     Corporation shall be entitled to liquidate some of the property which would
     otherwise be deliverable in payment of such dividends to a particular
     holder of Exchangeable Shares to fund any statutory withholding obligation.
     No holder of an Exchangeable Share shall be entitled to recover by action
     or other legal process against the Corporation any dividend which is
     represented by a cheque that has not been duly presented to the
     Corporation's bankers for payment or which otherwise

                                       41
<PAGE>   42
     remains unclaimed for a period of six years from the date on which such
     dividend was payable.

3.4  The record date for the determination of the holders of Exchangeable Shares
     entitled to receive payment of, and the payment date for, any dividend
     declared on the Exchangeable Shares under Section 3.1 hereof shall be the
     same dates as the record date and payment date, respectively, for the
     corresponding dividend declared on the OSI Common Stock. The record date
     for the determination of the holders of Exchangeable Shares entitled to
     receive Exchangeable Shares in connection with any subdivision of
     Exchangeable Shares under Section 3.2 hereof and the effective date of such
     subdivision shall be the same dates as the record date and payment date,
     respectively, for the corresponding stock dividend declared on the OSI
     Common Stock.

3.5  If on any payment date for any dividends declared on the Exchangeable
     Shares under Section 3.1 hereof the dividends are not paid in full on all
     of the Exchangeable Shares then outstanding, any such dividends which
     remain unpaid shall be paid on a subsequent date or dates determined by the
     Board of Directors on which the Corporation shall have sufficient moneys,
     assets or property properly applicable to the payment of such dividends.

3.6  The Board of Directors shall determine, in good faith and in its sole
     discretion, economic equivalence for the purposes of Sections 3.1 and 3.2
     hereof, and each such determination shall be conclusive and binding on the
     Corporation and its shareholders. In making each such determination, the
     following factors shall, without excluding other factors determined by the
     Board of Directors to be relevant, be considered by the Board of Directors:

     (a)  in the case of any stock dividend or other distribution payable in
          shares of OSI Common Stock, the number of such shares issued in
          proportion to the number of shares of OSI Common Stock previously
          outstanding;

     (b)  in the case of the issuance or distribution of any rights, options or
          warrants to subscribe for or purchase shares of OSI Common Stock (or
          securities exchangeable for or convertible into or carrying rights to
          acquire shares of OSI Common Stock), the relationship between the
          exercise price of each such right, option or warrant and the Current
          Market Price of a share of OSI Common Stock;

     (c)  in the case of the issuance or distribution of any other form of
          property (including without limitation any shares or securities of OSI
          of any class other than OSI Common Stock, any rights, options or
          warrants other than those referred to in Section 3.6(b) above, any
          evidences of indebtedness of OSI or any assets of OSI), the
          relationship between the fair market value (as determined by the Board
          of Directors in the manner above contemplated) of such property to be
          issued or distributed with respect to each outstanding share of OSI
          Common Stock and the Current Market Price of a share of OSI Common
          Stock; and

                                       42
<PAGE>   43
     (d)  in all such cases, the general taxation consequences of the relevant
          event to holders of Exchangeable Shares to the extent that such
          consequences may differ from the taxation consequences to holders of
          OSI Common Stock as a result of differences between taxation laws of
          Canada and the United States (except for any differing consequences
          arising as a result of differing marginal taxation rates and without
          regard to the individual circumstances of holders of Exchangeable
          Shares).

3.7  Except as provided in this Article 3, the holders of Exchangeable Shares
     shall not be entitled to receive dividends in respect thereof.

                                   ARTICLE 4
                              CERTAIN RESTRICTIONS

4.1  So long as any of the Exchangeable Shares are outstanding, the Corporation
     shall not at any time without, but may at any time with, the approval of
     the holders of the Exchangeable Shares given as specified in Article 9 of
     these share provisions:

     (a)  pay any dividends on the Common Shares, or any other shares ranking
          junior to the Exchangeable Shares, other than stock dividends payable
          in any such other shares ranking junior to the Exchangeable Shares;

     (b)  redeem or purchase or make any capital distribution in respect of
          Common Shares or any other shares ranking junior to the Exchangeable
          Shares with respect to the payment of dividends or on any liquidation
          distribution;

     (c)  redeem or purchase any other shares of the Corporation ranking equally
          with the Exchangeable Shares with respect of the payment of dividends
          or on any liquidation distribution;

     (d)  issue any Exchangeable Shares other than by way of stock dividends to
          holders of Exchangeable Shares or as contemplated by the Support
          Agreement; or

     (e)  amend the articles or by-laws of the Corporation, in either case in
          any manner that would affect the rights or privileges of the holders
          of the Exchangeable Shares.

     The restrictions in subsections 4.1(a), 4.1(b) and 4.1(c) above shall not
apply if all dividends on the outstanding Exchangeable Shares corresponding to
dividends declared with a record date on or following the effective date of the
Plan of Arrangement on the OSI Common Stock shall have been declared on the
Exchangeable Shares and paid in full. Nothing herein shall be interpreted to
restrict the Corporation from issuing additional Common Shares to OSI or any
Subsidiary of OSI.

                                       43
<PAGE>   44
                                   ARTICLE 5
                           DISTRIBUTION ON LIQUIDATION

5.1  In the event of the liquidation, dissolution or winding-up of the
     Corporation or any other distribution of the assets of the Corporation
     among its shareholders for the purpose of winding-up its affairs, provided
     that neither OSI nor OSI ULC shall have exercised the Liquidation Call
     Right, a holder of Exchangeable Shares shall be entitled, subject to
     applicable law, to receive from the assets of the Corporation in respect of
     each Exchangeable Share held by such holder on the effective date of such
     liquidation, dissolution or winding-up (the "Liquidation Date"), before any
     distribution of any part of the assets of the Corporation to the holders of
     the Common Shares or any other shares ranking junior to the Exchangeable
     Shares, an amount equal to the Exchangeable Share Price applicable on the
     last Business Day prior to the Liquidation Date (the "Liquidation Amount")
     in accordance with Section 5.2. In connection with payment of the
     Liquidation Amount, the Corporation shall be entitled to liquidate some of
     the OSI Common Stock which would otherwise be deliverable as Exchangeable
     Share Consideration to the particular holder of Exchangeable Shares in
     order to fund any statutory withholding tax obligation.

5.2  Within three Business Days after the Liquidation Date, and subject to the
     exercise by OSI or OSI ULC of the Liquidation Call Right, the Corporation
     shall cause to be delivered to the holders of the Exchangeable Shares the
     Liquidation Amount for each such Exchangeable Share upon presentation and
     surrender of the certificates representing such Exchangeable Shares,
     together with such other documents and instruments as may be required to
     effect a transfer of Exchangeable Shares under applicable law and the
     by-laws of the Corporation and such additional documents and instruments as
     the Transfer Agent may reasonably require, at the registered office of the
     Corporation or at any office of the Transfer Agent as may be specified by
     the Corporation in Schedule A hereto or by notice to the holders of the
     Exchangeable Shares (provided that such presentation and surrender shall be
     valid if made at the office of the Transfer Agent, if any, in the province
     in which such holder is listed on the books of the Corporation). Payment of
     the total Liquidation Amount for such Exchangeable Shares shall be made by
     delivery to each holder, at the address of the holder recorded in the
     securities register of the Corporation for the Exchangeable Shares or by
     holding for pick up by the holder at the registered office of the
     Corporation or at any office of the Transfer Agent as may be specified by
     the Corporation in Schedule A hereto or by notice to the holders of
     Exchangeable Shares (provided that such delivery shall be made to the
     holder at its address recorded in the securities register of the
     Corporation or at the office of the transfer agent, if any, in the province
     in which the address of the holder recorded in the securities register of
     the Corporation is located), on behalf of the Corporation of the
     Exchangeable Share Consideration representing the total Liquidation Amount.
     On and after the Liquidation Date, the holders of the Exchangeable Shares
     shall cease to be holders of such Exchangeable Shares and shall not be
     entitled to exercise any of the rights of holders in respect thereof, other
     than the right to receive their proportionate part of the total Liquidation
     Amount, unless payment of the total Liquidation Amount for such
     Exchangeable Shares shall not be made upon presentation and surrender of
     share certificates in accordance with the foregoing provisions, in which
     case the rights of the

                                       44
<PAGE>   45
     holders shall remain unaffected until the total Liquidation Amount has been
     paid in the manner hereinbefore provided. The Corporation shall have the
     right at any time on or after the Liquidation Date to deposit or cause to
     be deposited the Exchangeable Share Consideration in respect of the
     Exchangeable Shares represented by certificates that have not at the
     Liquidation Date been surrendered by the holders thereof in a custodial
     account or for safe keeping, in the case of non-cash items, with any
     chartered bank or trust company in Canada. Upon such deposit being made,
     the rights of the holders of Exchangeable Shares after such deposit shall
     be limited to receiving their proportionate part of the total Liquidation
     Amount for such Exchangeable Shares so deposited, against presentation and
     surrender of the said certificates held by them, respectively, in
     accordance with the foregoing provisions. Upon such payment or deposit of
     such Exchangeable Share Consideration, the holders of the Exchangeable
     Shares shall thereafter be considered and deemed for all purposes to be the
     holders of the OSI Common Stock delivered to them. Notwithstanding the
     foregoing, until such payment or deposit of such Exchangeable Share
     Consideration, the holder shall be deemed to still be a holder of
     Exchangeable Shares for purposes of all voting rights with respect thereto
     under the Voting and Exchange Trust Agreement.

5.3  After the Corporation has satisfied its obligations to pay the holders of
     the Exchangeable Shares the Liquidation Amount per Exchangeable Share, such
     holders shall not be entitled to share in any further distribution of the
     assets of the Corporation.

5.4  If OSI or OSI ULC exercises the Liquidation Call Right, each holder of
     Exchangeable Shares shall be obligated to sell the Exchangeable Shares held
     by such holder to OSI or OSI ULC, as the case may be, on the Liquidation
     Date on payment to such holder by OSI or OSI ULC, as the case may be, of
     the Exchangeable Share Consideration representing the Liquidation Call
     Purchase Price for each Exchangeable Share.

                                   ARTICLE 6
                   RETRACTION OF EXCHANGEABLE SHARES BY HOLDER

6.1  A holder of Exchangeable Shares shall be entitled at any time after the
     effectiveness of a Registration Statement under the Securities Act of 1933
     registering the issuance of shares of OSI Common Stock issuable pursuant to
     the provisions attaching to the Exchangeable Shares or prior thereto with
     the written consent of the Corporation, subject to applicable law and the
     exercise by OSI or OSI ULC of the Retraction Call Right (which, if
     exercised by OSI or OSI ULC, shall be binding on the holder of Exchangeable
     Shares) and otherwise upon compliance with the provisions of this Article
     6, to require the Corporation to redeem any or all of the Exchangeable
     Shares registered in the name of such holder for an amount equal to the
     Exchangeable Share Price applicable on the last Business Day prior to the
     Retraction Date (the "Retraction Price") which as set forth in Section 6.4,
     shall be fully paid and satisfied by the delivery by or on behalf of the
     Corporation of the Exchangeable Share Consideration representing such
     holder's Retraction Price. In connection with payment of the Retraction
     Price, the Corporation shall be entitled to liquidate some of the OSI
     Common Stock that would otherwise be deliverable as Exchangeable Share
     Consideration to the particular holder of

                                       45
<PAGE>   46
     Exchangeable Shares in order to fund any statutory withholding tax
     obligation. To effect such redemption, the holder shall present and
     surrender at the registered office of the Corporation or at any office of
     the Transfer Agent as may be specified by the Corporation in Schedule A
     hereto or by notice to the holders of Exchangeable Shares the certificate
     or certificates representing the Exchangeable Shares which the holder
     desires to have the Corporation redeem, together with such other documents
     and instruments as may be required to effect a transfer of Exchangeable
     Shares under applicable law and the by-laws of the Corporation and such
     additional documents and instruments as the Transfer Agent may reasonably
     require, and together with a duly executed statement (the "Retraction
     Request") in the form of Schedule "A" hereto or in such other form as may
     be acceptable to the Corporation:

     (a)  specifying that the holder desires to have all or any number specified
          therein of the Exchangeable Shares represented by such certificate or
          certificates (the "Retracted Shares") redeemed by the Corporation;

     (b)  stating the Business Day on which the holder desires to have the
          Corporation redeem the Retracted Shares (the "Retraction Date"),
          provided that the Retraction Date shall be not less than three
          Business Days nor more than 10 Business Days after the date on which
          the Retraction Request is received by the Corporation and further
          provided that, in the event that no such Business Day is specified by
          the holder in the Retraction Request, the Retraction Date shall be
          deemed to be the tenth Business Day after the date on which the
          Retraction Request is received by the Corporation; and

     (c)  acknowledging the overriding right (the "Retraction Call Right") of
          OSI or OSI ULC to purchase all but not less than all the Retracted
          Shares directly from the holder and that the Retraction Request shall
          be deemed to be a revocable offer by the holder to sell the Retracted
          Shares in accordance with the Retraction Call Right on the terms and
          conditions set out in Section 6.3 below.

6.2  Subject to the exercise by OSI or OSI ULC of the Retraction Call Right,
     upon receipt by the Corporation or the Transfer Agent in the manner
     specified in Section 6.1 hereof of a certificate or certificates
     representing the number of Exchangeable Shares which the holder desires to
     have the Corporation redeem, together with a Retraction Request, and
     provided that the Retraction Request is not revoked by the holder in the
     manner specified in Section 6.7, the Corporation shall redeem the Retracted
     Shares effective at the close of business on the Retraction Date and shall
     cause to be delivered to such holder the total Retraction Price with
     respect to such shares in accordance with Section 6.4 hereof. If only a
     part of the Exchangeable Shares represented by any certificate are redeemed
     or purchased by OSI or OSI ULC pursuant to the Retraction Call Right, a new
     certificate for the balance of such Exchangeable Shares shall be issued to
     the holder at the expense of the Corporation.

6.3  Upon receipt by the Corporation of a Retraction Request, the Corporation
     shall immediately notify OSI and OSI ULC thereof. In order to exercise the
     Retraction Call Right, OSI or OSI ULC must notify the Corporation in
     writing of its determination to do

                                       46
<PAGE>   47
     so (the "OSI Call Notice") within two Business Days of such notification.
     If OSI or OSI ULC does not so notify the Corporation within such two
     Business Days, the Corporation will notify the holder as soon as possible
     thereafter that neither OSI nor OSI ULC will exercise the Retraction Call
     Right. If OSI or OSI ULC delivers the OSI Call Notice within such two
     Business Days, and provided that the Retraction Request is not revoked by
     the holder in the manner specified in Section 6.7 hereof, the Retraction
     Request shall thereupon be considered only to be an offer by the holder to
     sell the Retracted Shares to OSI or OSI ULC, as the case may be, in
     accordance with the Retraction Call Right. In such event, the Corporation
     shall not redeem the Retracted Shares and OSI or OSI ULC, as the case may
     be, shall purchase from such holder and such holder shall sell to OSI or
     OSI ULC, as the case may be, on the Retraction Date the Retracted Shares
     for a purchase price per share (the "Purchase Price") equal to the
     Retraction Price, which as set forth in Section 6.4 hereof, shall be fully
     paid and satisfied by the delivery by or on behalf of OSI or OSI ULC, as
     the case may be, of the Exchangeable Share Consideration representing such
     holder's Purchase Price. For the purposes of completing a purchase pursuant
     to the Retraction Call Right, OSI or OSI ULC, as the case may be, shall
     deposit with the Transfer Agent, on or before the Retraction Date, the
     Exchangeable Share Consideration representing the total Purchase Price.
     Provided that such Exchangeable Share Consideration has been so deposited
     with the Transfer Agent, the closing of the purchase and sale of the
     Retracted Shares pursuant to the Retraction Call Right shall be deemed to
     have occurred as at the close of business on the Retraction Date and, for
     greater certainty, no redemption by the Corporation of such Retracted
     Shares shall take place on the Retraction Date. In the event that OSI or
     OSI ULC, as the case may be, does not deliver a OSI Call Notice within two
     Business Days or otherwise comply with these Exchangeable Share provisions
     in respect thereto, and provided that Retraction Request is not revoked by
     the holder in the manner specified in Section 6.7 hereof, the Corporation
     shall redeem the Retracted Shares on the Retraction Date and in the manner
     otherwise contemplated in this Article 6.

6.4  Subject to receipt by the Corporation of the Retracted Shares, OSI or OSI
     ULC, as the case may be, the Corporation, OSI or OSI ULC, as the case may
     be, shall deliver or cause the Transfer Agent to deliver to the relevant
     holder, at the address of the holder recorded in the securities register of
     the Corporation for the Exchangeable Shares or at the address specified in
     the holder's Retraction Request or by holding for pick up by the holder at
     the registered office of the Corporation or at any office of the Transfer
     Agent as may be specified by the holder in Schedule A hereto, in each case
     on or before two Business Days after the Retraction Date, the Exchangeable
     Share Consideration representing the total Retraction Price or the total
     Purchase Price, as the case may be, and such delivery of such Exchangeable
     Share Consideration to the Transfer Agent shall be deemed to be payment of
     and shall satisfy and discharge all liability for the total Retraction
     Price or total Purchase Price, as the case may be, except as to any cheque
     included therein which is not paid on due presentation.

6.5  On and after the close of business on the Retraction Date, the holder of
     the Retracted Shares shall cease to be a holder of such Retracted Shares
     and shall not be entitled to exercise any of the rights of a holder in
     respect thereof, other than the right to receive such holder's
     proportionate part of the total Retraction Price or total Purchase Price,
     as

                                       47
<PAGE>   48
     the case may be, unless upon presentation and surrender of certificates in
     accordance with the foregoing provisions, payment of the total Retraction
     Price or the total Purchase Price, as the case may be, shall not be made,
     in which case the rights of such holder shall remain unaffected until the
     Exchangeable Share Consideration representing the total Retraction Price or
     the total Purchase Price, as the case may be, has been paid in the manner
     hereinbefore provided. On and after the close of business on the Retraction
     Date, provided that presentation and surrender of certificates and payment
     of the Exchangeable Share Consideration representing the total Retraction
     Price or the total Purchase Price, as the case may be, has been made in
     accordance with the foregoing provisions, the holder of the Retracted
     Shares so redeemed by the Corporation or purchased by OSI or OSI ULC shall
     thereafter be considered and deemed for all purposes to be a holder of the
     OSI Common Stock delivered to it. Notwithstanding the foregoing, until such
     payment of such Exchangeable Share Consideration to the holder, the holder
     shall be deemed to still be a holder of Exchangeable Shares for purposes of
     all voting rights with respect thereto under the Voting and Exchange Trust
     Agreement.

6.6  Notwithstanding any other provision of this Article 6, the Corporation
     shall not be obligated to redeem Retracted Shares specified by a holder in
     a Retraction Request to the extent that such redemption of Retracted Shares
     would be contrary to liquidity or solvency requirements or other provisions
     of applicable law. If the Corporation believes that on any Retraction Date
     it would not be permitted by any of such provisions to redeem the Retracted
     Shares tendered for redemption on such date, and provided that neither OSI
     nor OSI ULC shall have exercised the Retraction Call Right with respect to
     the Retracted Shares, the Corporation shall only be obligated to redeem
     Retracted Shares specified by a holder in a Retraction Request to the
     extent of the maximum number that may be so redeemed (rounded down to a
     whole number of shares) as would not be contrary to such provisions and
     shall notify the holder as soon as is reasonably practical but in any event
     not later than one Business Day prior to the Retraction Date as to the
     number of Retracted Shares which will not be redeemed by the Corporation.
     In any case in which the redemption by the Corporation of Retracted Shares
     would be contrary to liquidity or solvency requirements or other provisions
     of applicable law, the Corporation shall redeem Retracted Shares in
     accordance with Section 6.2 of these share provisions on a pro rata basis
     and shall issue to each holder of Retracted Shares a new certificate, at
     the expense of the Corporation, representing the Retracted Shares not
     redeemed by the Corporation pursuant to Section 6.2 hereof. Provided that
     the Retraction Request is not revoked by the holder in the manner specified
     in Section 6.7 hereof, the holder of any such Retracted Shares not redeemed
     by the Corporation pursuant to Section 6.2 hereof as a result of liquidity
     or solvency requirements or applicable law shall be deemed by giving the
     Retraction Request to require OSI or OSI ULC, as the case may be, to
     purchase such Retracted Shares from such holder on the Retraction Date or
     as soon as practicable thereafter on payment by OSI or OSI ULC, as the case
     may be, to such holder of the Purchase Price for each such Retracted Share,
     all as more specifically provided in the Voting and Exchange Trust
     Agreement, and OSI or OSI ULC shall make such purchase.

6.7  A holder of Retracted Shares may, by notice in writing given by the holder
     to the Corporation before the close of business on the Business Day
     immediately preceding the Retraction Date, withdraw its Retraction Request
     in which event such Retraction Request

                                       48
<PAGE>   49
     shall be null and void and, for greater certainty, the revocable offer
     constituted by the Retraction Request to sell the Retracted Shares to OSI
     or OSI ULC, as the case may be, shall be deemed to have been revoked.

                                   ARTICLE 7
              REDEMPTION OF EXCHANGEABLE SHARES BY THE CORPORATION

7.1  Subject to applicable law, and if neither OSI or OSI ULC exercises the
     Redemption Call Right (which, if exercised, shall be binding on the holders
     of Exchangeable Shares), the Corporation shall on the Automatic Redemption
     Date redeem the whole of the then outstanding Exchangeable Shares for an
     amount equal to the Exchangeable Share Price applicable on the last
     Business Day prior to the Automatic Redemption Date (the "Redemption
     Price") which, as set forth in Section 7.3 hereof, shall be fully paid and
     satisfied by the delivery by or on behalf of the Corporation of the
     Exchangeable Share Consideration representing the total Redemption Price.
     In connection with payment of the Exchangeable Share Consideration
     representing the Redemption Price, the Corporation shall be entitled to
     liquidate some of the OSI Common Stock which would otherwise be deliverable
     as Exchangeable Share Consideration to the particular holder of
     Exchangeable Shares in order to fund any statutory withholding tax
     obligation.

7.2  In any case of a redemption of Exchangeable Shares under this Article 7,
     the Corporation, or the Transfer Agent on behalf of the Corporation, shall,
     at least 60 days before an Automatic Redemption Date described in clause
     (a) or (b) of the definition of Automatic Redemption Date or at least such
     number of days before an Automatic Redemption Date described in clause (c),
     (d) or (e) of the definition of Automatic Redemption Date as the Board of
     Directors of the Corporation may determine to be reasonably practicable in
     the circumstances, send or cause to be sent to each registered holder of
     Exchangeable Shares a notice in writing of the redemption or possible
     redemption by the Corporation or the purchase by OSI or OSI ULC under the
     Redemption Call Right, as the case may be, of the Exchangeable Shares held
     by such holder. Such notice shall set out the Redemption Price or the
     Redemption Call Purchase Price, as the case may be, the Automatic
     Redemption Date and, if applicable, particulars of the Redemption Call
     Right. In the case of any notice given in connection with a possible
     Automatic Redemption Date as described in clause (c), (d) or (e) of the
     definition of Automatic Redemption Date, such notice will be given
     contingently and will be withdrawn if the contingency does not occur.

7.3  On or after the Automatic Redemption Date, and subject to the exercise by
     OSI or OSI ULC of the Redemption Call Right, the Corporation shall cause to
     be delivered to the holders of the Exchangeable Shares to be redeemed the
     Exchangeable Share Consideration representing the Redemption Price for each
     such Exchangeable Share upon presentation and surrender at the registered
     office of the Corporation or at any office of the Transfer Agent as may be
     specified by the Corporation in such notice of the certificates
     representing such Exchangeable Shares, together with such other documents
     and instruments as may be required to effect a transfer of Exchangeable
     Shares under applicable law and the by-laws of the Corporation and such
     additional documents and

                                       49
<PAGE>   50
     instruments as the Transfer Agent may reasonably require (provided that
     such presentation and surrender shall be deemed to be valid if made at the
     office of the Transfer Agent, if any, in the province in which the address
     of the holder of Exchangeable Shares is recorded on the books of the
     Corporation). Payment of the total Redemption Price for such Exchangeable
     Shares shall be made by delivery to each holder, at the address of the
     holder recorded in the securities register or at any office of the Transfer
     Agent as may be specified by the Corporation in such notice, on behalf of
     the Corporation, of the Exchangeable Share Consideration representing the
     total Redemption Price (provided that if payment is made by delivery of the
     Exchangeable share Consideration to the Transfer Agent, such delivery shall
     be made at the office of the Transfer Agent, if any, in the province in
     which the address of the holder of Exchangeable Shares is recorded on the
     books of the Corporation). On and after the Automatic Redemption Date, the
     holders of the Exchangeable Shares called for redemption shall cease to be
     holders of such Exchangeable Shares and shall not be entitled to exercise
     any of the rights of holders in respect thereof, other than the right to
     receive their proportionate part of the Exchangeable Share Consideration
     representing the total Redemption Price, unless payment of the Exchangeable
     Share Consideration representing the total Redemption Price for such
     Exchangeable Shares shall not be made upon presentation and surrender of
     certificates in accordance with the foregoing provisions, in which case the
     rights of the holders shall remain unaffected until the Exchangeable Share
     Consideration representing the total Redemption Price has been paid in the
     manner hereinbefore provided. The Corporation shall have the right at any
     time after the sending of notice of its intention to redeem the
     Exchangeable Shares as aforesaid to deposit or cause to be deposited the
     Exchangeable Share Consideration with respect to the Exchangeable Shares so
     called for redemption, or of such of the said Exchangeable Shares
     represented by certificates that have not at the date of such deposit been
     surrendered by the holders thereof in connection with such redemption, in a
     custodial account or for safe keeping, in the case of non-cash items, with
     any chartered bank or trust company in Canada named in such notice. Upon
     the later of such deposit being made and the Automatic Redemption Date, the
     Exchangeable Shares in respect whereof such deposit shall have been made
     shall be redeemed and the rights of the holders thereof after such deposit
     or Automatic Redemption Date, as the case may be, shall be limited to
     receiving their proportionate part of the Exchangeable Share Consideration
     representing the total Redemption Price for such Exchangeable Shares so
     deposited, against presentation and surrender of the said certificates held
     by them, respectively, in accordance with the foregoing provisions. Upon
     such payment or deposit of such Exchangeable Share Consideration, the
     holders of the Exchangeable Shares shall thereafter be considered and
     deemed for all purposes to be holders of the OSI Common Stock delivered to
     them. Notwithstanding the foregoing, until such payment or deposit of such
     Exchangeable Share Consideration is made, the holder shall be deemed to
     still be a holder of Exchangeable Shares for purposes of all voting rights
     with respect thereto under the Voting and Exchange Trust Agreement.

7.4  If OSI or OSI ULC exercises the Redemption Call Right, each holder of
     Exchangeable Shares shall be obligated to sell all the Exchangeable Shares
     held by such holder to OSI or OSI ULC, as the case may be, on the Automatic
     Redemption Date against payment to

                                       50
<PAGE>   51
     such holder by OSI or OSI ULC of the Exchangeable Share Consideration
     representing the Redemption Call Purchase Price for each such share.

                                   ARTICLE 8
                                  VOTING RIGHTS

8.1  Except as required by applicable law and the provisions hereof, the holders
     of the Exchangeable Shares shall not be entitled as such to receive notice
     of or to attend any meeting of the shareholders of the Corporation or to
     vote at any such meeting.

                                   ARTICLE 9
                             AMENDMENT AND APPROVAL

9.1  The rights, privileges, restrictions and conditions attaching to the
     Exchangeable Shares may be added to, changed or removed but, except as
     hereinafter provided, only with the approval of the holders of the
     Exchangeable Shares given as hereinafter specified.

9.2  Any approval given by the holders of the Exchangeable Shares to add to,
     change or remove any right, privilege, restriction or condition attaching
     to the Exchangeable Shares or any other matter requiring the approval or
     consent of the holders of the Exchangeable Shares shall be deemed to have
     been sufficiently given if it shall have been given in accordance with
     applicable law subject to a minimum requirement that such approval be
     evidenced by resolution passed by not less than 66 2/3% of the votes cast
     on such resolution by persons represented in person or by proxy at a
     meeting of holders of Exchangeable Shares (excluding Exchangeable Shares
     beneficially owned by OSI or its Subsidiaries) duly called and held at
     which the holders of at least 50% of the outstanding Exchangeable Shares at
     that time are present or represented by proxy. If at any such meeting the
     holders of at least 50% of the outstanding Exchangeable Shares at that time
     are not present or represented by proxy within one-half hour after the time
     appointed for such meeting, then the meeting shall be adjourned to such
     date not less than 10 days thereafter and to such time and place as may be
     designated by the Chairman of such meeting. At such adjourned meeting, the
     holders of Exchangeable Shares present or represented by proxy thereat may
     transact the business for which the meeting was originally called and a
     resolution passed thereat by the affirmative vote of not less than 66 2/3%
     of the votes cast on such resolution by persons represented in person or by
     proxy at such meeting (excluding Exchangeable Shares beneficially owned by
     OSI or its Subsidiaries) shall constitute the approval or consent of the
     holders of the Exchangeable Shares. For the purposes of this Section, any
     spoiled votes, illegible votes, defective votes and abstinences shall be
     deemed to be votes not cast.

                                   ARTICLE 10
             RECIPROCAL CHANGES, ETC. IN RESPECT OF OSI COMMON STOCK

10.1 (a) Each holder of an Exchangeable Share acknowledges that the Support
         Agreement provides, in part, that OSI will not:

                                       51
<PAGE>   52
          (i)    issue or distribute shares of OSI Common Stock (or securities
                 exchangeable for or convertible into or carrying rights to
                 acquire shares of OSI Common Stock) to the holders of all or
                 substantially all of the then outstanding shares of OSI Common
                 Stock by way of stock dividend or other distribution; or

          (ii)   issue or distribute rights, options or warrants to the holders
                 of all or substantially all of the then outstanding shares of
                 OSI Common Stock entitling them to subscribe for or to purchase
                 shares of OSI Common Stock (or securities exchangeable for or
                 convertible into or carrying rights to acquire shares of OSI
                 Common Stock); or

          (iii)  issue or distribute to the holders of all or substantially all
                 of the then outstanding shares of OSI Common Stock (A) shares
                 or securities of OSI of any class other than OSI Common Stock
                 (other than shares convertible into or exchangeable for or
                 carrying rights to acquire shares of OSI Common Stock), (B)
                 rights, options or warrants other than those referred to in
                 subsection 10.1 (a) (ii) above, (C) evidences of indebtedness
                 of OSI or (D) assets of OSI;

         unless

          (iv)   one or both of OSI and the Corporation is permitted under
                 applicable law to issue or distribute the economic equivalent
                 on a per share basis of such rights, options, warrants,
                 securities, shares, evidences of indebtedness or other assets
                 to the holders of the Exchangeable Shares; and

          (v)    one or both of OSI and the Corporation shall issue or
                 distribute the economic equivalent on a per share basis of such
                 rights, options, warrants, securities, shares, evidences of
                 indebtedness or other assets simultaneously to the holders of
                 the Exchangeable Shares.

     (b)  Each holder of an Exchangeable Share acknowledges that the Support
          Agreement further provides, in part, that OSI will not:

          (i)    subdivide, redivide or change the then outstanding shares of
                 OSI Common Stock into a greater number of shares of OSI Common
                 Stock; or

          (ii)   reduce, combine or consolidate or change the then outstanding
                 shares of OSI Common Stock into a lesser number of shares of
                 OSI Common Stock; or

          (iii)  reclassify or otherwise change the shares of OSI Common Stock
                 or effect an amalgamation, merger, reorganization or other
                 transaction involving or affecting the shares of OSI Common
                 Stock;

                                       52
<PAGE>   53
         unless

          (iv)   the Corporation is permitted under applicable law to
                 simultaneously make the same or an economically equivalent
                 change to, or in the rights of the holders of, the Exchangeable
                 Shares; and

          (v)    the same or an economically equivalent change is simultaneously
                 made to, or in the rights of the holders of, the Exchangeable
                 Shares.

         The Support Agreement further provides, in part, that, with the
exception of certain ministerial amendments, the aforesaid provisions of the
Support Agreement shall not be changed without the approval of the holders of
the Exchangeable Shares given in accordance with Article 9 of these share
provisions.

                                   ARTICLE 11
               ACTIONS BY THE CORPORATION UNDER SUPPORT AGREEMENT

11.1 The Corporation will take all such actions and do all such things as shall
     be necessary or advisable to perform and comply with and to ensure
     performance and compliance by OSI with all provisions of the Support
     Agreement, the Voting Trust and Exchange Agreement and OSI's Certificate of
     Incorporation applicable to the Corporation and OSI, respectively, in
     accordance with the terms thereof including, without limitation, taking all
     such actions and doing all such things as shall be necessary or advisable
     to enforce to the fullest extent possible for the direct benefit of the
     Corporation all rights and benefits in favour of the Corporation under or
     pursuant thereto.

11.2 The Corporation shall not propose, agree to or otherwise give effect to any
     amendment to, or waiver or forgiveness of its rights or obligations under,
     the Support Agreement, the Voting Trust and Exchange Agreement or OSI's
     Certificate of Incorporation without the approval of the holders of the
     Exchangeable Shares given in accordance with Section 9.2 hereof other than
     such amendments, waivers and/or forgiveness as may be necessary or
     advisable for the purpose of:

     (a)  adding to the covenants of the other party or parties to such
          agreement for the protection of the Corporation or the holders of
          Exchangeable Shares; or

     (b)  making such provisions or modifications not inconsistent with such
          agreement or certificate as may be necessary or desirable with respect
          to matters or questions arising thereunder which, in the opinion of
          the Board of Directors, it may be expedient to make, provided that the
          Board of Directors shall be of the opinion, after consultation with
          counsel, that such provisions and modifications will not be
          prejudicial to the interests of the holders of the Exchangeable
          Shares; or

     (c)  making such changes in or corrections to such agreement or certificate
          which, on the advice of counsel to the Corporation, are required for
          the purpose of curing or correcting any ambiguity or defect or
          inconsistent provision or clerical omission or mistake or manifest
          error contained therein, provided that the Board of

                                       53
<PAGE>   54
          Directors shall be of the opinion, after consultation with counsel,
          that such changes or corrections will not be prejudicial to the
          interests of the holders of the Exchangeable Shares.

                                   ARTICLE 12
                                     LEGEND

12.1 The certificates evidencing the Exchangeable Shares shall contain or have
     affixed thereto a legend, in form and on terms approved by the Board of
     Directors, with respect to the Support Agreement, the provisions of the
     Articles of the Corporation relating to the Liquidation Call Right, the
     Retraction Call Right and the Redemption Call Right, and the Voting and
     Exchange Trust Agreement (including the provisions with respect to the
     voting rights and exchange provisions thereunder).

                                   ARTICLE 13
                                  MISCELLANEOUS

13.1 Any notice, request or other communication to be given to the Corporation
     by a holder of Exchangeable Shares shall be in writing and shall be valid
     and effective if given by mail (postage prepaid) or by telecopy or by
     delivery to the registered office of the Corporation and addressed to the
     attention of the President. Any such notice, request or other
     communication, if given by mail, telecopy or delivery, shall only be deemed
     to have been given and received upon actual receipt thereof by the
     Corporation.

13.2 Any presentation and surrender by a holder of Exchangeable Shares to the
     Corporation or the Transfer Agent of certificates representing Exchangeable
     Shares in connection with the liquidation, dissolution or winding-up of the
     Corporation or the retraction, redemption or exchange of Exchangeable
     Shares shall be made by registered mail (postage prepaid) or by delivery to
     the registered office of the Corporation or to such office of the Transfer
     Agent as may be specified by the Corporation, in each case addressed to the
     attention of the President of the Corporation. Any such presentation and
     surrender of certificates shall only be deemed to have been made and to be
     effective upon actual receipt thereof by the Corporation or the Transfer
     Agent, as the case may be, and the method of any such presentation and
     surrender of certificates shall be at the sole risk of the holder.

13.3 Any notice, request or other communication to be given to a holder of
     Exchangeable Shares by or on behalf of the Corporation shall be in writing
     and shall be valid and effective if given by mail (postage prepaid) or by
     delivery to the address of the holder recorded in the securities register
     of the Corporation or, in the event of the address of any such holder not
     being so recorded, then at the last address of such holder known to the
     Corporation. Any such notice, request or other communication, if given by
     mail, shall be deemed to have been given and received on the fifth Business
     Day following the date of mailing and, if given by delivery, shall be
     deemed to have been given and received on the date of delivery. Accidental
     failure or omission to give any notice, request or other communication to
     one or more holders of Exchangeable Shares shall not invalidate or

                                       54
<PAGE>   55
     otherwise alter or affect any action or proceeding to be or intended to be
     taken by the Corporation.

13.4 For greater certainty, the Corporation shall not be required for any
     purpose under these share provisions to recognize or take account of
     persons who are not so recorded in such securities register.

13.5 All Exchangeable Shares acquired by the Corporation upon the redemption or
     retraction thereof shall be cancelled.

13.6 For greater certainty, any payments to the holders of Exchangeable Shares
     shall be net of applicable taxes, if any, and the payor shall not be
     obliged to gross up or increase the amount of such payment which would
     otherwise be made to take into account such taxes. Any such taxes which
     have been withheld or deducted by the payor thereof shall be remitted to
     the applicable tax authority within the time required for such remittance.

                                       55
<PAGE>   56
                                  SCHEDULE "A"

                               RETRACTION REQUEST

To the Corporation, Oil States International, Inc. ("OSI") and 3045843 Nova
Scotia Company ("OSI ULC")

         This request is given pursuant to Article 6 of the provisions (the
"Share Provisions") attaching to the Exchangeable Shares of the Corporation and
all capitalized words and expressions used in this request which are defined in
the Share Provisions have the meaning attributed to such words and expressions
in such Share Provisions.

         The undersigned hereby notifies the Corporation that, subject to the
Retraction Call Right referred to below, the undersigned requests the
Corporation to redeem in accordance with Article 6 of the Share Provisions:

         [ ]     all share(s) represented by the accompanying certificate(s); or

         [ ]     ____________ share(s) only.

         The undersigned hereby notifies the Corporation that the Retraction
         Date shall be ___________________.
                             date

         NOTE:   The Retraction Date must be a Business Day and must not be less
                 than three Business Days nor more than 10 Business Days after
                 the date upon which this notice and the accompanying shares are
                 received at the registered office of the Corporation or at any
                 office of the Transfer Agent as may be specified in this
                 Retraction Request. In the event that no such Business Day is
                 correctly specified above, the Retraction Date shall be deemed
                 to be the tenth Business Day after the date on which this
                 request is received by the Corporation.

         The undersigned acknowledges the Retraction Call Right of OSI and OSI
ULC (as defined in the Share Provisions) to purchase all but not less than all
the Retracted Shares from the undersigned and that this request shall be deemed
to be a revocable offer by the undersigned to sell the Retracted Shares to OSI
or OSI ULC, as the case may be, in accordance with the Retraction Call Right on
the Retraction Date for the Retraction Price and on the other terms and
conditions set out in Section 6.3 of the Share Provisions. If neither OSI nor
OSI ULC, as the case may be, determines to exercise the Retraction Call Right,
the Corporation will notify the undersigned of such fact as soon as possible.
This retraction request, and offer to sell the Retracted Shares to OSI or OSI
ULC, as the case may be, may be revoked and withdrawn by the undersigned by
notice in writing given to the Corporation at any time before the close of
business on the Business Date immediately preceding the Retraction Date.

         The undersigned acknowledges that if, as a result of liquidity or
solvency provisions of applicable law, the Corporation is unable to redeem all
Retracted Shares, the undersigned will be deemed to have exercised the Exchange
Right (as defined in the Voting and Exchange Trust Agreement) so as to require
OSI to purchase, or cause OSI ULC to purchase, the unredeemed Retracted Shares.

                                       56
<PAGE>   57
         The undersigned hereby represents and warrants to the Corporation, OSI
and OSI ULC that the undersigned has good title to, and owns, the share(s)
represented by the accompanying certificate free and clear of all liens, claims,
encumbrances, security interests and adverse claims or interests.

------------     --------------------------------     --------------------------
    Date             Signature of Shareholder           Guarantee of Signature

[ ]  Please check box if the legal or beneficial owner of the Retracted Shares
     is a non-resident of Canada.

[ ]  Please check box if the securities and any cheque(s) or other non-cash
     assets resulting from the retraction of the Retracted Shares are to be held
     for pick-up by the shareholder at the principal transfer offices of
     Montreal Trust Company of Canada (the "Transfer Agent") in Calgary,
     Alberta, failing which the securities and any cheque(s) or other non-cash
     assets will be delivered to the shareholder in accordance with the share
     provisions.

[ ]  Please check box if the securities and any cheque(s) or other non-cash
     assets resulting from the retraction of the Retracted Shares are to be held
     for pick-up by the shareholder at the principal transfer offices of
     Montreal Trust Company of Canada (the "Transfer Agent") in Toronto,
     Ontario, failing which the securities and any cheque(s) or other non-cash
     assets will be delivered to the shareholder in accordance with the share
     provisions.

NOTE:  This panel must be completed and the accompanying certificate, together
       with such additional documents as the Transfer Agent may require, must be
       deposited with the Transfer Agent at its principal transfer offices in
       Calgary, Alberta or Toronto, Ontario. The securities and any cheque(s) or
       other non-cash assets resulting from the retraction or purchase of the
       Retracted Shares will be issued and registered in, and made payable to,
       or transferred into, respectively, the name of the shareholder as it
       appears on the register of the Corporation and the securities, cheque(s)
       and other-non-cash assets resulting from such retraction or purchase will
       be delivered to the shareholder in accordance with the Share Provisions.

----------------------------------------------     -----------------------------
Name of Person in Whose Name Securities or         Date
Cheque(s) or Other Non-cash Assets Are To Be
Registered, Issued or Delivered (please print)

----------------------------------------------     -----------------------------
Street Address or P.O. Box                           Signature of Shareholder

----------------------------------------------     -----------------------------
City, Province                                       Signature Guaranteed by

NOTE:  If this retraction request is for less than all of the share(s)
       represented by the accompanying certificate, a certificate representing
       the remaining shares of the Corporation will be issued and registered in
       the name of the shareholder as it appears on the register of the
       Corporation or its lawful transferee.

                                       57
<PAGE>   58
                               B. OTHER PROVISIONS

1.1      Meetings

         Meetings of shareholders of the Corporation shall be held in the
location determined by the directors of the Corporation, and may be held in
Houston, Texas, or at any location within Alberta.

1.2      Definitions

         Unless there is something in the subject matter or context inconsistent
therewith in Sections 1.3, 1.4 and 1.5 below, the following terms shall have the
respective meanings set out below and grammatical variations of such terms shall
have corresponding meanings:

         "Act" means the Business Corporations Act (Alberta), as amended;

         "Automatic Redemption Date" has the meaning provided in the
Exchangeable Share Provisions;

         "Business Day" has the meaning provided in the Exchangeable Share
Provisions;

         "Exchangeable Share Consideration" has the meaning provided in the
Exchangeable Share Provisions;

         "Exchangeable Share Price" has the meaning provided in the Exchangeable
Share Provisions;

         "Exchangeable Share Provisions" means the rights, privileges,
restrictions and conditions attaching to the Exchangeable Shares;

         "Exchangeable Shares" means the Exchangeable Shares in the capital of
the Corporation;

         "Liquidation Call Purchase Price" has the meaning provided in Section
1.3;

         "Liquidation Call Right" has the meaning provided in Section 1.3;

         "Liquidation Date" has the meaning provided in the Exchangeable Share
Provisions;

         "OSI" has the meaning provided in the Exchangeable Share Provisions;

         "OSI Common Stock" has the meaning provided in the Exchangeable Share
Provisions;

         "Redemption Call Purchase Price" has the meaning provided in Section
1.4;

         "Redemption Call Right" has the meaning provided in Section 1.4;

         "Subsidiary" has the meaning provided in the Exchangeable Share
Provisions;

                                       58
<PAGE>   59
         "Transfer Agent" means the duly appointed transfer agent for the time
being of the Exchangeable Shares, and, if there is more than one such transfer
agent, then the principal Canadian transfer agent; and

         "Voting and Exchange Trust Agreement" has the meaning provided in the
Exchangeable Share Provisions.

1.3      Liquidation Call Right

         (a)  OSI or OSI ULC shall have the overriding right (the "Liquidation
              Call Right"), in the event of and notwithstanding any proposed
              liquidation, dissolution or winding-up of the Corporation as
              referred to in Article 5 of the Exchangeable Share Provisions, to
              purchase directly from all but not less than all of the holders
              (other than OSI or any Subsidiary thereof) of Exchangeable Shares
              on the Liquidation Date all but not less than all of the
              Exchangeable Shares held by such holders on payment by OSI or OSI
              ULC to each holder of the Exchangeable Share Price applicable on
              the last Business Day prior to the Liquidation Date (the
              "Liquidation Call Purchase Price") in accordance with subsection
              1.3(c). In the event of the exercise of the Liquidation Call Right
              by OSI or OSI ULC, each holder shall be obligated to sell all the
              Exchangeable Shares held by such holder to OSI or OSI ULC on the
              Liquidation Date on payment by OSI or OSI ULC to the holder of the
              Liquidation Call Purchase Price for each such share.

         (b)  To exercise the Liquidation Call Right, OSI or OSI ULC must notify
              the Corporation's Transfer Agent in writing, as agent for the
              holders of Exchangeable Shares, and the Corporation of OSI's or
              OSI ULC's intention to exercise such right at least 55 days before
              the Liquidation Date in the case of a voluntary liquidation,
              dissolution or winding-up of the Corporation and at least five
              Business Days before the Liquidation Date in the case of an
              involuntary liquidation, dissolution or winding-up of the
              Corporation. The Transfer Agent will notify the holders of
              Exchangeable Shares as to whether or not OSI or OSI ULC has
              exercised the Liquidation Call Right forthwith after the expiry of
              the date by which the same may be exercised by OSI or OSI ULC. If
              OSI or OSI ULC exercises the Liquidation Call Right, on the
              Liquidation Date OSI or OSI ULC will purchase and the holders will
              sell all of the Exchangeable Shares then outstanding for a price
              per share equal to the Liquidation Call Purchase Price.

         (c)  For the purposes of completing the purchase of the Exchangeable
              Shares pursuant to the Liquidation Call Right, OSI or OSI ULC
              shall deposit with the Transfer Agent, on or before the
              Liquidation Date, the Exchangeable Share Consideration
              representing the total Liquidation Call Purchase Price. Provided
              that such Exchangeable Share Consideration has been so deposited
              with the Transfer Agent, on and after the Liquidation Date, the
              right of each holder of Exchangeable Shares will be limited to
              receiving such holder's proportionate part of the total
              Liquidation Call Purchase Price payable by OSI or OSI ULC, without
              interest, upon presentation and surrender by the holder of
              certificates representing the Exchangeable Shares held by such
              holder and the holder shall, on and after the

                                       59
<PAGE>   60
              Liquidation Date, be considered and deemed for all purposes to be
              the holder of the OSI Common Stock delivered to such holder. Upon
              surrender to the Transfer Agent of a certificate or certificates
              representing Exchangeable Shares, together with such other
              documents and instruments as may be required to effect a transfer
              of Exchangeable Shares under the Act and the by-laws of the
              Corporation and such additional documents and instruments as the
              Transfer Agent may reasonably require, the holder of such
              surrendered certificate or certificates shall be entitled to
              receive in exchange therefor, and the Transfer Agent on behalf of
              OSI shall deliver to such holder, the Exchangeable Share
              Consideration to which such holder is entitled. If OSI or OSI ULC
              does not exercise the Liquidation Call Right in the manner
              described above, on the Liquidation Date the holders of the
              Exchangeable Shares will be entitled to receive in exchange
              therefor the liquidation price otherwise payable by the
              Corporation in connection with the liquidation, dissolution or
              winding-up of the Corporation pursuant to Article 5 of the
              Exchangeable Share Provisions. Notwithstanding the foregoing,
              until such Exchangeable Share Consideration is delivered to the
              holder, the holder shall be deemed to still be a holder of
              Exchangeable Shares for purposes of all voting rights with respect
              thereto under the Voting and Exchange Trust Agreement.

1.4      Redemption Call Right

         (a)  OSI and OSI ULC shall have the overriding right (the "Redemption
              Call Right"), notwithstanding any proposed redemption of the
              Exchangeable Shares by the Corporation pursuant to Article 7 of
              the Exchangeable Share Provisions, to purchase directly from all
              but not less than all of the holders (other than OSI or any
              Subsidiary thereof) of Exchangeable Shares on the Automatic
              Redemption Date all but not less than all of the Exchangeable
              Shares held by each such holder on payment by OSI or OSI ULC to
              the holder of the Exchangeable Share Price applicable on the last
              Business Day prior to the Automatic Redemption Date (the
              "Redemption Call Purchase Price") in accordance with subsection
              1.4(c). In the event of the exercise of the Redemption Call Right
              by OSI or OSI ULC, each holder shall be obligated to sell all the
              Exchangeable Shares held by the holder to OSI or OSI ULC on the
              Automatic Redemption Date on payment by OSI or OSI ULC to the
              holder of the Redemption Call Purchase Price for each such share.

         (b)  To exercise the Redemption Call Right, OSI or OSI ULC must notify
              the Transfer Agent in writing, as agent for the holders of
              Exchangeable Shares, and the Corporation of the OSI's or OSI ULC's
              intention to exercise such right not later than the date by which
              the Corporation is required to give notice of the Automatic
              Redemption Date. The Transfer Agent will notify the holders of the
              Exchangeable Shares as to whether or not OSI or OSI ULC has
              exercised the Redemption Call Right forthwith after the date by
              which the same may be exercised by OSI or OSI ULC. If OSI or OSI
              ULC exercises the Redemption Call Right, on the Automatic
              Redemption Date, OSI will purchase and the holders will sell all
              of the Exchangeable Shares then outstanding for a price per share
              equal to the Redemption Call Purchase Price.

                                       60
<PAGE>   61
         (c)  For the purposes of completing the purchase of the Exchangeable
              Shares pursuant to the Redemption Call Right, OSI or OSI ULC shall
              deposit with the Transfer Agent, on or before the Automatic
              Redemption Date, the Exchangeable Share Consideration representing
              the total Redemption Call Purchase Price. Provided that such
              Exchangeable Share Consideration has been so deposited with the
              Transfer Agent, on and after the Automatic Redemption Date, the
              rights of each holder of Exchangeable Shares will be limited to
              receiving such holder's proportionate part of the total Redemption
              Call Purchase Price payable by OSI or OSI ULC upon presentation
              and surrender by the holder of certificates representing the
              Exchangeable Shares held by such holder and the holder shall on
              and after the Automatic Redemption Date be considered and deemed
              for all purposes to be the holder of the OSI Common Stock
              delivered to such holder. Upon surrender to the Transfer Agent of
              a certificate or certificates representing Exchangeable Shares,
              together with such other documents and instruments as may be
              required to effect a transfer of Exchangeable Shares under the Act
              and the by-laws of the Corporation and such additional documents
              and instruments as the Transfer Agent may reasonably require, the
              holder of such surrendered certificate or certificates shall be
              entitled to receive in exchange therefor, and the Transfer Agent
              on behalf of OSI or OSI ULC shall deliver to such holder, the
              Exchangeable Share Consideration to which such holder is entitled.
              If OSI or OSI ULC does not exercise the Redemption Call Right in
              the manner described above, on the Automatic Redemption Date, the
              holders of the Exchangeable Shares will be entitled to receive in
              exchange therefor the redemption price otherwise payable by the
              Corporation in connection with the redemption of the Exchangeable
              Shares pursuant to Article 7 of the Exchangeable Share Provisions.
              Notwithstanding the foregoing, until such Exchangeable Share
              Consideration is delivered to the holder, the holder shall be
              deemed to still be a holder of Exchangeable Shares for purposes of
              all voting rights with respect thereto under the Voting and
              Exchange Trust Agreement.

1.5      Retraction Call Right

         OSI or OSI ULC shall have the overriding right, notwithstanding the
proposed redemption of Exchangeable Shares by the Corporation pursuant to
Article 6 of the Exchangeable Share Provisions, to purchase directly from the
holder (other than OSI or any Subsidiary thereof) of Exchangeable Shares all but
not less than all of the Retracted Shares in accordance with Section 6.3 of the
Exchangeable Share Provisions.

                                       61<PAGE>   1
                                                                    EXHIBIT 10.3

                                SUPPORT AGREEMENT

         THIS SUPPORT AGREEMENT is entered into as of February 14, 2001, between
Oil States International, Inc., a Delaware corporation ("OSI"), and 892489
Alberta Inc., an Alberta corporation ("PTI Holdco").

                                    RECITALS

A. Pursuant to a Combination Agreement dated as of July 31, 2000, by and among
OSI, HWC Energy Services, Inc., Merger Sub-HWC, Inc., Sooner Inc., Merger
Sub-Sooner Inc. and PTI Group Inc. ("PTI") (such agreement, as it may be amended
or restated, is hereinafter referred to as the "Combination Agreement"), the
parties agreed that on the Effective Date (as defined in the Combination
Agreement), OSI and PTI Holdco would execute and deliver a Support Agreement
containing the terms and conditions set forth in Exhibit C to the Combination
Agreement together with such other terms and conditions as may be agreed to by
the parties to the Combination Agreement acting reasonably;

B. Pursuant to an arrangement (the "Arrangement") effected by Articles of
Arrangement dated February 14, 2001 filed pursuant to the Business Corporations
Act (Alberta) (or any successor or other corporate statute by which PTI may in
the future be governed) (the "Act") each issued and outstanding common share of
PTI (a "PTI Common Share"), other than those cancelled pursuant to the
Arrangement or held by OSI, by a Subsidiary of OSI or by a U.S. shareholder of
PTI, was ultimately exchanged for Exchangeable Shares of PTI Holdco (the
"Exchangeable Shares");

C. The Articles of Incorporation of PTI Holdco set forth the rights, privileges,
restrictions and conditions (collectively, the "Exchangeable Share Provisions")
attaching to the Exchangeable Shares;

D. The parties hereto desire to make appropriate provision and to establish a
procedure whereby OSI will take certain actions and make certain payments and
deliveries necessary to ensure that PTI Holdco will be able to make certain
payments and to deliver or cause to be delivered shares of OSI Common Stock in
satisfaction of the obligations of PTI Holdco under the Exchangeable Share
Provisions with respect to the payment and satisfaction of dividends,
Liquidation Amounts, Retraction Prices and Redemption Prices, all in accordance
with the Exchangeable Share Provisions and to ensure that the shares of OSI
Common Stock are freely tradable in accordance with the provisions set out
herein;

         NOW, THEREFORE, in consideration of the respective covenants and
agreements provided in this agreement and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged),
the parties agree as follows:

                                       1
<PAGE>   2

                                   ARTICLE 1
                         DEFINITIONS AND INTERPRETATION

1.1      DEFINED TERMS

         Each term used but not otherwise defined herein shall have the meaning
attributed thereto in the Exchangeable Share Provisions, unless the context
requires otherwise.

1.2      INTERPRETATION NOT AFFECTED BY HEADINGS, ETC.

         The division of this agreement into articles, sections and paragraphs
and the insertion of headings are for convenience of reference only and shall
not affect the construction or interpretation of this agreement.

1.3      NUMBER, GENDER, ETC.

         Words importing the singular number only shall include the plural and
vice versa. Words importing the use of any gender shall include all genders.

1.4      DATE FOR ANY ACTION

         If any date on which any action is required to be taken under this
agreement is not a Business Day, such action shall be required to be taken on
the next succeeding Business Day.

                                   ARTICLE 2
                         COVENANTS OF OSI AND PTI HOLDCO

2.1      COVENANTS OF OSI REGARDING EXCHANGEABLE SHARES

         So long as any Exchangeable Shares are outstanding, OSI will:

         (a)  not declare or pay any dividend on the OSI Common Stock unless (i)
              PTI Holdco shall (w) simultaneously declare or pay, as the case
              may be, an equivalent dividend (as provided for in the
              Exchangeable Share Provisions) on the Exchangeable Shares (an
              "Equivalent Dividend"), and (x) have sufficient money or other
              assets or authorized but unissued securities available to enable
              the due declaration and the due and punctual payment, in
              accordance with applicable law, of any Equivalent Dividend, or
              (ii) PTI Holdco shall (y) subdivide the Exchangeable Shares in
              lieu of stock dividend thereon (as provided for in the
              Exchangeable Share Provisions) (an "Equivalent Stock
              Subdivision"), and (z) have sufficient authorized but unissued
              securities available to enable the Equivalent Stock Subdivision;

         (b)  advise PTI Holdco sufficiently in advance of the declaration by
              OSI of any dividend on OSI Common Stock and take all such other
              actions as are reasonably necessary in co-operation with PTI
              Holdco, to ensure that (i) the respective declaration date, record
              date and payment date for an Equivalent Dividend shall be the same
              as the declaration date, record date and payment date for the

                                       2
<PAGE>   3

              corresponding dividend on the OSI Common Stock or, (ii) the record
              date and effective date for an Equivalent Stock Subdivision shall
              be the same as the record date and payment date for the
              corresponding stock dividend on the OSI Common Stock;

         (c)  ensure that the record date for any dividend declared on OSI
              Common Stock is not less than ten Business Days after the
              declaration date for such dividend;

         (d)  take all such actions and do all such things as are necessary or
              desirable to enable and permit PTI Holdco, in accordance with
              applicable law, to pay and otherwise perform its obligations with
              respect to the satisfaction of the Liquidation Amount in respect
              of each issued and outstanding Exchangeable Share upon the
              liquidation, dissolution or winding-up of PTI Holdco or any other
              distribution of the assets of PTI Holdco for the purpose of
              winding-up its affairs, including without limitation all such
              actions and all such things as are necessary or desirable to
              enable and permit PTI Holdco to cause to be delivered shares of
              OSI Common Stock to the holders of Exchangeable Shares in
              accordance with the provisions of Article 5 of the Exchangeable
              Share Provisions;

         (e)  take all such actions and do all such things as are necessary or
              desirable to enable and permit PTI Holdco, in accordance with
              applicable law, to pay and otherwise perform its obligations with
              respect to the satisfaction of the Retraction Price and the
              Redemption Price, including without limitation all such actions
              and all such things as are necessary or desirable to enable and
              permit PTI Holdco to cause to be delivered shares of OSI Common
              Stock to the holders of Exchangeable Shares, upon the retraction
              or redemption of the Exchangeable Shares in accordance with the
              provisions of Article 6 or Article 7 of the Exchangeable Share
              Provisions, as the case may be; and

         (f)  not exercise its vote as a direct or indirect shareholder to
              initiate the voluntary liquidation, dissolution or winding-up of
              PTI Holdco nor take any action that, or omit to take any action
              the omission of which, is designed to or would result in the
              liquidation, dissolution or winding-up of PTI Holdco.

2.2      SEGREGATION OF FUNDS

         OSI will cause PTI Holdco to deposit a sufficient amount of funds in a
separate account and segregate a sufficient amount of such assets and other
property as is necessary to enable PTI Holdco to pay or otherwise satisfy the
applicable dividends, Liquidation Amount, Retraction Price or Redemption Price,
in each case for the benefit of holders from time to time of the Exchangeable
Shares, and PTI Holdco will use such funds, assets and other property so
segregated exclusively for the payment of dividends and the payment or other
satisfaction of the Liquidation Amount, the Retraction Price or the Redemption
Price, as applicable, net of any corresponding withholding tax obligations and
for the remittance of such withholding tax obligations.

                                       3
<PAGE>   4

2.3      RESERVATION OF SHARES OF OSI COMMON STOCK

         OSI hereby represents, warrants and covenants that it has irrevocably
reserved for issuance and will at all times keep available, free from
pre-emptive and other rights, out of its authorized and unissued capital stock
such number of shares of OSI Common Stock (or other shares or securities into
which OSI Common Stock may be reclassified or changed as contemplated by section
2.7 hereof) (i) as is equal to the sum of (A) the number of Exchangeable Shares
issued and outstanding from time to time and (B) the number of Exchangeable
Shares issuable upon the exercise of all rights to acquire Exchangeable Shares
outstanding from time to time and (ii) as are now and may hereafter be required
to enable and permit PTI Holdco to meet its obligations hereunder, under the
Voting and Exchange Trust Agreement, under the Exchangeable Share Provisions and
under any other security or commitment pursuant to the Arrangement with respect
to which OSI may now or hereafter be required to issue shares of OSI Common
Stock.

2.4      NOTIFICATION OF CERTAIN EVENTS

         In order to assist OSI to comply with its obligations hereunder, PTI
Holdco will give OSI notice of each of the following events at the time set
forth below:

         (a)  immediately, in the event of any determination by the Board of
              Directors of PTI Holdco to take any action which would require a
              vote of the holders of Exchangeable Shares for approval;

         (b)  immediately, upon the earlier of (i) receipt by PTI Holdco of
              notice of, and (ii) PTI Holdco otherwise becoming aware of, any
              threatened or instituted claim, suit, petition or other
              proceedings with respect to the involuntary liquidation,
              dissolution or winding-up of PTI Holdco or to effect any other
              distribution of the assets of PTI Holdco among its shareholders
              for the purpose of winding-up its affairs;

         (c)  immediately, upon receipt by PTI Holdco of a Retraction Request
              (as defined in the Exchangeable Share Provisions);

         (d)  at least 45 days prior to any Automatic Redemption Date determined
              by the Board of Directors of PTI Holdco in accordance with clause
              (b) of the definition of Automatic Redemption Date in the
              Exchangeable Share Provisions; and

         (e)  in the event of any determination by the Board of Directors of PTI
              Holdco to institute voluntary liquidation, dissolution or
              winding-up proceedings with respect to PTI Holdco or to effect any
              other distribution of the assets of PTI Holdco among its
              shareholders for the purpose of winding-up its affairs, at least
              30 days prior to the proposed effective date of such liquidation,
              dissolution, winding-up or other distribution.

                                       4
<PAGE>   5

2.5      DELIVERY OF SHARES OF OSI COMMON STOCK

         In furtherance of its obligations hereunder, upon notice of any event
which requires PTI Holdco to cause to be delivered shares of OSI Common Stock to
any holder of Exchangeable Shares, OSI shall forthwith issue and deliver the
requisite shares of OSI Common Stock to or to the order of the former holder of
the surrendered Exchangeable Shares, as PTI Holdco shall direct. All such shares
of OSI Common Stock shall be duly issued as fully paid and non-assessable and
shall be free and clear of any lien, claim, encumbrance, security interest or
adverse claim or interest.

2.6      QUALIFICATION OF SHARES OF OSI COMMON STOCK

         OSI covenants that if any shares of OSI Common Stock (or other shares
or securities into which OSI Common Stock may be reclassified or changed as
contemplated by Section 2.7 hereof) to be issued and delivered hereunder
(including for greater certainty, pursuant to the Exchangeable Share Provisions,
or pursuant to the Exchange Right or the Automatic Exchange Rights (all as
defined in the Voting and Exchange Trust Agreement)) require registration or
qualification with or approval of or the filing of any document including any
prospectus or similar document, the taking of any proceeding with or the
obtaining of any order, ruling or consent from any governmental or regulatory
authority under any Canadian or United States federal, provincial or state law
or regulation or pursuant to the rules and regulations of any regulatory
authority, or the fulfillment of any other legal requirement (collectively, the
"Applicable Laws") before such shares (or other shares or securities into which
OSI Common Stock may be reclassified or changed as contemplated by Section 2.7
hereof) may be issued and delivered by OSI to the initial holder thereof (other
than PTI Holdco) or in order that such shares may be freely tradeable thereafter
(other than any restrictions on transfer by reason of a holder being a "control
person" of OSI for purposes of Canadian federal or provincial securities law or
an "affiliate" of OSI for purposes of United States federal or state securities
law and provided such trade is conducted through facilities of a stock exchange
outside Canada), OSI will in good faith expeditiously take all such actions and
do all such things as are necessary and permitted by Applicable Laws to cause
such shares of OSI Common Stock (or other shares or securities into which OSI
Common Stock may be reclassified or changed as contemplated by Section 2.7
hereof) to be and remain duly registered, qualified or approved at all times in
order that such shares may be issued and delivered by OSI to the initial holder
thereof (other than PTI Holdco) and in order that such shares or securities may
be freely tradeable thereafter (other than any restrictions on transfer by
reason of a holder being a "control person" of OSI for purposes of Canadian
provincial securities law or an "affiliate" of OSI for purposes of United States
federal or state securities law provided such trade is conducted through
facilities of a stock exchange outside Canada) including, without limitation,
the filing and maintenance of a registration statement under the Securities Act
of 1933; provided, however, that notwithstanding the foregoing, OSI will not be
required to take any action, including, without limitation, the filing of a
registration statement, under any United States federal or state securities law
in respect of the OSI Common Stock (or other shares or securities into which OSI
common stock may be reclassified or changed as contemplated by Section 2.7
hereof) to be issued and delivered hereunder (including, for greater certainty,
pursuant to the Exchangeable Share Provisions, or pursuant to the Exchange Right
and the Automatic Exchange Rights) until the first anniversary of the Effective
Date unless such shares or securities are being, or are to be, delivered
pursuant to

                                       5
<PAGE>   6

Articles 5 or 7 of the Exchangeable Share Provisions, pursuant to the Exchange
Rights or the Automatic Exchange Rights, or pursuant to the Liquidation Call
Right or the Redemption Call Right. From and after the first anniversary of the
Effective Date (or such earlier date as such shares or securities may be issued
and delivered pursuant to Articles 5 or 7 of the Exchangeable Share Provisions,
pursuant to the Exchange Rights or the Automatic Exchange Rights or pursuant to
the Liquidation Call Right or the Redemption Call Right), OSI will in good faith
expeditiously take all such actions and do all such things as are necessary to
cause all shares of OSI Common Stock (or other shares or securities into which
OSI Common Stock may be reclassified or changed as contemplated by Section 2.7
hereof) to be delivered hereunder (including, for greater certainty, pursuant to
Exchangeable Share Provisions, or pursuant to the Exchange Right or the
Automatic Exchange Rights) to be listed, quoted or posted for trading on all
stock exchanges and quotation systems on which such shares are listed, quoted or
posted for trading at such time immediately upon their issuance.

2.7      EQUIVALENCE

         (a)      OSI will not:

                  (i)   issue or distribute shares of OSI Common Stock (or
                        securities exchangeable for or convertible into or
                        carrying rights to acquire shares of OSI Common Stock)
                        to the holders of all or substantially all of the then
                        outstanding shares of OSI Common Stock by way of stock
                        dividend or other distribution; or

                  (ii)  issue or distribute rights, options or warrants to the
                        holders of all or substantially all of the then
                        outstanding shares of OSI Common Stock entitling them to
                        subscribe for or to purchase shares of OSI Common Stock
                        (or securities exchangeable for or convertible into or
                        carrying rights to acquire shares of OSI Common Stock);
                        or

                  (iii) issue or distribute to the holders of all or
                        substantially all of the then outstanding shares of OSI
                        Common Stock (A) shares or securities of OSI of any
                        class other than OSI Common Stock (other than shares
                        convertible into or exchangeable for or carrying rights
                        to acquire shares of OSI Common Stock), (B) rights,
                        options or warrants other than those referred to in
                        subsection 2.7 (a) (ii) above, (C) evidences of
                        indebtedness of OSI or (D) assets of OSI;

                  unless

                  (iv)  one or both of OSI and PTI Holdco is permitted under
                        applicable law to issue or distribute the economic
                        equivalent on a per share basis of such rights, options,
                        warrants, securities, shares, evidences of indebtedness
                        or other assets to the holders of the Exchangeable
                        Shares; and

                  (v)   one or both of OSI and PTI Holdco shall issue or
                        distribute the economic equivalent on a per share basis
                        of such rights, options, warrants, securities,

                                       6
<PAGE>   7

                        shares, evidences of indebtedness or other assets
                        simultaneously to the holders of the Exchangeable
                        Shares.

         (b)  OSI will not:

                  (i)   subdivide, redivide or change the then outstanding
                        shares of OSI Common Stock into a greater number of
                        shares of OSI Common Stock; or

                  (ii)  reduce, combine or consolidate or change the then
                        outstanding shares of OSI Common Stock into a lesser
                        number of shares of OSI Common Stock; or

                  (iii) reclassify or otherwise change the shares of OSI Common
                        Stock or effect an amalgamation, merger, reorganization
                        or other transaction involving or affecting the shares
                        of OSI Common Stock;

                  unless

                  (iv)  PTI Holdco is permitted under applicable law to
                        simultaneously make the same or an economically
                        equivalent change to, or in the rights of the holders
                        of, the Exchangeable Shares; and

                  (v)   the same or an economically equivalent change is
                        simultaneously made to, or in the rights of the holders
                        of, the Exchangeable Shares.

         (c)  OSI will ensure that the record date for any event referred to in
              section 2.7(a) or 2.7(b) above, or (if no record date is
              applicable for such event) the effective date for any such event,
              is not less than 10 Business Days after the date on which such
              event is declared or announced by OSI (with simultaneous notice
              thereof to be given by OSI to PTI Holdco).

         (d)  The Board of Directors of PTI Holdco shall determine, in good
              faith and in its sole discretion, economic equivalence for the
              purposes of any event referred to in Section 2.7(a) or 2.7(b)
              above and each such determination shall be conclusive and binding
              on OSI. In making each such determination, the following factors
              shall, without excluding other factors determined by the Board of
              Directors of PTI Holdco to be relevant, be considered by the Board
              of Directors of PTI Holdco:

                  (i)   in the case of any stock dividend or other distribution
                        payable in OSI Common Stock, the number of such shares
                        issued in proportion to the number of shares of OSI
                        Common Stock previously outstanding;

                  (ii)  in the case of the issuance or distribution of any
                        rights, options or warrants to subscribe for or purchase
                        OSI Common Stock (or securities exchangeable for or
                        convertible into or carrying rights to acquire OSI
                        Common Stock), the relationship between the exercise
                        price of each such right, option or warrant and the
                        current market value (as determined by the

                                       7
<PAGE>   8

                        Board of Directors of PTI Holdco in the manner
                        contemplated below) of a share of OSI Common Stock;

                  (iii) in the case of the issuance or distribution of any other
                        form of property (including without limitation any share
                        or securities of OSI of any class other than OSI Common
                        Stock, any rights, options or warrants other than those
                        referred to in Section 2.7(d)(ii) above, any evidences
                        of indebtedness of OSI or any assets of OSI), the
                        relationship between the fair market value (as
                        determined by the Board of Directors of PTI Holdco in
                        the manner above contemplated) of such property to be
                        issued or distributed with respect to each outstanding
                        share of OSI Common Stock and the current market value
                        (as determined by the Board of Directors of PTI Holdco
                        in the manner contemplated below) of a share of OSI
                        Common Stock;

                  (iv)  in the case of any subdivision, redivision or change of
                        the then outstanding shares of OSI Common Stock into a
                        greater number of shares of OSI Common Stock or the
                        reduction, combination, consolidation or change of the
                        then outstanding shares of OSI Common Stock into a
                        lesser number of shares of OSI Common Stock or any
                        amalgamation, merger, reorganization or other
                        transaction affecting shares of OSI Common Stock, the
                        effect thereof upon the then outstanding shares of OSI
                        Common Stock; and

                  (v)   in all such cases, the general taxation consequences of
                        the relevant event to holders of Exchangeable Shares to
                        the extent that such consequences may differ from the
                        taxation consequences to holders of shares of OSI Common
                        stock as a result of differences between taxation laws
                        of Canada and the United States (except for any
                        differing consequences arising as a result of differing
                        marginal taxation rates and without regard to the
                        individual circumstances of holders of Exchangeable
                        Shares).

                  For purposes of the foregoing determinations, the current
                  market value of any security listed and traded or quoted on a
                  securities exchange shall be the average of the closing price
                  of such security during a period of not less than 20
                  consecutive trading days ending not more than five trading
                  days before the date of determination on the principal
                  securities exchange on which such securities are listed and
                  traded or quoted; provided, however, that if in the opinion of
                  the Board of Directors of PTI Holdco the public distribution
                  or trading activity of such securities during such period does
                  not create a market which reflects the fair market value of
                  such securities, then the current market value thereof shall
                  be determined by the Board of Directors of PTI Holdco, in good
                  faith and in its sole discretion, and provided further than
                  any such determination by the Board of Directors of PTI Holdco
                  shall be conclusive and binding on OSI.

         (e)  PTI Holdco agrees that, to the extent required, upon due notice
              from OSI, PTI Holdco will use its best efforts to take or cause to
              be taken such steps as may be

                                       8
<PAGE>   9

              necessary for the purposes of ensuring that appropriate dividends
              are paid or other distributions are made by PTI Holdco, or
              subdivisions, redivisions or changes are made to the Exchangeable
              Shares, in order to implement the required economic equivalence
              with respect to the OSI Common Stock and Exchangeable Shares as
              provided for in this Section 2.7.

2.8      TENDER OFFERS, ETC.

         In the event that a tender offer, share exchange offer, issuer bid,
take-over bid or similar transaction with respect to OSI Common Stock (an
"Offer") is proposed by OSI or is proposed to OSI or its shareholders and is
recommended by the Board of Directors of OSI, or is otherwise effected or to be
effected with the consent or approval of the Board of Directors of OSI, and the
Exchangeable Shares are not redeemed by PTI Holdco or purchased by OSI or OSI
ULC pursuant to the Redemption Call Right, OSI shall, expeditiously and in good
faith, take all such actions and do all such things as are necessary or
desirable to enable and permit holders of Exchangeable Shares to participate in
such Offer to the same extent and on an equivalent basis as the holders of
shares of OSI Common Stock, without discrimination, including, without limiting
the generality of the foregoing, OSI will use its good faith efforts
expeditiously to (and shall, in the case of a transaction proposed by OSI or
where OSI is a participant in the negotiation thereof) ensure that holders of
Exchangeable Shares may participate in all such Offers without being required to
retract Exchangeable Shares as against PTI Holdco (or, if so required, to ensure
that any such retraction shall be effective only upon, and shall be conditional
upon, the closing of the Offer and only to the extent necessary to tender or
deposit to the Offer).

2.9      OWNERSHIP OF OUTSTANDING SHARES

         Without the prior approval of PTI Holdco and the prior approval of the
holders of the Exchangeable Shares given in accordance with Section 9.2 of the
Exchangeable Share Provisions, OSI covenants and agrees in favor of PTI Holdco
that, as long as any outstanding Exchangeable Shares are owned by any person or
entity other than OSI or any of its Subsidiaries, OSI, alone or together with
any direct or indirect wholly-owned subsidiary of OSI, will be and remain the
beneficial owner of all issued and outstanding securities of PTI Holdco.
Notwithstanding the foregoing, OSI shall not be in violation of this Section if
any person or group of persons acting jointly or in concert acquires OSI Common
Stock pursuant to any merger of OSI pursuant to which OSI was not the surviving
corporation.

2.10     OSI NOT TO VOTE EXCHANGEABLE SHARES

         OSI covenants and agrees that it will appoint and cause to be appointed
proxy holders with respect to all Exchangeable Shares held by OSI and its
Subsidiaries for the sole purpose of attending each meeting of holders of
Exchangeable Shares in order to be counted as part of the quorum for each such
meeting. OSI further covenants and agrees that it will not, and will cause its
Subsidiaries not to, exercise any voting rights which may be exercisable by
holders of Exchangeable Shares from time to time pursuant to the Exchangeable
Share Provisions or pursuant to the provisions of the Act with respect to any
Exchangeable Shares held by it or by its Subsidiaries in respect of any matter
considered at any meeting of holders of Exchangeable Shares.

                                       9
<PAGE>   10

2.11     DUE PERFORMANCE

         On and after the Effective Date, OSI shall duly and timely perform all
of its obligations provided for in connection with the Plan of Arrangement and
the Articles of Incorporation of PTI Holdco, including any obligations that may
arise upon the exercise of OSI's rights under the Exchangeable Share Provisions.

                                   ARTICLE 3
                                    GENERAL

3.1      TERM

         This agreement shall come into force and be effective as of the date
hereof and shall terminate and be of no further force and effect at such time as
no Exchangeable Shares (or securities or rights convertible into or exchangeable
for or carrying rights to acquire Exchangeable Shares) are held by any party
other than OSI and any of its Subsidiaries.

3.2      CHANGES IN CAPITAL OF OSI AND PTI HOLDCO

         Notwithstanding the provisions of section 3.4 hereof, at all times
after the occurrence of any event effected pursuant to section 2.7 or 2.8
hereof, as a result of which either OSI Common Stock or the Exchangeable Shares
or both are in any way changed, this agreement shall forthwith be amended and
modified as necessary in order that it shall apply with full force and effect,
mutatis mutandis, to all new securities into which OSI Common Stock or the
Exchangeable Shares or both are so changed, and the parties hereto shall as soon
as possible execute and deliver an agreement in writing giving effect to and
evidencing such necessary amendments and modifications.

3.3      SEVERABILITY
         If any provision of this agreement is held to be invalid, illegal or
unenforceable, the validity, legality or enforceability of the remainder of this
agreement shall not in any way be affected or impaired thereby and this
agreement shall be carried out as nearly as possible in accordance with its
original terms and conditions.

3.4      AMENDMENTS, MODIFICATIONS, ETC.

         This agreement may not be amended, modified or waived except by an
agreement in writing executed by PTI Holdco and OSI and approved by the holders
of the Exchangeable Shares in accordance with Section 10.2 of the Exchangeable
Share Provisions.

3.5      MINISTERIAL AMENDMENTS

         Notwithstanding the provisions of section 3.4, the parties to this
agreement may in writing, at any time and from time to time, without the
approval of the holders of the Exchangeable Shares, amend or modify this
agreement for the purposes of:

                                       10
<PAGE>   11

         (a)  adding to the covenants of either or both parties for the
              protection of the holders of the Exchangeable Shares;

         (b)  making such amendments or modifications not inconsistent with this
              agreement as may be necessary or desirable with respect to matters
              or questions which, in the opinion of the board of directors of
              each of PTI Holdco and OSI, it may be expedient to make, provided
              that each such board of directors shall be of the opinion that
              such amendments or modifications will not be prejudicial to the
              interests of the holders of the Exchangeable Shares; or

         (c)  making such changes or corrections which, on the advice of counsel
              to PTI Holdco and OSI, are required for the purpose of curing or
              correcting any ambiguity or defect or inconsistent provision or
              clerical omission or mistake or manifest error; provided that the
              boards of directors of each of PTI Holdco and OSI shall be of the
              opinion that such changes or corrections will not be prejudicial
              to the interests of the holders of the Exchangeable Shares.

3.6      MEETING TO CONSIDER AMENDMENTS

         PTI Holdco, at the request of OSI, shall call a meeting or meetings of
the holders of the Exchangeable Shares for the purpose of considering any
proposed amendment or modification requiring approval of such shareholders. Any
such meeting or meetings shall be called and held in accordance with the by-laws
of PTI Holdco, the Exchangeable Share Provisions and all Applicable Laws.

3.7      AMENDMENTS ONLY IN WRITING

         No amendment to or modification or waiver of any of the provisions of
this agreement otherwise permitted hereunder shall be effective unless made in
writing and signed by both of the parties hereto and approved by holders of
Exchangeable Shares pursuant to Section 9.2 of the Exchangeable Share
Provisions.

3.8      INUREMENT

         This agreement shall be binding upon and inure to the benefit of the
parties hereto and each of their respective heirs, successors and assigns.

3.9      NOTICES TO PARTIES

         All notices and other communications between the parties shall be in
writing and shall be deemed to have been given if delivered personally or by
confirmed telecopy to the parties at the following addresses (or at such other
address for either such party as shall be specified in like notice):

                                       11
<PAGE>   12

         (a)      if to OSI:

                  Oil States International, Inc.
                  Three Allen Center
                  333 Clay Street, Suite 333460
                  Houston, Texas 77002

                  Attention:  Cindy B. Taylor
                  Fax:  (713) 652-0499

                  with a copy to:

                  Donahue, Ernst & Young LLP
                  1000 Ernst & Young Tower
                  440 - 2nd Avenue S.W.
                  P.O. Box 2258, station M
                  Calgary, Alberta T2P 5E5

                  Attention:  Richard Peters
                  Fax:  (403) 206-5525

         (b)      if to PTI Holdco to:

                  892489 Alberta Inc.
                  Three Allen Center
                  333 Clay Street, Suite 333460
                  Houston, Texas 77002

                  Attention:  Cindy B. Taylor
                  Fax:  (713) 652-0499

         Any notice or other communication given personally shall be deemed to
have been given and received upon delivery thereof and if given by telecopy
shall be deemed to have been given and received on the date of confirmed receipt
thereof, unless such day is not a Business Day, in which case it shall be deemed
to have been given and received upon the immediately following Business Day.

3.10     COUNTERPARTS

         This agreement may be executed in counterparts, each of which shall be
deemed an original, and all of which taken together shall constitute one and the
same instrument. Executed counterparts of this agreement may be delivered by
facsimile transmission.

3.11     JURISDICTION

         This agreement shall be construed and enforced in accordance with the
laws of the Province of Alberta and the federal laws of Canada applicable
therein.

                                       12
<PAGE>   13

3.12     ATTORNMENT

         OSI agrees that any action or proceeding arising out of or relating to
this agreement may be instituted in the courts of the Province of Alberta,
waives any objection which it may have now or hereafter to the venue of any such
action or proceeding, irrevocably submits to the jurisdiction of such courts in
any such action or proceeding, agrees to be bound by any judgment of such courts
and not to seek, and hereby waives, any review of the merits of any such
judgment by the courts of any other jurisdiction and hereby appoints PTI Holdco
at its registered office in the Province of Alberta as OSI's attorney for
service of process.

         IN WITNESS WHEREOF, OSI and PTI Holdco have caused this agreement to be
signed by their respective officers thereunder duly authorized, all as of the
date first written above.

                                       OIL STATES INTERNATIONAL, INC.

                                       Per:    /s/ CINDY B. TAYLOR
                                       -----------------------------------------

                                       892489 ALBERTA INC.

                                       Per:    /s/ SANDY SLATOR
                                       -----------------------------------------

                                       13

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