Purchase Agreement dated August 7, 2013



 Exhibit 10.1 
 Execution Version 
 $260,000,000 

HORNBECK OFFSHORE SERVICES, INC. 

1.500% Convertible Senior Notes due 2019 
 Purchase Agreement 
 August 7, 2012 
 Barclays Capital Inc. 
 J.P. Morgan Securities LLC 
 Wells Fargo Securities, LLC 
 As Representatives of the several 

        Initial Purchasers named in Schedule I attached hereto, 
 c/o Barclays Capital Inc. 
 745 Seventh Avenue 
 New York, New York 10019 
 Ladies and Gentlemen: 

Hornbeck Offshore Services, Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the several initial purchasers
listed in Schedule 1 hereto (the “Initial Purchasers”), for whom you are acting as representatives (the “Representatives”), $260,000,000 principal amount of its 1.500% Convertible Senior Notes due 2019 (the “Firm
Securities”). The Company also proposes to issue and sell to the Initial Purchasers, not more than an additional $40,000,000 of its 1.500% Convertible Senior Notes due 2019 (the “Additional Securities”) if and to the extent that the
Initial Purchasers shall have determined to exercise the right to purchase such additional 1.500% Convertible Senior Notes due 2019 granted to the Initial Purchasers in Section 1(b) hereof. The Firm Securities, the Additional Securities and the
Guarantees (defined below) are hereinafter collectively referred to as the “Securities.” The Securities will be convertible into cash, shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”) or a
combination of cash and shares of Common Stock, at the Company’s election (any such shares of Common Stock issuable upon the conversion of the Securities, collectively, the “Underlying Common Stock”), as set forth in the Offering
Memorandum. The Securities will be issued pursuant to an Indenture to be dated as of August 13, 2012 (the “Indenture”) among the Company, the guarantors listed in Schedule 2 hereto (the “Guarantors”) and Wells Fargo Bank,
National Association, as trustee (the “Trustee”), and will be guaranteed on an unsecured senior basis by each of the Guarantors (the “Guarantees”). 
 The Securities will be sold to the Initial Purchasers without being registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon an exemption therefrom. The Company and
the Guarantors have prepared a preliminary offering memorandum dated August 6, 2012 (the “Preliminary Offering Memorandum”) and will prepare an offering memorandum dated the date hereof (the “Offering








 
Memorandum”) setting forth information concerning the Company and the Securities. Copies of the Preliminary Offering Memorandum have been, and copies of the Offering Memorandum will be,
delivered by the Company to the Initial Purchasers pursuant to the terms of this Agreement. The Company hereby confirms that it has authorized the use of the Preliminary Offering Memorandum, the other Time of Sale Information (as defined below) and
the Offering Memorandum in connection with the offering and resale of the Securities by the Initial Purchasers in the manner contemplated by this Agreement. Capitalized terms used but not defined herein shall have the meanings given to such terms in
the Preliminary Offering Memorandum. References herein to the Preliminary Offering Memorandum, the Time of Sale Information and the Offering Memorandum shall be deemed to refer to and include any document incorporated by reference therein.

 At or prior to the time when sales of the Securities were first made (the “Time of Sale”), the following information shall
have been prepared (collectively, the “Time of Sale Information”): the Preliminary Offering Memorandum, as supplemented and amended by the written communications listed on Annex A hereto. 

The Company hereby confirms its agreement with the several Initial Purchasers concerning the purchase and resale of the Securities, as follows:

 1. Purchase and Resale of the Securities. 
 (a) The Company agrees to issue and sell the Firm Securities to the several Initial Purchasers as provided in this Agreement, and each Initial Purchaser, on the basis of the representations, warranties and
agreements set forth herein and subject to the conditions set forth herein, agrees, severally and not jointly, to purchase from the Company the respective principal amount of Firm Securities set forth opposite such Initial Purchaser’s name in
Schedule 1 hereto at a price equal to 97.25% of the principal amount thereof plus accrued interest, if any, from August 13, 2012 to the Closing Date. The Company will not be obligated to deliver any of the Securities except upon payment for all
the Securities to be purchased as provided herein. 
 (b) In addition, the Company hereby agrees, on the basis of the
representations and warranties, covenants and agreements of the Initial Purchasers contained herein and subject to all the terms and conditions set forth herein, in order to cover sales in excess of the Firm Securities, to issue and sell to the
Initial Purchasers the Additional Securities, and the Initial Purchasers shall have the right to purchase, severally and not jointly, up to $40,000,000 aggregate principal amount of Additional Securities at the purchase price referred to in the
preceding paragraph. The Representatives may exercise this right on behalf of the Initial Purchasers in whole or from time to time in part by giving written notice not later than 30 days after the date of this Agreement. Any exercise notice shall
specify the principal amount of Additional Securities to be purchased by the Initial Purchasers and the date on which such Additional Securities are to be 

  
 2 








 
purchased. Unless otherwise agreed to by the Company, each purchase date must be at least one business day after the written notice is given and may not be earlier than the closing date for the
Firm Securities nor later than ten business days after the date of such notice. On each day, if any, that Additional Securities are to be purchased (an “Option Closing Date”), each Initial Purchaser agrees, severally and not jointly, to
purchase the principal amount of Additional Securities (subject to such adjustments to eliminate fractional Securities as you may determine) that bears the same proportion to the total principal amount of Additional Securities to be purchased on
such Option Closing Date as the principal amount of Firm Securities set forth in Schedule I opposite the name of such Initial Purchaser bears to the total principal amount of Firm Securities; provided, however, that the Initial Purchasers may not
exercise their option to purchase Additional Securities in whole or in part, unless (i) the delivery of any Additional Securities occurs within 12 calendar days or less after the delivery of the Firm Securities, and the other requirements under
Treasury Regulation Section 1.1275-1(f)(1) are met; (ii) neither the Firm Securities nor the Additional Securities are treated as having been issued with more than a de minimis amount of original issue discount for U.S. federal income tax
purposes (as defined in Section 1273 of the Code and the Treasury regulations promulgated thereunder); or (iii) the Firm Securities are publicly traded (within the meaning of Treasury Regulation Section 1.1273-2(f)) and either
(a) the Additional Securities are treated as having been issued with no more than a de minimis amount of original issue discount for U.S. federal income tax purposes (determined without the application of Treasury Regulation
Section 1.1275-2(k)) or (b) on the Pricing Date (as defined below), the yield of the Firm Securities (based on their then fair market value) is not more than 110% of the yield of such Firm Securities on their issue date as defined in
Treasury Regulation Section 1.1273-2(a)(2) (or 110% of the coupon rate, if the Firm Securities are treated as having been issued with no more than a de minimis amount of original issue discount for U.S. federal income tax purposes). The
“Pricing Date” shall mean the earlier of (i) the date on which the price of the Additional Securities is established and (ii) the later of (A) seven calendar days before the date on which the price of the Additional
Securities is established and (B) the date on which the Company’s intention to issue the Additional Securities is publicly announced through one or more media (the date of such public announcement may be the same as the Closing Date but
not earlier than the Closing Date nor later than ten business days after the date of the exercise notice discussed above). 

(c) The Company understands that the Initial Purchasers intend to offer the Securities for resale on the terms set forth in the Time
of Sale Information. Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that: 
 (i) it is
a qualified institutional buyer within the meaning of Rule 144A under the Securities Act (a “QIB”) and an accredited investor within the meaning of Rule 501(a) under the Securities Act; 

  
 3 








 (ii) it has not solicited offers for, or offered or sold, and will not solicit offers
for, or offer or sell, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D under the Securities Act (“Regulation D”) or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act; and 
 (iii) it has not solicited offers for, or
offered or sold, and will not solicit offers for, or offer or sell, the Securities as part of their initial offering except within the United States to persons whom it reasonably believes to be QIBs in transactions pursuant to Rule 144A under the
Securities Act (“Rule 144A”) and in connection with each such sale, it has taken or will take reasonable steps to ensure that the purchaser of the Securities is aware that (1) such sale is being made in reliance on Rule 144A,
(2) the Securities have not been and, except as described in the Time of Sale Information, will not be registered under the Securities Act and (3) the Securities may not be offered, sold or otherwise transferred except as described in the
Time of Sale Information. 
 (d) Each Initial Purchaser acknowledges and agrees that the Company and, for purposes of the
opinions to be delivered to the Initial Purchasers pursuant to Sections 6(f) and 6(g), counsel for the Company and counsel for the Initial Purchasers, respectively, may rely upon the accuracy of the representations and warranties of the Initial
Purchasers, and compliance by the Initial Purchasers with their agreements, contained in paragraph (c) above, and each Initial Purchaser hereby consents to such reliance. 

(e) The Company acknowledges and agrees that the Initial Purchasers may offer and sell Securities to or through any affiliate of an
Initial Purchaser and that any such affiliate may offer and sell Securities purchased by it to or through any Initial Purchaser so long as (i) such offers and sales are consistent with Section 1(c) and (ii) the Initial Purchasers
remain liable for the actions or omission of any such authorized affiliate to the same extent as if such actions or omissions were performed by the Initial Purchaser. 

(f) The Company and the Guarantors acknowledge and agree that the Initial Purchasers are acting solely in the capacity of an
arm’s length contractual counterparty to the Company and the Guarantors with respect to the offering of Securities contemplated hereby (including in connection with determining the terms of the offering) and not as financial advisors or
fiduciaries to, or agents of, the Company, the Guarantors or any other person. Additionally, neither the Representatives nor any other Initial Purchaser is advising the Company, the Guarantors or any other person as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction. The Company and the Guarantors shall consult with their own advisors concerning such matters and shall be responsible for making their own independent investigation and appraisal of the
transactions contemplated hereby, and neither the Representatives nor any other Initial 

  
 4 








 
Purchaser shall have any responsibility or liability to the Company or the Guarantors with respect thereto. Any review by the Representatives or any Initial Purchaser of the Company, the
Guarantors, and the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Representatives or such Initial Purchaser, as the case may be, and shall not be on behalf of the
Company, the Guarantors or any other person. 
 2. Payment and Delivery. 

(a) Payment for and delivery of the Securities will be made at the offices of Vinson & Elkins LLP, First City Tower, 1001
Fannin, Suite 2500, Houston, Texas 77002-6760, at 10:00 A.M., New York City time, on August 13, 2012, or at such other time or place on the same or such other date, not later than the fifth business day thereafter, as the Representatives and
the Company may agree upon in writing. The time and date of such payment and delivery is referred to herein as the “Closing Date”. 
 Payment for any Additional Securities shall be made to the Company against delivery of such Additional Securities for the respective accounts of the several Initial Purchasers at 10:00 A.M., New York City time, on
the Option Closing Date. 
 (b) Payment for the Securities shall be made by wire transfer in immediately available funds to
the account(s) specified by the Company to the Representatives against delivery to the Trustee as custodian for The Depository Trust Company, for the account of the Initial Purchasers, of one or more global notes representing the Securities
(collectively, the “Global Note”), with any transfer taxes payable in connection with the sale of the Securities to the Initial Purchasers duly paid by the Company. The Global Note will be made available for inspection by the
Representatives not later than 1:00 P.M., New York City time, on the business day prior to the Closing Date or the Option Closing Date, as the case may be. 
 3. Representations and Warranties of the Company and the Guarantors. The Company and the Guarantors jointly and severally represent and warrant to each Initial Purchaser that: 

(a) Preliminary Offering Memorandum, Time of Sale Information and Offering Memorandum. The Preliminary Offering Memorandum, as of
its date, did not, the Time of Sale Information, at the Time of Sale, did not, and at the Closing Date, will not, and the Offering Memorandum, in the form first used by the Initial Purchasers to confirm sales of the Securities and as of the Closing
Date, will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the
Company and the Guarantors make no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with 

  
 5 








 
information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representatives expressly for use in the Preliminary Offering Memorandum,
the Time of Sale Information or the Offering Memorandum. 
 (b) Additional Written Communications. The Company (including
its agents and representatives, other than the Initial Purchasers in their capacity as such) has not prepared, made, used, authorized, approved or referred to and will not prepare, make, use, authorize, approve or refer to any written communication
that constitutes an offer to sell or solicitation of an offer to buy the Securities (each such communication by the Company or its agents and representatives (other than a communication referred to in clauses (i), (ii) and (iii) below) an
“Issuer Written Communication”) other than (i) the Preliminary Offering Memorandum, (ii) the Offering Memorandum, (iii) the documents listed on Annex A hereto, including a term sheet substantially in the form of Annex B
hereto, which constitute part of the Time of Sale Information, and (iv) any electronic road show or other written communications, in each case used in accordance with Section 4(c). Each such Issuer Written Communication, when taken
together with the Time of Sale Information, did not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that the Company makes no representation and warranty with respect to any statements or omissions made in each such Issuer Written Communication in reliance upon and in conformity
with information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representatives expressly for use in any Issuer Written Communication. 

(c) Incorporated Documents. The documents incorporated by reference in each of the Time of Sale Information and the Offering
Memorandum, when filed with the Securities and Exchange Commission (the “Commission”), conformed or will conform, as the case may be, in all material respects to the requirements of the Exchange Act and the rules and regulations of the
Commission thereunder, and did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. 
 (d) Financial Statements. The financial statements, and the related notes
thereto, of the Company included or incorporated by reference in the Time of Sale Information and the Offering Memorandum present fairly, in all material respects, the consolidated financial position of the Company and its consolidated subsidiaries
as of the dates indicated and the results of their operations and the changes in their consolidated cash flows for the periods specified; and said financial statements have been prepared in conformity with United States generally accepted accounting
principles and practices applied on a consistent basis, except as described in the notes to such financial statements; and the 

  
 6 








 
other financial and statistical information and any other financial data included or incorporated by reference in the Time of Sale Information and the Offering Memorandum present fairly, in all
material respects, the information purported to be shown thereby at the respective dates or for the respective periods to which they apply and, to the extent that such information is set forth in or has been derived from the financial statements and
accounting books and records of the Company, have been prepared on a basis consistent with such financial statements and the books and records of the Company. The interactive data in eXtensbile Business Reporting Language included or incorporated by
reference in the Offering Memorandum and the Time of Sale Information fairly presents the information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto.

 (e) No Material Adverse Change. None of the Company, the Guarantors, or any of their subsidiaries has sustained since
the date of the latest audited financial statements included or incorporated by reference in the Time of Sale Information any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth or contemplated in the Time of Sale Information and the Offering Memorandum; and, since the respective dates as of which information
is given in the Time of Sale Information and the Offering Memorandum, there has not been any material change in the capital stock, material increase in long-term debt or any material decreases in consolidated net current assets or stockholders’
equity of the Company, the Guarantors, or any of their subsidiaries or any material adverse change, or any development involving a prospective material adverse change, in or affecting the general affairs, management, current or future consolidated
financial position, stockholders’ equity or results of operations of the Company and its subsidiaries taken as a whole (a “Material Adverse Effect”); 

(f) Organization and Good Standing. Each of the Company and the Guarantors has been duly incorporated as a corporation or formed as
a limited liability company and is validly existing as a corporation or limited liability company in good standing under the laws of the State of Delaware, with the corporate or limited liability company power and authority to own its properties and
conduct its business as described in the Time of Sale Information and the Offering Memorandum, and has been duly qualified as a foreign corporation or limited liability company for the transaction of business and is in good standing under the laws
of each other jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, except where the failure to be so qualified or in good standing in any such jurisdiction would not have a material adverse
effect on the ability of the Company and its subsidiaries taken as a whole to own or lease their properties or conduct their businesses as described in the Time of Sale Information and the Offering Memorandum; 

  
 7 








 (g) Capitalization. The Company had, at the date indicated in the Time of Sale
Information and the Offering Memorandum, a duly authorized, issued and outstanding capitalization as set forth in the Time of Sale Information and the Offering Memorandum under the caption “Capitalization”; all of the issued shares of
capital stock of the Company have been duly and validly authorized and issued and are fully paid and non-assessable; such authorized capital stock of the Company conforms as to legal matters in all material respects to the description thereof
contained in the Time of Sale Information and the Offering Memorandum; all of the equity interests in each subsidiary of the Company, have been duly and validly authorized and issued and are fully paid and non-assessable and are owned directly or
indirectly by the Company, free and clear of any lien, charge, encumbrance, security interest, restriction on voting or transfer or any other claim of any third party; 

(h) The Indenture. The Indenture has been duly authorized by the Company and the Guarantors and, when duly executed and delivered by
the Company and the Guarantors (assuming the authorization, execution and delivery by the Trustee), will constitute a valid and legally binding instrument of the Company and the Guarantors, enforceable against the Company and the Guarantors in
accordance with its terms, subject as to enforcement, to bankruptcy, insolvency, fraudulent transfer, fraudulent conveyance, moratorium, reorganization and laws of general applicability relating to or affecting creditors’ rights and general
equity principles (regardless of whether enforceability is considered in a proceeding in equity or at law); the Indenture conforms, in all material respects to the requirements of the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”), and the rules and regulations of the Commission applicable to an indenture that is qualified thereunder; and the Indenture conforms, in all material respects, to the description thereof in the Time of Sale Information and the
Offering Memorandum; 
 (i) The Securities. The Securities (except the Guarantees) have been duly authorized by the Company
and, when issued and delivered as provided in this Agreement and duly authenticated pursuant to the Indenture, will be duly executed, authenticated, issued and delivered and will constitute valid and legally binding obligations of the Company
entitled to the benefits provided by the Indenture, enforceable against the Company in accordance with their terms, subject as to enforcement, to bankruptcy, insolvency, fraudulent transfer, fraudulent conveyance, moratorium, reorganization and laws
of general applicability relating to or affecting creditors’ rights and general equity principles (regardless of whether enforceability is considered in a proceeding in equity or at law); and the Securities (except the Guarantees) will conform,
in all material respects, to the descriptions thereof in the Time of Sale Information and the Offering Memorandum; 
 (j)
The Guarantees. The Guarantees have been duly authorized by the Guarantors, and, when issued and delivered as provided in this Agreement and duly authenticated pursuant to the Indenture will be duly executed, authenticated, issued and delivered and
will constitute valid and legally binding obligations of the Guarantors entitled to the benefits provided by the Indenture 

  
 8 








 
enforceable against the Guarantors in accordance with their terms, subject as to enforcement, to bankruptcy, insolvency, fraudulent transfer, fraudulent conveyance, moratorium, reorganization and
laws of general applicability relating to or affecting creditors’ rights and general equity principles (regardless of whether enforceability is considered in a proceeding in equity or at law); and the Guarantees will conform, in all material
respects, to the descriptions thereof in the Time of Sale Information and the Offering Memorandum; 
 (k) Underlying Common
Stock. Upon issuance and delivery of the Securities in accordance with the Agreement and the Indenture, the Securities (except the Guarantees) will be convertible at the option of the holder thereof into cash, the Underlying Common Stock, or a
combination of cash and the Underlying Common Stock, at the Company’s election, in accordance with the terms of the Securities (except the Guarantees); the Underlying Common Stock reserved for issuance upon conversion of the Securities (except
the Guarantees) has been duly and validly authorized and reserved by the Company and, when issued upon conversion of the Securities (except the Guarantees) in accordance with the terms of the Securities (except the Guarantees), will be validly
issued, fully paid and nonassessable, and the issuance of the Underlying Common Stock will not be subject to any preemptive or similar rights. The Underlying Common Stock will conform to the description thereof in each of the Time of Sale
Information and the Offering Memorandum; 
 (l) Purchase Agreement. This Agreement has been duly authorized, executed and
delivered by the Company and the Guarantors; 
 (m) Legal Summaries. The statements set forth in the Time of Sale
Information and the Offering Memorandum under the captions “Description of Notes” and “Description of Capital Stock” and “United States federal income and estate tax considerations,” insofar as they constitute summaries
of the legal matters, documents or proceedings referred to therein, fairly present, in all material respects, the information called for with respect to such legal matters, documents or proceedings; 

(n) No Violation. None of the Company, the Guarantors, or any of their subsidiaries is in violation of its certificate of
incorporation or certificate of formation, or its bylaws or limited liability company agreement (or other organizational documents), or in default in the performance or observance of any obligation, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which it is a party or by which it or any of its properties may be bound, other than such defaults that individually or in the aggregate would not have a Material
Adverse Effect; 
 (o) No Conflicts. The issue and sale of the Securities (including the Guarantees), the issuance of the
Underlying Common Stock upon conversion of the Securities and the compliance by the Company and the Guarantors with all of 

  
 9 








 
the provisions of the Securities, the Guarantees, the Indenture and this Agreement and the consummation of the transactions herein and therein contemplated (A) will not conflict with or
result in a breach or violation of any of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party
or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries is subject, except such conflict, breach or violation as would not have a Material Adverse Effect,
(B) will not result in any violation of the provisions of the Certificate of Incorporation or bylaws of the Company or the certificate of formation or limited liability company agreement of any significant subsidiary, and (C) will not
result in the violation of any statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over the Company or any of its subsidiaries or any of their properties, except such violations as would not have
a Material Adverse Effect; 
 (p) No Consents Required. Except as disclosed in the Time of Sale Information and the
Offering Memorandum, no consent, approval, authorization, order, registration or qualification of or with any such court or governmental agency or body is required for the issue and sale of the Securities (including the Guarantees), the issuance of
the Underlying Common Stock upon the conversion of the Securities or the consummation by the Company of the transactions contemplated by this Agreement or the Indenture, except for such consents, approvals, authorizations, registrations or
qualifications as may be required under state securities or Blue Sky laws in connection with the purchase and distribution of the Securities by the Initial Purchasers in the manner contemplated by this Agreement, the Time of Sale Information and the
Offering Memorandum, the listing of the Underlying Common Stock on the New York Stock Exchange and except for such consents the failure to obtain would not have a Material Adverse Effect; 

(q) Legal Proceedings. Except as set forth in the Time of Sale Information and the Offering Memorandum, there are no legal or
governmental proceedings pending to which the Company, the Guarantors, or any of their subsidiaries is a party or of which any property of the Company or any of its subsidiaries is the subject which, if determined adversely to the Company or any of
its subsidiaries, would individually or in the aggregate have a Material Adverse Effect; and, to the best of the Company’s knowledge, no such proceedings are threatened or contemplated by governmental authorities or threatened by others;

 (r) Independent Accountants. Ernst & Young LLP, who have certified the audited consolidated financial
statements of the Company and its subsidiaries, are independent public accountants as required under the Securities Act and the rules and regulations of the Commission thereunder and the rules and regulations of the Public Company Accounting
Oversight Board; 

  
 10 








 (s) Title to Personal Property. The Company and its subsidiaries own no material real
property (other than leasehold interests); the Company and its subsidiaries have good title to (i) all barges, tugs, tankers, offshore supply vessels, multi-purpose supply vessels, anchor-handling towing supply vessels and other vessels
(collectively, “Vessels”) owned by them and (ii) all other personal property owned by them, in each case free and clear of all liens, encumbrances and defects except such as are described in the Time of Sale Information and the
Offering Memorandum or such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company and its subsidiaries; and except for the leases at HOS Port, LLC, none
of the real property and building space held under lease by the Company and its subsidiaries are material to the Company and its subsidiaries taken as a whole and, should their existing leases (except for such HOS Port LLC leases) expire or
terminate, the cost to secure new facilities would not result in a Material Adverse Effect; 
 (t) Intellectual Property.
The Company and its subsidiaries own or possess adequate licenses or other rights to use all trademarks, service marks, trade names and know-how necessary to conduct the businesses now or proposed to be operated by them as described in the Time of
Sale Information and the Offering Memorandum, and neither the Company nor any of its subsidiaries has received any notice of conflict with (or knows of any such conflict with) asserted rights of others with respect to any trademarks, service marks,
trade names or know-how which, if such assertion of conflict were sustained, would individually or in the aggregate have a Material Adverse Effect; 
 (u) No Undisclosed Relationships. No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries, on the one hand, and the directors, officers, stockholders or other affiliates
of the Company or any of its subsidiaries, on the other, that would be required by the Securities Act to be described in a registration statement to be filed with the Commission and that is not so described in each of the Time of Sale Information
and the Offering Memorandum. 
 (v) Investment Company Act. The Company and the Guarantors are not and, after giving effect
to the offering and sale of the Securities and the application of the proceeds thereof as described in the Time of Sale Information and the Offering Memorandum, will not be required to register as an “investment company” as such term is
defined in the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Investment Company Act”); 

(w) Taxes. The Company and its subsidiaries have filed all necessary federal, state, local and foreign income and franchise tax
returns or have timely requested extensions thereof and, other than taxes that are currently being contested in good faith and for which adequate reserves have been provided, have paid all taxes shown as due thereon or made adequate accruals or


  
 11 








 
provision therefor, except to the extent such failures to pay or to file as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and other than
tax deficiencies which the Company or any subsidiary is contesting in good faith and for which the Company or such subsidiary has provided adequate accruals, there is no tax deficiency that has been asserted against the Company or any subsidiary
that would individually or in the aggregate have a Material Adverse Effect; 
 (x) Licenses and Permits. The Company and
its significant subsidiaries possess all licenses, permits, certificates, consents, orders, approvals and other authorizations from, and have made all declarations and filings with, all federal, state, local or foreign and other governmental
authorities, the American Bureau of Shipping and all courts and other tribunals, including without limitation under any applicable Environmental Laws (as defined below), currently required or necessary to own or lease, as the case may be, and to
operate their properties and to carry on their business as now and proposed to be conducted as set forth in the Time of Sale Information and the Offering Memorandum (“Permits”), except where the failure to obtain such Permits would not
individually or in the aggregate have a Material Adverse Effect; the Company and its subsidiaries have fulfilled and performed all of their obligations with respect to such Permits and no event has occurred which allows, or after notice or lapse of
time would allow, revocation or termination thereof or results in any other material impairment of the rights of the holder of any such Permit, except where the failure to perform such obligations or the occurrence of such event would not have a
Material Adverse Effect; and neither the Company nor any of its subsidiaries has received any notice of any proceeding relating to revocation or modification of any such Permit, except as described in the Time of Sale Information and the Offering
Memorandum and except where such revocation or modification would not individually or in the aggregate have a Material Adverse Effect; 
 (y) No Labor Disputes. There is no strike, labor dispute, slowdown or work stoppage with the employees of the Company or any of its subsidiaries which is pending or, to the best of the Company’s knowledge,
threatened; neither the Company nor any of its subsidiaries is a party to or has any obligation under any collective bargaining agreement or other labor union contract, white paper or side agreement with any labor union or organization; except as
described in the Time of Sale Information and the Offering Memorandum, to the best of the Company’s knowledge, no collective bargaining organizing activities are taking place with respect to the Company or any of its subsidiaries; and the
Company has a policy on drug and alcohol abuse applicable to each of the Vessels that meets or exceeds the standards contained in the current edition of the Oil Companies International Marine Forum Guidelines for the Control of Drugs and Alcohol
Onboard Ship; 

  
 12 








 (z) Compliance With Environmental Laws. Except as described in the Time of Sale
Information and the Offering Memorandum (or any amendment or supplement thereto) or as would not individually or in the aggregate have a Material Adverse Effect (A) the Company and its subsidiaries are in compliance with and not subject to any
known liability under applicable Environmental Laws (as defined below), (B) the Company and its subsidiaries have made all filings and provided all notices required under any applicable Environmental Laws, and have, and are in compliance with,
all Permits required under any applicable Environmental Laws and each of them is in full force and effect, (C) there is no civil, criminal or administrative action, suit, demand, claim, hearing, notice of violation, investigation, proceeding,
notice or demand letter or request for information pending or, to the best of the Company’s knowledge, threatened against the Company or its subsidiaries under any Environmental Law, (D) no lien, charge, encumbrance or restriction has been
recorded under any Environmental Law with respect to any assets, facility or property owned, operated, leased or controlled by the Company or any of its subsidiaries, (E) neither the Company nor any of its subsidiaries has received written
notice that it has been identified as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), or any comparable state law, (F) no property or
facility of the Company or any of its subsidiaries is (i) listed or, to the best of the Company’s knowledge, proposed for listing on the National Priorities List under CERCLA or (ii) listed in the Comprehensive Environmental Response,
Compensation, Liability Information System List promulgated pursuant to CERCLA, or on any comparable list maintained by any state or local governmental authority having jurisdiction and (G) each Vessel complies with the Federal Water Pollution
Control Act, as amended, and has secured and carries on board a current U.S. Coast Guard Certificate of Financial Responsibility (Water Pollution); 
 For
purposes of this Agreement, “Environmental Laws” means all applicable federal treaties and all applicable federal, state and local laws or regulations, codes, orders, decrees, judgments or injunctions issued, promulgated, approved or
entered thereunder, relating to pollution or protection of public health and safety or the environment, including, without limitation, laws relating to (i) emissions, discharges, releases or threatened releases of Hazardous Materials (as
defined below) into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata), (ii) the manufacture, processing, distribution, use, generation, treatment, storage, disposal,
transport or handling of Hazardous Materials, and (iii) underground and above ground storage tanks and related piping, and emissions, discharges, releases or threatened releases therefrom. For purposes of this Agreement, “Hazardous
Materials” means any pollutant, contaminant, substance, chemical or material that is listed, classified or regulated as a hazardous substance, hazardous waste or hazardous material, as defined in any applicable Environmental Law, to the extent
any of the foregoing are present in a quantity or concentration regulated pursuant to an applicable Environmental Law; 

(aa) Compliance With ERISA. Neither the Company nor any of its subsidiaries has any liability for any prohibited transaction or
funding deficiency or any complete or partial withdrawal liability with respect to any pension, profit 

  
 13 








 
sharing, 401(k) plan or other plan which is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), to which the Company or any of its subsidiaries makes
or ever has made a contribution and in which any employee of the Company or any of its subsidiaries is or has ever been a participant, except for such liabilities which would not individually or in the aggregate have a Material Adverse Effect; and
with respect to such plans, the Company and each of its subsidiaries are in compliance in all material respects with all applicable provisions of ERISA; 
 (bb) Disclosure Controls. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) of the Exchange Act) that comply with the requirements of the Exchange Act; such
disclosure controls and procedures have been designed to ensure that material information relating to the Company and its subsidiaries is made known to the Company’s principal executive officer and principal financial executive officer by
others within those entities; and such disclosure controls and procedures are effective; 
 (cc) Accounting Controls.
Company maintains a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) that complies with the requirements of the Exchange Act and has been designed by the Company’s principal
executive officer and principal financial officer, or under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles; the Company’s internal control over financial reporting is effective, and the Company is not aware of any material weaknesses in its internal control over financial reporting. 

(dd) Internal Controls. Since the date of the latest audited financial statements included or incorporated by reference in the
Offering Memorandum and the Time of Sale Information, there has been no change in the Company’s internal control over financial reporting that has materially and adversely affected, or is reasonably likely to materially and adversely affect,
the Company’s internal control over financial reporting. 
 (ee) Insurance. The Company and its subsidiaries carry
insurance in such amounts and covering such risks as in their determination is adequate for the conduct of their business or the value of their properties. 
 (ff) No Unlawful Payments. Neither the Company nor any of its subsidiaries nor, to the best knowledge of the Company and each of the Guarantors, any director, officer, agent, employee or other person associated
with or acting on behalf of the Company or any of its subsidiaries has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or
indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the Foreign 

  
 14 








 
Corrupt Practices Act of 1977; or (iv) made any other unlawful payment from corporate funds, whether as a bribe, rebate, payoff, influence payment, kickback or otherwise. 

(gg) Compliance with Money Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all
times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the best knowledge of the Company, threatened. 

(hh) Compliance with OFAC. None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer,
agent, employee or affiliate of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the Company will
not directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing
the activities of any person currently subject to any U.S. sanctions administered by OFAC. 
 (ii) No Broker’s Fees.
Neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding with any person (other than this Agreement) that would give rise to a valid claim against any of them or any Initial Purchaser for a brokerage
commission, finder’s fee or like payment in connection with the offering and sale of the Securities. 
 (jj) Rule 144A
Eligibility. When the Securities are issued and delivered pursuant to this Agreement, no Securities will be of the same class (within the meaning of Rule 144A under the Securities Act) as securities which are listed on a national securities exchange
registered under Section 6 of the Exchange Act, or quoted in a U.S. automated inter-dealer quotation system; the Securities satisfy the requirements set forth in Rule 144A(d)(3) under the Securities Act. 

(kk) No Integration. Neither the Company, the Guarantors, nor any affiliate (as defined in Rule 501(b) of Regulation D) of the
Company or the Guarantors has directly, or through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act) which is or will be integrated with the sale of the
Securities or the Underlying Common Stock in a manner that would require the registration under the Securities Act of the offering contemplated by the Time of Sale Information and the Offering Memorandum. 

  
 15 








 (ll) No General Solicitation or Directed Selling Efforts. None of the Company, the
Guarantors, any affiliate of the Company or any person acting on its or their behalf (other than the Initial Purchasers for whom we make no representation) has offered or sold the Securities or the Underlying Common Stock by means of any general
solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act. 
 (mm) Securities Law
Exemptions. Assuming the accuracy of the representations and warranties of the Initial Purchasers contained in Section 1(b) and their compliance with their agreements set forth therein, it is not necessary, in connection with the issuance and
sale of the Securities to the Initial Purchasers and the offer, resale and delivery of the Securities by the Initial Purchasers in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, to register the
Securities under the Securities Act or to qualify the Indenture under the Trust Indenture Act. 
 (nn) No Stabilization.
Prior to the date hereof, neither the Company nor any of its affiliates has taken any action which is designed to or which has constituted or which might have been expected to cause or result in stabilization or manipulation of the price of any
security of the Company in connection with the offering of the Securities. 
 (oo) Margin Rules. None of the transactions
contemplated by this Agreement (including, without limitation, the use of the proceeds from the sale of the Securities) will violate or result in a violation of Section 7 of the Exchange Act, or any regulation promulgated thereunder, including,
without limitation, Regulations T, U, and X of the Board of Governors of the Federal Reserve System. 
 (pp)
Forward-Looking Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in any of the Time of Sale Information or the Offering Memorandum has been
made or reaffirmed without a reasonable basis or has been disclosed other than in good faith. 
 (qq) Statistical and
Market Data. To the best of the Company’s and the Guarantors’ knowledge, the statistical and market related data included in the Time of Sale Information and the Offering Memorandum are based on or derived from sources which are reliable
and accurate in all material respects. 
 (rr) Sarbanes-Oxley Act. There is and has been no failure on the part of the
Company or any of the Company’s directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley
Act”), including Section 402 related to loans and Sections 302 and 906 related to certifications. 

  
 16 








 4. Further Agreements of the Company and the Guarantors. The Company and each of the Guarantors
jointly and severally covenant and agree with each Initial Purchaser that: 
 (a) Delivery of Copies. The Company will
deliver, without charge, to the Initial Purchasers as many copies of the Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written Communication and the Offering Memorandum (including all amendments and supplements
thereto) as the Representatives may reasonably request. 
 (b) Offering Memorandum, Amendments or Supplements. Before
finalizing the Offering Memorandum or making or distributing any amendment or supplement to any of the Time of Sale Information or the Offering Memorandum or, except as otherwise required by law with respect to any filing on Form 10-K, Form 10-Q or
Form 8-K that is not related to the Securities, filing with the Commission any document that will be incorporated by reference therein, the Company will furnish to the Representatives and counsel for the Initial Purchasers a copy of the proposed
Offering Memorandum or such amendment or supplement or document to be incorporated by reference therein for review, and will not distribute any such proposed Offering Memorandum, amendment or supplement or file, except as required by law with
respect to any filing on Form 10-K, Form 10-Q or Form 8-K that is not related to the Securities, any such document with the Commission to which the Representatives reasonably object. 

(c) Additional Written Communications. Before making, preparing, using, authorizing, approving or referring to any Issuer Written
Communication, the Company will furnish to the Representatives and counsel for the Initial Purchasers a copy of such written communication for review and will not make, prepare, use, authorize, approve or refer to any such written communication to
which the Representatives reasonably objects. 
 (d) Notice to the Representatives. The Company will advise the
Representatives promptly, and, if requested by the Representatives, confirm such advice in writing (including, without limitation, via email or similar means of electronic communication), (i) of the issuance by any governmental or regulatory
authority of any order preventing or suspending the use of any of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum or the initiation or threatening of any proceeding for that purpose; (ii) of the
occurrence of any event at any time prior to the completion of the initial offering of the Securities as a result of which any of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum as then amended or
supplemented would include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances existing when such Time of Sale Information, Issuer


  
 17 








 
Written Communication or the Offering Memorandum is delivered to a purchaser, not misleading; and (iii) of the receipt by the Company of any notice with respect to any suspension of the
qualification of the Securities for offer and sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and the Company will use its reasonable best efforts to prevent the issuance of any such order preventing or
suspending the use of any of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum or suspending any such qualification of the Securities and, if any such order is issued, will use its reasonable best efforts to
obtain as soon as possible the withdrawal thereof. 
 (e) Time of Sale Information. If at any time prior to the Closing
Date (i) any event shall occur or condition shall exist as a result of which any of the Time of Sale Information as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or (ii) it is necessary to amend or supplement any of the Time of Sale Information to comply with law, the Company will
immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial Purchasers such amendments or supplements to any of the Time of Sale Information (or any document to be filed
with the Commission and incorporated by reference therein) as may be necessary so that the statements in any of the Time of Sale Information as so amended or supplemented will not, in light of the circumstances under which they were made, be
misleading or so that any of the Time of Sale Information will comply with law. 
 (f) Ongoing Compliance of the Offering
Memorandum. If at any time prior to the completion of the initial offering of the Securities (i) any event shall occur or condition shall exist as a result of which the Offering Memorandum as then amended or supplemented would include any
untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances existing when the Offering Memorandum is delivered to a purchaser, not misleading or
(ii) it is necessary to amend or supplement the Offering Memorandum to comply with law, the Company will immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial
Purchasers such amendments or supplements to the Offering Memorandum (or any document to be filed with the Commission and incorporated by reference therein) as may be necessary so that the statements in the Offering Memorandum as so amended or
supplemented (including such document to be incorporated by reference therein) will not, in the light of the circumstances existing when the Offering Memorandum is delivered to a purchaser, be misleading or so that the Offering Memorandum will
comply with law. 

  
 18 








 (g) Blue Sky Compliance. The Company will use its reasonable best efforts to qualify
the Securities and the Underlying Common Stock for offer and sale under the securities or Blue Sky laws of such jurisdictions as the Representatives shall reasonably request and will use its reasonable best efforts to continue such qualifications in
effect so long as required for the offering and resale of the Securities; provided that neither the Company nor any of the Guarantors shall be required to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any
such jurisdiction where it would not otherwise be required to so qualify, (ii) file any general consent to service of process in any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not otherwise so
subject. 
 (h) Lock-up Period. For a period commencing on the date hereof and ending on the 90th day after the date of the
Offering Memorandum (the “Lock-Up Period”), the Company agrees not to, directly or indirectly (1) offer for sale, sell, pledge or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected
to, result in the disposition by any person at any time in the future of) any shares of Common Stock or securities convertible into or exchangeable for Common Stock (other than the shares of Common Stock issued pursuant to an employee stock purchase
plan, or any employee benefit plans, qualified stock option plans or other director or employee compensation plans existing on the date hereof or pursuant to currently outstanding options, warrants or rights not issued under one of those plans), or
sell or grant options, rights or warrants with respect to any shares of Common Stock or securities convertible into or exchangeable for Common Stock (other than the grant of options pursuant to option plans existing on the date hereof),
(2) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of such shares of Common Stock, whether any such transaction described in
clause (1) or (2) above is to be settled by delivery of Common Stock or other securities, in cash or otherwise, (3) file or cause to be filed a registration statement, including any amendments, with respect to the registration of any
shares of Common Stock or securities convertible, exercisable or exchangeable into Common Stock or any other securities of the Company (other than any registration statement on Form S-8) or (4) publicly disclose the intention to do any of the
foregoing, in each case without the prior written consent of Barclays Capital Inc. and J.P. Morgan Securities LLC, on behalf of the Initial Purchasers, and to cause each officer, director and stockholder of the Company set forth on Schedule 3 hereto
to furnish to the Representatives, on or before August 13, 2012, a letter or letters, substantially in the form of Annex E hereto (the “Lock-Up Agreements”); provided, however, that the foregoing shall not apply to (A) the sale
of the Securities under this Agreement or the issuance of the Underlying Common Stock and (B)(i) Common Stock call option transactions with Barclays Bank PLC and/or other Initial Purchasers or their respective affiliates pursuant to the confirmation
letters dated August 7, 2012 and (ii) warrant transactions with Barclays Bank PLC and/or other Initial Purchasers or their respective affiliates pursuant to the confirmation letters dated August 7, 2012. 

  
 19 








 (i) Conversion Price. Between the date hereof and the Closing Date (both dates
included), the Company will not do any act or thing which, had the Firm Securities then been in issue, would result in an adjustment to the conversion price of the Firm Securities. 

(j) Use of Proceeds. The Company will apply the net proceeds from the sale of the Securities as described in each of the Time of
Sale Information and the Offering Memorandum under the heading “Use of proceeds”. 
 (k) Supplying Information.
So long as any of the Securities or the Underlying Common Stock are outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, the Company will, furnish at its expense to the Initial
Purchasers, and, upon request, to the holders of the Securities or the Underlying Common Stock and prospective purchasers of the Securities or the Underlying Common Stock the information required by Rule 144A(d)(4) under the Securities Act (if any).

 (l) DTC. The Company will assist the Initial Purchasers in arranging for the Securities to be eligible for clearance and
settlement through The Depository Trust Company (“DTC”). 
 (m) No Resales by the Company. The Company will not,
and will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to, resell any of the Securities that have been acquired by any of them, except for Securities purchased by the Company or any of its affiliates and
resold in a transaction registered under the Securities Act. 
 (n) No Integration. Neither the Company nor any of its
affiliates (as defined in Rule 501(b) of Regulation D) will, directly or through any agent, sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any security (as defined in the Securities Act), that is or will be
integrated with the sale of the Securities or the Underlying Common Stock in a manner that would require registration of the Securities or the Underlying Common Stock under the Securities Act. 

(o) No General Solicitation or Directed Selling Efforts. None of the Company or any of its affiliates or any other person acting on
its or their behalf (other than the Initial Purchasers, as to which no covenant is given) will solicit offers for, or offer or sell, the Securities or the Underlying Common Stock by means of any form of general solicitation or general advertising
within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. 
 (p) No Stabilization. Neither the Company nor any of the Guarantors will take, directly or indirectly, any action designed to or that could reasonably be expected to cause or result in any stabilization or
manipulation of the price of the Securities. 

  
 20 








 (q) Reserve. The Company agrees to reserve and keep available at all times, free of
preemptive rights, a sufficient amount of Underlying Common Stock to enable the Company to satisfy any obligations to issue Underlying Common Stock upon conversion of the Securities (other than the Guarantees). 

(r) Common Stock Listing. The Company agrees to use its reasonable best efforts to list, subject to notice of issuance, the
Underlying Common Stock issuable upon conversion of the Securities (other than the Guarantees) on the New York Stock Exchange, and to maintain a transfer agent and, if necessary under the jurisdiction of incorporation of the Company, a register for
the Underlying Common Stock. 
 5. Certain Agreements of the Initial Purchasers. Each Initial Purchaser hereby represents and agrees that
it has not and will not use, authorize use of, refer to, or participate in the planning for use of, any written communication that constitutes an offer to sell or the solicitation of an offer to buy the Securities other than (i) the Time of
Sale Information and the Offering Memorandum, (ii) a written communication that contains no “issuer information” (as defined in Rule 433(h)(2) under the Securities Act) that was not included (including through incorporation by
reference) in the Time of Sale Information or the Offering Memorandum, (iii) any written communication listed on Annex A or prepared pursuant to Section 4(c) above (including any electronic road show), (iv) any written communication
prepared by such Initial Purchaser and approved by the Company in advance in writing or (v) any written communication relating to or that contains the terms of the Securities and/or other information that was included (including through
incorporation by reference) in the Time of Sale Information or the Offering Memorandum. 
 6. Conditions of Initial Purchasers’
Obligations. The obligation of each Initial Purchaser to purchase Securities on the Closing Date as provided herein is subject to the performance by the Company and each of the Guarantors of their respective covenants and other obligations hereunder
and to the following additional conditions: 
 (a) Representations and Warranties. The representations and warranties of
the Company and the Guarantors contained herein shall be true and correct on the date hereof and on and as of the Closing Date and any Option Closing Date; and the statements of the Company, the Guarantors and their respective officers made in any
certificates delivered pursuant to this Agreement shall be true and correct on and as of the Closing Date and any Option Closing Date. 
 (b) No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the execution and delivery of this Agreement, (i) no downgrading shall have occurred in the rating accorded the Securities
or any other debt securities or preferred stock issued or guaranteed by the Company or any of its subsidiaries by any “nationally recognized statistical rating organization”, as such term is defined under Section 3(a)(62) of the
Exchange Act; and (ii) no such organization shall have publicly announced that it has under surveillance or 

  
 21 








 
review, or has changed its outlook with respect to, its rating of the Securities or of any other debt securities or preferred stock issued or guaranteed by the Company or any of its subsidiaries
(other than an announcement with positive implications of a possible upgrading). 
 (c) No Material Adverse Change. No
event or condition of a type described in Section 3(e) hereof shall have occurred or shall exist, which event or condition is not described in each of the Time of Sale Information (excluding any amendment or supplement thereto) and the Offering
Memorandum (excluding any amendment or supplement thereto) the effect of which in the judgment of the Representatives makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities on the terms and in the
manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum. 
 (d) Officer’s
Certificate. The Representatives shall have received on and as of the Closing Date and any Option Closing Date a certificate of an executive officer of the Company and of each Guarantor who has specific knowledge of the Company’s or such
Guarantor’s financial matters and is satisfactory to the Representatives (i) confirming that such officer has carefully reviewed the Time of Sale Information and the Offering Memorandum and, to the best knowledge of such officer, the
representations set forth in Sections 3(a) and 3(b) hereof are true and correct, (ii) confirming that the other representations and warranties of the Company and the Guarantors in this Agreement are true and correct and that the Company and the
Guarantors have complied with all agreements and satisfied all conditions on their part to be performed or satisfied hereunder at or prior to the Closing Date and (iii) to the effect set forth in paragraphs (b) and (c) above.

 (e) Comfort Letters. On the date of this Agreement and on the Closing Date and any Option Closing Date, Ernst &
Young LLP shall have furnished to the Representatives, at the request of the Company, letters, dated the respective dates of delivery thereof and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the
Representatives, containing statements and information of the type customarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial information contained or
incorporated by reference in each of the Time of Sale Information and the Offering Memorandum; provided that the letter delivered on the Closing Date and any Option Closing Date shall use a “cut-off” date no more than three business days
prior to the Closing Date and any Option Closing Date, as the case may be. 
 (f) Opinion of Counsel for the Company.
Winstead PC, counsel for the Company, shall have furnished to the Representatives, at the request of the Company, their written opinion, dated the Closing Date and any Option Closing Date and addressed to the Initial Purchasers, in form and
substance reasonably satisfactory to the Representatives, to the effect set forth in Annex C hereto. 

  
 22 








 (g) Opinion of Special Counsel for the Company. Latham and Watkins LLP, special
counsel for the Company, shall have furnished to the Representatives, at the request of the Company, their written opinion, dated the Closing Date and any Option Closing Date and addressed to the Initial Purchasers, in form and substance reasonably
satisfactory to the Representatives, to the effect set forth in Annex D hereto. 
 (h) Opinion of Counsel for the Initial
Purchasers. The Representatives shall have received on and as of the Closing Date and any Option Closing Date an opinion of Vinson & Elkins LLP, counsel for the Initial Purchasers, with respect to such matters as the Representatives may
reasonably request, and such counsel shall have received such documents and information as they may reasonably request to enable them to pass upon such matters. 
 (i) No Legal Impediment to Issuance. No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or regulatory
authority that would, as of the Closing Date or any Option Closing Date, prevent the issuance or sale of the Securities (other than the Guarantees) or the issuance of the Guarantees; and no injunction or order of any federal, state or foreign court
shall have been issued that would, as of the Closing Date or any Option Closing Date, prevent the issuance or sale of the Securities (other than the Guarantees) or the issuance of the Guarantees. 

(j) Good Standing. The Representatives shall have received on and as of the Closing Date and any Option Closing Date satisfactory
evidence of the good standing of the Company and the Guarantors in their respective jurisdictions of organization and their good standing in such other jurisdictions as the Representatives may reasonably request, in each case in writing or any
standard form of telecommunication, from the appropriate governmental authorities of such jurisdictions. 
 (k) DTC. The
Securities shall be eligible for clearance and settlement through DTC. 
 (l) Listing. The Company shall have used its
reasonable best efforts to have the Underlying Common Stock issuable upon conversion of the Securities duly listed, subject to notice of issuance, on the New York Stock Exchange. 

(m) Lock-up Agreements. The Lock-Up Agreements between the Representatives and the officers, directors and stockholders of the
Company set forth on Schedule 3, delivered to the Representatives on or before August 13, 2012, shall be in full force and effect on the Closing Date and the Option Closing Date, as the case may be. 

  
 23 








 (n) Additional Documents. On or prior to the Closing Date and any Option Closing Date,
the Company and the Guarantors shall have furnished to the Representatives such further certificates and documents as the Representatives may reasonably request. 
 The several obligations of the Initial Purchasers to purchase Additional Securities hereunder are subject to the delivery to the Representatives on the applicable Option Closing Date of such documents as the
Representatives may reasonably request with respect to the good standing of the Company, the due authorization and issuance of the Additional Securities to be sold on such Option Closing Date and other matters related to the issuance of such
Additional Securities. 
 All opinions, letters, certificates and evidence mentioned above or elsewhere in this Agreement shall be deemed
to be in compliance with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Initial Purchasers. 
 7. Indemnification and Contribution. 
 (a) Indemnification of the Initial Purchasers.
The Company and each of the Guarantors jointly and severally agree to indemnify and hold harmless each Initial Purchaser, its affiliates, directors and officers and each person, if any, who controls such Initial Purchaser within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, reasonable legal fees and other expenses incurred in connection with
any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in the Preliminary
Offering Memorandum, any of the other Time of Sale Information, any Issuer Written Communication or the Offering Memorandum (or any amendment or supplement thereto) or any omission or alleged omission to state therein a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representatives expressly for
use therein. 
 (b) Indemnification of the Company. Each Initial Purchaser agrees, severally and not jointly, to indemnify
and hold harmless the Company, each of the Guarantors, each of their respective directors and officers and each person, if any, who controls the Company or any of the Guarantors within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are based upon,


  
 24 








 
any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to such Initial Purchaser furnished to the Company
in writing by such Initial Purchaser through the Representatives expressly for use in the Preliminary Offering Memorandum, any of the other Time of Sale Information, any Issuer Written Communication or the Offering Memorandum (or any amendment or
supplement thereto), it being understood and agreed that the only such information consists of the following: the fourth and ninth paragraphs under the caption “Plan of Distribution” in the Offering Memorandum. 

(c) Notice and Procedures. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand
shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such person (the “Indemnified Person”) shall promptly notify the person against whom
such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or (b) above
except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability
that it may have to an Indemnified Person otherwise than under paragraph (a) or (b) above. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the
Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified Person and any others
entitled to indemnification pursuant to this Section 7 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and shall pay the fees and expenses of such counsel related to such
proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying
Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified
Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any
impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood and agreed
that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified
Persons, and that all such fees and expenses shall be reimbursed as they are incurred. Any such separate firm for 

  
 25 








 
any Initial Purchaser, its affiliates, directors and officers and any control persons of such Initial Purchaser shall be designated in writing by the Representatives and any such separate firm
for the Company, the Guarantors, their respective directors and officers and any control persons of the Company and the Guarantors shall be designated in writing by the Company. The Indemnifying Person shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason
of such settlement or judgment. No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a
party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (x) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person. 

(d) Contribution. If the indemnification provided for in paragraphs (a) or (b) above is unavailable to an Indemnified
Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid
or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors on the one hand and the
Initial Purchasers on the other from the offering of the Securities or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the Initial Purchasers on the other in connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Guarantors on the one hand and the Initial Purchasers on the other shall be deemed to be in the same respective proportions as
the net proceeds (before deducting expenses) received by the Company from the sale of the Securities and the total discounts and commissions received by the Initial Purchasers in connection therewith, as provided in this Agreement, bear to the
aggregate offering price of the Securities. The relative fault of the Company and the Guarantors on the one hand and the Initial Purchasers on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or any Guarantor or by the Initial Purchasers and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. 

  
 26 








 (e) Limitation on Liability. The Company, the Guarantors and the Initial Purchasers
agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in paragraph (d) above. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph
(d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of this
Section 7, in no event shall an Initial Purchaser be required to contribute any amount in excess of the amount by which the total discounts and commissions received by such Initial Purchaser with respect to the offering of the Securities
exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute pursuant to this Section 7
are several in proportion to their respective purchase obligations hereunder and not joint. 
 (f) Non-Exclusive Remedies.
The remedies provided for in this Section 7 are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity. 

8. Termination. This Agreement may be terminated in the sole discretion of the Representatives, by notice to the Company, if after the execution
and delivery of this Agreement and on or prior to the Closing Date (i) trading generally shall have been suspended or materially limited on the New York Stock Exchange or the over-the-counter market; (ii) trading of any securities issued
or guaranteed by the Company or any of the Guarantors shall have been suspended on any exchange or in any over-the-counter market; (iii) a general moratorium on commercial banking activities shall have been declared by federal or New York State
authorities; or (iv) there shall have occurred any outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis, either within or outside the United States, that, in the judgment of the Representatives
after consultation with the Company, is material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale or delivery, of the Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale
Information and the Offering Memorandum. 
 9. Defaulting Initial Purchaser. 

(a) If, on the Closing Date or the Option Closing Date, as the case may be, any Initial Purchaser defaults on its obligation to
purchase the Securities that it has agreed to purchase hereunder, the non-defaulting Initial Purchasers may in their discretion arrange for the purchase of such Securities by other persons 

  
 27 








 
satisfactory to the Company on the terms contained in this Agreement. If, within 36 hours after any such default by any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange for
the purchase of such Securities, then the Company shall be entitled to a further period of 36 hours within which to procure other persons satisfactory to the non-defaulting Initial Purchasers to purchase such Securities on such terms. If other
persons become obligated or agree to purchase the Securities of a defaulting Initial Purchaser, either the non-defaulting Initial Purchasers or the Company may postpone the Closing Date or the Option Closing Date, as the case may be, for up to five
full business days in order to effect any changes that in the opinion of counsel for the Company or counsel for the Initial Purchasers may be necessary in the Time of Sale Information, the Offering Memorandum or in any other document or arrangement,
and the Company agrees to promptly prepare any amendment or supplement to the Time of Sale Information or the Offering Memorandum that effects any such changes. As used in this Agreement, the term “Initial Purchaser” includes, for all
purposes of this Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to this Section 9, purchases Securities that a defaulting Initial Purchaser agreed but failed to purchase. 

(b) If, after giving effect to any arrangements for the purchase of the Securities of a defaulting Initial Purchaser or Initial
Purchasers by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that remains unpurchased does not exceed one-tenth of the aggregate principal amount of
all the Securities to be purchased on such date, then the Company shall have the right to require each non-defaulting Initial Purchaser to purchase the principal amount of Securities that such Initial Purchaser agreed to purchase hereunder on such
date plus such Initial Purchaser’s pro rata share (based on the principal amount of Securities that such Initial Purchaser agreed to purchase hereunder on such date) of the Securities of such defaulting Initial Purchaser or Initial Purchasers
for which such arrangements have not been made. 
 (c) If, after giving effect to any arrangements for the purchase of the
Securities of a defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that remains unpurchased exceeds
one-tenth of the aggregate principal amount of all the Securities to be purchased on such date, or if the Company shall not exercise the right described in paragraph (b) above, then this Agreement or, with respect to the Option Closing Date,
the obligation of the Initial Purchasers to purchase Additional Securities on the Option Closing Date, as the case may be, shall terminate without liability on the part of the non-defaulting Initial Purchasers. Any termination of this Agreement
pursuant to this Section 9 shall be without liability on the part of the Company or the Guarantors, except that the Company and each of the Guarantors will continue to be liable for the payment of expenses as set forth in Section 10 hereof
and except that the provisions of Section 7 hereof shall not terminate and shall remain in effect. 

  
 28 








 (d) Nothing contained herein shall relieve a defaulting Initial Purchaser of any
liability it may have to the Company, the Guarantors or any non-defaulting Initial Purchaser for damages caused by its default. 
 10.
Payment of Expenses. 
 (a) Whether or not the transactions contemplated by this Agreement are consummated or this
Agreement is terminated, the Company and each of the Guarantors jointly and severally agree to pay or cause to be paid all costs and expenses incident to the performance of their respective obligations hereunder, including without limitation,
(i) the costs incident to the authorization, issuance, sale, preparation and delivery of the Securities and any taxes payable in that connection; (ii) the costs incident to the preparation and printing of the Preliminary Offering
Memorandum, any other Time of Sale Information, any Issuer Written Communication and the Offering Memorandum (including any amendment or supplement thereto) and the distribution thereof; (iii) the costs of reproducing and distributing this
Agreement, the Indenture and the Global Notes; (iv) the fees and expenses of the Company’s and the Guarantors’ counsel and independent accountants; (v) the fees and expenses incurred in connection with the registration or
qualification and determination of eligibility for investment of the Securities or the Underlying Common Stock under the laws of such jurisdictions as the Representatives may designate and the preparation, printing and distribution of a Blue Sky
Memorandum (including the related fees and expenses of counsel for the Initial Purchasers); (vi) any fees charged by rating agencies for rating the Securities; (vii) the fees and expenses of the Trustee and any paying agent (including
related fees and expenses of any counsel to such parties); (viii) all expenses and application fees incurred in connection with the approval of the Securities for book-entry transfer by DTC; (ix) all fees and expenses in connection with
the listing of the Underlying Common Stock on the New York Stock Exchange, and (x) all expenses incurred by the Company in connection with any “road show” presentation to potential investors. 

(b) If (i) this Agreement is terminated pursuant to Section 8(ii), (ii) the Company for any reason fails to tender
the Securities for delivery to the Initial Purchasers or (iii) the Initial Purchasers decline to purchase the Securities for any reason permitted under this Agreement (other than pursuant to Section 8(i), (iii), or (iv)), the Company and
each of the Guarantors jointly and severally agrees to reimburse the Initial Purchasers for all out-of-pocket costs and expenses (including the reasonable fees and expenses of their counsel) reasonably incurred by the Initial Purchasers in
connection with this Agreement and the offering contemplated hereby. 
 11. Persons Entitled to Benefit of Agreement. This Agreement shall
inure to the benefit of and be binding upon the parties hereto and their respective successors and any controlling persons referred to herein, and the affiliates, officers and directors of each Initial Purchaser referred to in Section 7 hereof.
Nothing in this Agreement is intended or shall be construed to give any other person any legal or equitable right, 

  
 29 








 
remedy or claim under or in respect of this Agreement or any provision contained herein. No purchaser of Securities from any Initial Purchaser shall be deemed to be a successor merely by reason
of such purchase. 
 12. Survival. The respective indemnities, rights of contribution, representations, warranties and agreements of the
Company, the Guarantors and the Initial Purchasers contained in this Agreement or made by or on behalf of the Company, the Guarantors or the Initial Purchasers pursuant to this Agreement or any certificate delivered pursuant hereto shall survive the
delivery of and payment for the Securities and shall remain in full force and effect, regardless of any termination or completion of this Agreement or any investigation made by or on behalf of the Company, the Guarantors or the Initial Purchasers.

 13. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise expressly provided, the term
“affiliate” has the meaning set forth in Rule 405 under the Securities Act; (b) the term “business day” means any day other than a day on which banks are permitted or required to be closed in New York City; (c) the term
“Exchange Act” means the Securities Exchange Act of 1934, as amended; (d) the term “subsidiary” has the meaning set forth in Rule 405 under the Securities Act; (e) the term “significant subsidiary” has the
meaning set forth in Rule 3-05 of Regulation S-X under the Securities Act; and (f) the term “written communication” has the meaning set forth in Rule 405 under the Securities Act. 

14. Miscellaneous. 

(a) Authority of the Representatives. Any action by the Initial Purchasers hereunder may be taken by Barclays Capital Inc. on behalf
of the Initial Purchasers, and any such action taken by Barclays Capital Inc. shall be binding upon the Initial Purchasers. 
 (b) Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted and confirmed by any standard form of telecommunication:

 (i) if to the Representatives, shall be delivered or sent by hand delivery, mail, telex, overnight courier or facsimile
transmission to Barclays Capital Inc., 745 Seventh Avenue, New York, New York 10019, Attention: Syndicate Registration, J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179 (Fax: (212) 622-8358) Attention: Equity Syndicate
Desk, and Wells Fargo Securities, LLC, 375 Park Avenue, New York, New York 10152, Attention: Equity Syndicate Department (Fax: (212) 214-5918), with a copy to Vinson & Elkins LLP, First City Tower, 1001 Fannin Street, Suite 2500,
Houston, Texas 77002-6760, Attention: T. Mark Kelly (Fax: (713) 615-5531), and with a copy, in the case of any notice pursuant to Section 8(c), to the Director of Litigation, Office of the General Counsel, Barclays Capital Inc., 745
Seventh Ave., New York, New York 10019; 

  
 30 








 (ii) if to the Company and the Guarantors, shall be delivered or sent by hand
delivery, mail, telex, overnight courier or facsimile transmission to Hornbeck Offshore Services, Inc., 103 Northpark Boulevard, Suite 300, Covington, Louisiana 70433 (fax: (985) 727-2006); Attention: Sam Giberga, General Counsel. 

(c) Governing Law. This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed
by and construed in accordance with the laws of the State of New York. 
 (d) Counterparts. This Agreement may be signed in
counterparts (which may include counterparts delivered by any standard form of telecommunication), each of which shall be an original and all of which together shall constitute one and the same instrument. 

(e) Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure
therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto. 
 (f)
Headings. The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement. 

  
 31 








 If the foregoing is in accordance with your understanding, please indicate your acceptance of this
Agreement by signing in the space provided below. 
  

			
	Very truly yours,
	
	HORNBECK OFFSHORE SERVICES, INC.
		
	By	 	/s/ James O. Harp, Jr.
		 	 James O. Harp, Jr.
 Executive Vice President
and
 Chief Financial Officer



  

			
	Guarantors:
	
	Energy Services Puerto Rico, LLC
	Hornbeck Offshore Services, LLC
	Hornbeck Offshore Transportation, LLC
	Hornbeck Offshore Operators, LLC
	HOS-IV, LLC
	Hornbeck Offshore Trinidad & Tobago, LLC
	HOS Port, LLC
		
	By	 	/s/ James O. Harp, Jr.
		 	 James O. Harp, Jr.
 Executive Vice President
and
 Chief Financial Officer




  
 32 









			
	Accepted: August 7, 2012
	
	BARCLAYS CAPITAL INC.
		
	By	 	/s/ Paul Robinson
		 	
	
	J.P. MORGAN SECURITIES LLC
		
	By	 	/s/ Jason Wood
		 	
	
	WELLS FARGO SECURITIES, LLC
		
	By	 	/s/ Jay Buckman
		 	


  
 33 








 Schedule 1 
  

					
	Initial Purchaser	  	Principal Amount	 
	 Barclays Capital Inc.
	  	$	104,000,000	  
	 J.P. Morgan Securities LLC
	  	 	104,000,000	  
	 Wells Fargo Securities, LLC
	  	 	52,000,000	  
		
	 Total
	  	$	260,000,000	  


  
 Schedule 1 








 Schedule 2 
 List of Guarantors 
 Energy Services Puerto Rico, LLC, a Delaware limited liability company 

Hornbeck Offshore Services, LLC, a Delaware limited liability company 
 Hornbeck Offshore Transportation, LLC, a Delaware limited liability company 
 Hornbeck Offshore Operators, LLC, a
Delaware limited liability company 
 HOS-IV, LLC, a Delaware limited liability company 
 Hornbeck Offshore Trinidad & Tobago, LLC, a Delaware limited liability company 
 HOS Port, LLC, a Delaware
limited liability company 

  
 Schedule 2 








 Schedule 3 
 Parties to Lock-up Agreements 
 Todd M. Hornbeck 
 James O. Harp, Jr. 
 Carl G. Annessa 
 Samuel A. Giberga 
 John S. Cook 
 Larry D. Hornbeck 
 Bruce W. Hunt 
 Steven W. Krablin 
 Patricia B. Melcher 
 Bernie W. Stewart 
 John T. Rynd 
 Kevin Omar Meyers 
 William Herbert Hunt Trust Estate 
 Troy Hornbeck 
 Nicholas L. Swyka, Jr. 

  
 Schedule 3 








 ANNEX A 
 a. Additional Time of Sale Information 
 1. Term sheet containing the terms of the securities, substantially in the
form of Annex B. 

  
 Annex A 








 ANNEX B 
 Final 
 August 7, 2012 
 



 
 Hornbeck Offshore Services, Inc. 
 Pricing Term Sheet 
 Pricing Term Sheet, dated August 7, 2012 

to Preliminary Offering Memorandum dated August 6, 2012 

Strictly Confidential 
  

			
		
	 Issuer:
	  	Hornbeck Offshore Services, Inc.
		
	 Ticker / Exchange for Common Stock:
	  	HOS/ NYSE
		
	 Notes:
	  	1.500% Convertible Senior Notes due 2019
		
	 Distribution:
	  	Rule 144A without registration rights
		
	 Issue Price:
	  	100%, plus accrued interest from August 13, 2012
		
	 Aggregate Principal Amount Offered:
	  	$260 million ($300 million if the initial purchasers’ option to purchase additional notes is exercised in full)
		
	 Interest Rate:
	  	1.500% per annum, payable semi-annually
		
	 Conversion Premium:
	  	37.5%
		
	 Initial Conversion Price:
	  	Approximately $53.85 per share of common stock
		
	 Initial Conversion Rate:
	  	18.5718 shares of common stock per $1,000 aggregate principal amount of notes
		
	 Interest Payment Dates:
	  	March 1 and September 1, beginning March 1, 2013
		
	 Record Dates:
	  	February 15 and August 15
		
	 Maturity:
	  	September 1, 2019
		
	 Guarantees:
	  	The notes will be fully and unconditionally guaranteed on a senior unsecured basis by the Company’s domestic significant subsidiaries, which are the same subsidiaries that are guarantors
of the Company’s revolving credit facility and its outstanding senior notes. The liability of each guarantor under its respective subsidiary


  
 Annex B Page 1










			
		  	guarantee will be limited as necessary to the amount, if any, which would not have rendered such guarantor “insolvent” (as such term is defined under federal bankruptcy law and
in the debtor and creditor law of New York state) or, under certain circumstances, left it with unreasonably small capital. The guarantee will be subject to release in connection with any sale or other disposition of all or substantially all of the
assets of that guarantor (including by way of merger or consolidation, in accordance with the provisions of the indenture), in connection with any sale of all of the capital stock of a guarantor, in accordance with the provisions of the indenture,
or upon the release of its guarantee of all other indebtedness of the Company’s or any of the domestic subsidiaries.
		
	 Last Reported Sale Price on August 7, 2012:
	  	$39.16
		
	 Use of Proceeds:
	  	 The Company estimates that the net proceeds from the offering will be approximately $251.9 million (or approximately $290.8 million if the initial
purchasers exercise their option to purchase additional notes in full), after deducting initial purchaser discounts and fees and expenses of the offering. In addition, the Company expects to receive proceeds from the sale of warrants described under
“Description of the Convertible Note Hedge and Warrant Transactions” in the Preliminary Offering Memorandum. The Company intends to apply a portion of the net proceeds from the sale of the notes and the proceeds from the sale of the
warrants to fund the cost of the convertible note hedge transactions entered into between the Company and certain of the initial purchasers or their affiliates (in this capacity, the “option counterparties”).

 
 The Company expects to apply the remaining $230.4 million of the net proceeds, along with other
available sources of cash, to retire the 1.625% convertible notes in November 2013, when such convertible notes are first subject to repurchase by the Company at the option of holders, or redemption at the Company’s option, or for general
corporate purposes, which may include retirement of other debt or funding for the acquisition, construction or retrofit of vessels. Until the net proceeds are used for such purposes, we may deposit them in interest-bearing accounts or invest them in
short-term marketable securities.
  
 If the initial purchasers exercise their option to
purchase additional notes in full, the aggregate net proceeds from this offering will be approximately $290.8 million. If the initial purchasers exercise their option to purchase additional notes, the Company intends to use a portion of the net
proceeds from the sale of the additional notes to pay for additional convertible note hedge transactions, to be partially offset by the sale of additional warrants, in each case to with the option counterparties. Remaining net proceeds will be used,
along with other available sources of cash, to retire the 1.625% convertible notes and for general corporate purposes, including retirement of other debt or funding for the acquisition, construction or retrofit of vessels.

		
	 Trade Date:
	  	August 8, 2012


  
 Annex B Page 2










			
		
	 Closing Date:
	  	August 13, 2012
		
	 CUSIP Number:
	  	440543 AM8
		
	 ISIN:
	  	US440543AM89
		
	 Joint Book-Running Managers:
	  	Barclays Capital Inc. J.P. Morgan Securities LLC Wells Fargo Securities, LLC
		
	 Listing:
	  	None
		
	 Convertible Note Hedge and Warrant Transactions:
	  	

The convertible note hedge transactions cover, subject to customary anti-dilution adjustments, the aggregate number of shares of the Company’s common stock
underlying the notes. The warrants sold to the option counterparties under the warrant transactions relate to, subject to customary anti-dilution adjustments, the same number of shares of the Company’s common stock. The strike price of the
convertible note hedge transactions will initially correspond to the Initial Conversion Price and is subject, with certain exceptions, to the adjustments applicable to the conversion price of the notes. The strike price of the warrants will
initially equal $68.53 and is subject to customary anti-dilution adjustments.
		
	 Adjustment to Common Stock Delivered Upon a Conversion Upon a Fundamental Change:
	  	The following table sets forth the number of additional shares to be added to the conversion rate per $1,000 principal amount of notes in connection with a fundamental change as defined in
the Preliminary Offering Memorandum for each stock price and effective date set forth below, subject to adjustments as provided in the Preliminary Offering Memorandum:

 Stock Price 

																																																					
	Effective Date	  	$39.16	 	  	$40.00	 	  	$45.00	 	  	$50.00	 	  	$55.00	 	  	$60.00	 	  	$65.00	 	  	$70.00	 	  	$80.00	 	  	$90.00	 	  	$100.00	 	  	$120.00	 	  	$140.00	 
	 August 13, 2012
	  	 	6.9644	  	  	 	6.6953	  	  	 	5.3506	  	  	 	4.3423	  	  	 	3.5679	  	  	 	2.9628	  	  	 	2.4813	  	  	 	2.0931	  	  	 	1.5152	  	  	 	1.1157	  	  	 	0.8309	  	  	 	0.4685	  	  	 	0.2627	  
	 September 1, 2013
	  	 	6.9644	  	  	 	6.6397	  	  	 	5.2558	  	  	 	4.2249	  	  	 	3.4391	  	  	 	2.8295	  	  	 	2.3482	  	  	 	1.9632	  	  	 	1.3964	  	  	 	1.0105	  	  	 	0.7396	  	  	 	0.4018	  	  	 	0.2157	  
	 September 1, 2014
	  	 	6.9644	  	  	 	6.5623	  	  	 	5.1333	  	  	 	4.0775	  	  	 	3.2799	  	  	 	2.6668	  	  	 	2.1875	  	  	 	1.8077	  	  	 	1.2567	  	  	 	0.8890	  	  	 	0.6359	  	  	 	0.3288	  	  	 	0.1659	  
	 September 1, 2015
	  	 	6.9644	  	  	 	6.4615	  	  	 	4.9746	  	  	 	3.8875	  	  	 	3.0758	  	  	 	2.4597	  	  	 	1.9845	  	  	 	1.6132	  	  	 	1.0853	  	  	 	0.7429	  	  	 	0.5138	  	  	 	0.2468	  	  	 	0.1130	  
	 September 1, 2016
	  	 	6.9644	  	  	 	6.3608	  	  	 	4.7878	  	  	 	3.6537	  	  	 	2.8207	  	  	 	2.2000	  	  	 	1.7306	  	  	 	1.3715	  	  	 	0.8768	  	  	 	0.5700	  	  	 	0.3739	  	  	 	0.1592	  	  	 	0.0609	  
	 September 1, 2017
	  	 	6.9644	  	  	 	6.2554	  	  	 	4.5455	  	  	 	3.3364	  	  	 	2.4710	  	  	 	1.8450	  	  	 	1.3876	  	  	 	1.0503	  	  	 	0.6115	  	  	 	0.3613	  	  	 	0.2144	  	  	 	0.0714	  	  	 	0.0161	  
	 September 1, 2018
	  	 	6.9644	  	  	 	6.1242	  	  	 	4.1569	  	  	 	2.8075	  	  	 	1.8883	  	  	 	1.2663	  	  	 	0.8478	  	  	 	0.5672	  	  	 	0.2541	  	  	 	0.1137	  	  	 	0.0495	  	  	 	0.0043	  	  	 	0.0000	  
	 September 1, 2019
	  	 	6.9644	  	  	 	6.4282	  	  	 	3.6504	  	  	 	1.4282	  	  	 	0.0000	  	  	 	0.0000	  	  	 	0.0000	  	  	 	0.0000	  	  	 	0.0000	  	  	 	0.0000	  	  	 	0.0000	  	  	 	0.0000	  	  	 	0.0000	  

 The exact stock price and effective date may not be set forth on the table, in which case: 

 

	 	•	 	 if the stock price is between two stock price amounts in the table or the effective date is between two effective dates in the table, the number of additional
shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock price amounts and the two dates, as applicable, based on a 365-day year; 



 

	 	•	 	 if the stock price is greater than $140.00 per share (subject to adjustment), the conversion rate will not be increased; and 



 

	 	•	 	 if the stock price is less than $39.16 per share (subject to adjustment), the conversion rate will not be increased. 



  
 Annex B Page 3









 Notwithstanding the foregoing, in no event will the total number of the Company’s common stock issuable upon
conversion exceed 25.5362 per $1,000 principal amount of the notes, subject to adjustments in the same manner as the conversion rate as set forth under “Description of Notes—Conversion Rate Adjustments” in the Preliminary
Offering Memorandum. 
 Additional Information 

Capitalization Information: 
 After giving effect to the
Company’s use of approximately $21.5 million of the net proceeds from the notes offering to pay the cost of the convertible note hedge transactions described above (after such cost is partially offset by the proceeds to the Company from the
sale of the warrant transactions described above), as of June 30, 2012: 
  

	 	•	 	 the as-adjusted amount of “Cash and cash equivalents” in the table set forth in the “Capitalization” section of the Preliminary Offering
Memorandum would have been $621,951; 


  

	 	•	 	 the as-adjusted amount of “Additional paid-in capital” in such table would have been $630,620, 



 

	 	•	 	 the as-adjusted amount of “Total stockholders’ equity” in such table would have been $1,072,191, and 



 

	 	•	 	 the as-adjusted “Total capitalization” in such table would have been $2,184,572, 



in each case, determined in the manner described in such “Capitalization” section of the Preliminary Offering Memorandum. 

This communication is intended for the sole use of the person to whom it is provided by the sender. 
 Purchasers should rely only on the information contained or incorporated by reference in the Preliminary Offering Memorandum, as supplemented by this final pricing term sheet, in making an investment decision
with respect to the notes. A copy of the Preliminary Offering Memorandum can be obtained by contacting your Barclays Capital Inc. sales representative. 
 This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities, in any state in which such solicitation or sale would
be unlawful prior to registration or qualification of these securities under the laws of any such state. 
 The notes and the common stock issuable
upon conversion of the Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any other state securities laws. Unless they are registered, the notes and any common stock issuable upon
conversion of the notes may be offered only in transactions exempt from or not subject to registration under the Securities Act or any other state securities laws. Accordingly, the notes are only being offered to “qualified institutional
buyers” (as defined in Rule 144A under the Securities Act). 
 ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS
COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM. 

  
 Annex B Page 4









 ANNEX C 
 Form of Opinion of Counsel for the Company and the Guarantors 
 (i) Each of the Company and the
Guarantors has been duly incorporated as a corporation or formed as a limited liability company and is validly existing as a corporation or limited liability company in good standing under the laws of the State of Delaware, with corporate or limited
liability company power and authority to own its properties and conduct its business as described in the Time of Sale Information; 
 (ii)
the Company has an authorized capitalization as set forth in the Time of Sale Information, and all of the issued shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and nonassessable; 

(iii) each of the Company and the Guarantors has been duly qualified as a foreign corporation or limited liability company for the transaction of
business and is in good standing under the laws of each other jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification, except where the failure to be so qualified or in good standing in any
such jurisdiction would not have a Material Adverse Effect; 
 (iv) each Subsidiary (as defined in the Indenture) of the Company (other
than the Guarantors) has been duly formed as a limited liability company or other foreign entity and is validly existing as a limited liability company or other foreign entity in good standing under the laws of its jurisdiction of formation except
to the extent that the failure to be so formed, validly existing or in good standing would not have a Material Adverse Effect on the Company; and all of the issued and outstanding membership or other equity interests of each such Subsidiary of the
Company (including the Guarantors) have been duly authorized and validly issued, are fully paid and nonassessable, and are owned directly or indirectly by the Company, free and clear of all liens, encumbrances, equities or claims except to the
extent as will not have a Material Adverse Effect on the Company; 
 (v) to such counsel’s knowledge and other than as set forth in
the Time of Sale Information, there are no legal or governmental proceedings pending to which the Company, the Guarantors, or any of their subsidiaries is a party or of which any property of the Company or any of its subsidiaries is the subject
which, if determined adversely to the Company or any of its subsidiaries, would individually or in the aggregate have a Material Adverse Effect; and, to such counsel’s knowledge, no such proceedings are threatened or contemplated by
governmental authorities or threatened by others; 
 (vi) this Agreement has been duly authorized, executed and delivered by each of the
Company and the Guarantors; 
 (vii) the Firm Securities have been duly authorized, executed, issued and delivered by the Company and
constitute valid and legally binding obligations of the Company entitled to the benefits provided by the Indenture, enforceable against the 

  
 Annex C – Page 1









 
Company in accordance with their terms, except as limited by bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, moratorium, reorganization and other similar laws of general
application affecting the rights and remedies of creditors and by general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law); 

(viii) the Guarantees have been duly authorized, executed, issued and delivered by the Guarantors and constitute valid and legally binding
obligations of the Guarantors entitled to the benefits provided by the Indenture, enforceable against the Guarantors in accordance with their terms, except as limited by bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, moratorium,
reorganization and other similar laws of general application affecting the rights and remedies of creditors and by general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law); 

(ix) the Underlying Common Stock reserved for issuance upon conversion of the Firm Securities has been duly authorized and reserved and, when
issued upon conversion of the Firm Securities in accordance with the terms of the Firm Securities, will be validly issued, fully paid and non-assessable and the issuance of the Underlying Common Stock will not be subject to any preemptive or similar
rights under the Company’s Certificate of Incorporation or Bylaws or under the Delaware General Corporation Law; and the Underlying Common Stock conforms in all material respects to the descriptions thereof in the Time of Sale Information and
the Final Memorandum; 
 (x) the Indenture has been duly authorized, executed and delivered by the Company and the Guarantors, and
constitutes a valid and legally binding instrument of the Company and the Guarantors, enforceable against the Company and the Guarantors in accordance with its terms, except as limited by bankruptcy, insolvency, fraudulent conveyance, fraudulent
transfer, moratorium, reorganization and other similar laws of general application affecting the rights and remedies of creditors and by general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at
law); 
 (xi) no consent, approval, authorization, order, registration or qualification of or with any court or governmental agency or
body is required for the issue and sale of the Firm Securities, the issuance of the Underlying Common Stock upon the conversion of the Firm Securities or the consummation by the Company and the Guarantors of the transactions contemplated by this
Agreement or the Indenture, except such as have been obtained and such consents, approvals, authorizations, registrations or qualifications as may be required under state securities or Blue Sky laws in connection with the purchase and distribution
of the Firm Securities by the Initial Purchasers and except where failure to obtain such consent, approval, authorization, order, registration or qualification would not have a Material Adverse Effect; provided, however, that notwithstanding
anything herein to the contrary, such counsel need express no opinion in this subparagraph (xi) as to compliance with the registration provisions of the Securities Act in relation to the Securities; 

  
 Annex C – Page 2









 (xii) no registration of the Firm Securities or the Underlying Common Stock related to the Firm
Securities under the Securities Act, and no qualification of an indenture under the Trust Indenture Act with respect thereto, is required for the issuance and sale of the Firm Securities to the Initial Purchasers and the offer, resale and delivery
of the Firm Securities by the Initial Purchasers in the manner contemplated by this Agreement and the Time of Sale Information; 
 (xiii)
none of the Company, the Guarantors or any of their subsidiaries is and, after giving effect to the offering and sale of the Firm Securities and the application of the proceeds thereof as described in the Time of Sale Information, will be required
to register as an “investment company” as defined in the Investment Company Act; 
 (xiv) when the Firm Securities are issued
and delivered pursuant to this Agreement, none of the Firm Securities will be of the same class (within the meaning of Rule 144A under the Securities Act) as securities of the Company that are listed on a national securities exchange registered
under Section 6 of the Exchange Act or that are quoted in a United States automated inter-dealer quotation system; 
 (xv) the
statements set forth in the Time of Sale Information and the Offering Memorandum under the captions “Description of Capital Stock,” insofar as they purport to describe or summarize certain provisions of the Underlying Common Stock related
to the Firm Securities, “United States Federal Income and Estate Tax Considerations,” insofar as they purport to describe the legal matters, documents or proceedings referred to therein and under the caption “Plan of
Distribution”, insofar as they purport to describe the provisions of this Agreement, fairly present, in all material respects, the information called for with respect to such legal matters, documents or proceedings; 

(xvi) the issue and sale of the Firm Securities, the issuance of the Underlying Common Stock related to the Firm Securities upon conversion of the
Firm Securities and the compliance by the Company and the Guarantors with all of the provisions of the Firm Securities, the Indenture and this Agreement with respect to the Firm Securities and the consummation of the transactions contemplated herein
and therein will not (a) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument which is
attached or incorporated by reference as an exhibit to the Company’s annual report on Form 10-K for the year ended December 31, 2011 (the “Annual Report”), the quarterly reports on Form 10-Q for the quarters ended
March 31, 2012 and June 30, 2012, or any Item 1.01 of any Form 8-K filed subsequent to the Annual Report, (b) result in any violation of the provisions of the Certificate of Incorporation or Bylaws of the Company
or the certificate of formation or limited liability company agreement of any Guarantor, or (c) result in a violation of, to the knowledge of such counsel, any order of any court or governmental agency or body having jurisdiction over the
Company, the Guarantors or any of their subsidiaries or any of their properties (except that such counsel need express no opinion with respect to compliance with the anti-fraud or similar provisions of any law, rule or regulation), except in the
case of clauses (a) and (c) for such breaches or violations that could not reasonably be expected to have a Material Adverse Effect or that could violate public policy relating thereto. 

  
 Annex C – Page 3









 Because the primary purpose of such counsel’s engagement was not to establish factual matters and
many of the statements in the Time of Sale Information, the Offering Memorandum and any amendment or supplement thereto, are wholly or partially nonlegal in character, such counsel may state that such counsel has not independently verified and is
not passing upon and does not assume any responsibility for the accuracy, completeness or fairness of the statements contained therein (except for the applicable descriptions referenced in paragraphs (i), (ii), (v), (xi) and (xv)). Such
counsel shall also state that they have participated in conferences with representatives of the Company and with representatives of its independent accountants and representatives of the Initial Purchasers and their counsel, at which conferences the
contents of the Time of Sale Information and the Offering Memorandum and any amendment and supplement thereto and related matters were discussed. On the basis of the foregoing, such counsel hereby confirms that nothing has come to the attention of
such counsel to cause such counsel to believe (except with respect to the financial statements and related schedules and the financial data derived therefrom, including the notes and schedules thereto and the auditor’s report thereon or any
other financial or accounting data contained or incorporated by reference in, or excluded from, the Time of Sale Information or the Offering Memorandum as to which such counsel need express no belief) that the Time of Sale Information, at the Time
of Sale (which such counsel may assume to be the date of this Agreement), contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading, or that the Offering Memorandum or any amendment or supplement thereto, as of its date and the Closing Date, contained or contains any untrue statement of a material fact or omits to state a material fact necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading (other than, in each case, the financial statements and related schedules and the financial data derived therefrom, including the notes and the
schedules thereto and the auditor’s report thereon or any other financial or accounting data contained or incorporated by reference therein, as to which such counsel need express no belief). 

In rendering such opinion, such counsel may rely as to matters of fact on certificates of responsible officers of the Company and the Guarantors
and public officials that are furnished to the Initial Purchasers. 
 The opinion of Winstead PC described above shall be rendered to the
Initial Purchasers at the request of the Company and shall so state therein. 

  
 Annex C – Page 4









 ANNEX D 
 Form of Opinion of Special Counsel for the Company and the Guarantors 
 Latham and Watkins LLP, special counsel for
the Company, shall have furnished to the Initial Purchasers their written opinion, dated the Closing Date and any Option Closing Date, in form and substance satisfactory to the Initial Purchasers, to the effect that the statements set forth in the
Time of Sale Information and the Offering Memorandum under the caption “Description of Notes,” insofar as they purport to describe or summarize certain provisions of the Securities and the Indenture, are accurate descriptions or summaries
in all material respects. 

  
 Annex D 








 ANNEX E 
 LOCK-UP LETTER AGREEMENT 
 Barclays Capital Inc. 
 J.P. Morgan Securities LLC 
 Wells Fargo Securities, LLC 
 As Representatives of the several 
 Initial Purchasers named in Schedule 1, 

c/o Barclays Capital Inc. 
 745 Seventh Avenue 

New York, New York 10019 
 Ladies and Gentlemen: 

The undersigned understands that you and certain other firms (the “Initial Purchasers”) propose to enter into a Purchase Agreement (the
“Purchase Agreement”) providing for the purchase by the Initial Purchasers of convertible senior notes (the “Securities”) of Hornbeck Offshore Services, Inc., a Delaware corporation (the “Company”) and that the Initial
Purchasers propose to reoffer the Securities (the “Offering.” The Securities will be convertible into cash and shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). 

In consideration of the execution of the Purchase Agreement by the Initial Purchasers, and for other good and valuable consideration, the
undersigned hereby irrevocably agrees that, without the prior written consent of Barclays Capital Inc. and J.P. Morgan Securities LLC, on behalf of the Initial Purchasers, the undersigned will not, directly or indirectly, (1) offer for sale,
sell, pledge, or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of) any shares of Common Stock (including, without
limitation, shares of Common Stock that may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the Securities and Exchange Commission and shares of Common Stock that may be issued upon exercise of
any options or warrants) or securities convertible into or exercisable or exchangeable for Common Stock, (2) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or
risks of ownership of shares of Common Stock, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or other securities, in cash or otherwise, (3) make any demand for or
exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of Common Stock or securities convertible into or exercisable or exchangeable for Common Stock or any
other securities of the Company or (4) publicly disclose the intention to do any of the foregoing, for a period commencing on the date hereof and ending on the 90th day after the date of the Offering Memorandum relating to the Offering (such
90-day period, the “Lock-Up 

  
 Annex E – Page 2









 
Period”). The foregoing sentence shall not apply to (a) sales, pledges or disposals of shares of Common Stock that were acquired by the undersigned in the open market after the date of
the Offering Memorandum, provided that no filing under the Securities Exchange Act of 1934, as amended, shall be required or shall be voluntarily made in connection with any such sale, pledge or disposition (other than a filing on a Form 5, Schedule
13D or Schedule 13G (or 13D-A or 13G-A) made after the expiration of the 90-day period referred to above), (b) bona fide gifts, sales or other dispositions of shares of any class of the Company’s capital stock, in each case that are made
exclusively between and among the undersigned or members of the undersigned’s family, or affiliates of the undersigned, including its partners (if a partnership) or members (if a limited liability company); provided that it shall be a condition
to any such transfer that (i) the transferee/donee agrees to be bound by the terms of the lock-up letter agreement (including, without limitation, the restrictions set forth in the preceding sentence) to the same extent as if the
transferee/donee were a party hereto, (ii) no filing by any party (donor, donee, transferor or transferee) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), shall be required or shall be voluntarily made in
connection with such transfer or distribution (other than a filing on a Form 5, Schedule 13D or Schedule 13G (or 13D-A or 13G-A) made after the expiration of the 90-day period referred to above), and (iii) each party (donor, donee, transferor
or transferee) shall not be required by law (including without limitation the disclosure requirements of the Securities Act of 1933, as amended, and the Exchange Act) to make, and shall agree to not voluntarily make, any public announcement of the
transfer or disposition, (c) transfers or sales of Common Stock pursuant to a plan complying with Rule 10b5-1 of the Regulations of the Securities Exchange Act of 1934, as amended, that has been entered into by the undersigned prior to the date
of this Lock-Up Letter Agreement or (d) transfers, sales or disposals of shares of Common Stock that were issued in connection with the exercise of stock options expiring on March 13, 2013, whether pursuant to a 10b5-1 plan entered into
after the date hereof or otherwise. 
 In furtherance of the foregoing, the Company and its transfer agent are hereby authorized to
decline to make any transfer of securities if such transfer would constitute a violation or breach of this Lock-Up Letter Agreement. 
 It
is understood that, if the Company notifies the Initial Purchasers that it does not intend to proceed with the Offering, if the Purchase Agreement does not become effective, or if the Purchase Agreement (other than the provisions thereof which
survive termination) shall terminate or be terminated prior to payment for and delivery of the Securities, the undersigned will be released from its obligations under this Lock-Up Letter Agreement. 

The undersigned understands that the Company and the Initial Purchasers will proceed with the Offering in reliance on this Lock-Up Letter
Agreement. 
 Whether or not the Offering actually occurs depends on a number of factors, including market conditions. Any Offering will
only be made pursuant to a Purchase Agreement, the terms of which are subject to negotiation between the Company and the Initial Purchasers. 

  
 Annex E – Page 3









 [Signature page follows] 

  
 Annex E – Page 4









 The undersigned hereby represents and warrants that the undersigned has full power and authority to
enter into this Lock-Up Letter Agreement and that, upon request, the undersigned will execute any additional documents necessary in connection with the enforcement hereof. Any obligations of the undersigned shall be binding upon the heirs, personal
representatives, successors and assigns of the undersigned. 
  

			
	Very truly yours,
		
	By:	 	 
	Name:	 	
	Title:	 	



Dated:                         
                                         
   

  
 Annex E – Page 5