Document:

exv10w2

 

Exhibit 10.2

STOCK OPTION AGREEMENT

     THIS AGREEMENT is dated and effective as of December 14, 2006, by and between Superior Energy
Services, Inc. (“Superior”), and ___(“Optionee”).

     WHEREAS Optionee is a key employee of Superior or one of its subsidiaries (collectively, the
“Company”) and Superior considers it desirable and in its best interest that Optionee be given an
inducement to acquire a proprietary interest in the Company and an added incentive to advance the
interests of the Company by possessing an option to purchase shares of the common stock of
Superior, $.001 par value per share (the “Common Stock”), in accordance with the Superior Energy
Services, Inc. 2005 Stock Incentive Plan (the “Plan”).

     NOW, THEREFORE, in consideration of the premises, it is agreed by and between the parties as
follows:

1.

GRANT OF OPTION

     Superior hereby grants to Optionee effective December 14, 2006 (the “Date of Grant”), the
right, privilege and option to purchase ___shares of Common Stock (the “Option”) at an exercise
price of $35.69 per share (the “Exercise Price”). The Option shall be exercisable at the time
specified in Article II below. The Option is a non-qualified stock option and shall not be treated
as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”).

2.

TIME OF EXERCISE

     2.1 Subject to the provisions of the Plan and the other provisions of this Agreement, the
Option shall vest in equal annual installments as follows:

	 	 	 
	Scheduled Vesting Date	 	Number of Shares
	December 31, 2007	 	 
	December 31, 2008	 	 
	December 31, 2009	 	 

     The Option shall expire and may not be exercised later than the tenth anniversary of the Date
of Grant.

     2.2 Upon the termination of Optionee’s employment with the Company, any portion of the Option
that has not yet become exercisable shall terminate immediately.

     2.3 If Optionee’s employment by the Company is terminated for Cause, the Option shall
terminate in full immediately, whether or not exercisable at the time of termination of employment.
“Cause” for termination of employment shall be deemed to exist upon either (a) a final
determination is made in accordance with the terms of Optionee’s employment agreement,

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if any, with the Company that the Optionee’s employment has been terminated for “cause” within
the meaning of the employment agreement or (b), if the Optionee is not subject to an employment
agreement: (i) failure to abide by the Company’s rules and regulations governing the transaction of
its business, including without limitation, its Code of Business Ethics and Conduct; (ii)
inattention to duties, or the commission of acts within employment with the Company amounting to
negligence or misconduct; (iii) misappropriation of funds or property of the Company or committing
any fraud against the Company or against any other person or entity in the course of employment
with the Company; (iv) misappropriation of any corporate opportunity, or otherwise obtaining
personal profit from any transaction which is adverse to the interests of the Company or to the
benefits of which the Company is entitled; or (v) the commission of a felony or other crime
involving moral turpitude.

     2.4 Except as provided in Sections 2.5 and 2.6, if Optionee’s employment with the Company is
terminated, the Option must be exercised, to the extent exercisable at the time of termination of
employment, within 30 days of the date on which Optionee ceases to be an employee, but in no event
later than the tenth anniversary of the Date of Grant.

     2.5 If Optionee’s employment by the Company is terminated because of (a) death, (b) disability
(within the meaning of Section 22(e)(3) of the Code) or (c) retirement on or after reaching age 55
with five years of service, the Option must be exercised, to the extent exercisable at the time of
termination of employment, on or before the tenth anniversary of the Date of Grant. In the event
of Optionee’s death, the Option may, to the extent exercisable at the time of death, be exercised
by his estate, or by the person to whom such right devolves from him by reason of his death.

     2.6 If there has been a Change of Control (as defined in the Plan) of Superior, (a) if the
Option remains outstanding after the Change of Control, either as a right to purchase Common Stock
or as a right to purchase that number and class of shares of stock or other securities or property
(including without limitation, cash) to which the Optionee would have been entitled if, immediately
prior to the Change of Control, the Optionee had been the record owner of the number of shares of
Common Stock then covered by the Option and (b) if the Optionee’s employment is terminated by the
Company other than for Cause within a one-year period following the Change of Control, then the
Option must be exercised within three years following the date of termination of employment, but in
no event later than the tenth anniversary of the Date of Grant.

3.

FORFEITURE OF OPTION AND OPTION GAIN

     If at any time during Optionee’s employment by the Company or within 36 months after
termination of employment, Optionee engages in any activity in competition with any activity of the
Company, or inimical, contrary or harmful to the interests of the Company, including but not
limited to:

     (a) conduct relating to Optionee’s employment for which either criminal or civil penalties
against Optionee may be sought;

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     (b) conduct or activity that results in termination of Optionee’s employment for Cause;

     (c) violation of Company policies, including, without limitation, the Company’s Code of
Business Ethics and Conduct;

     (d) accepting employment with, acquiring a 5% or more equity or participation interest in,
serving as a consultant, advisor, director or agent of, directly or indirectly soliciting or
recruiting any employee of the Company who was employed at any time during Optionee’s tenure with
the Company, or otherwise assisting in any other capacity or manner any company or enterprise that
is directly or indirectly in competition with or acting against the interests of the Company or any
of its lines of business (a “competitor”), except for (i) any isolated, sporadic accommodation or
assistance provided to a competitor, at its request, by Optionee during Optionee’s tenure with the
Company, but only if provided in the good faith and reasonable belief that such action would
benefit the Company by promoting good business relations with the competitor and would not harm the
Company’s interests in any substantial manner or (ii) any other service or assistance that is
provided at the request or with the written permission of the Company;

     (e) disclosing or misusing any confidential information or material concerning the Company; or

     (f) making any statement or disclosing any information to any customers, suppliers, lessors,
lessees, licensors, licensees, regulators, employees or others with whom the Company engages in
business that is defamatory or derogatory with respect to the business, operations, technology,
management, or other employees of the Company, or taking any other action that could reasonably be
expected to injure the Company in its business relationships with any of the foregoing parties or
result in any other detrimental effect on the Company; then the Option shall terminate without any
payment to Optionee effective the date on which Optionee engages in such activity, unless
terminated sooner by operation of another term or condition of this Agreement or the Plan, and
Optionee shall pay in cash to the Company, without interest, any option gain realized by Optionee
from exercising all or a portion of the Option during the period beginning one year prior to
termination of employment (or one year prior to the date Optionee first engages in such activity if
no termination occurs) and ending on the date on which the Option terminates. For purposes hereof,
“option gain” shall mean the difference between the closing market price of the Common Stock on the
date of exercise minus the exercise price, multiplied by the number of shares purchased.

4.

METHOD OF EXERCISE OF OPTION

     Optionee may exercise all or a portion of the Option by delivering to the Company a signed
written notice of his intention to exercise the Option, specifying therein the number of shares to
be purchased. Upon receiving such notice, and after the Company has received payment of the
exercise price as provided in the Plan, the appropriate officer of the Company shall cause the
transfer of title of the shares purchased to Optionee on the Company’s stock records and cause to
be issued to Optionee a stock certificate for the number of shares being

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acquired. Optionee shall not have any rights as a stockholder until the stock certificate is
issued to him.

5.

NO CONTRACT OF EMPLOYMENT INTENDED

     Nothing in this Agreement shall confer upon Optionee any right to continue in the employ of
the Company or any of its subsidiaries, or to interfere in any way with the right of the Company or
any of its subsidiaries to terminate Optionee’s employment relationship with the Company at any
time.

6.

BINDING EFFECT AND SUCCESSORS

     6.1 This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective heirs, executors, administrators and successors.

     6.2 If in connection with a Change of Control, the Option is assumed by a successor to the
Company, then, as used herein, “Company” shall include any successor to the Company’s business and
assets that assumes and agrees to perform this Agreement.

7.

NON-TRANSFERABILITY

     The Option may not be transferred, assigned, pledged or hypothecated in any manner, by
operation of law or otherwise, other than by will or by the laws of descent and distribution and
shall not be subject to execution, attachment or similar process.

8.

INCONSISTENT PROVISIONS

     The Option is subject to the provisions of the Plan as in effect on the date hereof and as it
may be amended. In the event any provision of this Agreement conflicts with such a provision of the
Plan, the Plan provision shall control.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day
and year first above written.

	 	 	 	 	 
	 	SUPERIOR ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	Optionee 	 
	 

4exv10w3

 

Exhibit 10.3

RESTRICTED STOCK AGREEMENT

     This RESTRICTED STOCK AGREEMENT (this “Agreement”) is dated and effective as of December 14,
2006, by and between Superior Energy Services, Inc. (“Superior”) and                      (“Award
Recipient”).

     WHEREAS, Superior maintains the 2005 Stock Incentive Plan (the “Plan”), under which the
Compensation Committee of the Board of Directors of Superior (the “Committee”) may, directly or
indirectly, among other things, grant restricted shares of Superior’s common stock, $.001 par value
per share (the “Common Stock”), to key employees of Superior or its subsidiaries (collectively, the
“Company”); and

     WHEREAS, pursuant to the Plan the Committee has awarded to the Award Recipient restricted
shares of Common Stock on the terms and conditions specified below;

     NOW, THEREFORE, the parties agree as follows:

1.

AWARD OF SHARES

     Upon the terms and conditions of the Plan and this Agreement, Superior hereby awards to the
Award Recipient                      restricted shares of Common Stock (the “Restricted Stock”), that vest,
subject to Sections 2, 3 and 4 hereof, in equal annual installments as follows:

	 	 	 
	 	 	Number of Shares of
	Scheduled Vesting Date	 	Restricted Stock
	January 1, 2008
	 	 
	January 1, 2009
	 	 
	January 1, 2010
	 	 

2.

AWARD RESTRICTIONS ON

RESTRICTED STOCK

     2.1 In addition to the conditions and restrictions provided in the Plan, neither the shares of
Restricted Stock nor the right to vote the Restricted Stock, to receive dividends thereon or to
enjoy any other rights or interests thereunder or hereunder may be sold, assigned, donated,
transferred, exchanged, pledged, hypothecated or otherwise encumbered prior to vesting. Subject to
the restrictions on transfer provided in this Section 2.1, the Award Recipient shall be entitled to
all rights of a shareholder of Superior with respect to the Restricted Stock, including the right
to vote the shares and receive all dividends and other distributions declared thereon.

     2.2 If the shares of Restricted Stock have not already vested in accordance with Section 1
above, the shares of Restricted Stock shall vest and all restrictions set forth in Section 2.1
shall lapse on the earlier of: (a) the date on which the employment of the Award Recipient
terminates as a result of any of the events specified in Sections 3(a) or (b) below, (b) if

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permitted by the Committee in accordance with Section 3 below, retirement or termination by the Company,
or (c) the occurrence of a Change of Control (as defined in the Plan).

3.

TERMINATION OF EMPLOYMENT

     If the Award Recipient’s employment terminates as the result of (a) death or (b) permanent and
total disability as determined by the Committee in its sole discretion, all unvested shares of
Restricted Stock granted hereunder shall immediately vest. Unless the Committee determines
otherwise in the case of retirement of the Award Recipient or termination by the Company of the
Award Recipient’s employment, termination of employment for any other reason, except termination
upon a Change of Control (as defined in the Plan), shall automatically result in the termination
and forfeiture of all unvested Restricted Stock.

4.

FORFEITURE OF AWARD

     4.1 If at any time during Award Recipient’s employment by the Company or within 36 months
after termination of employment, Award Recipient engages in any activity in competition with any
activity of the Company, or inimical, contrary or harmful to the interests of the Company,
including but not limited to:

     (a) conduct relating to Award Recipient’s employment for which either criminal or civil
penalties against Award Recipient may be sought;

     (b) conduct or activity that results in the termination of Award Recipient’s employment
for “cause” within the meaning of the terms of Award Recipient’s employment agreement, if
any, with the Company or if the Optionee is not subject to an employment agreement: (i)
failure to abide by the Company’s rules and regulations governing the transaction of its
business, including without limitation, its Code of Business Ethics and Conduct; (ii)
inattention to duties, or the commission of acts within employment with the Company
amounting to negligence or misconduct; (iii) misappropriation of funds or property of the
Company or committing any fraud against the Company or against any other person or entity in
the course of employment with the Company; (iv) misappropriation of any corporate
opportunity, or otherwise obtaining personal profit from any transaction which is adverse to
the interests of the Company or to the benefits of which the Company is entitled; or (v) the
commission of a felony or other crime involving moral turpitude.

     (c) accepting employment with, acquiring a 5% or more equity or participation interest
in, serving as a consultant, advisor, director or agent of, directly or indirectly
soliciting or recruiting any employee of the Company who was employed at any time during
Award Recipient’s tenure with the Company, or otherwise assisting in any other capacity or
manner any company or enterprise that is directly or indirectly in competition with or
acting against the interests of the Company or any of its lines of business (a
“competitor”), except for (i) any isolated, sporadic accommodation or assistance provided to
a competitor, at its request, by Award Recipient during Award

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Recipient’s tenure with the Company, but only if provided in the good faith and
reasonable belief that such action would benefit the Company by promoting good business
relations with the competitor and would not harm the Company’s interests in any substantial
manner or (ii) any other service or assistance that is provided at the request or with the
written permission of the Company;

     (d) disclosing or misusing any confidential information or material concerning the
Company; or

     (e) making any statement or disclosing any information to any customers, suppliers,
lessors, lessees, licensors, licensees, regulators, employees or others with whom the
Company engages in business that is defamatory or derogatory with respect to the business,
operations, technology, management, or other employees of the Company, or taking any other
action that could reasonably be expected to injure the Company in its business relationships
with any of the foregoing parties or result in any other detrimental effect on the Company;
then the award of Restricted Stock granted hereunder shall automatically terminate and be
forfeited effective on the date on which the Award Recipient breaches this Section 4.1 and
(i) all shares of Common Stock acquired by the Award Recipient pursuant to this Agreement
(or other securities into which such shares have been converted or exchanged) shall be
returned to the Company or, if no longer held by the Award Recipient, the Award Recipient
shall pay to the Company, without interest, all cash, securities or other assets received by
the Award Recipient upon the sale or transfer of such stock or securities, and (ii) all
unvested shares of Restricted Stock shall be forfeited.

     4.2 If the Award Recipient owes any amount to the Company under Section 4.1 above, the Award
Recipient acknowledges that the Company may, to the fullest extent permitted by applicable law,
deduct such amount from any amounts the Company owes the Award Recipient from time to time for any
reason (including without limitation amounts owed to the Award Recipient as salary, wages,
reimbursements or other compensation, fringe benefits, retirement benefits or vacation pay).
Whether or not the Company elects to make any such set-off in whole or in part, if the Company does
not recover by means of set-off the full amount the Award Recipient owes it, the Award Recipient
hereby agrees to pay immediately the unpaid balance to the Company.

     4.3 The Award Recipient may be released from the Award Recipient’s obligations under Sections
4.1 and 4.2 above only if the Committee determines in its sole discretion that such action is in
the best interests of the Company.

5.

STOCK CERTIFICATES

     5.1 Any stock certificates evidencing the Restricted Stock shall be retained by Superior until
the lapse of restrictions under the terms hereof. Superior shall place a legend, in the form
specified in the Plan, on any stock certificates restricting the transferability of the shares of
Restricted Stock.

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     5.2 If requested by the Award Recipient, upon the lapse of restrictions on shares of
Restricted Stock, Superior shall cause a stock certificate without a restrictive legend to be
issued with respect to the vested Restricted Stock in the name of the Award Recipient or his or her
nominee within 10 days. Upon receipt of such stock certificate, the Award Recipient will be free to
hold or dispose of the shares represented by such certificate, subject to the Company’s insider
trading policy and applicable securities laws.

6.

WITHHOLDING TAXES

     At the time that all or any portion of the Restricted Stock vests, the Award Recipient must
deliver to Superior the amount of income tax withholding required by law. In accordance with and
subject to the terms of the Plan, the Award Recipient may satisfy the tax withholding obligation in
whole or in part by delivering currently owned shares of Common Stock or by electing to have
Superior withhold from the shares the Award Recipient otherwise would receive hereunder shares of
Common Stock having a value equal to the minimum amount required to be withheld (as determined
under the Plan).

7.

ADDITIONAL CONDITIONS

     Anything in this Agreement to the contrary notwithstanding, if at any time Superior further
determines, in its sole discretion, that the listing, registration or qualification (or any
updating of any such document) of the shares of Common Stock issuable pursuant hereto is necessary
on any securities exchange or under any federal or state securities or blue sky law, or that the
consent or approval of any governmental regulatory body is necessary or desirable as a condition
of, or in connection with the issuance of shares of Common Stock pursuant thereto, or the removal
of any restrictions imposed on such shares, such shares of Common Stock shall not be issued, in
whole or in part, or the restrictions thereon removed, unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of any conditions not
acceptable to Superior. Superior agrees to use commercially reasonable efforts to issue all shares
of Common Stock issuable hereunder on the terms provided herein.

8.

NO CONTRACT OF EMPLOYMENT INTENDED

     Nothing in this Agreement shall confer upon the Award Recipient any right to continue in the
employment of the Company, or to interfere in any way with the right of the Company to terminate
the Award Recipient’s employment relationship with the Company at any time.

9.

BINDING EFFECT

     This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective heirs, executors, administrators, legal representatives and successors. Without limiting
the generality of the foregoing, whenever the term “Award Recipient” is used in any provision of
this Agreement under circumstances where the provision appropriately applies to the heirs,
executors, administrators or legal representatives to whom this award may be

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transferred by will or by the laws of descent and distribution, the term “Award Recipient”
shall be deemed to include such person or persons.

10.

INCONSISTENT PROVISIONS

     The shares of Restricted Stock granted hereby are subject to the terms, conditions,
restrictions and other provisions of the Plan as fully as if all such provisions were set forth in
their entirety in this Agreement. If any provision of this Agreement conflicts with a provision of
the Plan, the Plan provision shall control. The Award Recipient acknowledges that a copy of the
Plan and a prospectus summarizing the Plan was distributed or made available to the Award Recipient
and that the Award Recipient was advised to review such materials prior to entering into this
Agreement. The Award Recipient waives the right to claim that the provisions of the Plan are not
binding upon the Award Recipient and the Award Recipient’s heirs, executors, administrators, legal
representatives and successors.

11.

GOVERNING LAW

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Louisiana.

12.

SEVERABILITY

     If any term or provision of this Agreement, or the application thereof to any person or
circumstance, shall at any time or to any extent be invalid, illegal or unenforceable in any
respect as written, the Award Recipient and Superior intend for any court construing this Agreement
to modify or limit such provision so as to render it valid and enforceable to the fullest extent
allowed by law. Any such provision that is not susceptible of such reformation shall be ignored so
as to not affect any other term or provision hereof, and the remainder of this Agreement, or the
application of such term or provision to persons or circumstances other than those as to which it
is held invalid, illegal or unenforceable, shall not be affected thereby and each term and
provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

13.

ENTIRE AGREEMENT; MODIFICATION

     13.1 The Plan and this Agreement contain the entire agreement between the parties with respect
to the subject matter contained herein and may not be modified, except as provided in the Plan, as
it may be amended from time to time in the manner provided therein, or in this Agreement, as it may
be amended from time to time by a written document signed by each of the parties hereto. Any oral
or written agreements, representations, warranties, written inducements, or other communications
with respect to the subject matter contained herein made prior to the execution of the Agreement
shall be void and ineffective for all purposes.

     13.2 By Award Recipient’s signature below, Award Recipient represents that he or she is
familiar with the terms and provisions of the Plan, and hereby accepts this Agreement subject

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to all of the terms and provisions thereof. Award Recipient has reviewed the Plan and this
Agreement in their entirety and fully understands all provisions of this Agreement. Award Recipient
agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee
upon any questions arising under the Plan or this Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered on the day and year first above written.

	 	 	 	 	 
	 	SUPERIOR ENERGY SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Award Recipient 	 
	 	 	 	 

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