Document:

exv10w6

 

Exhibit 10.6

                     Shares

2008 NON-EMPLOYEE DIRECTOR

RESTRICTED STOCK AGREEMENT

          This 2008 Non-Employee Director Restricted Stock Agreement (this “Agreement”) is between
Oceaneering international, inc. (the “Company”) and                      (the “Participant”), a
non-employee Director, regarding an award (“Award”) of
                     shares of Common Stock (as defined
in the 2005 Incentive plan of oceaneering international, inc. (the “Plan”), such Common
Stock comprising this Award referred to herein as “Restricted Stock”) awarded to the Participant
effective February 22, 2008 (the “Award Date”), such number of shares subject to adjustment as
provided in Section 15 of the Plan, and further subject to the following terms and conditions:

     1. Relationship to Plan. This Award is subject to all of the terms, conditions and provisions
of the Plan and administrative interpretations thereunder, if any, which have been adopted by the
Board thereunder and are in effect on the date hereof. Except as defined or otherwise specifically
provided herein, capitalized terms shall have the same meanings ascribed to them under the Plan.

     2. Vesting and Lapse of Restrictions.

     (a) All shares of Restricted Stock subject to this Award shall vest in full (and all
restrictions thereon shall lapse) on the first anniversary of the Award Date, provided the
Participant is a Director on such anniversary.

     (b) All shares of Restricted Stock (and any substitute security and cash component
distributed in connection with a Change of Control) subject to this Award shall vest in full
(and all restrictions thereon shall lapse), irrespective of the provision set forth in
subparagraph (a) above, provided that the Participant has been in continuous service as a
Director since the Award Date, upon the earlier to occur of:

     (i) the Participant’s death; or

     (ii) a Change of Control.

     (c) For purposes of this Agreement:

     (i) “Change of Control” means:

     (A) any Person is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Securities Exchange Act of 1934, as amended and the rules
and regulations promulgated thereunder), directly or indirectly, of
securities of the Company representing 20% or more of the combined voting
power of the Company’s outstanding Voting Securities, other than through the
purchase of Voting Securities directly from the Company through a private
placement; or

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     (B) individuals who constitute the Board on the date hereof (the
“Incumbent Board”) cease for any reason to constitute at least a majority
thereof, provided that any person becoming a Director subsequent to the date
hereof whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two-thirds of the Directors
comprising the Incumbent Board shall from and after such election be deemed
to be a member of the Incumbent Board; or

     (C) the Company is merged or consolidated with another corporation or
entity and as a result of such merger or consolidation less than 60% of the
outstanding Voting Securities of the surviving or resulting corporation or
entity shall then be owned by the former shareholders of the Company; or

     (D) a tender offer or exchange offer is made and consummated by a
Person other than the Company for the ownership of 20% or more of the Voting
Securities of the Company then outstanding; or

     (E) all or substantially all of the assets of the Company are sold or
transferred to a Person as to which:

     (1) the Incumbent Board does not have authority (whether by law
or contract) to directly control the use or further disposition of
such assets; and

     (2) the financial results of the Company and such Person are not
consolidated for financial reporting purposes.

     (F) Anything else in this definition to the contrary notwithstanding:

     (1) no Change of Control shall be deemed to have occurred by
virtue of any transaction which results in the Participant, or a
group of Persons which includes the Participant, acquiring more than
20% of either the combined voting power of the Company’s outstanding
Voting Securities or the Voting Securities of any other corporation
or entity which acquires all or substantially all of the assets of
the Company, whether by way of merger, consolidation, sale of such
assets or otherwise; and

     (2) no Change of Control shall be deemed to have occurred unless
such event constitutes an event specified in Code Section
409A(2)(A)(v) and the Treasury regulations promulgated thereunder.

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     (ii) “Person” means, any individual, corporation, partnership, group,
association or other “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, and
the related rules and regulations promulgated thereunder.

     (iii) “Voting Securities” means, with respect to any corporation or
other business enterprise, those securities, which under ordinary
circumstances are entitled to vote for the election of directors or others
charged with comparable duties under applicable law.

     3. Forfeiture of Award. If the Participant’s service as a Director terminates under any
circumstances (except those provided in Paragraph 2 of this Agreement or in any other written
agreement between the Participant and the Company which provides for vesting of the Restricted
Stock granted hereby), all unvested Restricted Stock as of the termination date shall be forfeited.

     4. Registration of Shares. The Participant’s right to receive the Restricted Stock shall be
evidenced by book entry registration (or by such other manner as the Committee may determine) at
the beginning of the Restriction Period. Upon termination of the Restriction Period, a certificate
representing such shares shall be delivered upon written request to the Participant as promptly as
is reasonably practicable following such termination.

     5. Code Section 83(b) Election. The Participant shall be permitted to make an election under
Code Section 83(b), to include an amount in income in respect of the Award of Restricted Stock in
accordance with the requirements of Code Section 83(b).

     6. Dividends and Voting Rights. The Participant is entitled to receive all dividends and
other distributions made with respect to Restricted Stock registered in his name and is entitled to
vote or execute proxies with respect to such registered Restricted Stock, unless and until the
Restricted Stock is forfeited.

     7. Delivery of Shares. The Company shall not be obligated to deliver any shares of Common
Stock if counsel to the Company determines that such sale or delivery would violate any applicable
law or any rule or regulation of any governmental authority or any rule or regulation of, or
agreement of the Company with, any securities exchange or association upon which the Common Stock
is listed or quoted. The Company shall in no event be obligated to take any affirmative action in
order to cause the delivery of shares of Common Stock to comply with any such law, rule, regulation
or agreement.

     8. Notices. Unless the Company notifies the Participant in writing of a different procedure,
any notice or other communication to the Company with respect to this Agreement or the Plan shall
be in writing addressed to the Corporate Secretary of the Company and shall be: (a) by registered
or certified United States mail, postage prepaid, to 11911 FM 529, Houston, Texas 77041-3011; or
(b) by hand delivery or otherwise to 11911 FM 529, Houston, Texas 77041-3011. Any such notice
shall be deemed effectively delivered or given upon receipt.

          Notwithstanding the foregoing, in the event that the address of the Company’s principal
executive offices is changed prior to the date of any exercise of this Award, notices shall instead
be made pursuant to the foregoing provisions at the then current address of the Company’s principal
executive offices.

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          Any notice or other communication to the Participant with respect to this Agreement or the
Plan shall be given in writing and shall be deemed effectively delivered or given upon receipt or,
in the case of notices mailed by the Company to the Participant, five days after deposit in the
United States mail, postage prepaid, addressed to the Participant at the address specified at the
end of this Agreement or at such other address as the Participant hereafter designates by written
notice to the Company.

     9. Assignment of Award. Except as otherwise permitted by the Committee and as provided in the
immediately following paragraph, the Participant’s rights under the Plan and this Agreement are
personal, and no assignment or transfer of the Participant’s rights under and interest in this
Award may be made by the Participant other than by a domestic relations order. This Award is
payable during his lifetime only to the Participant, or in the case of a Participant who is
mentally incapacitated, this Award shall be payable to his guardian or legal representative.

          The Participant may designate a beneficiary or beneficiaries (the “Beneficiary”) to whom the
Award under this Agreement, if any, will pass upon the Participant’s death and may change such
designation from time to time by filing with the Company a written designation of Beneficiary on
the form attached hereto as Exhibit A, or such other form as may be prescribed by the Committee;
provided that no such designation shall be effective unless so filed prior to the death of the
Participant and no such designation shall be effective as of a date prior to receipt by the
Company. The Participant may change his Beneficiary without the consent of any prior Beneficiary
by filing a new designation with the Company. The last such designation that the Company receives
in accordance with the foregoing provisions will be controlling. Following the Participant’s
death, the Award, if any, will pass to the designated Beneficiary and such person will be deemed
the Participant for purposes of any applicable provisions of this Agreement. If no such
designation is made or if the designated Beneficiary does not survive the Participant’s death, the
Award shall pass by will or, if none, then by the laws of descent and distribution.

     10. Withholding. The Company’s obligation to deliver shares of Restricted Stock to the
Participant upon the vesting of such shares shall be subject to the satisfaction of all applicable
federal, state and local income and employment tax withholding requirements (the “Required
Withholding”). The Company may withhold from the Restricted Stock that would otherwise have been
delivered to the Participant the number of shares necessary to satisfy the Participant’s Required
Withholding, and deliver the remaining shares of Restricted Stock to the Participant, unless the
Participant has made arrangements with the Company for the Participant to deliver to the Company
cash, check, other available funds or shares of previously owned Common Stock for the full amount
of the Required Withholding by 5:00 p.m. Central Standard Time on the date the shares of Restricted
Stock become vested. The amount of the Required Withholding and the number of shares to satisfy
the Participant’s Required Withholding shall be based on the Fair Market Value of the shares on the
date prior to the applicable date of vesting.

     11. Stock Certificates. Certificates representing the Common Stock issued pursuant to the
Award will bear all legends required by law and necessary or advisable to effectuate the provisions
of the Plan and this Award. The Company may place a “stop transfer” order against shares of the
Common Stock issued pursuant to this Award until all restrictions and conditions

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set forth in the
Plan or this Agreement and in the legends referred to in this Section 11 have been complied with.

     12. Successors and Assigns. This Agreement shall bind and inure to the benefit of and be
enforceable by the Participant, the Company and their respective permitted successors and assigns
(including personal representatives, heirs and legatees), except that the Participant may not
assign any rights or obligations under this Agreement except to the extent and in the manner
expressly permitted in Section 9 of this Agreement.

     13. No Service as Director Guaranteed. No provision of this Agreement shall confer any right
upon the Participant to continued service with the Company as a Director.

     14. Code Section 409A Compliance. If any provision of this Agreement would result in the
imposition of an additional tax under Section 409A of the Code and related regulations and Treasury
pronouncements (“Section 409A”), that provision will be reformed to avoid imposition of the
additional tax and no action taken to comply with Section 409A shall be deemed to impair a benefit
under this Agreement.

     15. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of Texas, excluding any choice of law provision thereof that would
result in the application of the laws of any other jurisdiction.

     16. Amendment. Except as set forth herein, this Agreement cannot be modified, altered or
amended except by an agreement, in writing, signed by both the Company and the Participant.

	 	 	 	 	 
	 	OCEANEERING INTERNATIONAL, INC.

 	 
	Award Date: February 22, 2008 	By:  	 	 
	 	 	George R. Haubenreich, Jr. 	 
	 	 	Senior Vice President, General Counsel
and Secretary 	 
	 

          The Participant hereby accepts the foregoing 2008 Non-Employee Director Restricted Stock
Agreement, subject to the terms and provisions of the Plan and administrative interpretations
thereof referred to above.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	PARTICIPANT:
	 	 
	 
	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Participant’s Address:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

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Exhibit A to 2008 Non-Employee Director

Restricted Stock Agreement

Designation of Beneficiary

          I,                                          (“Participant”), hereby declare that upon my death,
                                         (the “Beneficiary”) of                                                              (address), who is my
                     (relationship), will be entitled to the Award which may become payable
under the Plan and all other rights accorded the Participant under the Participant’s 2008
Non-Employee Director Restricted Stock Agreement (capitalized terms used but not defined herein
have the respective meanings assigned to them in such agreement).

          It is understood that this designation of Beneficiary is made pursuant to the Agreement and is
subject to the conditions stated therein, including the Beneficiary’s survival of Participant. If
any such condition is not satisfied, such rights shall devolve according to the Participant’s last
will and testament, or if none, then the laws of descent and distribution.

          It is further understood that all prior designations of beneficiary under the Agreement are
hereby revoked upon the filing of this designation with the Company. This designation of
Beneficiary may only be revoked in writing, signed by the Participant, and filed with the Corporate
Secretary of the Company prior to the Participant’s death.

	 	 	 	 	 
	 

	 	 

Participant
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Date	 	 

Page 6 of 6exv4w1

 

EXHIBIT
4.1

$575,000,000

NABORS INDUSTRIES, INC.

6.15% SENIOR NOTES DUE 2018

GUARANTEED BY NABORS INDUSTRIES LTD.

PURCHASE AGREEMENT

CITIGROUP GLOBAL MARKETS INC.

UBS SECURITIES LLC

February 14, 2008

 

 

February 14, 2008

	 	 	 
	CITIGROUP GLOBAL MARKETS INC.
	 

	 	388 Greenwich Street
	 

	 	New York, New York 10013
	 
	 	 
	UBS SECURITIES LLC
	 

	 	677 Washington Blvd.
	 

	 	Stamford, CT 06901

Dear Sirs and Mesdames:

     Nabors Industries, Inc., a Delaware corporation (the “Company”), proposes to issue and sell to
the several initial purchasers named in Schedule A hereto (the “Initial Purchasers”) $575,000,000
aggregate principal amount of its 6.15% Senior Notes Due 2018 (the “Notes”) to be issued pursuant
to the provisions of an Indenture to be dated as of February 20, 2008 (the “Indenture”) among the
Company, the Guarantor (as defined below) and Wells Fargo Bank, National Association, as Trustee
(the “Trustee”). The Notes will be fully and unconditionally guaranteed (the “Guarantees”) by
Nabors Industries Ltd., a Bermuda exempted company (the “Guarantor”). The Notes and the Guarantees
are hereinafter collectively referred to as the “Securities.”

     The Securities will be offered by the Initial Purchasers without being registered under the
Securities Act of 1933, as amended (the “Securities Act”), (i) to persons whom the Initial
Purchasers reasonably believe to be qualified institutional buyers in compliance with the exemption
from registration provided by Rule 144A of the Securities Act (“Rule 144A”), and (ii) to certain
persons who are not U.S. Persons (as defined in Regulation S promulgated under the Securities Act
(“Regulation S”))(such persons, “Non-U.S. Persons”) in offshore transactions in reliance on
Regulation S.

     The Initial Purchasers and their direct and indirect transferees will be entitled to the
benefits and subject to the obligations of a Registration Rights Agreement to be dated the Closing
Date (as defined below) among the Company, the Guarantor and the Initial Purchasers (the
“Registration Rights Agreement”). Pursuant to the Registration Rights Agreement, the Company and
the Guarantor will agree to file with the U.S. Securities and Exchange Commission (the
“Commission”) under the circumstances set forth therein, a registration statement under the
Securities Act relating to the Company’s 6.15% Senior Notes due 2018 (the “Exchange Notes”) and the
Guarantor’s Exchange Guarantees (the “Exchange Guarantees”) to be offered in exchange for the Notes
and the Guarantees (the “Exchange Offer”).

     In connection with the sale of the Securities, the Company has prepared and delivered to the
Initial Purchasers a preliminary offering memorandum, dated “subject to completion, dated February
14, 2008” (together with any exhibits thereto and the documents incorporated by reference therein,
the “Offering Memorandum”) and has prepared and delivered a pricing supplement (the “Pricing
Supplement”) dated February 14, 2008, in the form attached hereto as Schedule I, describing the
terms of the Securities, the terms of the offering and a description of

 

 

the Company and the
Guarantor, each for use by the Initial Purchasers in connection with their solicitation of offers
to purchase the Securities. As used herein, “Disclosure Package” shall mean the Offering
Memorandum, as supplemented by the Pricing Supplement and any written communications (as defined in
Rule 405 under the Securities Act) authorized for use under Section 6(j), each in the most recent
form that has been prepared and delivered by the Company to the Initial Purchasers in connection
with their solicitation of offers to purchase the Securities as of the Applicable Time.
“Applicable Time” means 4:15 P.M. (EST) on February 14, 2008. Promptly after the Applicable Time
and in any event no later than the Closing Date (as defined in Section 4), the Company will prepare
and deliver to the Initial Purchasers a final offering memorandum (the “Final Memorandum”), which
will consist of the Offering Memorandum with only such changes therein as are required to reflect
the information contained in the Pricing Supplement. The Offering Memorandum and the Final
Memorandum are each sometimes referred to herein as a “Memorandum.” As used herein (including the
schedule and annexes hereto), the term “Memorandum” shall include in each case the documents
incorporated by reference therein. The terms “supplement”, “amendment” and “amend” as used herein
with respect to the Memorandum shall include all documents deemed to be incorporated by reference
in the Memorandum that are filed subsequent to the date of the Memorandum with the Commission
pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

     1. Representations and Warranties. The Guarantor and the Company, jointly and severally, represent
and warrant to, and agree with each of the Initial Purchasers as of the Applicable Time and as of
the Closing Date that:

     (a) (i) Each document filed or to be filed pursuant to the Exchange Act and
incorporated by reference in the Memorandum complied or will comply when so filed in all
material respects with the Exchange Act and the applicable rules and regulations of the
Commission thereunder, and (ii) as of its date the Offering Memorandum did not contain, as
of the Applicable Time the Disclosure Package did not or will not contain, and on and as of
the Closing Date, the Disclosure Package and the Final Memorandum will not contain, any
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, except that the representations and warranties set forth in this paragraph do
not apply to statements or omissions in the Disclosure Package or the Final Memorandum based
upon information relating to the Initial Purchasers furnished to the Company in writing by
the Initial Purchasers expressly for use therein, it being understood and agreed that the
only such information is that described in Section 8(b).

     (b) Each of the Guarantor and the Company has been duly incorporated, organized or
formed, is validly existing as a Bermuda exempted company and Delaware corporation,
respectively, in good standing under the laws of the jurisdiction of its incorporation, has
the corporate power and authority to own its property and to conduct its business as
described in the Offering Memorandum and is duly qualified to transact business and is in
good standing in each jurisdiction in which the conduct of its business or its ownership or
leasing of property requires such qualification, except to the extent that the failure to be
so qualified or be in good standing would not have a material

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adverse effect on the
Guarantor and its subsidiaries, taken as a whole (a “Material Adverse Effect”).

     (c) Each Significant Subsidiary (as defined below) has been duly organized, is validly
existing as a corporation or limited partnership in good standing under the laws of the
jurisdiction of its organization, has the corporate or limited partnership power and
authority to own its property and to conduct its business to the extent described in the
Offering Memorandum and is duly qualified to transact business and is in good standing in
each jurisdiction in which the conduct of its business or its ownership or leasing of
property requires such qualification, except to the extent that the failure to be so
qualified or be in good standing would not have a Material Adverse Effect. All of the
issued shares of capital stock (or limited partnership interests) of each Significant
Subsidiary have been duly and validly authorized and issued, are fully paid and
non-assessable and are owned by the Guarantor, directly or indirectly, free and clear of all
liens, encumbrances, equities or claims other than any liens, encumbrances, equities or
claims in favor of the Guarantor or another Significant Subsidiary. “Significant
Subsidiaries” shall mean the Company, Nabors International Finance, Inc., Nabors Drilling
USA, LP, Nabors Diamond Holdings, Inc., Yellow Deer Investments Corp., Nabors Holding
Company, Nabors International Management, Ltd., Nabors Drilling International Ltd., Nabors
Drilling International II Ltd., Nabors Drilling Canada ULC, Nabors International Holdings
Ltd., Oak Leaf Investments, Inc., Nabors Drilling Limited (Canada), Nabors Industries Inc.,
Nabors Canada, Ryan Energy Technologies Inc., Nabors Well Services Co., Nabors Global
Holdings Ltd., Maple Leaf Holdings Ltd. and Nabors Hungary Kft.

     (d) This Agreement has been duly authorized, executed and delivered by the Company and
the Guarantor and is a valid and binding agreement of, each of the Company and the
Guarantor, enforceable in accordance with its respective terms, subject to applicable
bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general
principles of equity and implied covenants of good faith and fair dealing.

     (e) The outstanding capital stock of the Company is indirectly owned by the Guarantor,
free and clear of all liens, encumbrances, equities or claims other than any liens,
encumbrances, equities or claims in favor of the Guarantor or a Significant Subsidiary.

     (f) The issuance of the Securities has been duly authorized and, when the Notes have
been executed and authenticated in accordance with the provisions of the Indenture and
delivered to and paid for by the Initial Purchasers in accordance with the terms of this
Agreement, the Securities will be valid and binding obligations of the Company and the
Guarantor, as the case may be, enforceable in accordance with their respective terms,
subject to applicable bankruptcy, insolvency, moratorium, fraudulent conveyance or similar
laws affecting creditors’ rights generally, general principles of equity and implied
covenants of good faith and fair dealing, and will be entitled to the benefits of the
Indenture and the Registration Rights Agreement.

     (g) The issuance of the Exchange Notes has been duly authorized and, when the Exchange
Notes have been executed and authenticated in accordance with the

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provisions of the
Indenture and delivered as contemplated in the Registration Rights Agreement, will be valid
and binding obligations of the Company enforceable in accordance with their terms, subject
to applicable bankruptcy, insolvency, moratorium, fraudulent conveyance or similar laws
affecting creditors’ rights generally, general principles of equity and implied covenants of
good faith and fair dealing.

     (h) The issuance of the Exchange Guarantees has been duly authorized and, upon the due
execution and authentication of the Exchange Notes in accordance with the Indenture and the
issuance and delivery of the Exchange Notes in the Exchange Offer contemplated by the
Registration Rights Agreement, will be valid and binding obligations of the Guarantor
enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency,
moratorium, fraudulent conveyance or similar laws affecting creditors’ rights generally,
general principles of equity and implied covenants of good faith and fair dealing.

     (i) Each of the Indenture and the Registration Rights Agreement has been duly
authorized and, on or prior to the Closing Date will have been, executed and delivered by,
and, assuming due authorization, execution and delivery of the Indenture by the Trustee and
of the Registration Rights Agreement by the Initial Purchasers, respectively, is or will be
a valid and binding agreement of, the Company and the Guarantor, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting
creditors’ rights generally and general principles of equity and implied covenants of good
faith and fair dealing and except as rights to indemnification and contribution under the
Registration Rights Agreement may be limited under applicable law.

     (j) The execution and delivery by the Company and the Guarantor of, and the performance
by the Company and the Guarantor of their respective obligations under, this Agreement, the
Indenture, the Registration Rights Agreement, the Securities, the Exchange Notes and the
Exchange Guarantees will not contravene any provision of (i) applicable law or the restated
certificate of incorporation, as amended, or by-laws, as amended, of the Company, the
Memorandum of Association or Bye-laws, as amended, of the Guarantor or (ii) any agreement or
other instrument binding upon the Guarantor, the Company or any of the Significant
Subsidiaries that is material to the Guarantor and its subsidiaries, taken as a whole, or,
(iii) to the knowledge of the Guarantor or the Company, any judgment, order or decree of any
governmental body, agency or court having jurisdiction over the Guarantor, the Company or
any Significant Subsidiary, except, in the cases of clauses (ii) and (iii) above, for any
such default or violation that would not, individually or in the aggregate, have a Material
Adverse Effect.

     (k) There are no material legal or governmental proceedings pending or, to the
knowledge of the Guarantor or the Company, threatened to which the Company or any of the
Significant Subsidiaries is a party or to which any of the properties of the Guarantor or
the Company or any of their subsidiaries is subject other than proceedings accurately
described in all material respects in the Offering Memorandum and proceedings that would not
have a Material Adverse Effect or material adverse effect on the power or ability of the
Guarantor or the Company to perform its obligations under this Agreement,

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the Indenture, the
Registration Rights Agreement, the Securities, the Exchange Notes or the Exchange Guarantees
or to consummate the transactions contemplated by the Offering Memorandum.

     (l) None of the Company, the Guarantor nor any affiliate (as defined in Rule 501(b) of
Regulation D under the Securities Act, an “Affiliate”) of the Company or the Guarantor has
directly, or through any agent, (i) 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 in a manner that would require the
registration under the Securities Act of the Securities, (ii) engaged in any form of general
solicitation or general advertising in connection with the offering of the Securities (as
those terms are used in Regulation D under the Securities Act) or in any manner involving a
public offering within the meaning of Section 4(2) of the Securities Act or (iii) engaged in
any directed selling efforts within the meaning of Regulation S, and all such persons have
complied with the offering restrictions requirement of Regulation S.

     (m) Assuming the accuracy of the representations and warranties of the Initial
Purchasers in Section 7 and their compliance with the agreements set forth therein, it is
not necessary in connection with the offer, sale and delivery of the Securities to the
Initial Purchasers in the manner contemplated by this Agreement to register the Securities
under the Securities Act or to qualify the Indenture under the Trust Indenture Act of 1939,
as amended.

     (n) The Securities satisfy the requirements set forth in Rule 144A(d)(3) under the
Securities Act.

     (o) Neither the Company nor the Guarantor is, and after giving effect to the offering
and sale of the Notes and the application of the proceeds thereof as described in the
Disclosure Package and the Final Memorandum neither will be, an “investment company” as
defined in the Investment Company Act of 1940.

     (p) Other than the Offering Memorandum, the Disclosure Package and the Final
Memorandum, neither the Company nor the Guarantor (including their respective agents and
representatives, other than the Initial Purchasers in their capacity as such) has made, used
or prepared, authorized, approved or referred to nor will they 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.

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     2. Agreements to Sell and Purchase. The Company hereby agrees to sell to the Initial Purchasers, and
the Initial Purchasers, upon the basis of the representations and warranties herein contained, but
subject to the conditions hereinafter stated, agree, severally and not jointly, to purchase from
the Company the principal amount of Notes set forth opposite such Initial Purchaser’s name on
Schedule A hereto at a purchase price of 99.27% of the principal amount thereof (the “Purchase
Price”).

     The Company and the Guarantor hereby agree that, without the prior written consent of the
Initial Purchasers, they will not, during the period beginning on the date hereof and continuing to
and including the Closing Date, offer, sell, contract to sell or otherwise dispose of any debt of
the Company or warrants to purchase debt of the Company in each case of a type substantially
similar to the Securities (other than the sale of the Securities under this Agreement and the
exchange of the Securities for the Exchange Notes and the Exchange Guarantees in connection with
the Exchange Offer).

     3. Terms of Offering. You have advised the Company and the Guarantor that the Initial Purchasers will
make an offering of the Securities to be purchased by the Initial Purchasers hereunder on the terms
set forth in this Agreement and the Offering Memorandum.

     4. Payment and Delivery. Payment of the Purchase Price for the Notes shall be made to the Company in
Federal or other funds immediately available in New York City against delivery of such Notes for
the account of the Initial Purchasers at 10:00 a.m., New York City time, on February 20, 2008, or
at such other time on the same or such other date, as shall hereafter be agreed upon by the Company
and the Initial Purchasers. The time and date of such payment are hereinafter referred to as the
“Closing Date.”

     Delivery of the Notes shall be made through the facilities of The Depository Trust Company
(“DTC”) pursuant to its Full-Fast Delivery Program unless the Initial Purchasers shall otherwise
instruct, and Notes sold by the Initial Purchasers in reliance on Rule 144A or Regulation S shall
be represented by one or more global certificates.

     5. Conditions to the Initial Purchasers’ Obligations. The obligations of the several Initial
Purchasers to purchase and pay for the Notes and related Guarantees on the Closing Date are
subject to the following conditions:

     (a) Subsequent to the execution and delivery of this Agreement and prior to the Closing
Date:

          (i) There shall not have occurred any downgrading, nor shall any notice have been given
of any intended or potential downgrading, below A3 from Moody’s Investors Service, Inc.,
BBB+ from Standard and Poor’s Ratings Services and A- from Fitch Inc., in the senior
unsecured rating accorded the Company or the Guarantor or any of the Company’s or the
Guarantor’s senior unsecured securities or in the rating outlook for the Company or the
Guarantor by any “nationally recognized statistical rating organization,” as such term is
defined for purposes of Rule 436(g)(2) under the Securities Act; and

-6-

 

          (ii) There shall not have occurred any change, or any development involving a
prospective change, in the financial position, or in the earnings, business or operations of
the Guarantor and its subsidiaries, taken as a whole, from that set forth in the Offering
Memorandum (exclusive of any amendments or supplements thereto subsequent to the date of
this Agreement) that, in your judgment, is material and adverse and that makes it, in your
judgment, impracticable to market the Securities on the terms and in the manner contemplated
in the Offering Memorandum.

     (b) The Initial Purchasers shall have received on the Closing Date a certificate, dated
the Closing Date and signed by an executive officer of each of the Company, with respect to
the Company, and the Guarantor, with respect to the Guarantor, to the effect set forth in
Section 5(a) and to the effect that the representations and warranties of the Company and
the Guarantor contained in this Agreement are true and correct as of the Closing Date and
that each of the Company and the Guarantor has complied with all of the agreements and
satisfied all of the conditions on its part to be performed or satisfied hereunder on or
before the Closing Date.

     The officer signing and delivering such certificate may rely upon the best of his or her
knowledge as to proceedings threatened.

     (c) The Company and the Guarantor shall have furnished to the Initial Purchasers the
opinion of Bruce M. Taten, Vice President and General Counsel of Nabors Corporate Services,
Inc., dated the Closing Date, substantially to the effect set forth on Annex 5(c) hereto.
In giving such opinion, such counsel may rely as to matters of fact, to the extent such
counsel deems proper, on certificates of responsible officers of the Company or the
Guarantor and the Significant Subsidiaries and of public officials. Such opinion may be
relied upon only by the Initial Purchasers in connection with the transactions contemplated
by this Agreement, and may not be used or relied upon by the Initial Purchasers for any
other purpose, or by any other person, firm, corporation or entity for any purpose
whatsoever, without the prior written consent of such counsel. Such opinion may be limited
to the laws of the State of Texas and the corporation, limited partnership and limited
liability company statutes of the State of Delaware.

     (d) The Company and the Guarantor shall have furnished to the Initial Purchasers the
opinion of Milbank, Tweed, Hadley & McCloy LLP, special United States counsel for the
Company and the Guarantor, dated the Closing Date, substantially to the effect set forth on
Annex 5(d) hereto.

     In rendering their opinions pursuant to this Section 5(d), such counsel may rely, to
the extent deemed advisable by such counsel, (i) as to factual matters on certificates of
officers of the Company or the Guarantor and (ii) upon certificates of public officials.
Such counsel shall state that such counsel has reviewed the Disclosure Package and the Final
Offering Memorandum prepared by the Company, as well as certain corporate records and
documents furnished to such counsel by the Company and such counsel has participated in
discussions with representatives of the Company and the Guarantor, counsel to the Company
and counsel to the Initial Purchasers regarding the contents of the Disclosure Package and
the Final Offering Memorandum and related matters; such

-7-

 

counsel shall also state that the
purpose of their professional engagement was not to establish or confirm factual matters set
forth in the Disclosure Package or the Final Offering Memorandum and they have not
undertaken to verify independently any of such factual matters and that moreover, many of
the determinations required to be made in the preparation of the Disclosure Package and the
Final Offering Memorandum involve matters of a non-legal nature; and that accordingly, they
are not passing upon and do not assume any responsibility for the accuracy, completeness or
fairness of the statements contained in the Disclosure Package and the Final Offering
Memorandum and shall make no representation that they have independently verified the
accuracy, completeness or fairness of such statements, except as stated in Sections 2, 3,
and 11 of Annex 5(d).

     Such counsel shall also state that on the basis of and subject to the foregoing that
they confirm that nothing has come to such counsel’s attention that causes such counsel to
believe that: (i) the Disclosure Package as of the “Applicable Time” and as of the Closing
Date contained or contains or (ii) the Final Offering Memorandum, as of its date or as of
the Closing Date, contained or contains, an untrue statement of a material fact or omitted
or omits 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 (it being understood
that such counsel need not comment in respect to (i) or (ii) above with respect to the
financial statements and other financial information contained or incorporated by reference
in the Disclosure Package or the Final Offering Memorandum).

     Such opinion shall be limited to the laws of the State of New York, the Federal laws of
the United States and the General Corporation Law of the State of Delaware. Such opinion
shall be rendered as of the Closing Date only in connection with this Agreement and will be
solely for the benefit of the Initial Purchasers, and may not be relied upon, nor shown to
or quoted from, for any other purpose, or to any other person, firm or corporation..

     (e) The Company and the Guarantor shall have furnished to the Initial Purchasers the
opinion of Appleby, special counsel for the Guarantor, dated the Closing Date, in the form
set forth on Annex 5(e) hereto. Such opinion shall be limited to the laws of Bermuda. Such
opinion shall be rendered as of the Closing Date only in connection with the Agreement and
will be solely for the benefit of the Initial Purchasers, and may not be relied upon, nor
shown to or quoted from, for any other purpose, or to any other person, firm or corporation.

     (f) The Initial Purchasers shall have received from Vinson & Elkins L.L.P., counsel for
the Initial Purchasers, such opinion or opinions, dated the Closing Date, with respect to
the issuance and sale of the Securities, the Disclosure Package, the Final Memorandum and
other related matters as the Initial Purchasers may reasonably require, and the Company and
the Guarantor shall have furnished to such counsel such documents as such counsel reasonably
requests for the purpose of enabling such counsel to pass upon such matters.

-8-

 

     (g) The Initial Purchasers shall have received on the date of the Applicable Time and
on the Closing Date letters, dated the date of the Applicable Time and Closing Date,
respectively, in form and substance satisfactory to the Initial Purchasers, from
PricewaterhouseCoopers LLP, independent public accountants, containing statements and
information of the type ordinarily included in accountants’ “comfort letters” to
underwriters with respect to the financial statements and certain financial information
contained in or incorporated by reference into each Memorandum; provided that the letter
delivered on the Closing Date shall use a “cut-off date” not earlier than the date hereof.

     (h) The Initial Purchasers shall have received on the date of the Applicable Time and
on the Closing Date, certificates dated the date of the Applicable Time and Closing Date,
respectively, and signed by the chief financial officer of the Guarantor, in the form set
forth in Annex 5(h) hereto, as applicable.

     6. Covenants of the Company and the Guarantor. In further consideration of the agreements of the
Initial Purchasers contained in this Agreement, the Company and the Guarantor, jointly and
severally, covenant with the Initial Purchasers as follows:

     (a) To furnish to the Initial Purchasers in New York City, without charge, prior to
10:00 a.m. New York City time on February 20, 2008 and during the period mentioned in
Section 6(c), as many copies of the Disclosure Package, the Memorandum, any documents
incorporated by reference therein and any supplements and amendments thereto as the Initial
Purchasers may reasonably request.

     (b) Before amending or supplementing the Disclosure Package or the Memorandum, to
furnish to the Initial Purchasers a copy of each such proposed amendment or supplement and
not to use any such proposed amendment or supplement to which the Initial Purchasers
reasonably object.

     (c) If, during such period after the date hereof and prior to the date on which all of
the Securities shall have been sold by the Initial Purchasers, any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the Disclosure
Package or the Memorandum in order to make the statements therein, in the light of the
circumstances when the Disclosure Package or the Memorandum is delivered to a purchaser, not
misleading, or if, in the opinion of counsel for the Initial Purchasers, it is necessary to
amend or supplement the Disclosure Package or the Memorandum to comply with applicable law,
forthwith to prepare and furnish, at its own expense, to the Initial Purchasers, either
amendments or supplements to the Disclosure Package or the Memorandum so that the statements
in the Disclosure Package or the Memorandum as so amended or supplemented will not, in the
light of the circumstances when the Disclosure Package or the Memorandum is delivered to a
purchaser, be misleading or so that the Disclosure Package or the Memorandum, as amended or
supplemented, will comply with applicable law.

     (d) To endeavor to qualify the Securities for offer and sale under the securities or
Blue Sky laws of such jurisdictions as the Initial Purchasers shall reasonably request;
provided, however that neither the Company nor the Guarantor shall be obligated to file

-9-

 

any
general consent to service of process or to qualify as a foreign corporation or as a dealer
in securities in any jurisdiction in which it is not so qualified or to subject itself to
taxation in respect of doing business in any jurisdiction in which it is not otherwise so
subject.

     (e) Whether or not the transactions contemplated in this Agreement are consummated or
this Agreement is terminated, to pay or cause to be paid all expenses incident to the
performance of their respective obligations under this Agreement, including: (i) the fees,
disbursements and expenses of the Company’s and the Guarantor’s counsel and the Company’s
and the Guarantor’s accountants in connection with the issuance and sale of the Securities
and all other fees or expenses of the Company and the Guarantor in connection with the
preparation of the Disclosure Package and the Memorandum and all amendments and supplements
thereto, including all printing costs associated therewith, and the delivery of copies
thereof to the Initial Purchasers, in the quantities herein above specified, (ii) all costs
and expenses related to the issuance, transfer and delivery of the Securities to the Initial
Purchasers, including any transfer or other taxes payable thereon, (iii) the cost of
printing or producing any blue sky or legal investment memorandum in connection with the
offer and sale of the Securities under state securities laws and all expenses in connection
with the qualification of the Securities for offer and sale under state securities laws as
provided in Section 6(d) hereof, including filing fees and the reasonable fees and
disbursements of counsel for the Initial Purchasers in connection with such qualification
and in connection with the Blue Sky or legal investment memorandum, (iv) any fees charged by
rating agencies for the rating of the Securities, (v) the costs and charges of the Trustee
and any transfer agent, registrar or depositary, and (vi) all other costs and expenses
incident to the performance of the obligations of the Company and the Guarantor hereunder
for which provision is not otherwise made in this Section. It is understood, however, that
except as provided elsewhere in this Agreement, the Initial Purchasers will pay all of their
costs and expenses, including fees and disbursements of their counsel, transfer taxes
payable upon resale of any of the Securities by them and any advertising expenses connected
with any offers they may make.

     (f) Neither the Guarantor nor any Affiliate of the Guarantor will sell, offer for sale
or solicit offers to buy or otherwise negotiate in respect of any security (as defined in
the Securities Act) which could be integrated with the sale of the Securities in a manner
that would require the registration under the Securities Act of the Securities.

     (g) Not to solicit any offer to buy or offer or sell the Securities by means of any
form of general solicitation or general advertising (as those terms are used in Regulation D
under the Securities Act) or in any manner involving a public offering within the meaning of
Section 4(2) of the Securities Act.

     (h) While any of the Securities remain “restricted securities” within the meaning of
the Securities Act, to make available, upon request, to any seller of such Securities the
information specified in Rule 144A(d)(4) under the Securities Act, unless the Guarantor is
then subject to Section 13 or 15(d) of the Exchange Act.

-10-

 

     (i) Until the issuance of the Exchange Notes or the effectiveness of the shelf
registration statement contemplated by the Registration Rights Agreement, the Guarantor 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 which constitute “restricted securities” under Rule 144
that have been reacquired by any of them.

     (j) Before using, authorizing, approving or referring to any written communication that
constitutes an offer to sell or a solicitation to buy the Notes or the Guarantees (other
than the Disclosure Package and the Final Memorandum), the Company will furnish to the
Initial Purchasers a copy of such written communication for review and will not use,
authorize, approve or refer to any such written communication to which the Initial
Purchasers reasonably object.

     7. Offering of Securities; Restrictions on Transfer. (a) Each Initial Purchaser, severally and not
jointly, represents, warrants and agrees that (i) it is a qualified institutional buyer as defined
in Rule 144A under the Securities Act (a “QIB”), and an “accredited investor” within the meaning of
Rule 501 under the Securities Act, (ii) it has not solicited offers for, or offered or sold, and
will not solicit offers for, or offer or sell, such Securities by any form of general solicitation
or general advertising (as those terms are used in Regulation D under the Securities Act) or in any
manner involving a public offering within the meaning of Section 4(2) of the Securities Act, (iii)
it will solicit offers for such Securities only from, and will offer such Securities only to,
persons that it reasonably believes to be QIBs in transactions pursuant to Rule 144A and in
connection with each such sale, it has taken or will take reasonable steps to ensure that such sale
is being made in reliance on Rule 144A and (iv) it will solicit offers outside the United States
only from, and will offer such Securities only to, certain persons who are not U.S. Persons in
offshore transactions in reliance on Regulation S. Each Initial Purchaser will comply with all
applicable laws and regulations in each jurisdiction in which it acquires, offers, sells or
delivers Securities or has in its possession or distributes the Disclosure Package or the
Memorandum or any such other material, in all cases at its own expense, except as provided in
Section 6(e).

     (b) Each Initial Purchaser acknowledges and agrees that the Company and, for the purposes of
the opinions to be delivered to the Initial Purchaser pursuant to Sections 5(c), 5(d), 5(e) and
5(f) by counsel for the Company, counsel for the Guarantor and counsel for the Initial Purchasers,
respectively, may rely upon the accuracy of the representations and warranties of such Initial
Purchaser, and compliance of such Initial Purchaser with its agreements, contained in paragraph
7(a) above, and such Initial Purchaser hereby consents to such reliance.

     8. Indemnity and Contribution. (a) The Company and the Guarantor, jointly and severally, agree to
indemnify and hold harmless each Initial Purchaser, the respective officers and directors of the
Initial Purchasers, and each person, if any, who controls any Initial Purchaser within the meaning
of either 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, any legal or other
expenses reasonably incurred in connection with defending or investigating any such action or
claim) caused by any untrue statement or alleged untrue statement of a material fact contained in
the Offering Memorandum, the Disclosure Package, the Final Memorandum, or in any amendment or
supplement thereto, or caused by any omission or

-11-

 

alleged omission to state therein a material fact
necessary to make the statements therein in the light of the circumstances under which they were
made not misleading, except insofar as such losses, claims, damages or liabilities are caused by
any such untrue statement or omission or alleged untrue statement or omission based upon
information furnished to the Company in writing by the Initial Purchasers expressly for use
therein, it being understood and agreed that the only information furnished by any such Initial
Purchaser consists of the information described in Section 8(b);

     (b) Each Initial Purchaser, severally and not jointly, agrees to indemnify and hold
harmless the Company, its directors, its officers, the Guarantor, its directors, its
officers and each other person, if any, who controls the Company or the Guarantor within the
meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the
same extent as the foregoing indemnity from the Company and the Guarantor to the Initial
Purchasers, but only with reference to information relating to the Initial Purchasers
furnished in writing by the Initial Purchasers to the Company expressly for use in the
Offering Memorandum, the Disclosure Package or the Final Memorandum or any amendments or
supplements thereto, it being understood and agreed that the only information furnished by
any such Initial Purchaser consists of the following information in the Offering Memorandum:
the eighth (first sentence only) and ninth paragraphs under the caption “Plan of
Distribution.

     (c) In case any proceeding (including any governmental investigation) shall be
instituted involving any person in respect of which indemnity may be sought pursuant to
Section 8(a) or 8(b), such person (the “indemnified party”) shall promptly notify the person
against whom such indemnity may be sought (the “indemnifying party”) in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel reasonably
satisfactory to the indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the fees and disbursements
of such counsel related to such proceeding. In any such proceeding, any indemnified party
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 party unless (i) the indemnifying party and the
indemnified party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include both the
indemnifying party and the indemnified party and representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests between them.
It is understood that the indemnifying party shall not, in respect of the legal expenses of
any indemnified party in connection with any proceeding or related proceedings 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 such indemnified parties and that all such fees and
expenses shall be reimbursed as they are incurred. Such firm shall be designated in writing
by the Initial Purchasers, in the case of parties indemnified pursuant to Section 8(a), and
by the Guarantor, in the case of parties indemnified pursuant to Section 8(b). The
indemnifying party 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 party agrees to indemnify the indemnified party from and
against any loss or liability by reason of such settlement or judgment. Notwithstanding the
foregoing sentence, if at any time an

-12-

 

indemnified party shall have requested an indemnifying
party to reimburse the indemnified party for fees and expenses of counsel as contemplated by
the second and third sentences of this paragraph, the indemnifying party agrees that it
shall be liable for any settlement of any proceeding effected without its written consent if
(i) such settlement is entered into more than 30 days after receipt by such indemnifying
party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed
the indemnified party in accordance with such request prior to the date of such settlement.
No indemnifying party shall, without the prior written consent of the indemnified party,
effect any settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been sought
hereunder by such indemnified party, unless such settlement includes an unconditional
release of such indemnified party from all liability on claims that are the subject matter
of such proceeding.

     (d) To the extent the indemnification provided for in Section 8(a) or 8(b) is
unavailable to an indemnified party or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each indemnifying party under such
paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to
the amount paid or payable by such indemnified party 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 or the Guarantor on the one hand and the Initial Purchasers
on the other hand from the offering of the Notes or (ii) if the allocation provided by
clause 8(d)(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause 8(d)(i) above
but also the relative fault of the Company or the Guarantor on the one hand and of the
Initial Purchasers on the other hand 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 or the Guarantor on
the one hand and the Initial Purchasers on the other hand in connection with the offering of
the Notes shall be deemed to be in the same respective proportions as the net proceeds from
the offering of the Notes (before deducting expenses) received by the Company and the total
discounts and commissions received by the Initial Purchasers, in each case as set forth in
the Offering Memorandum or herein, bear to the aggregate offering price of the Notes. The
relative fault of the Company or the Guarantor on the one hand and of the Initial Purchasers
on the other hand 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 and the 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.

     (e) The Company, the Guarantor and the Initial Purchasers agree that it would not be
just or equitable if contribution pursuant to this Section 8 were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in Section 8(d). The amount paid or payable by an indemnified
party as a result of the losses, claims, damages and liabilities referred to in Section 8(d)
shall be deemed to include, subject to the limitations set forth above, any

-13-

 

legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this Section 8, no
Initial Purchaser shall be required to contribute any amount in excess of the amount by
which the total price at which the Notes resold by it in the initial placement of such Notes
were offered to investors 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 remedies provided for in
this Section 8 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity. The Initial
Purchasers’ obligations to contribute pursuant to this Section 8 are several in proportion
to the respective principal amount of Notes they have agreed to purchase hereunder and not
joint.

     (f) The indemnity and contribution provisions contained in this Section 8 and the
representations, warranties and other statements of the Company or the Guarantor contained
in this Agreement shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of any Initial
Purchaser or any person controlling any Initial Purchaser or by or on behalf of the Company,
its officers or directors, the Guarantor, its officers or directors or any other person
controlling the Company or the Guarantor and (iii) acceptance of and payment for any of the
Notes.

     9. Termination. This Agreement shall be subject to termination by notice given by the Initial
Purchasers to the Company and the Guarantor, if (a) after the execution and delivery of this
Agreement and prior to the Closing Date (i) trading generally shall have been suspended or
materially limited on or by, as the case may be, any of the New York Stock Exchange, The NASDAQ
Stock Market LLC, or settlement of trading shall have been materially disrupted, (ii) trading of
any securities of the Guarantor shall have been suspended on any exchange or in any
over-the-counter market, (iii) a general moratorium on commercial banking activities in New York
shall have been declared by either Federal or New York State authorities or (iv) there shall have
occurred any outbreak or escalation of hostilities (including without limitation an act of
terrorism) or any change in financial markets or any calamity or crisis that, in your judgment, is
material and adverse to the financial markets generally and (b) in the case of any of the events
specified in clauses 9(a)(i) through 9(a)(iv), such event, singly or together with any other such
event, makes it, in your judgment, impracticable to market the Securities on the terms and in the
manner contemplated by this Agreement and the Offering Memorandum.

     10. Default by an Initial Purchaser. If any one or more Initial Purchasers shall fail to purchase and
pay for any of the Notes agreed to be purchased by such Initial Purchaser hereunder and such
failure to purchase shall constitute a default in the performance of its or their obligations under
this Agreement, the remaining Initial Purchasers shall be obligated severally to take up and pay
for (in the respective proportions that the principal amount of Notes set forth opposite their
names in Schedule A hereto bears to the aggregate principal amount of Notes set forth opposite the
names of all the remaining Initial Purchasers) the Notes that the defaulting Initial Purchaser or
Initial Purchasers agreed but failed to purchase; provided, however, that in

-14-

 

the event that the
aggregate principal amount of Notes that the defaulting Initial Purchaser or Initial Purchasers
agreed but failed to purchase shall exceed 10% of the aggregate principal amount of Notes set forth
in Schedule A hereto, the remaining Initial Purchasers shall have the right to purchase all, but
shall not be under any obligation to purchase any, of the Notes, and if such nondefaulting Initial
Purchasers do not purchase all the Notes, this Agreement will terminate without liability to any
nondefaulting Initial Purchaser or the Company. In the event of a default by any Initial Purchaser
as set forth in this Section 10, the Closing Date shall be postponed for such period, not exceeding
five Business Days, as the Initial Purchasers shall determine in order that the required changes in
the Final Memorandum or in any other documents or arrangements may be effected. Nothing contained
in this Agreement shall relieve any defaulting Initial Purchaser of its liability, if any, to the
Company or any nondefaulting Initial Purchaser for damages occasioned by its default hereunder.

     11. Effectiveness; Expense Reimbursement. This Agreement shall become effective upon the execution and
delivery hereof by the parties hereto.

     If this Agreement shall be terminated by the Initial Purchasers because of any failure or
refusal on the part of the Company or the Guarantor to comply with the terms or to fulfill any of
the conditions of this Agreement, or if for any reason the Company or the Guarantor shall be unable
to perform its obligations under this Agreement, the Company will reimburse the Initial Purchasers
for all out-of-pocket expenses (including the fees and disbursements of their counsel up to a
maximum of $100,000), reasonably incurred by the Initial Purchasers in connection with this
Agreement or the offering contemplated hereunder.

     12. Notices. Notices given pursuant to this Agreement shall be in writing and shall be delivered (a)
if to the Company, at 515 W. Greens Road, Suite 1200, Houston, Texas 77067, Attention: Chief
Financial Officer, or (b) if to the Guarantor, Mintflower Place, 8 Par-La-Ville Road, Hamilton,
HM08, Bermuda, or (c) if to the Initial Purchasers, Citigroup Global Markets Inc., at its offices
at 388 Greenwich Street, New York, New York 10013, Attention: General Counsel, and at the offices
of UBS Securities LLC, 677 Washington Blvd., Stamford, CT 06901, Attention: Fixed Income Syndicate,
or in any case to such other address as the person to be notified may have requested in writing.

     13. Successors. This Agreement is made solely for the benefit of the Initial Purchasers, the Company,
the Guarantor, their respective directors and officers and other controlling persons referred to in
Section 8 hereof, and their respective successors and assigns, and no other person shall acquire or
have any right under or by virtue of this Agreement. The term “successors and assigns” as used in
this Agreement shall not include a purchaser from the Initial Purchasers of any of the Securities
in its status as such purchaser.

     14. Partial Unenforceability. If any section, paragraph or provision of this Agreement is for any
reason determined to be invalid or unenforceable, such determination shall not affect the validity
or enforceability of any other section, paragraph or provision hereof.

     15. Counterparts. This Agreement may be signed (including by facsimile) in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument.

-15-

 

     16. Applicable Law. This Agreement shall be governed by and construed in accordance with the internal
laws of the State of New York.

     17. No Fiduciary Duty. The Company and Guarantor hereby acknowledge that (a) the purchase and sale of
the Securities pursuant to this Agreement is an arm’s-length commercial transaction between the
Company and the Guarantor, on the one hand, and the Initial Purchasers and any affiliate through
which it may be acting, on the other, (b) the Initial Purchasers are acting as principal and not as
an agent or fiduciary of the Company or the Guarantor and (c) the Company’s engagement of the
Initial Purchasers in connection with the offering and the process leading up to the offering is as
independent contractors and not in any other capacity. Furthermore, the Company and the Guarantor
agree that they are solely responsible for making their own judgments in connection with the
offering (irrespective of whether any of the Initial Purchasers has advised or is currently
advising the Company or the Guarantor on related or other matters). The Company and the Guarantor
agree that they will not claim that the Initial Purchasers have rendered advisory services of any
nature or respect, or owe an agency, fiduciary or similar duty to the Company or the Guarantor, in
connection with such transaction or the process leading thereto.

     18. Headings. The headings of the sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed a part of this Agreement.

-16-

 

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	NABORS INDUSTRIES LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Bruce P. Koch	 	 
	 

	 	Name:
	 	Bruce P. Koch
	 	 
	 

	 	Title:	 	Vice President and

Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	NABORS INDUSTRIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Bruce P. Koch	 	 
	 

	 	Name:
	 	Bruce P. Koch
	 	 
	 

	 	Title:	 	Vice President and

Chief Financial Officer	 	 

Accepted as of the date hereof

CITIGROUP GLOBAL MARKETS INC.

	 	 	 	 	 
	By:
	 	/s/ Brian Bednarski	 	 
	Name:

	 	Brian Bednarski
	 	 
	Title:
	 	Managing Director	 	 

UBS SECURITIES LLC

	 	 	 	 	 
	By:
	 	/s/ Ryan Donovan	 	 
	Name:

	 	Ryan Donovan
	 	 
	Title:
	 	Director	 	 

	 	 	 	 	 
	By:
	 	/s/ Christopher Fernando	 	 
	Name:

	 	Christopher Fernando
	 	 
	Title:
	 	Associate Director	 	 

Signature Page to Purchase Agreement

 

 

SCHEDULE I

Pricing Supplement dated February 14, 2008

	 	 	 
	Initial Purchasers:

	 	Citigroup Global Markets Inc. (50%) and UBS Securities LLC (50%) (Joint Bookrunners)
	 
	 	 
	Amount:

	 	$575,000,000 
	Security Offered:

	 	Senior Notes
	Issuer:

	 	Nabors Industries, Inc.
	Guarantor:

	 	Nabors Industries Ltd.
	Underlying (Ticker):

	 	NBR
	 
	 	 
	Coupon:

	 	6.150% 
	Price to Investor:

	 	99.920% 
	Bond Denomination:

	 	$2,000 and in integral multiples of $1,000 in excess thereof.
	 
	 	 
	Maturity:

	 	February 15, 2018 
	 
	 	 
	Call Feature:

	 	Make-whole call @ T + 35 bp
	 
	 	 
	Put:

	 	Offer to purchase by the Issuer if a Change of Control Triggering Event occurs (as defined in the Indenture)
	 
	 	 
	1st Coupon:

	 	August 15, 2008 
	 
	 	 
	Coupon Payment Dates:

	 	February 15 and August 15 
	 
	 	 
	Gross Spread (%)

	 	0.650 
	 
	 	 
	Expected Rating:

	 	A3 from Moody’s Investors Service, Inc.
	 

	 	BBB+ from Standard & Poor’s Ratings Services
	 

	 	A- from Fitch Inc.
	 
	 	 
	Offering Status:

	 	Rule 144A/Regulation S (with registration rights)
	 
	 	 
	CUSIPS:

	 	Rule 144A: 629568AR7 
	 

	 	Regulation S: U6295YAA1  
	 

	 	Exchange: 629568AQ9 
	 
	 	 
	ISIN:

	 	Rule 144A: US629568AR7-4       
	 

	 	Regulation S: USU6295YAA1-1 
	 

	 	Exchange: US629568AQ91 

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	Trade Date:

	 	February 14, 2008 
	 
	 	 
	Settlement Date:

	 	February 20, 2008 
	 
	 	 
	Contingent Interest:

	 	No

     Note: A securities rating is not a recommendation to buy, sell or hold securities and may be
subject to revision or withdrawal at any time.

     The senior notes have not been registered under the Securities Act. The notes may not be
offered or sold within the United States or to U.S. persons except to qualified institutional
buyers in reliance on the exemption from registration provided by Rule 144A and to certain non-U.S.
persons in offshore transactions in reliance on Regulation S. You are hereby notified that sellers
of the notes may be relying on the exemption from the provisions of Section 5 of the Securities Act
provided by Rule 144A. You may obtain a copy of the preliminary Offering Memorandum and the Final
Offering memorandum (when available) for this transaction by calling your Citigroup Global Markets
Inc. or UBS Securities LLC sales representatives to request it.

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SCHEDULE A

	 	 	 	 	 
	 	 	Principal Amount of	 
	Initial Purchasers	 	Notes to be Purchased	 
	Citigroup Global Markets Inc.
	 	$	287,500,000	 
	UBS Securities LLC
	 	$	287,500,000	 
	 
	 	 	 
	 
	 	 	 	 
	Total
	 	$	575,000,000	 
	 
	 	 	 

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