Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

$500,000,000

SESI, L.L.C.

6.375% Senior Notes due 2019

Purchase Agreement

April 20, 2011

J.P. Morgan Securities LLC

    As Representative of the

   several Initial Purchasers listed

   in Schedule 1 hereto

c/o J.P. Morgan Securities LLC

383 Madison Avenue

New York, New York 10179

Ladies and Gentlemen:

     SESI, L.L.C., a Delaware limited liability company (the “Company”), and wholly owned
subsidiary of Superior Energy Services, Inc., a Delaware corporation (the “Parent”), proposes to
issue and sell to the several initial purchasers listed in Schedule 1 hereto (the “Initial
Purchasers”), for whom you are acting as representative (the
“Representative”), $500,000,000
principal amount of its 6.375% Senior Notes due 2019 (the “Securities”). The Securities will be
issued pursuant to an Indenture to be dated as of April 27, 2011 (the “Indenture”) among the
Company, Parent, the guarantors listed in Schedule 2 hereto (the “Subsidiary Guarantors” and,
together with the Parent, the “Guarantors”) and The Bank of New York Mellon Trust Company, N.A., as
trustee (the “Trustee”), and will be guaranteed on an unsecured senior basis, jointly and
severally, by each of the Guarantors (the “Guarantees”).

     The Securities will be sold to the Initial Purchasers without being registered under the
Securities Act of 1933, as amended (the “Securities Act”), in reliance upon an exemption therefrom.
The Company and the Guarantors have prepared a preliminary offering memorandum dated April 20,
2011 (the “Preliminary Offering Memorandum”) and will prepare an offering memorandum dated the date
hereof (the “Offering Memorandum”) setting forth information concerning the Company, the Guarantors
and the Securities. Copies of the Preliminary Offering Memorandum have been, and copies of the
Offering Memorandum will be, delivered by the Company to the Initial Purchasers pursuant to the
terms of this Agreement. The Company hereby confirms that it has authorized the use of the
Preliminary Offering Memorandum, the other Time of Sale Information (as defined below) and the
Offering Memorandum in connection with the offering and resale of the Securities by the Initial
Purchasers in the manner contemplated by this Agreement. Capitalized terms used but not defined
herein shall have the meanings given to such terms in the Preliminary Offering Memorandum.
References herein to the Preliminary Offering Memorandum, the Time of Sale
Information and the Offering Memorandum shall be deemed to refer to and include any document
incorporated by reference therein and any reference to “amend,” “amendment” or

 

 

“supplement” with respect to the Preliminary Offering Memorandum or the Offering Memorandum
shall be deemed to refer to and include any documents filed after such date and incorporated by
reference therein.

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

     The Company intends to use the proceeds of the offering of the Securities to redeem, on or
about December 15, 2011, the Company’s $400.0 million aggregate principal amount of outstanding
1.50% senior exchangeable notes due 2026 (the “Existing Exchangeable Securities”). In the interim,
a portion of the proceeds will be used to pay down all of the Company’s borrowings under the Credit
Agreement (as defined herein). Pending application of the remaining proceeds to the redemption of
the Existing Exchangeable Securities, the Company will invest the net proceeds of offering of the
Securities in one or more mutual funds, money market funds or common trust funds selected by Parent
consisting only of either (a) Treasury only funds which invest only in U.S. Treasury securities,
including bills, notes, and bonds, that are guaranteed as to principal and interest by the full
faith and credit of the U.S. government, (b) Treasury (AAA) funds which invest only in U.S.
Treasury bills, notes, bonds, and repurchase agreements backed by these securities, and (c) U.S.
government funds which invest only in obligations issued or guaranteed as to principal and interest
by the U.S. government, such as Treasury bills, bonds, and notes.

     Holders of the Securities (including the Initial Purchasers and their direct and indirect
transferees) will be entitled to the benefits of a Registration Rights Agreement, to be dated the
Closing Date (as defined below) and substantially in the form attached hereto as Exhibit A (the
“Registration Rights Agreement”), pursuant to which the Company and the Guarantors will agree to
file one or more registration statements with the Securities and Exchange Commission (the
“Commission”) providing for the registration under the Securities Act of the Securities or the
Exchange Securities referred to (and as defined) in the Registration Rights Agreement.

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

     1. Purchase and Resale of the Securities. The Company agrees to issue and sell the
Securities to the several Initial Purchasers as provided in this Agreement, and each Initial
Purchaser, on the basis of the representations, warranties and agreements set forth herein and
subject to the conditions set forth herein, agrees, severally and not jointly, to purchase from the
Company the respective principal amount of Securities set forth opposite such Initial Purchaser’s
name in Schedule 1 hereto at a price equal to 98.25% of the principal amount thereof plus accrued
interest, if any, from April 27, 2011 to the Closing Date. The Company will not be obligated to
deliver any of the Securities except upon payment for all the Securities to be purchased as
provided herein.

     (a) The Company understands that the Initial Purchasers intend to offer the Securities
for resale on the terms set forth in the Time of Sale Information. Each Initial

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Purchaser, severally and not jointly, represents and warrants to, and agrees with, the
Company that:

     (i) it is a qualified institutional buyer within the meaning of Rule 144A under
the Securities Act (a “QIB”) and an accredited investor within the meaning of Rule
501(a) of Regulation D under the Securities Act (“Regulation D”);

     (ii) it has not solicited offers for, or offered or sold, and will not solicit
offers for, or offer or sell, the Securities by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c) of Regulation
D or in any manner involving a public offering within the meaning of Section 4(2) of
the Securities Act; and

     (iii) it has not solicited offers for, or offered or sold, and will not solicit
offers for, or offer or sell, the Securities as part of their initial offering
except:

     (A) within the United States to persons whom it reasonably believes to
be QIBs in transactions pursuant to Rule 144A under the Securities Act
(“Rule 144A”) and in connection with each such sale, it has taken or will
take reasonable steps to ensure that the purchaser of the Securities is
aware that such sale is being made in reliance on Rule 144A; or

     (B) in accordance with the restrictions set forth in Annex C hereto.

     (b) Each Initial Purchaser acknowledges and agrees that the Company and, for purposes
of the “no registration” opinions to be delivered to the Initial Purchasers pursuant to
Sections 6(f) and 6(g), counsel for the Company and counsel for the Initial Purchasers,
respectively, may rely upon the accuracy of the representations and warranties of the
Initial Purchasers, and compliance by the Initial Purchasers with their agreements,
contained in paragraph (b) above (including Annex C hereto), and each Initial Purchaser
hereby consents to such reliance.

     (c) The Company acknowledges and agrees that the Initial Purchasers may offer and sell
Securities to or through any affiliate of an Initial Purchaser and that any such affiliate
may offer and sell Securities purchased by it to or through any Initial Purchaser.

     (d) The Company and the Guarantors acknowledge and agree that the Initial Purchasers
are acting solely in the capacity of an arm’s length contractual counterparty to the Company
and the Guarantors with respect to the offering of Securities contemplated hereby (including
in connection with determining the terms of the offering) and not as financial advisors or
fiduciaries to, or agents of, the Company, the Guarantors or any other person.
Additionally, neither the Representative nor any other Initial Purchaser is advising the
Company, the Guarantors or any other person as to any legal, tax, investment, accounting or
regulatory matters in any jurisdiction. The Company and the

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Guarantors shall consult with their own advisors concerning such matters and shall be
responsible for making their own independent investigation and appraisal of the transactions
contemplated hereby, and neither the Representative nor any other Initial Purchaser shall
have any responsibility or liability to the Company or the Guarantors with respect thereto.
Any review by the Representative or any Initial Purchaser of the Company, the Guarantors,
and the transactions contemplated hereby or other matters relating to such transactions will
be performed solely for the benefit of the Representative or such Initial Purchaser, as the
case may be, and shall not be on behalf of the Company, the Guarantors or any other person.

     2. Payment and Delivery. Payment for and delivery of the Securities will be made at
the offices of Simpson Thacher & Bartlett LLP at 10:00 A.M., New York City time, on April 27, 2011,
or at such other time or place on the same or such other date, not later than the fifth business
day thereafter, as the Representative and the Company may agree upon in writing. The time and date
of such payment and delivery is referred to herein as the “Closing Date”.

     (a) Payment for the Securities shall be made by wire transfer in immediately available
funds for the purchase price thereof to the account(s) specified by the Company to the
Representative against delivery to the nominee of The Depository Trust Company (“DTC”), for
the account of the Initial Purchasers, of one or more global notes representing the
Securities (collectively, the “Global Note”), with any transfer taxes payable in connection
with the sale of the Securities duly paid by the Company. The Global Note will be made
available for inspection by the Representative not later than 1:00 P.M., New York City time,
on the business day prior to the Closing Date.

     3. Representations and Warranties of the Company and the Guarantors. The Company and
the Guarantors jointly and severally represent and warrant to each Initial Purchaser that as of the
date hereof and as of the Closing Date:

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

     (b) Additional Written Communications. The Company and the Guarantors (including
their agents and representatives, other than the Initial Purchasers in their capacity as
such) have not prepared, made, used, authorized, approved or referred to and will not
prepare, make, use, authorize, approve or refer to any written communication that
constitutes an offer to sell or solicitation of an offer to buy the Securities (each such
communication by the Company or its agents and representatives (other than a

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communication referred to in clauses (i), (ii) and (iii) below) an “Issuer Written
Communication”) other than (i) the Preliminary Offering Memorandum, (ii) the Offering
Memorandum, (iii) the documents listed on Annex A hereto, including a term sheet
substantially in the form of Annex B hereto, which constitute part of the Time of Sale
Information, and (iv) any electronic road show or other written communications, in each case
used in accordance with Section 4(c). Each such Issuer Written Communication, when taken
together with the Time of Sale Information, did not, and at the Closing Date will not,
contain any untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that the Company and the Guarantors make no
representation and warranty with respect to any statements or omissions made in each such
Issuer Written Communication in reliance upon and in conformity with information furnished
to the Company in writing by any Initial Purchaser through the Representative expressly for
use in any Issuer Written Communication.

     (c) Incorporated Documents. The documents incorporated by reference in each of the
Time of Sale Information and the Offering Memorandum, when filed with the Commission,
conformed or will conform, as the case may be, in all material respects to the requirements
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and
regulations of the Commission thereunder, and did not and will not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

     (d) Financial Statements. The financial statements and the related notes thereto
included or incorporated by reference in each of the Time of Sale Information and the
Offering Memorandum present fairly the consolidated financial position of the Parent and its
subsidiaries as of the dates indicated and the results of their operations and the changes
in their cash flows for the periods specified; such financial statements have been prepared
in conformity with generally accepted accounting principles as applied in the U.S. and
applied on a consistent basis throughout the periods covered thereby, except as may be
expressly stated in the related notes thereto; and the other financial information included
or incorporated by reference in each of the Time of Sale Information and the Offering
Memorandum has been derived from the accounting records of the Parent and its subsidiaries
and presents fairly the information shown thereby.

     (e) No Material Adverse Change. Since the date of the most recent financial statements
of the Parent included or incorporated by reference in each of the Time of Sale Information
and the Offering Memorandum (i) there has not been any change in the long-term debt of the
Parent or any of its subsidiaries, or any dividend or distribution of any kind declared, set
aside for payment, paid or made by the Parent on any class of capital stock, or any material
adverse change, or any development that could reasonably be expected to result in a material
adverse change, in or affecting the business, properties, rights, assets, management,
financial position, results of operations or prospects of the Parent and its subsidiaries
taken as a whole; (ii) neither the Parent nor any of its subsidiaries has entered into any
transaction or agreement that is material to the Parent and its subsidiaries taken as a
whole or incurred any liability or obligation, direct or

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contingent, that is material to the Parent and its subsidiaries taken as a whole; and
(iii) neither the Parent nor any of its subsidiaries has sustained any material loss or
interference with its business from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor disturbance or dispute or any action, order or
decree of any court or arbitrator or governmental or regulatory authority, except in each
case as otherwise disclosed in each of the Time of Sale Information and the Offering
Memorandum.

     (f) Organization and Good Standing. The Parent and each of its subsidiaries have been
duly organized and are validly existing and in good standing under the laws of their
respective jurisdictions of organization, are duly qualified to do business and are in good
standing in each jurisdiction in which their respective ownership or lease of property or
the conduct of their respective businesses requires such qualification, and have all power
and authority necessary to own or hold their respective properties and to conduct the
businesses in which they are engaged, except where the failure to be so qualified, in good
standing or have such power or authority would not, individually or in the aggregate, have a
material adverse effect on the business, properties, rights, assets, management, financial
position, results of operations or prospects of the Parent and its subsidiaries taken as a
whole or on the performance by the Company and the Guarantors of their obligations under
this Agreement, the Securities and the Guarantees (a “Material Adverse Effect”). The
subsidiaries listed in Schedule 3 to this Agreement are the only majority-owned subsidiaries
of the Parent.

     (g) Capitalization. The Parent has an authorized capitalization as set forth in each
of the Time of Sale Information and the Offering Memorandum under the heading
“Capitalization” as of the date indicated therein; and all the outstanding shares of capital
stock or other equity interests of each subsidiary of the Parent have been duly and validly
authorized and issued, are fully paid and non-assessable (except, in the case of any foreign
subsidiary, for directors’ qualifying shares) and, except as set forth on Schedule 3, are
owned directly or indirectly by the Parent, free and clear of any lien, charge, encumbrance,
security interest, restriction on voting or transfer or any other claim of any third party
(collectively, “Liens”), except for Liens pursuant to the Second Amended and Restated Credit
Agreement, dated as of May 29, 2009 (as amended or modified from time to time, the “Credit
Agreement”).

     (h) Due Authorization. The Company and each of the Guarantors have full right, power
and authority to execute and deliver, as applicable, this Agreement, the Securities, the
Indenture (including each Guarantee of each of the Guarantors set forth therein), the
Exchange Securities and the Registration Rights Agreement (collectively, the “Transaction
Documents”) and to perform their respective obligations hereunder and thereunder; and all
action required to be taken for the due and proper authorization, execution and delivery of
each of the Transaction Documents and the consummation of the transactions contemplated
thereby has been duly and validly taken.

     (i) The Indenture. The Indenture has been duly authorized by the Company and each of
the Guarantors and, when duly executed and delivered in accordance with its terms by each of
the parties thereto, will constitute a valid and legally binding agreement

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of the Company and each of the Guarantors enforceable against the Company and each of
the Guarantors in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to enforceability (collectively, the
“Enforceability Exceptions”); and on the Closing Date, the Indenture will conform in all
material respects to the requirements of the Trust Indenture Act of 1939, as amended (the
“Trust Indenture Act”), and the rules and regulations of the Commission applicable to an
indenture that is qualified thereunder.

     (j) The Securities and the Guarantees. The Securities have been duly authorized for
issuance and sale by the Company pursuant to this Agreement and the Indenture and, when duly
executed, authenticated, issued and delivered as provided in the Indenture and paid for as
provided herein, will be duly and validly issued and outstanding and will constitute valid
and legally binding obligations of the Company enforceable against the Company in accordance
with their terms, subject to the Enforceability Exceptions, and will be entitled to the
benefits of the Indenture; and the Guarantees have been duly authorized for issuance by each
of the Guarantors pursuant to this Agreement and the Indenture and, when the Securities have
been duly executed, authenticated, issued and delivered as provided in the Indenture and
paid for as provided herein, will be valid and legally binding obligations of each of the
Guarantors, enforceable against each of the Guarantors in accordance with their terms,
subject to the Enforceability Exceptions, and will be entitled to the benefits of the
Indenture.

     (k) The Exchange Securities. On the Closing Date, the Exchange Securities (including
the related guarantees) will have been duly authorized for issuance by the Company and each
of the Guarantors and, when duly executed, authenticated, issued and delivered as
contemplated by the Registration Rights Agreement, will be duly and validly issued and
outstanding and will constitute valid and legally binding obligations of the Company, as
issuer, and each of the Guarantors, as guarantor, enforceable against the Company and each
of the Guarantors in accordance with their terms, subject to the Enforceability Exceptions,
and will be entitled to the benefits of the Indenture.

     (l) Purchase and Registration Rights Agreements. This Agreement has been duly
authorized, executed and delivered by the Company and each of the Guarantors; and the
Registration Rights Agreement has been duly authorized by the Company and each of the
Guarantors and on the Closing Date will be duly executed and delivered by the Company and
each of the Guarantors and, when duly executed and delivered in accordance with its terms by
each of the parties thereto, will constitute a valid and legally binding agreement of the
Company and each of the Guarantors enforceable against the Company and each of the
Guarantors in accordance with its terms, subject to the Enforceability Exceptions, and
except that rights to indemnity and contribution thereunder may be limited by applicable law
and public policy.

     (m) Credit Agreement Amendment. On or prior to the Closing Date, the Second Amendment
to the Credit Agreement (the “Credit Agreement Amendment”) will have been duly authorized,
executed and delivered by the Company and the Guarantors and will constitute a valid and
legally binding agreement of the Company and the

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Guarantors, enforceable against the Company and the Guarantors in accordance with its
terms, subject to the Enforceability Exceptions.

     (n) Descriptions of the Transaction Documents. Each Transaction Document will conform
in all material respects to the description thereof contained in each of the Time of Sale
Information and the Offering Memorandum.

     (o) No Violation or Default. Neither the Parent nor any of its subsidiaries is (i) in
violation of its charter or by-laws or similar organizational documents; (ii) in default,
and no event has occurred that, with notice or lapse of time or both, would constitute such
a default, in the due performance or observance of any term, covenant or condition contained
in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument
to which the Parent or any of its subsidiaries is a party or by which the Parent or any of
its subsidiaries is bound or to which any of the properties, rights or assets of the Parent
or any of its subsidiaries is subject; or (iii) in violation of any law or statute or any
judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory
authority, except, in the case 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.

     (p) No Conflicts. After giving effect to the Credit Agreement Amendment, the
execution, delivery and performance by the Company and each of the Guarantors of each of the
Transaction Documents to which each is a party, the issuance and sale of the Securities
(including the Guarantees) and compliance by the Company and each of the Guarantors with the
terms thereof and the consummation of the transactions contemplated by the Transaction
Documents will not (i) conflict with or result in a breach or violation of any of the terms
or provisions of, or constitute a default under, or result in the creation or imposition of
any lien, charge or encumbrance upon any properties, rights or assets of the Parent or any
of its subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement or
other agreement or instrument to which the Parent or any of its subsidiaries is a party or
by which the Parent or any of its subsidiaries is bound or to which any of the properties,
rights or assets of the Parent or any of its subsidiaries is subject, (ii) result in any
violation of the provisions of the charter or by-laws or similar organizational documents of
the Parent or any of its subsidiaries or (iii) result in the violation of any law or statute
or any judgment, order, rule or regulation of any court or arbitrator or governmental or
regulatory authority, except, in the case of clauses (i) and (iii) above, for any such
conflict, breach, violation, default, lien, charge or encumbrance that would not,
individually or in the aggregate, have a Material Adverse Effect.

     (q) No Consents Required. No consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or governmental or regulatory authority is
required for the execution, delivery and performance by the Company and each of the
Guarantors of each of the Transaction Documents to which each is a party, the issuance and
sale of the Securities (including the Guarantees) and compliance by the Company and each of
the Guarantors with the terms thereof and the consummation of the transactions contemplated
by the Transaction Documents, except for such consents, approvals, authorizations, orders
and registrations or qualifications as

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may be required (i) under applicable state securities laws in connection with the
purchase and resale of the Securities by the Initial Purchasers and (ii) with respect to the
Exchange Securities (including the related guarantees) under the Securities Act, the Trust
Indenture Act and applicable state securities laws as contemplated by the Registration
Rights Agreement.

     (r) Legal Proceedings. Except as described in each of the Time of Sale Information and
the Offering Memorandum, there are no legal, governmental or regulatory investigations,
actions, suits or proceedings pending to which the Parent or any of its subsidiaries is or,
to the knowledge of the Company and each of the Guarantors, may be a party or to which any
property of the Parent or any of its subsidiaries is or, to the knowledge of the Company and
each of the Guarantors, may be the subject that, individually or in the aggregate, if
determined adversely to the Parent or any of its subsidiaries, could reasonably be expected
to have a Material Adverse Effect; and no such investigations, actions, suits or proceedings
are threatened or, to the knowledge of the Company and each of the Guarantors, contemplated
by any governmental or regulatory authority or by others.

     (s) Independent Accountants. KPMG LLP, which has certified certain financial
statements of the Parent and its subsidiaries, is an independent public accounting firm with
respect to the Parent and its subsidiaries within the applicable rules and regulations
adopted by the Commission and the Public Company Accounting Oversight Board (United States)
and as required by the Securities Act.

     (t) Title to Real and Personal Property. The Parent and its subsidiaries have good and
marketable title to, or have valid rights to lease or otherwise use, all items of real and
personal property that are material to the respective businesses of the Parent and its
subsidiaries, in each case free and clear of all liens, encumbrances, claims and defects and
imperfections of title except those that (i) do not materially interfere with the use made
and proposed to be made of such property by the Parent and its subsidiaries, (ii) could not
reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect
or (iii) secure obligations under the Credit Agreement.

     (u) Title to Intellectual Property. (i) The Parent and its subsidiaries own or possess
adequate rights to use all material patents, patent applications, trademarks, service marks,
trade names, trademark registrations, service mark registrations, copyrights, domain names,
licenses and know-how (including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures) and all other U.S. and
foreign intellectual property rights (collectively, “Intellectual Property”) necessary for
the conduct of their respective businesses as presently being conducted and as described in
the Time of Sale Information and the Offering Memorandum; (ii) the conduct of their
respective businesses does not infringe, misappropriate or otherwise violate any
Intellectual Property rights of others; (iii) the Parent and its subsidiaries have not
received any written notice of any claim of infringement, misappropriation or other
violation of any Intellectual Property rights of others; and (iv) to the knowledge of the
Company and any Guarantor, the Intellectual Property owned by the Company, the Guarantors
and their subsidiaries is not being

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infringed, misappropriated or otherwise violated by any third party, except, in the
case of clauses (ii) through (iv) above, for any such instance that would not, individually
or in the aggregate, have a Material Adverse Effect.

     (v) No Undisclosed Relationships. No relationship, direct or indirect, exists between
or among the Parent or any of its subsidiaries, on the one hand, and the directors,
officers, stockholders or other affiliates of the Parent or any of its subsidiaries, on the
other, that would be required by the Securities Act to be described in a registration
statement to be filed with the Commission and that is not so described in each of the Time
of Sale Information and the Offering Memorandum.

     (w) Investment Company Act. Neither the Parent nor any of its subsidiaries is, and
after giving effect to the offering and sale of the Securities and the application of the
proceeds thereof as described in each of the Time of Sale Information and the Offering
Memorandum none of them will be, an “investment company” or an entity “controlled” by an
“investment company” within the meaning of the Investment Company Act of 1940, as amended,
and the rules and regulations of the Commission thereunder (collectively, the “Investment
Company Act”).

     (x) Taxes. The Parent and its subsidiaries have paid all federal, state, local and
foreign taxes and filed all tax returns required to be paid or filed through the date
hereof, except where the failure to pay or file would not, individually or in the aggregate,
have a Material Adverse Effect; and except as otherwise disclosed in each of the Time of
Sale Information and the Offering Memorandum, there is no material tax deficiency that has
been, or could reasonably be expected to be, asserted against the Parent or any of its
subsidiaries or any of their respective properties or assets.

     (y) Licenses and Permits. The Parent and its subsidiaries possess all licenses,
sub-licenses, certificates, permits and other authorizations issued by, and have made all
declarations and filings with, the appropriate federal, state, local or foreign governmental
or regulatory authorities that are necessary for the ownership or lease of their respective
properties or the conduct of their respective businesses as described in each of the Time of
Sale Information and the Offering Memorandum, except where the failure to possess or make
the same would not, individually or in the aggregate, have a Material Adverse Effect; and
except as described in each of the Time of Sale Information and the Offering Memorandum,
neither the Parent nor any of its subsidiaries has received notice of any revocation or
modification of any such license, sub-license, certificate, permit or authorization which
would, individually or in the aggregate, have a Material Adverse Effect or has any reason to
believe that any such license, certificate, permit or authorization will not be renewed in
the ordinary course.

     (z) No Labor Disputes. No labor disturbance by or dispute with employees of the Parent
or any of its subsidiaries exists or, to the knowledge of the Company and each of the
Guarantors, is contemplated or threatened.

     (aa) Compliance With Environmental Laws. (i) The Parent and its subsidiaries (x) are,
and at all prior times were, in compliance with any and all applicable federal,

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state, local and foreign laws, rules, regulations, requirements, decisions and orders
relating to the protection of human health or safety, the environment, natural resources,
hazardous or toxic substances or wastes, petroleum products, pollutants or contaminants
(collectively, “Environmental Laws”), (y) have received and are in compliance with all
permits, licenses, certificates or other authorizations or approvals required of them under
applicable Environmental Laws to conduct their respective businesses, and (z) have not
received notice of any actual or potential liability under or relating to any Environmental
Laws, including for the investigation or remediation of any disposal or release of hazardous
or toxic substances or wastes, pollutants or contaminants, and have no knowledge of any
event or condition that would reasonably be expected to result in any such notice, and (ii)
there are no costs or liabilities associated with Environmental Laws of or relating to the
Parent or its subsidiaries, except in the case of each of (i) and (ii) above, for any such
failure to comply, or failure to receive required permits, licenses or approvals, or cost or
liability, as would not, individually or in the aggregate, have a Material Adverse Effect;
and (iii) except as described in each of the Time of Sale Information and the Offering
Memorandum, (x) there are no proceedings that are pending, or that are known to be
contemplated, against the Parent or any of its subsidiaries under any Environmental Laws in
which a governmental entity is also a party, other than such proceedings regarding which it
is reasonably believed no monetary sanctions of $100,000 or more will be imposed, (y) the
Parent and its subsidiaries are not aware of any issues regarding compliance with
Environmental Laws, or liabilities or other obligations under Environmental Laws or
concerning hazardous or toxic substances or wastes, pollutants or contaminants, that could
reasonably be expected to have a material effect on the capital expenditures, earnings or
competitive position of the Parent and its subsidiaries, and (z) none of the Parent and its
subsidiaries anticipates material capital expenditures relating to any Environmental Laws.

     (bb) Compliance With ERISA. (i) Each employee benefit plan, within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
for which the Parent or any member of its “Controlled Group” (defined as any organization
which is a member of a controlled group of corporations within the meaning of Section 414 of
the Internal Revenue Code of 1986, as amended (the “Code”)) would have any liability (each,
a “Plan”) has been maintained in compliance with its terms and the requirements of any
applicable statutes, orders, rules and regulations, including but not limited to ERISA and
the Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or
Section 4975 of the Code, has occurred with respect to any Plan excluding transactions
effected pursuant to a statutory or administrative exemption; (iii) for each Plan that is
subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no Plan has
failed (whether or not waived), or is reasonably expected to fail, to satisfy the minimum
funding standards (within the meaning of Section 302 of ERISA or Section 412 of the Code)
applicable to such Plan; (iv) no Plan is, or is reasonably expected to be, in “at risk
status” (within the meaning of Section 303(i) of ERISA) or “endangered status” or “critical
status” (within the meaning of Section 305 of ERISA); (v) the fair market value of the
assets of each Plan exceeds the present value of all benefits accrued under such Plan
(determined based on those assumptions used to fund such Plan); (vi) no “reportable event”
(within the meaning of Section 4043(c) of ERISA) has occurred or is reasonably expected to
occur;

11

 

(vii) each Plan that is intended to be qualified under Section 401(a) of the Code is so
qualified and nothing has occurred, whether by action or by failure to act, which would
cause the loss of such qualification and (viii) neither the Parent nor any member of the
Controlled Group has incurred, nor reasonably expects to incur, any liability under Title IV
of ERISA (other than contributions to the Plan or premiums to the PBGC, in the ordinary
course and without default) in respect of a Plan (including a “multiemployer plan”, within
the meaning of Section 4001(a)(3) of ERISA); except in each case with respect to the events
or conditions set forth in (i) through (viii) hereof, as would not, individually or in the
aggregate, have a Material Adverse Effect.

     (cc) Disclosure Controls. The Parent and its subsidiaries maintain an effective system
of “disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act)
that is designed to ensure that information required to be disclosed by the Parent in
reports that it files or submits under the Exchange Act is recorded, processed, summarized
and reported within the time periods specified in the Commission’s rules and forms,
including controls and procedures designed to ensure that such information is accumulated
and communicated to the Parent’s management as appropriate to allow timely decisions
regarding required disclosure. The Parent and its subsidiaries have carried out evaluations
of the effectiveness of their disclosure controls and procedures as required by Rule 13a-15
of the Exchange Act.

     (dd) Accounting Controls. The Parent and its subsidiaries maintain systems of
“internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange
Act) that comply with the requirements of the Exchange Act and have been designed by, or
under the supervision of, their respective principal executive and principal financial
officers, or persons performing similar functions, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. The Parent
and its subsidiaries maintain internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management’s general or
specific authorizations; (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with generally accepted accounting principles and to
maintain asset accountability; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. There are no material weaknesses or significant
deficiencies in the Parent’s internal controls.

     (ee) Insurance. The Parent and its subsidiaries have insurance in such amounts and
covering such losses and risks as, in Parent’s reasonable determination, is adequate to
protect the Parent and its subsidiaries and their respective businesses and is customary for
companies engaged in similar businesses in similar industries; and neither the Parent nor
any of its subsidiaries has (i) received notice from any insurer or agent of such insurer
that capital improvements or other expenditures are required or necessary to be made in
order to continue such insurance or (ii) any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage expires or to obtain

12

 

similar coverage at reasonable cost from similar insurers as may be necessary to
continue its business.

     (ff) No Unlawful Payments. Neither the Parent nor any of its subsidiaries nor, to the
knowledge of the Company and each of the Guarantors, any director, officer, agent, employee
or other person associated with or acting on behalf of the Parent or any of its subsidiaries
has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expense relating to political activity; (ii) made any direct or indirect unlawful
payment to any foreign or domestic government official or employee from corporate funds;
(iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of
1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful
payment.

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

     (hh) Compliance with OFAC. None of the Parent, any of its subsidiaries or, to the
knowledge of the Company or any of the Guarantors, any director, officer, agent, employee or
affiliate of the Parent or any of its subsidiaries is currently subject to any U.S.
sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the
Treasury (“OFAC”); and the Parent will not directly or indirectly use the proceeds of the
offering of the Securities hereunder, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose
of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.

     (ii) Solvency. On and immediately after the Closing Date, the Company and the
Guarantors (after giving effect to the issuance of the Securities and the other transactions
related thereto as described in each of the Time of Sale Information and the Offering
Memorandum) will be Solvent. As used in this paragraph, the term “Solvent” means, with
respect to a particular date, that on such date (i) the present fair market value (or
present fair saleable value) of the assets of the Company and the Guarantors is not less
than the total amount required to pay the liabilities of the Company and the Guarantors on
their total existing debts and liabilities (including contingent liabilities) as they become
absolute and matured; (ii) subject to the security interests granted pursuant to the
collateral documents relating to the Credit Agreement, the Company and the Guarantors are
able to realize upon their assets and pay their debts and other liabilities, contingent
obligations and commitments as they mature and become due in the normal

13

 

course of business; (iii) assuming consummation of the issuance of the Securities as
contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum,
the Company and the Guarantors are not incurring debts or liabilities beyond their ability
to pay as such debts and liabilities mature; and (iv) the Company and the Guarantors are not
engaged in any business or transaction, and do not propose to engage in any business or
transaction, for which their property would constitute unreasonably small capital after
giving due consideration to the prevailing practice in the industry in which the Company and
the Guarantors is engaged.

     (jj) No Restrictions on Subsidiaries. No subsidiary of the Parent is currently
prohibited, directly or indirectly, under any agreement or other instrument to which it is a
party or is subject, from paying any dividends to the Company or the Parent, from making any
other distribution on such subsidiary’s capital stock or similar ownership interest, from
repaying to the Company or the Parent any loans or advances to such subsidiary from the
Company or the Parent or from transferring any of such subsidiary’s properties or assets to
the Company or the Parent or any other subsidiary of the Parent, except in all instances for
any such restrictions that will be permitted by the Indenture.

     (kk) No Broker’s Fees. Neither the Parent nor any of its subsidiaries is a party to
any contract, agreement or understanding with any person (other than this Agreement) that
would give rise to a valid claim against any of them or any Initial Purchaser for a
brokerage commission, finder’s fee or like payment in connection with the offering and sale
of the Securities.

     (ll) Rule 144A Eligibility. On the Closing Date, the Securities will not be of the
same class as securities listed on a national securities exchange registered under Section 6
of the Exchange Act or quoted in an automated inter-dealer quotation system; and each of the
Preliminary Offering Memorandum and the Offering Memorandum, as of its respective date,
contains or will contain all the information that, if requested by a prospective purchaser
of the Securities, would be required to be provided to such prospective purchaser pursuant
to Rule 144A(d)(4) under the Securities Act.

     (mm) No Integration. Neither the Company nor any of its affiliates (as defined in Rule
501(b) of Regulation D) has, directly or through any agent, sold, offered for sale,
solicited offers to buy or otherwise negotiated in respect of, any security (as defined in
the Securities Act), that is or will be integrated with the sale of the Securities in a
manner that would require registration of the Securities under the Securities Act.

     (nn) No General Solicitation or Directed Selling Efforts. None of the Company or any
of its affiliates or any other person acting on its or their behalf (other than the Initial
Purchasers, as to which no representation is made) has (i) solicited offers for, or offered
or sold, the Securities by means of any form of general solicitation or general advertising
within the meaning of Rule 502(c) of Regulation D or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act or (ii) engaged in any
directed selling efforts within the meaning of Regulation S under the Securities Act
(“Regulation S”), and all such persons have complied with the offering restrictions
requirement of Regulation S.

14

 

     (oo) Securities Law Exemptions. Assuming the accuracy of the representations and
warranties of the Initial Purchasers contained in Section 1(b) (including Annex C hereto)
and their compliance with their agreements set forth therein, it is not necessary, in
connection with the issuance and sale of the Securities to the Initial Purchasers and the
offer, resale and delivery of the Securities by the Initial Purchasers in the manner
contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, to
register the Securities under the Securities Act or, until such time as the Exchange
Securities are issued pursuant to an effective registration statement, to qualify the
Indenture under the Trust Indenture Act.

     (pp) No Stabilization. Neither the Company nor any of the Guarantors has taken,
directly or indirectly, any action designed to or that could reasonably be expected to cause
or result in any stabilization or manipulation of the price of the Securities.

     (qq) Margin Rules. Neither the issuance, sale and delivery of the Securities nor the
application of the proceeds thereof by the Company as described in each of the Time of Sale
Information and the Offering Memorandum will violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System or any other regulation of such Board of Governors.

     (rr) Forward-Looking Statements. No forward-looking statement (within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act) included or
incorporated by reference in any of the Time of Sale Information or the Offering Memorandum
has been made or reaffirmed without a reasonable basis or has been disclosed other than in
good faith.

     (ss) Statistical and Market Data. Nothing has come to the attention of the Company or
any Guarantor that has caused the Company or any Guarantor to believe that the statistical
and market-related data included or incorporated by reference in each of the Time of Sale
Information and the Offering Memorandum is not based on or derived from sources that are
reliable and accurate in all material respects.

     (tt) Sarbanes-Oxley Act. There is and has been no failure on the part of the Parent or
any of the Parent’s directors or officers, in their capacities as such, to comply with any
provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in
connection therewith (the “Sarbanes-Oxley Act”), including Section 402 related to loans and
Sections 302 and 906 related to certifications.

     (uu) Reserve Data. The oil and natural gas reserve estimates of the Company and its
subsidiaries as of December 31, 2010 and 2009 contained in the Time of Sale Information and
the Offering Memorandum are derived from reports that have been prepared by, or have been
audited by, either (a) Netherland, Sewell & Associates, Inc. or (b) DeGoyler and
MacNaughton, as set forth and to the extent indicated therein, and such estimates fairly
reflect, in all material respects, the oil and natural gas reserves of certain consolidated
subsidiaries or equity method investments of the Parent, as applicable, at the dates
indicated therein and are in accordance, in all material respects, with Commission
guidelines applied on a consistent basis throughout the periods involved.

15

 

     (vv) Independent Petroleum Engineers. Each of Netherland, Sewell & Associates, Inc.
and DeGoyler and MacNaughton have represented to the Parent that they are, and the Parent
believes them to be, independent petroleum engineers with respect to the Parent, its
subsidiaries and equity method investments for the periods set forth in the Time of Sale
Information and the Offering Memorandum.

     4. Further Agreements of the Company and the Guarantors. The Company and each of the
Guarantors jointly and severally covenant and agree with each Initial Purchaser that:

     (a) Delivery of Copies. The Company will deliver, without charge, to the Initial
Purchasers as many copies of the Preliminary Offering Memorandum, any other Time of Sale
Information, any Issuer Written Communication and the Offering Memorandum (including all
amendments and supplements thereto) as the Representative may reasonably request.

     (b) Offering Memorandum, Amendments or Supplements. Before finalizing the Offering
Memorandum or making or distributing any amendment or supplement to any of the Time of Sale
Information or the Offering Memorandum or filing with the Commission any document that will
be incorporated by reference therein, the Company will furnish to the Representative and
counsel for the Initial Purchasers a copy of the proposed Offering Memorandum or such
amendment or supplement or document to be incorporated by reference therein for review, and
will not distribute any such proposed Offering Memorandum, amendment or supplement or file
any such document with the Commission to which the Representative reasonably objects.

     (c) Additional Written Communications. Before making, preparing, using, authorizing,
approving or referring to any Issuer Written Communication, the Company and the Guarantors
will furnish to the Representative and counsel for the Initial Purchasers a copy of such
written communication for review and will not make, prepare, use, authorize, approve or
refer to any such written communication to which the Representative reasonably objects.

     (d) Notice to the Representative. The Company will advise the Representative promptly,
and confirm such advice in writing, (i) of the issuance by any governmental or regulatory
authority of any order preventing or suspending the use of any of the Time of Sale
Information, any Issuer Written Communication or the Offering Memorandum or the initiation
or threatening of any proceeding for that purpose; (ii) of the occurrence of any event at
any time prior to the completion of the initial offering of the Securities as a result of
which any of the Time of Sale Information, any Issuer Written Communication or the Offering
Memorandum as then amended or supplemented would include any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances existing when such Time of Sale Information, Issuer Written
Communication or the Offering Memorandum is delivered to a purchaser, not misleading; and
(iii) of the receipt by the Company of any notice with respect to any suspension of the
qualification of the

16

 

Securities for offer and sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose; and the Company will use its reasonable best efforts to
prevent the issuance of any such order preventing or suspending the use of any of the Time
of Sale Information, any Issuer Written Communication or the Offering Memorandum or
suspending any such qualification of the Securities and, if any such order is issued, will
obtain as soon as possible the withdrawal thereof.

     (e) Time of Sale Information. If at any time prior to the Closing Date (i) any event
shall occur or condition shall exist as a result of which any of the Time of Sale
Information as then amended or supplemented would include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading or (ii) it is
necessary to amend or supplement any of the Time of Sale Information to comply with law, the
Company will immediately notify the Initial Purchasers thereof and forthwith prepare and,
subject to paragraph (b) above, furnish to the Initial Purchasers such amendments or
supplements to any of the Time of Sale Information (or any document to be filed with the
Commission and incorporated by reference therein) as may be necessary so that the statements
in any of the Time of Sale Information as so amended or supplemented will not, in light of
the circumstances under which they were made, be misleading or so that any of the Time of
Sale Information will comply with law.

     (f) Ongoing Compliance of the Offering Memorandum. If at any time prior to the
completion of the initial offering of the Securities (i) any event shall occur or condition
shall exist as a result of which the Offering Memorandum as then amended or supplemented
would include any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances
existing when the Offering Memorandum is delivered to a purchaser, not misleading or (ii) it
is necessary to amend or supplement the Offering Memorandum to comply with law, the Company
will immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to
paragraph (b) above, furnish to the Initial Purchasers such amendments or supplements to the
Offering Memorandum (or any document to be filed with the Commission and incorporated by
reference therein) as may be necessary so that the statements in the Offering Memorandum as
so amended or supplemented (including such document to be incorporated by reference therein)
will not, in the light of the circumstances existing when the Offering Memorandum is
delivered to a purchaser, be misleading or so that the Offering Memorandum will comply with
law.

     (g) Blue Sky Compliance. The Company will cooperate with the Representative and
counsel for the Initial Purchasers to qualify or register (or obtain exemptions from
qualifying or registering) the Securities for offer and sale under the securities or Blue
Sky laws of such jurisdictions as the Representative shall reasonably request and will
continue such qualifications in effect so long as required for the offering and resale of
the Securities; provided that neither the Company nor any of the Guarantors shall be
required to (i) qualify as a foreign corporation or other entity or as a dealer in
securities in any such jurisdiction where it would not otherwise be required to so qualify,
(ii) file any general consent or take any action that would subject it to service of process

17

 

in any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction
if it is not otherwise so subject.

     (h) Clear Market. During the period from the date hereof through and including the
date that is 60 days after the date hereof, the Company and each of the Guarantors will not,
without the prior written consent of the Representative, offer, sell, contract to sell or
otherwise dispose of any debt securities issued or guaranteed by the Company or any of the
Guarantors and having a tenor of more than one year. For the avoidance of doubt, the
foregoing will not restrict the Company’s ability to borrow under the Credit Agreement.

     (i) Use of Proceeds. The Company will apply the net proceeds from the sale of the
Securities as described in each of the Time of Sale Information and the Offering Memorandum
under the heading “Use of proceeds”.

     (j) Supplying Information. While the Securities remain outstanding and are “restricted
securities” within the meaning of Rule 144(a)(3) under the Securities Act, the Company and
each of the Guarantors will, during any period in which the Company is not subject to and in
compliance with Section 13 or 15(d) of the Exchange Act, furnish to holders of the
Securities and prospective purchasers of the Securities designated by such holders, upon the
request of such holders or such prospective purchasers, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

     (k) DTC. The Company will cooperate with the Initial Purchasers in arranging for the
Securities to be eligible for clearance and settlement through DTC.

     (l) No Resales by the Company or Parent. Neither the Company nor the Parent will, and
neither of them will permit any of their affiliates (as defined in Rule 144 under the
Securities Act) to, resell any of the Securities that have been acquired by any of them,
except for Securities purchased by the Company, the Parent or any of their affiliates and
resold in a transaction registered under the Securities Act.

     (m) No Integration. None of the Company, the Parent or any of their affiliates (as
defined in Rule 501(b) of Regulation D) will, directly or through any agent, sell, offer for
sale, solicit offers to buy or otherwise negotiate in respect of, any security (as defined
in the Securities Act), that is or will be integrated with the sale of the Securities in a
manner that would require registration of the Securities under the Securities Act.

     (n) No General Solicitation or Directed Selling Efforts. None of the Company, the
Parent or any of their affiliates or any other person acting on their behalf (other than the
Initial Purchasers, as to which no covenant is given) will (i) solicit offers for, or offer
or sell, the Securities by means of any form of general solicitation or general advertising
within the meaning of Rule 502(c) of Regulation D or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act or (ii) engage in any
directed selling efforts within the meaning of Regulation S, and all such persons will
comply with the offering restrictions requirement of Regulation S.

18

 

     (o) No Stabilization. Neither the Company nor any of the Guarantors will take,
directly or indirectly, any action designed to or that could reasonably be expected to cause
or result in any stabilization or manipulation of the price of the Securities.

     5. Certain Agreements of the Initial Purchasers. Each Initial Purchaser hereby
represents and agrees that it has not and will not use, authorize use of, refer to, or participate
in the planning for use of, any written communication that constitutes an offer to sell or the
solicitation of an offer to buy the Securities other than (i) the Preliminary Offering Memorandum
and the Offering Memorandum, (ii) a written communication that contains no “issuer information” (as
defined in Rule 433(h)(2) under the Securities Act) that was not included (including through
incorporation by reference) in the Preliminary Offering Memorandum or the Offering Memorandum,
(iii) any written communication listed on Annex A or prepared pursuant to Section 4(c) above
(including any electronic road show), (iv) any written communication prepared by such Initial
Purchaser and approved by the Company in advance in writing or (v) any written communication
relating to or that contains the preliminary or final terms of the Securities and/or other
information that was included (including through incorporation by reference) in the Preliminary
Offering Memorandum or the Offering Memorandum.

     6. Conditions of Initial Purchasers’ Obligations. The obligation of each Initial
Purchaser to purchase Securities on the Closing Date as provided herein is subject to the
performance by the Company and each of the Guarantors of their respective covenants and other
obligations hereunder and to the following additional conditions:

     (a) Representations and Warranties. The representations and warranties of the Company
and the Guarantors contained herein shall be true and correct on the date hereof and on and
as of the Closing Date; and the statements of the Company, the Guarantors and their
respective officers made in any certificates delivered pursuant to this Agreement shall be
true and correct on and as of the Closing Date.

     (b) No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the
execution and delivery of this Agreement, (i) no downgrading shall have occurred in the
rating accorded the Securities or any other debt securities or preferred stock issued or
guaranteed by the Parent or any of its subsidiaries by any “nationally recognized
statistical rating organization”, as such term is defined under Section 3(a)(62) under the
Exchange Act; and (ii) no such organization shall have publicly announced that it has under
surveillance or review, or has changed its outlook with respect to, its rating of the
Securities or of any other debt securities or preferred stock issued or guaranteed by the
Parent or any of its subsidiaries (other than an announcement with positive implications of
a possible upgrading).

     (c) No Material Adverse Change. No event or condition of a type described in Section
3(e) hereof shall have occurred or shall exist, which event or condition is not described in
each of the Time of Sale Information (excluding any amendment or supplement thereto) and the
Offering Memorandum (excluding any amendment or supplement thereto) the effect of which in
the judgment of the Representative makes it impracticable or inadvisable to proceed with the
offering, sale or delivery of the

19

 

Securities on the terms and in the manner contemplated by this Agreement, the Time of
Sale Information and the Offering Memorandum.

     (d) Officer’s Certificate. The Representative shall have received on and as of the
Closing Date a certificate of an executive officer of the Company and of each Guarantor who
has specific knowledge of the Company’s or such Guarantor’s financial matters and is
satisfactory to the Representative (i) confirming that such officer has carefully reviewed
the Time of Sale Information and the Offering Memorandum and, to the knowledge of such
officer, the representations set forth in Sections 3(a) and 3(b) hereof are true and
correct, (ii) confirming that the other representations and warranties of the Company and
the Guarantors in this Agreement are true and correct and that the Company and the
Guarantors have complied with all agreements and satisfied all conditions on their part to
be performed or satisfied hereunder at or prior to the Closing Date and (iii) to the effect
set forth in paragraphs (b) and (c) above.

     (e) Comfort Letters. On the date of this Agreement and on the Closing Date, KPMG LLP
shall have furnished to the Representative, at the request of the Company, letters, dated
the respective dates of delivery thereof and addressed to the Initial Purchasers, in form
and substance reasonably satisfactory to the Representative, containing statements and
information of the type customarily included in accountants’ “comfort letters” to
underwriters with respect to the financial statements and certain financial information
contained or incorporated by reference in each of the Time of Sale Information and the
Offering Memorandum; provided that the letter delivered on the Closing Date shall
use a “cut-off” date no more than three business days prior to the Closing Date.

     (f) Opinion and 10b-5 Statement of Counsel for the Company and the Guarantors. Jones,
Walker, Waechter, Poitevent, Carrère & Denègre L.L.P., counsel for the Company and the
Guarantors, shall have furnished to the Initial Purchasers, at the request of the Company,
their written opinion and 10b-5 statement, dated the Closing Date and addressed to the
Initial Purchasers, in form and substance reasonably satisfactory to the Representative, to
the effect set forth in Annex D hereto.

     (g) Opinion and 10b-5 Statement of Counsel for the Initial Purchasers. The Initial
Purchasers shall have received on and as of the Closing Date an opinion and 10b-5 statement
of Simpson Thacher & Bartlett LLP, counsel for the Initial Purchasers, with respect to such
matters as the Representative may reasonably request, and such counsel shall have received
such documents and information as they may reasonably request to enable them to pass upon
such matters.

     (h) No Legal Impediment to Issuance. No action shall have been taken and no statute,
rule, regulation or order shall have been enacted, adopted or issued by any federal, state
or foreign governmental or regulatory authority that would, as of the Closing Date, prevent
the issuance or sale of the Securities or the issuance of the Guarantees; and no injunction
or order of any federal, state or foreign court shall have been issued that would, as of the
Closing Date, prevent the issuance or sale of the Securities or the issuance of the
Guarantees.

20

 

     (i) Good Standing. The Representative shall have received on and as of the Closing
Date satisfactory evidence of the good standing of the Parent and its subsidiaries in their
respective jurisdictions of organization and their good standing in such other jurisdictions
as the Representative may reasonably request, in each case in writing or any standard form
of telecommunication, from the appropriate governmental authorities of such jurisdictions.

     (j) Registration Rights Agreement. The Initial Purchasers shall have received a
counterpart of the Registration Rights Agreement that shall have been executed and delivered
by a duly authorized officer of the Company and each of the Guarantors.

     (k) DTC. The Securities shall be eligible for clearance and settlement through DTC.

     (l) Indenture and Securities. The Indenture shall have been duly executed and
delivered by a duly authorized officer of the Company, each of the Guarantors and the
Trustee, and the Securities shall have been duly executed and delivered by a duly authorized
officer of the Company and duly authenticated by the Trustee.

     (m) Credit Agreement Amendment. Concurrently with or prior to the Closing Date, the
Company and the Guarantors shall have entered into the Credit Agreement Amendment consistent
in all material respects with the terms described in the Time of Sale Information and the
Offering Memorandum and the Representative shall have received conformed counterparts
thereof.

     (n) Additional Documents. On or prior to the Closing Date, the Company and the
Guarantors shall have furnished to the Representative such further certificates and
documents as the Representative may reasonably request.

          All opinions, letters, certificates and evidence mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Initial Purchasers.

     7. Indemnification and Contribution.

     (a) Indemnification of the Initial Purchasers. The Company and each of the Guarantors
jointly and severally agree to indemnify and hold harmless each Initial Purchaser, its
affiliates, directors and officers and each person, if any, who controls such Initial
Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and liabilities
(including, without limitation, legal fees and other expenses reasonably incurred in
connection with any suit, action or proceeding or any claim asserted, as such fees and
expenses are incurred), joint or several, that arise out of, or are based upon, any untrue
statement or alleged untrue statement of a material fact contained in the Preliminary
Offering Memorandum, any of the other Time of Sale Information, any Issuer Written
Communication or the Offering Memorandum (or any amendment or supplement thereto) or any
omission or alleged omission to state therein a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were

21

 

made, not misleading, in each case except insofar as such losses, claims, damages or
liabilities arise out of, or are based upon, any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with any information
furnished to the Company in writing by any Initial Purchaser through the Representative
expressly for use therein.

     (b) Indemnification of the Company and the Guarantors. Each Initial Purchaser agrees,
severally and not jointly, to indemnify and hold harmless the Company, each of the
Guarantors, each of their respective directors and officers and each person, if any, who
controls the Company or any of the Guarantors within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set
forth in paragraph (a) above, but only with respect to any losses, claims, damages or
liabilities that arise out of, or are based upon, any untrue statement or omission or
alleged untrue statement or omission made in reliance upon and in conformity with any
information furnished to the Company in writing by any Initial Purchaser through the
Representative expressly for use in the Preliminary Offering Memorandum, any of the other
Time of Sale Information, any Issuer Written Communication or the Offering Memorandum (or
any amendment or supplement thereto), it being understood and agreed that the only such
information consists of the following: the second and third sentences of the third paragraph
and the penultimate paragraph under the caption “Plan of distribution” in the Preliminary
Offering Memorandum, the Time of Sale Information and the Offering Memorandum.

     (c) Notice and Procedures. If any suit, action, proceeding (including any governmental
or regulatory investigation), claim or demand shall be brought or asserted against any
person in respect of which indemnification may be sought pursuant to either paragraph (a) or
(b) above, such person (the “Indemnified Person”) shall promptly notify the person against
whom such indemnification may be sought (the “Indemnifying Person”) in writing;
provided that the failure to notify the Indemnifying Person shall not relieve it
from any liability that it may have under paragraph (a) or (b) above except to the extent
that it has been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided, further, that the failure to notify
the Indemnifying Person shall not relieve it from any liability that it may have to an
Indemnified Person otherwise than under paragraph (a) or (b) above. If any such proceeding
shall be brought or asserted against an Indemnified Person and it shall have notified the
Indemnifying Person thereof, the Indemnifying Person shall be entitled to participate in and
assume the defense thereof and shall retain counsel reasonably satisfactory to the
Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel
to the Indemnifying Person) to represent the Indemnified Person and any others entitled to
indemnification pursuant to this Section 7 that the Indemnifying Person may designate in
such proceeding and shall pay the fees and expenses of such proceeding and shall pay the
fees and expenses of such counsel related to such proceeding, as incurred. In any such
proceeding, any Indemnified Person shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Person unless
(i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the
contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel
reasonably satisfactory to the

22

 

Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that
there may be legal defenses available to it that are different from or in addition to those
available to the Indemnifying Person; or (iv) the named parties in any such proceeding
(including any impleaded parties) include both the Indemnifying Person and the Indemnified
Person and representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them. It is understood and agreed that the
Indemnifying Person shall not, in connection with any proceeding or related proceeding in
the same jurisdiction, be liable for the fees and expenses of more than one separate firm
(in addition to any local counsel) for all Indemnified Persons, and that all such fees and
expenses shall be reimbursed as they are incurred. Any such separate firm for any Initial
Purchaser, its affiliates, directors and officers and any control persons of such Initial
Purchaser shall be designated in writing by J.P. Morgan Securities LLC and any such separate
firm for the Company, the Guarantors, their respective directors and officers and any
control persons of the Company and the Guarantors shall be designated in writing by the
Company. The Indemnifying Person shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent or if there be a
final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each
Indemnified Person from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person
shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees
and expenses of counsel as contemplated by this paragraph, the Indemnifying Person 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 the Indemnifying Person of
such request and (ii) the Indemnifying Person shall not have reimbursed the Indemnified
Person in accordance with such request or disputed in good faith the Indemnified Person’s
entitlement to such reimbursement prior to the date of such settlement. No Indemnifying
Person shall, without the written consent of the Indemnified Person, effect any settlement
of any pending or threatened proceeding in respect of which any Indemnified Person is or
could have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (x) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified
Person, from all liability on claims that are the subject matter of such proceeding and (y)
does not include any statement as to or any admission of fault, culpability or a failure to
act by or on behalf of any Indemnified Person.

     (d) Contribution. If the indemnification provided for in paragraphs (a) and (b) above
is unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to
the amount paid or payable by such Indemnified Person as a result of such losses, claims,
damages or liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and the Guarantors on the one hand and the Initial
Purchasers on the other from the offering of the Securities or (ii) if the allocation
provided by clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) but also the
relative fault of the Company and the Guarantors on the one hand and the Initial

23

 

Purchasers on the other in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Guarantors on the one
hand and the Initial Purchasers on the other shall be deemed to be in the same respective
proportions as the net proceeds (before deducting expenses) received by the Company from the
sale of the Securities and the total discounts and commissions received by the Initial
Purchasers in connection therewith, as provided in this Agreement, bear to the aggregate
offering price of the Securities. The relative fault of the Company and the Guarantors on
the one hand and the Initial Purchasers on the other shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company or any Guarantor or by the Initial Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or
omission.

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

     (f) Non-Exclusive Remedies. The remedies provided for in this Section 7 are not
exclusive and shall not limit any rights or remedies that may otherwise be available to any
Indemnified Person at law or in equity.

     8. Termination. This Agreement may be terminated in the absolute discretion of the
Representative, by notice to the Company, if after the execution and delivery of this Agreement and
on or prior to the Closing Date (i) trading generally shall have been suspended or materially
limited on the New York Stock Exchange or the over-the-counter market; (ii) trading of any
securities issued or guaranteed by the Company or any of the Guarantors shall have been suspended
on any exchange or in any over-the-counter market; (iii) a general moratorium on commercial banking
activities shall have been declared by federal or New York State authorities; or (iv) there shall
have occurred any outbreak or escalation of hostilities or any change in

24

 

financial markets or any calamity or crisis, either within or outside the United States, that,
in the judgment of the Representative, is material and adverse and makes it impracticable or
inadvisable to proceed with the offering, sale or delivery, of the Securities on the terms and in
the manner contemplated by this Agreement, the Time of Sale Information and the Offering
Memorandum.

     9. Defaulting Initial Purchaser.

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

     (b) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial Purchasers
and the Company as provided in paragraph (a) above, the aggregate principal amount of such
Securities that remains unpurchased does not exceed one-tenth of the aggregate principal
amount of all the Securities, then the Company shall have the right to require each
non-defaulting Initial Purchaser to purchase the principal amount of Securities that such
Initial Purchaser agreed to purchase hereunder plus such Initial Purchaser’s pro
rata share (based on the principal amount of Securities that such Initial Purchaser
agreed to purchase hereunder) of the Securities of such defaulting Initial Purchaser or
Initial Purchasers for which such arrangements have not been made.

     (c) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial Purchasers
and the Company as provided in paragraph (b) above, the aggregate principal amount of such
Securities that remains unpurchased exceeds one-tenth of the aggregate principal amount of
all the Securities, or if the Company shall not exercise the right described in paragraph
(b) above, then this Agreement shall terminate without liability on the part of the
non-defaulting Initial Purchasers. Any termination of this Agreement pursuant to this
Section 9 shall be without liability on the part of the

25

 

Company or the Guarantors, except that the Company and each of the Guarantors will
continue to be liable for the payment of expenses as set forth in Section 10 hereof and
except that the provisions of Section 7 hereof shall not terminate and shall remain in
effect.

     (d) Nothing contained herein shall relieve a defaulting Initial Purchaser of any
liability it may have to the Company, the Guarantors or any non-defaulting Initial Purchaser
for damages caused by its default.

     10. Payment of Expenses. Whether or not the transactions contemplated by this
Agreement are consummated or this Agreement is terminated, the Company and each of the Guarantors
jointly and severally agree to pay or cause to be paid all costs and expenses incident to the
performance of their respective obligations hereunder, including without limitation, (i) the costs
incident to the authorization, issuance, sale, preparation and delivery of the Securities and any
taxes payable in that connection; (ii) the costs incident to the preparation and printing of the
Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written
Communication and the Offering Memorandum (including any amendment or supplement thereto) and the
distribution thereof; (iii) the costs of reproducing and distributing each of the Transaction
Documents; (iv) the fees and expenses of the Company’s and the Guarantors’ counsel and independent
accountants; (v) the fees and expenses incurred in connection with the registration or
qualification and determination of eligibility for investment of the Securities under the laws of
such jurisdictions as the Representative may designate and the preparation, printing and
distribution of a Blue Sky Memorandum (including the related fees and expenses of counsel for the
Initial Purchasers); (vi) any fees charged by rating agencies for rating the Securities; (vii) the
fees and expenses of the Trustee and any paying agent (including related fees and expenses of any
counsel to such parties); (viii) all expenses and application fees incurred in connection with the
approval of the Securities for book-entry transfer by DTC; and (ix) all expenses incurred by the
Company in connection with any “road show” presentation to potential investors.

     (a) If (i) this Agreement is terminated pursuant to Section 8(ii), (ii) the Company for
any reason fails to tender the Securities for delivery to the Initial Purchasers or (iii)
the Initial Purchasers decline to purchase the Securities for any reason permitted under
this Agreement, the Company and each of the Guarantors jointly and severally agrees to
reimburse the Initial Purchasers for all out-of-pocket costs and expenses (including the
fees and expenses of their counsel) reasonably incurred by the Initial Purchasers in
connection with this Agreement and the offering contemplated hereby.

     11. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and any
controlling persons referred to herein, (i) the affiliates, officers and directors of each Initial
Purchaser referred to in Section 7 hereof and (ii) the officers and directors of each of the
Company and the Guarantors referred to in Section 7 hereof. Nothing in this Agreement is intended
or shall be construed to give any other person any legal or equitable right, remedy or claim under
or in respect of this Agreement or any provision contained herein. No purchaser of Securities from
any Initial Purchaser shall be deemed to be a successor merely by reason of such purchase.

26

 

     12. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Company, the Guarantors and the Initial Purchasers contained in
this Agreement or made by or on behalf of the Company, the Guarantors or the Initial Purchasers
pursuant to this Agreement or any certificate delivered pursuant hereto shall survive the delivery
of and payment for the Securities and shall remain in full force and effect, regardless of any
termination of this Agreement or any investigation made by or on behalf of the Company, the
Guarantors or the Initial Purchasers.

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

     14. Compliance with USA Patriot Act. In accordance with the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Initial
Purchasers are required to obtain, verify and record information that identifies their respective
clients, including the Company, which information may include the name and address of their
respective clients, as well as other information that will allow the Initial Purchasers to properly
identify their respective clients.

     15. Miscellaneous. Authority of the Representative. Any action by the Initial
Purchasers hereunder may be taken by J.P. Morgan Securities LLC on behalf of the Initial
Purchasers, and any such action taken by J.P. Morgan Securities LLC shall be binding upon the
Initial Purchasers.

     (a) Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given if mailed or transmitted and confirmed by any
standard form of telecommunication. Notices to the Initial Purchasers shall be given to the
Representative c/o J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179
(fax: (212) 270-1063); Attention: Jack D. Smith. Notices to the Company and the Guarantors
shall be given to them at 601 Poydras Street, Suite 2400, New Orleans, Louisiana 70130 (fax:
(504) 365-9665); Attention: Robert S. Taylor.

     (b) Governing Law. This Agreement and any claim, controversy or dispute arising under
or related to this Agreement shall be governed by and construed in accordance with the laws
of the State of New York.

     (c) Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be an
original and all of which together shall constitute one and the same instrument.

27

 

     (d) Amendments or Waivers. No amendment or waiver of any provision of this Agreement,
nor any consent or approval to any departure therefrom, shall in any event be effective
unless the same shall be in writing and signed by the parties hereto.

     (e) Headings. The headings herein are included for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of, this
Agreement.

28

 

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

	 	 	 	 	 
	 	Very truly yours,

SESI, L.L.C.
 	 
	 	By: 	Superior Energy Services, Inc., its managing member 	 

	 	 	 	 	 
	 	By  	/s/
Robert S. Taylor
 	 
	 	 	Name:  	Robert S. Taylor 	 
	 	 	Title:  	Executive Vice President, Chief Financial Officer and
Treasurer 	 
	 

	 	 	 	 	 
	 	SUPERIOR ENERGY SERVICES, INC.

 	 
	 	By  	/s/
Robert S. Taylor 	 
	 	 	Name:  	Robert S. Taylor 	 
	 	 	Title:  	Executive Vice President, Chief Financial Officer and
Treasurer 	 

 

	 	 	 	 	 
	 	1105 PETERS ROAD, L.L.C.

ADVANCED OILWELL SERVICES, INC.

BLOWOUT TOOLS, INC.

CONCENTRIC PIPE AND TOOL RENTALS, L.L.C.

CONNECTION TECHNOLOGY, L.L.C.

CSI TECHNOLOGIES, LLC

DRILLING LOGISTICS, L.L.C.

FASTORQ, L.L.C.

H.B. RENTALS, L.C.

INTERNATIONAL SNUBBING SERVICES, L.L.C.

NON-MAGNETIC RENTAL TOOLS, L.L.C.

PRODUCTION MANAGEMENT INDUSTRIES, L.L.C.

SEMO, L.L.C.

SEMSE, L.L.C.

STABIL DRILL SPECIALITIES, L.L.C.

SUB-SURFACE TOOLS, L.L.C.

SUPERIOR HOLDING, INC.

SUPERIOR ENERGY SERVICES COLOMBIA, LLC

SUPERIOR ENERGY SERVICES, L.L.C.

SUPERIOR INSPECTION SERVICES, L.L.C.

WARRIOR ENERGY SERVICES CORPORATION

WILD WELL CONTROL, INC.

WORKSTRINGS INTERNATIONAL, L.L.C.

 	 

	 	 	 	 	 
	 	 	 
	 	By  	/s/
Robert S. Taylor
 	 
	 	 	Name:  	Robert S. Taylor 	 
	 	 	Title:  	Authorized Representative 	 
	 

30

 

Accepted: April 20, 2011

J.P. MORGAN SECURITIES LLC

For itself and on behalf of the

several Initial Purchasers listed

in Schedule 1 hereto.

	 	 	 	 
	 	 
	By  	/s/
Jack Smith	 
	 	Authorized Signatory 	 

Schedules and exhibits have been intentionally omitted, and will be made available to the
Securities and Exchange Commission upon request.

31

 

SCHEDULE 1

	 	 	 	 	 
	Initial
Purchasers
	 	Principal Amount	 
	J.P. Morgan Securities LLC
	 	$	175,000,000	 
	Wells Fargo Securities, LLC
	 	$	87,500,000	 
	Merrill Lynch, Pierce, Fenner & Smith Incorporated
	 	$	70,000,000	 
	BNP Paribas Securities Corp.
	 	$	70,000,000	 
	Comerica Securities, Inc.
	 	$	19,500,000	 
	PNC Capital Markets LLC
	 	$	19,500,000	 
	Natixis Securities North America Inc.
	 	$	19,500,000	 
	Capital One Southcoast, Inc.
	 	$	19,500,000	 
	HSBC Securities (USA) Inc.
	 	$	19,500,000	 
	 
	 	 	 
	Total
	 	$	500,000,000exv4w2

Exhibit 4.2

ARBORGEN INC.

STOCKHOLDERS AGREEMENT

     THIS STOCKHOLDERS AGREEMENT (this “Agreement”) is made as of this 1st day
of June, 2010, by and among ArborGen Inc., a Delaware corporation (the “Company”), and
Rubicon Industries USA, LLC, a Delaware limited liability company, International Paper Company, a
New York corporation, MeadWestvaco Corporation, a Delaware corporation, and such other Persons that
may become a party to this Agreement pursuant to Section 13 hereof from time to time (collectively,
the “Stockholders”).

Recitals

     A. The Company was originally formed on February 10, 2000, as a limited liability company
under the laws of the State of Delaware by the filing of a Certificate of Formation with the
Secretary of State of the State of Delaware (the “Formation Date”).

     B. Effective as of the date hereof (the “Conversion Date”), the Company has been
converted from a limited liability company to a corporation under the laws of the State of Delaware
by the filing of a Certificate of Conversion and a Certificate of Incorporation (as amended from
time to time, including by any Certificate of Designation, the “Certificate of
Incorporation”) with the Secretary of State of the State of Delaware.

     C. In connection with such conversion, the Company and the Stockholders entered into that
certain Conversion Agreement dated as of the date hereof (the “Conversion Agreement”),
pursuant to which the Company issued to the Stockholders, in exchange for their limited liability
company membership interests outstanding at the time of conversion, an aggregate of 30,000,000
shares of the Company’s Common Stock, $0.001 par value per share (the “Common Stock”).

     D. Pursuant to the Conversion Agreement, the parties are required to enter into this Agreement
for the purposes, among others, of (i) limiting the manner and terms by which the Stockholders’
shares of Common Stock (“Shares”) may be transferred, (ii) assuring continuity in the
management and ownership of the Company and (iii) establishing the composition of the Company’s
board of directors (the “Board”).

     E. Prior the conversion, the Stockholders were parties to that certain Amended and Restated
Limited Liability Company Agreement dated as of October 31, 2007, as amended (the “Operating
Agreement”).

     NOW, THEREFORE, in consideration of the premises and the covenants and undertakings
hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree
as follows:

     1. DEFINITIONS. For purposes of this Agreement, the following initially capitalized
terms shall have the following meanings (initially capitalized terms defined elsewhere in this

 

 

Agreement shall have the meanings set forth elsewhere in this Agreement):

          (a) “Affiliate” means, with respect to any Person, another Person that directly or
indirectly through one or more intermediaries controls or is controlled by or is under common
control with such Person. For purposes of this Agreement, “control” means the possession,
directly or indirectly, of at least forty percent (40%) of the voting stock of a corporate entity
or, in the absence of the ownership of at least forty percent (40%) of the voting stock of a
corporate entity or in the case of a non-corporate business entity or non-profit corporation,
possession, directly or indirectly, of the power to direct the management or policies of such
Person.

          (b) “Ancillary Agreements” means the license agreements and each other agreement in
effect at the execution of the Operating Agreement between the Company, on one hand, and a
Stockholder on the other hand.

          (c) “Bankruptcy” means, with respect to a Person:

          (i) the commencement against such Person of proceedings for any relief under any
bankruptcy or insolvency law, or any law relating to the relief of debtors, readjustment of
indebtedness, reorganization, arrangement, composition, or extension of debts, provided such
proceeding shall not have been dismissed, nullified, stayed, or otherwise rendered
ineffective (but only so long as such ineffectiveness shall continue in force) within ninety
(90) days after the commencement of such proceedings;

          (ii) the commencement by such Person of proceedings for any relief under any bankruptcy
or insolvency law, or any law relating to the relief of debtors, readjustment of
indebtedness, reorganization, arrangement, composition, or extension of debts;

          (iii) a decree or order of a court having jurisdiction in the premises for the
appointment of a receiver, liquidator, trustee, manager or assignee in bankruptcy or
insolvency of such Person or of a substantial part of such Person’s property, or for the
winding up or liquidation of its affairs, which decree or order remains in force
undischarged and unstayed for a period of ninety (90) days; or

          (iv) a general assignment by such Person for the benefit of creditors or the admission
by such Person in writing of its inability to pay its debts generally as they become due.

          (d) “Change In Control” means the acquisition by any Person or group of Persons of at
least forty percent (40%) of the issued and outstanding shares of common stock or other voting
securities of another Person, or in the case of a non-corporate business entity or non-profit
corporation, a change, directly or indirectly, of the power to direct the management or policies of
such Person.

2

 

          (e) “Disposition” means any sale, assignment, transfer, exchange, mortgage, pledge,
grant, hypothecation, or other transfer, absolute or as security or encumbrance (including
dispositions by operation of law) and “dispose” shall be construed accordingly.

          (f) “GAAP” means U.S. generally accepted accounting principles consistently applied.

          (g) “IPO” means the initial public offering of the common equity of the Company,
whether such offering is a primary offering, a secondary offering or a combination of the two,
pursuant to an effective registration statement filed with the Securities and Exchange Commission
in accordance with the Securities Act.

          (h) “Non-Transgenic Tree Business” means a Tree Business that is not a Transgenic Tree
Business.

          (i) “Person” means an individual, trust, governmental authority, estate, or any
incorporated or unincorporated company, corporation, limited liability company, partnership or
other organization.

          (j) “Proceeding” means any arbitration or administrative or judicial adversarial
proceeding or hearing, civil, criminal or investigative, the result of which may be that a court,
arbitrator, mediator or governmental agency may enter a judgment, order, decree, or other
determination which, if not appealed and reversed, would be binding.

          (k) “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

          (l) “Stockholder Veto Right” means the right of a Stockholder to veto, in its sole
discretion, the Disposition of any Shares, or any interest therein, to any Person.

          (m) “Taxable Year” means the fiscal period of twelve months ending on the last day of
each March.

          (n) “Transgenic Tree Business” means a Tree Business conducted using in any manner any
Transgenic Tree Improvement Technologies.

          (o) “Transgenic Tree Improvement Technologies” means any and all of (i) the
introduction into or modification of one or more segments of DNA of a plant genome which would not
naturally occur in that plant or in that configuration without genetic transformation, mutagenesis,
other methods to make intentional alterations of the DNA in the genome, or other in vitro
techniques; (ii) the introgression into target cultivars of one or more specific DNA sequences or
chromosomal regions, whose function or utility was identified through a research program utilizing
a methodology described in either clause (i) or (iii) of this definition, which can be facilitated
through utilizing detection of small DNA subregions by molecular markers (to include RFLP, AFLP,
SSR, microsatellite, and SNP type markers or other functionally similar molecular markers as well
as selectable markers or inserted DNA sequences) in breeding one or

3

 

more genes into the target cultivars to develop new elite cultivars; or (iii) the inhibition
of the flow, or the excision, of genetic information which proceeds from DNA to RNA to protein in a
plant, which inhibition or excision would not naturally occur in that plant. For avoidance of
doubt, Transgenic Tree Improvement Technologies does not include conventional tree improvement
involving the use of molecular markers and/or mutagenesis.

          (p) “Tree Business” means the (i) breeding, research, development, production, use,
commercialization and sale of any trees and woody shrubs, including germplasm, genes, plant
material, plant tissue, somatic embryos, propagative materials, seeds and pollen related thereto,
for any purpose, (ii) the research, development, production, use, commercialization and sale of any
related propagation or production technologies, and (iii) the development, production, use,
commercialization or sale of all intellectual property related to any of the activities described
in clause (i) or (ii).

     2. PRESENT STOCKHOLDERS. Set forth on Schedule 1 attached hereto is a list of
all the Stockholders of the Company and their respective ownership of Shares as of the date hereof.
Schedule 1 shall be updated and amended from time to time by the Company to reflect such
other Persons that may become parties to this Agreement from time to time in accordance with
Section 13 and the other provisions hereof.

     3. TRANSFER RESTRICTIONS ON SHARES.

          (a) General. Each Stockholder agrees not to Dispose of any Shares, in whole or in
part, except as provided in this Section 3 or the provisions of Exhibit A.

          (b) Dispositions Not in Compliance with This Section Void. Any attempted Disposition
of any Shares, or any interest therein, not in compliance with this Section 3 or the provisions of
Exhibit A shall be null and void ab initio.

          (c) Dissolution or Redemption upon Bankruptcy or Breach of a Stockholder. In the
event of the Bankruptcy of any Stockholder or in the event that any Stockholder shall be in
material breach of this Agreement and shall fail to cure such material breach within a term of
sixty (60) days from the date of notice to that effect given by another Stockholder (hereinafter, a
“Breaching Stockholder”), then a majority of the other Stockholders may elect, by giving
notice of such election to the Company and each of the other Stockholders:

          (i) to require that each of the Stockholders consent in writing to the
dissolution of the Company in accordance with Section 275 of the General Corporation
Law of the State of Delaware, as amended from time to time or any successor to such
section. Such notice shall include a form of resolution reasonably satisfactory to
the Company. Promptly after receipt of any such notice, each Stockholder shall take
all such actions necessary to adopt such resolution and take all such other actions
in connection therewith as may be reasonably requested in such notice; or

          (ii) to require that the Company repurchase all of the Shares

4

 

held by such Breaching Stockholder, and that such Breaching Stockholder sell
all such Shares to the Company, for a purchase price equal to the lesser of (A) the
Breaching Stockholder’s allocable share of the stockholders’ equity of the Company
as of the date of such notice, as determined by the Board in accordance with the
financial statements of the Company prepared in accordance with GAAP; or (B) an
amount equal the Breaching Stockholder’s Additional Capital Contributions (as
defined in the Operating Agreement) made after the fifth anniversary of the
Formation Date but prior to the Conversion Date, plus the aggregate purchase price
paid by the Breaching Stockholder for all Additional Stock Purchases made by the
Breaching Stockholder at any time on or after the Conversion Date. Promptly after
receipt by the Company of any such notice, the Board shall cause the Company to
repurchase such Shares from the Breaching Stockholder in accordance with this
Section.

In either event, the Company shall have a paid-up, non-exclusive license to use intellectual
property licensed to the Company by the Breaching Stockholder.

     (d) Third-Party Disposition Procedures.

          (i) A Stockholder (the “Selling Stockholder”) may sell all or any of its Shares
to any third-party purchaser for cash or other consideration, provided that (A) the Selling
Stockholder has received a bona fide offer from such third party (a “bona fide” offer, for
purposes of this clause, shall be an offer from a third party having the financial
capabilities to meet the obligations of the Selling Stockholder under this Agreement and
having the business experience and expertise reasonably necessary to further the business
objectives of the Company as set by the Board); (B) the Selling Stockholder allows the
remaining Stockholders collectively to match the offer; and (C) such Disposition is subject
to the Stockholder Veto Right. Notwithstanding anything herein to the contrary, no
Stockholder may make any Disposition of any Shares or any interest therein (whether or not
such Disposition is a Permitted Disposition hereunder) to a Person unless and until such
Person executes and delivers to the Company a Joinder Agreement in accordance with Section
13 hereof. To satisfy clause (A) above, the Selling Stockholder shall present a written
offer to the remaining Stockholders, through the Board, stating the name of the proposed
purchaser, the proposed price and all other basic purchase terms. The remaining
Stockholders shall have the right for a period of sixty (60) days from receipt of such
written offer to elect to accept such written offer on the same terms and conditions
applicable to such proposed purchaser or to exercise their Stockholder Veto Right (in which
case, unless otherwise agreed in writing among the remaining Stockholders, the remaining
Stockholders shall have the right to purchase the Shares of the Selling Stockholder pro rata
based on the number of Shares owned by the remaining Stockholders). If a Stockholder Veto
Right is exercised and the Selling Stockholder elects to proceed with the Disposition of its
Shares, then the remaining Stockholders shall have the right to purchase the Selling
Stockholder’s Shares by accepting the terms and conditions applicable to the proposed
third-party purchaser. If the remaining Stockholders decline to accept such terms and
conditions, then the Stockholder who exercised the Stockholder Veto Right shall be required
to accept the

5

 

terms and conditions applicable to the proposed third-party purchaser.

          (ii) In the event that all of the remaining Stockholders do not desire to accept such
offer to purchase such Shares from the Selling Stockholder, the remaining Stockholder or
Stockholders who wish to purchase such Shares may do so at the proposed price, pro rata
based on the number of Shares held by such remaining Stockholders unless otherwise agreed in
writing among such remaining Stockholders, subject to approval of a majority of the
Representatives of the non-selling Stockholders. The Stockholder Veto Right and right of
first refusal contained in this Section 3(d) shall expire upon (A) the closing of an IPO, or
(B) the merger or consolidation of the Company with or into any other Person other than a
transaction in which the Shares are not affected or the Stockholders, as a result of the
conversion of their Shares in such transaction, own one hundred percent (100%) of the equity
interests of the surviving or resulting entity.

          (e) Change in Control. In the event of a Change In Control of a Stockholder, without
the prior written consent of the remaining Stockholders, based on a majority of votes to which the
Representatives of the remaining Stockholders are entitled, which consent shall not be withheld
unreasonably, the remaining Stockholders, by such majority vote, may elect to treat such Change in
Control as a material breach and invoke the procedures set forth in Section 3(c) above. For
purposes of this paragraph, consent shall be deemed to have been reasonably withheld if the Person
acquiring control of such Stockholder is a direct competitor of the Company or does not have the
financial resources to meet such Stockholder’s commitments under this Agreement.

          (f) Permitted Dispositions. Notwithstanding any other provisions of this Section 3, a
Disposition of all of the Shares held by a Stockholder to an Affiliate of that Stockholder may be
made without restriction (a “Permitted Disposition”), provided that if such transferee,
being an Affiliate of that Stockholder at the date of the transfer, shall subsequently cease to be
such an Affiliate while holding Shares in the Company, then the Stockholder shall be deemed to be a
Selling Stockholder in respect of all of its Shares, the Affiliate shall be deemed to have made a
bona fide offer and the provisions of Section 3(d) shall have effect accordingly.

	 	4.	 	ADDITIONAL STOCK PURCHASES.

          (a) As and when the Board determines that the Company requires additional resources from time
to time, and properly calls for an additional stock purchase by the Stockholders (an
“Additional Stock Purchase”) in accordance with the Bylaws of the Company in order to raise
such aggregate amount of proceeds as may be determined by the Board (the “Offering
Amount”), each Stockholder agrees that it shall purchase from the Company additional Shares
having an aggregate purchase price to be paid by such Stockholder (the “Stockholder Purchase
Price”) equal to a pro rata portion of the Offering Amount based on the number of Shares owned
by such Stockholder at the time of the approval of such Additional Stock Purchase by the Board.
The proceeds received by the Company as a result of any such Additional Stock Purchase shall be
used by the Company for the purposes determined by the vote of the Board authorizing such
Additional Stock Purchase. Except as otherwise provided in

6

 

Sections 4(b), 4(d) and 4(g) below, in no event shall the Company issue any Shares to any
Stockholder in connection with any Additional Stock Purchase until such time as each Stockholder
has paid to the Company the full amount of its Stockholder Purchase Price.

          (b) In the event any Stockholder (a “Non-Purchasing Stockholder”) (x) shall fail to
pay the full amount of its Stockholder Purchase Price in connection with any Additional Stock
Purchase within the time period specified by the Board (which shall not be less than ten (10) days
after such Stockholder’s receipt of notice from the Board in that regard) and (y) shall not have
paid (either in connection with such Additional Stock Purchase, any previous Additional Stock
Purchase during the then current Taxable Year or both) up to the Maximum Annual Price, then the
other Stockholders who have paid their respective Stockholder Purchase Prices up to the Maximum
Annual Price during the then current Taxable Year and who are paying the full amount of their
respective Stockholder Purchase Prices in connection with such Additional Stock Purchase (the
“Purchasing Stockholders”) may elect either to:

          (i) treat the failure to pay at least up to the Maximum Annual Price as a material
breach of this Agreement upon the giving of written notice to the Non-Purchasing
Stockholder, in which event (A) the Purchasing Stockholders shall be entitled to exercise
(or cause the Company to exercise) all of the remedies upon a material breach as are set
forth in Section 3(c), and (B) the Company shall issue Shares to each of the Purchasing
Stockholders in consideration for the Stockholder Purchase Price paid by such Purchasing
Stockholder in connection with such Additional Stock Purchase; or

          (ii) advance funds to the Company in accordance with Section 4(e) in an amount up to
the amount of the Stockholder Purchase Price not paid by the Non-Purchasing Stockholder.

In the event a Non-Purchasing Stockholder (x) shall fail to pay the full amount of its Stockholder
Purchase Price in connection with any Additional Stock Purchase within the time period specified by
the Board and (y) shall have previously paid the Maximum Annual Price in connection with one or
more previous Additional Stock Purchases during the then current Taxable Year, the Purchasing
Stockholders shall have the right to advance funds to the Company in an amount up to the amount of
the Stockholder Purchase Price not paid by the Non-Purchasing Stockholder in exchange for Shares to
be issued to any such Purchasing Stockholders in accordance with Section 4(d).

          (c) A Stockholder shall not be in breach of this Agreement for failure to purchase any Shares
in connection with any Additional Stock Purchase to the extent the purchase price thereof would
cause the aggregate purchase price paid by such Stockholder pursuant to this Section 4 during any
Taxable Year to exceed US$5,000,000 (the “Maximum Annual Price”).

          (d) In the event the amount paid by any Stockholder in connection with any Additional Stock
Purchase causes such Stockholder to reach or exceed the Maximum Annual Price payable by such
Stockholder, the Company shall issue Shares to such Stockholder in consideration for such amount
(up to the Stockholder Purchase Price payable thereby) even though such Stockholder or one or more
of the other Stockholders has not paid the full amount of

7

 

its Stockholder Purchase Price. The provisions of Section 4(c) and this Section 4(d) shall
not constitute a waiver of breach with respect to any further failure by such Stockholder (or any
other Stockholder) to make required Additional Stock Purchases.

          (e) In the event any Non-Purchasing Stockholder shall fail to pay the full amount of its
Stockholder Purchase Price with respect to any Additional Stock Purchase up to the Maximum Annual
Price payable thereby, and any of the Purchasing Stockholders elect pursuant to Section 4(b)(ii) to
advance to the Company the funds required from the Non-Purchasing Stockholder, then such advanced
funds shall be deemed to be a loan to the Company (a “Purchasing Stockholder Loan”). Each
Purchasing Stockholder Loan shall be dealt with in accordance with the provisions of Section 4(f).
For the avoidance of doubt, the Purchasing Stockholders shall have the right to advance funds pro
rata to the Company, as contemplated by Section 4(b)(ii) hereof and this Section 4(e), in an amount
equal to the amount of the Maximum Annual Price minus the aggregate amount of such Non-Purchasing
Stockholder’s purchases of Shares in connection with such Additional Stock Purchase or any previous
Additional Stock Purchase during the then current Taxable Year.

          (f) Each Purchasing Stockholder Loan shall bear interest at a rate equal to the lesser of (i)
the prime rate plus five percent (5%) per annum, compounded monthly, or (ii) the maximum rate of
interest then permitted by law, compounded monthly. Except as set forth in Section 4(g), each
Purchasing Stockholder Loan shall be repaid out of any subsequent dividends or other distributions
that would otherwise be payable to the Non-Purchasing Stockholder, which amounts shall be applied
first to interest and then to principal, until the Purchasing Stockholder Loan is paid in full.

          (g) In the event any Purchasing Stockholder Loan has not been repaid in full within forty-five
(45) days after the date such Purchasing Stockholder Loan is made, then, at any time thereafter,
each of the Purchasing Stockholders that elected to advance funds and make a Purchasing Stockholder
Loan, as contemplated by Sections 4(b)(ii) and 4(e) hereof, may elect to take any of the following
actions:

          (i) allow such Purchasing Stockholder’s Purchasing Stockholder Loan to remain
outstanding, in which event such loan shall continue to bear interest and be repaid as
provided in Section 4(f) above;

          (ii) in exchange for forgiveness of such Purchasing Stockholder’s Purchasing
Stockholder Loan, require the Company to issue that number of Shares in the name of and to
such Purchasing Stockholder having an aggregate issue price equal to the aggregate
outstanding principal amount of such Purchasing Stockholder’s Purchasing Stockholder Loan,
plus accrued and unpaid interest thereon; or

          (iii) such Purchasing Stockholder may treat the failure to repay such Purchasing
Stockholder’s Purchasing Stockholder Loan as a material breach of this Agreement by the
Non-Purchasing Stockholder upon the giving of written notice to the Non-Purchasing
Stockholder and the expiration of thirty (30) days without such Purchasing Stockholder Loan
being repaid, in which event the Purchasing Stockholders

8

 

shall be entitled to exercise (or cause the Company to exercise) all of the remedies
upon a material breach as are set forth in Section 3(c). In addition, in such event, all of
the Purchasing Stockholders shall forgive the outstanding principal balance of the
Purchasing Stockholder Loans, plus any accrued and unpaid interest thereon, and in
consideration thereof, the Company shall issue Shares to each Purchasing Stockholder having
an aggregate issue price equal to the aggregate principal amount of such Purchasing
Stockholder’s Purchasing Stockholder Loan, plus accrued and unpaid interest thereon.

          (h) For the purposes, and solely for the purposes, of determining the number of Shares to be
issued to any Stockholder pursuant to this Section 4, the purchase price per Share or issue price
per Share, as the case may be, shall be deemed to be $15.00.

     5. REGISTRATION RIGHTS. The Stockholders shall be entitled to registration rights as
set forth on Exhibit A.

     6. RESERVED.

     7. BOARD OF DIRECTORS.

          (a) From and after the date hereof, each Stockholder shall vote all his, her or its Shares
which are voting shares and any other voting securities of the Company over which such Stockholder
has voting control, and shall take all other necessary or desirable actions within his, her or its
control (whether in his, her or its capacity as a stockholder, director, member of a Board
committee or officer of the Company or otherwise, and including attendance at meetings in person or
by proxy for purposes of obtaining a quorum and execution of written consents in lieu of meetings),
and the Company shall take all necessary or desirable actions within its control (including calling
special Board and stockholder meetings), so that:

          (i) The following persons shall be elected to the Board (collectively, the
“Representatives”):

          (A) 2 representatives designated by International Paper Company (the
“International Paper Directors”), with Kenneth Munson and David Liebetreu
serving initially as the International Paper Directors as of the date hereof;

          (B) 2 representatives designated by MeadWestvaco Corporation, a Delaware
corporation (the “MeadWestvaco Directors”), with Mark Watkins and Eugene
Hundley serving initially as the MeadWestvaco Directors as of the date hereof; and

          (C) 2 representatives designated by Rubicon Industries USA, LLC (the
“Rubicon Directors”), with Luke Moriarty and Bruce Burton serving initially
as the Rubicon Directors as of the date hereof.

          (ii) A Stockholder may replace any Representative appointed by such

9

 

Stockholder in the event of a vacancy. Any Representative may be removed at any time,
with or without cause, by the Stockholder entitled to appoint such Representative, but not
otherwise.

          (iii) The position of Chairman of the Board shall alternate, annually, from the
International Paper Directors, MeadWestvaco Directors and Rubicon Directors.

          (b) A Representative may bring support staff to Board meetings unless such staff is, by the
affirmative vote of a majority of the whole Board, precluded from attending all or any portion of a
meeting. Such staff shall be subject to confidentiality requirements deemed appropriate by the
Board.

          (c) If any party fails to designate a Representative to fill a directorship pursuant to
the terms of this Section 7, the individual previously holding such directorship shall be elected
to such position, or if such individual fails or declines to serve, the election of an individual
to such directorship shall be accomplished in accordance with the Certificate of Incorporation and
Bylaws and applicable law; provided, however, that the Stockholders shall vote to remove such
individual if the party or parties which failed to designate such directorship so direct.

     8. OPERATING POLICY AND DEVELOPMENT PLAN AND BUDGET. The Board, by affirmative vote
of at least 90% of the whole Board, shall approve and adopt written Company operating procedures
(the “Operating Policy”) and for each fiscal year a development plan and budget (the
“Development Plan and Budget”). The Operating Policy shall address, among other areas,
procedures for the execution and approval of agreements binding the Company (including specific
authority levels of officers and Company employees), procedures for the execution and approval of
agreements between the Company and stockholders, Affiliates, officers, and/or Company employees,
and tax recording and accounting procedures. Each annual Development Plan and Budget shall (a)
outline the operational, strategic and financial plans and milestones for the Company for the
ensuing three fiscal years and (b) set forth the plan and budget for the business that the Company
will carry out during the applicable fiscal year. A new Development Plan and Budget shall be
adopted annually no later than thirty (30) days prior to first day of the fiscal year for which
such Development Plan and Budget applies. In the event that the Board of Directors is unable to
timely adopt an annual Development Plan and Budget, any Stockholder (the “Referring
Stockholder”) may, by written notice to the other Stockholders, have such deadlock referred to
the Chief Executive Officer of the Company (or a designee of the Chief Executive Officer with
appropriate seniority and authority, excluding any member of the Board of Directors who represents
the Referring Stockholder) for attempted resolution by good faith negotiations within the shorter
of (i) fourteen (14) days after such notice is received or (ii) the number of days remaining before
the first date of the fiscal year for which the Development Plan and Budget applies. Until any
such deadlock is resolved, the existing Development Plan and Budget shall govern.

10

 

     9. NON-COMPETE.

          (a) Subject to the Ancillary Agreements and this Section 9, no Stockholder shall, during the
period that it is a Stockholder or for five (5) years thereafter:

          (i) either alone or in collaboration with a third party, engage in any Transgenic Tree
Business anywhere in the world; or

          (ii) either alone or in collaboration with a third party, engage in any Non-Transgenic
Tree Business in Australia, New Zealand or the United States of America.

          (b) Notwithstanding anything in Section 9(a) to the contrary, it shall not be a violation of
Section 9(a) for any Stockholder to:

          (i) acquire any Person who engages in the activities described in Section 9(a), so long
as the predominant business of that acquired Person is not a (A) Transgenic Tree Business or
a (B) Non-Transgenic Tree Business conducted in Australia, New Zealand or the United States
of America, and that acquired Person does not derive (X) ten percent (10%) or more of its
annual revenues from any Transgenic Tree Business conducted anywhere in the world, or (Y)
twenty percent (20%) or more of its annual revenues from the sum of any revenues from its
Transgenic Tree Business conducted anywhere in the world and its Non-Transgenic Tree
Business conducted in the United States of America, New Zealand or Australia;

          (ii) continue to own and operate the business (including the Transgenic Tree Business
and/or Non-Transgenic Tree Business) of any acquired Person satisfying Section 9(b)(i); or

          (iii) participate in or conduct research and development activities, anywhere in the
world, and any related (A) breeding. production or use of trees and woody shrubs, or (B)
production or use of propagation or production technologies or intellectual property
including those that may relate to any Transgenic Tree Business or Non-Transgenic Tree
Business, either alone or in collaboration with a Person other than the Company or a
Stockholder, in each case for any purpose. For avoidance of doubt, this clause (iii) shall
not include any commercialization or sale activities.

          (c) Except as specifically provided in this Agreement, nothing shall limit or restrict the
Stockholders’ ability to compete with each other or with the Company. The vigorous and extensive
competition presently existing between the Stockholders in markets outside the scope of this
Agreement shall continue.

     10. COMPANY INTELLECTUAL PROPERTY. “Company Intellectual Property” includes
patents, trade secrets, know-how, technology, germplasm, plant variety rights, trademarks, service
marks, trade names, domain names, databases and copyrights and other information created or
acquired by the Company and having value or providing a

11

 

competitive advantage to the Company. Except as is otherwise provided in and subject to the
terms of any Ancillary Agreement, all Company Intellectual Property created by the Company will be
owned by the Company. Any goodwill associated with such Company Intellectual Property will inure
to the benefit of the Company. Except as is otherwise provided in the Ancillary Agreements, the
Company is responsible for filing, maintaining and prosecuting such applications for patents,
industrial designs, plant breeders’ rights, trademark and copyright registrations, state or local
registrations and other forms of intellectual property protection in the United States and all
comparable protections in those countries where the Company does or anticipates doing business in
order to protect Company Intellectual Property as the Company deems appropriate.

     11. REPRESENTATIONS AND WARRANTIES. Each Stockholder represents and warrants that:

          (a) it is duly organized, validly existing, and in good standing under the law of its state or
other jurisdiction of incorporation or organization and that it has full organizational power to
execute and agree to this Agreement and to perform its obligations hereunder;

          (b) this Agreement has been duly executed and delivered by it and constitutes its valid and
binding obligation, enforceable in accordance with its terms;

          (c) neither the execution and delivery of this Agreement nor the consummation of the
transactions contemplated hereby nor compliance by it with any provisions hereof

          (i) conflicts with, or results in a breach or contravention of, or in a default or the
creation of any lien under, any of the terms, conditions or provisions of any note, bond,
mortgage, indenture, license, agreement, or other instrument or obligation to which it is a
party or by which it or its properties are bound, or

          (ii) violates any law, order, writ, injunction or decree applicable to it or any of its
properties; and

          (d) no consent, approval or other action by any court, governmental authority or third party
is required in connection with its execution, delivery and performance of this Agreement.

     12. SHARE CERTIFICATES. Upon the execution of this Agreement, the certificates of
Common Stock subject to this Agreement and any other Shares transferred or issued shall bear a
legend as follows:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND
MAY NOT BE OFFERED, SOLD, TRANSFERRED, MORTGAGED, PLEDGED,

12

 

HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT IN COMPLIANCE WITH STATE SECURITIES LAWS
AND (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES THAT IS
EFFECTIVE UNDER THE ACT OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION
UNDER THE ACT.

THE VOTING AND TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO THE PROVISIONS OF A STOCKHOLDERS AGREEMENT DATED AS OF JUNE 1, 2010, AS
AMENDED AND IN EFFECT FROM TIME TO TIME, AMONG THE COMPANY AND THE STOCKHOLDERS
NAMED THEREIN, A COPY OF WHICH IS ON FILE AT THE OFFICES OF THE COMPANY.

THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE
POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE PARTICIPATING, OPTIONAL OR OTHER
SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF OF THE COMPANY AND THE
QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS. SUCH
REQUEST MAY BE MADE TO THE OFFICE OF THE SECRETARY OF THE COMPANY.

     13. TRANSFERS; FUTURE SALES. Prior to (i) the Company issuing Shares to any Person,
or (ii) any Stockholder making any Disposition of any Shares, or any interest therein, to any
Person, the Company or such Stockholder, as the case may be, shall cause such Person to execute and
deliver to the Company and the Stockholders a Joinder Agreement in substantially the form of
Exhibit B hereto, pursuant to which such Person shall become a party to, and become bound
by and obligated to comply with the terms and provisions of, this Agreement. Such Person shall be
deemed to be a Stockholder hereunder from and after the date such Person executes and delivers such
Joinder Agreement. Promptly following any such action, the Company shall update Schedule 1
attached hereto and provide such Schedule 1, as updated, to the other parties to this
Agreement

     14. ENTIRE AGREEMENT. This Agreement and the Ancillary Agreements represent the entire
understanding of the Stockholders with respect to the subject matter hereof among all the
Stockholders and between the Stockholders and the Company.

     15. SUCCESSORS AND ASSIGNS. Subject to the provisions on Disposition set forth
herein, this Agreement shall bind and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

     16. GOVERNING LAW. This Agreement shall be governed by and interpreted in accordance
with the internal laws of the State of Delaware without regard to Delaware’s conflict-of-laws
rules. With respect to any action for breach or specific performance of this Agreement, each
Stockholder hereby consents to personal jurisdiction in the United States District Court for the
District of Delaware, or, in the event that such court lacks jurisdiction over the subject matter

13

 

of such action, in a Delaware state court having such jurisdiction over the subject matter.

     17. DISPUTE RESOLUTION.

          (a) If there is a disagreement or dispute among the Stockholders and the Company in respect of
this Agreement or the Ancillary Agreements or if the Stockholders and the Company are unable to
agree on a matter which this Agreement or any such Ancillary Agreements provide shall be agreed
among them and such dispute or disagreement remains unresolved for a period of seven (7) days, each
Stockholder will designate a senior manager or officer to review and use every reasonable effort to
develop a workable resolution to the disagreement or dispute. If the dispute remains unresolved
for a further period of fourteen (14) days, the Stockholders will refer the dispute to their
respective chief executives, who will use every reasonable effort to develop a workable resolution
to the disagreement or dispute.

          (b) If no agreement has been reached in discussions among the respective chief executives
within a further period of fourteen (14) days, any Stockholder may give written notice within a
further period of seven (7) days of its intention to refer such dispute or difference to mediation.

          (c) If a request to mediate is made then the Stockholders shall endeavor to agree on a
mediator within fourteen (14) days and shall promptly submit the matter in dispute to the mediator.
The mediator shall discuss the matter with the Stockholders (separately or jointly in the
discretion of the mediator) and endeavor to resolve it by agreement. Any dispute referred to
mediation will be dealt with on an expeditious basis. All discussions in the mediation shall be
without prejudice and shall not be referred to in any later proceeding. The Stockholders shall
bear their own costs in the mediation and each shall pay towards the costs of the mediator an
amount pro rata based on the number of Shares held by such Stockholders.

          (d) If:

          (i) no notice to mediate is given within the seven (7) day period referred to in
paragraph (b); or

          (ii) no agreement on a mediator is reached within fourteen (14) days of a notice to
mediate being given; or

          (iii) no agreement is reached within three (3) months of the appointment of a mediator,

          any Stockholder may pursue its remedies at law.

          (e) Upon a showing of a likelihood of irreparable harm, nothing in this Section 17 shall
preclude a Stockholder from obtaining equitable relief from a court to preserve the status quo ante
pending exhaustion of the non-judicial dispute resolution procedures provided herein.

14

 

     18. NOTICES. All notices required or permitted to be given or made under this
Agreement shall be given or made in writing. Such notices shall be delivered by hand delivery, by
facsimile or similar electronic means, by nationally recognized overnight courier, or by certified
or registered mail, return receipt requested, addressed as set forth below. Any party may change
its address for the purpose of this Section 18 by notice to the other Stockholders given in the
manner set forth above.

	 	(a)	 	If to Rubicon Industries USA, LLC:

	 	 	 	Rubicon Limited

Level 3

7-9 Fanshawe Street

Auckland

New Zealand

Attention: Luke Moriarty

Facsimile No.: 64-9-356-9801

	 	(b)	 	If to International Paper Company:

	 	 	 	International Paper Company

6400 Poplar Avenue

Memphis, TN 38197

USA

Attention: General Counsel

Fax No.: (901) 419-3818

	 	(c)	 	If to MeadWestvaco Corporation:

	 	 	 	MeadWestvaco Corporation

11013 West Broad

Glen Allen, VA 23060

USA

Attention: General Counsel

Fax No.: (203) 461-7587

	 	(d)	 	If to the Company:

	 	 	 	ArborGen Inc.

180 Westvaco Road

Summerville, South Carolina 29484

Attention: Chief Executive Officer

15

 

	 	 	 	with a copy (which shall not constitute notice) to:

	 	 	 	Goodwin Procter LLP

Exchange Place

Boston, MA 02109

Attention: Mark T. Bettencourt, Esq.

     19. RIGHTS OF CREDITORS AND THIRD PARTIES. This Agreement is entered into among the
Company and the Stockholders for the exclusive benefit of the Company, its Stockholders, and their
successors and permitted assignees. This Agreement is expressly not intended for the benefit of
any creditor of the Company or any other Person. Except and only to the extent provided by
applicable statute, no such creditor or third party shall have any rights under this Agreement or
any agreement between the Company and any Stockholder.

     20. CONFIDENTIALITY.

          (a) Except as otherwise provided in any agreement between the Company and any Stockholder, or
provided herein, the Company (if a receiving party) and each Stockholder who is a receiving party
shall treat as confidential and not disclose to any unauthorized third party (including a
Stockholder’s employees or Affiliates having no need to know) or use any confidential information,
technical data, or know-how of the Company (if a disclosing party) or any Stockholder who is a
disclosing party, including, but not limited to, that which relates to research, product plans,
products, services, customers, markets, software, developments, inventions, processes, designs,
nucleic acid sequences, genes, drawings, engineering, hardware configuration information, marketing
or finances, or other business or technical information (collectively “Confidential
Information”).

          (b) The limitations in this Section 20 shall not apply to the extent Confidential Information:

          (i) was already in the possession of a receiving party or its Affiliate at the time
such receiving party or its Affiliate obtained such Confidential Information;

          (ii) was or is published or otherwise is or becomes generally available to the public
through no fault of such receiving party or its Affiliates;

          (iii) was or is lawfully made available to such receiving party or its Affiliate
without restriction by any Person which is not bound by an obligation of confidentiality or
use with respect to the information;

          (iv) was or is independently developed by such receiving party or its Affiliate; or

          (v) is required to be disclosed by operation of law or regulation (including in any
Proceeding). In the event disclosure is required, the receiving party shall promptly inform
the disclosing party whose Confidential Information is being

16

 

disclosed and shall exercise all reasonable efforts to disclose such Confidential
Information pursuant to a confidentiality agreement or protective order and in any event
shall only disclose such Confidential Information to the extent so required.

          (c) Except as is otherwise provided in any agreement between the Company and any Stockholder,
Confidential Information of a Stockholder provided by the Stockholder for the benefit of the
Company shall remain the property of the Stockholder, and the Company and the other Stockholders
shall keep confidential such Confidential Information and use the same solely for the purposes of
the business of the Company solely during the period during which such Stockholder remains a
Stockholder. If a Stockholder sells all of its Shares or the Company is sold to a third party, all
Confidential Information belonging to such Stockholder, and not to the Company, will be returned to
such Stockholder. All Confidential Information created by the Company will remain the property of
the Company. The Company will take reasonable security measures to protect the secrecy of and
prevent disclosure of Confidential Information belonging to both the Stockholders and the Company
itself.

          (d) Nothing in this Section 20 shall be construed to prohibit disclosure by a receiving party
of Confidential Information to a receiving party’s attorneys, auditors, or other consultants,
provided such attorneys, auditors or other consultants are required to keep such Confidential
Information in confidence. The obligations set forth in this Section 20 shall survive the
termination of this Agreement.

          (e) Any Confidential Information supplied by any party to any other prior to the execution of
this Agreement (including without limitation pursuant to the provisions of Section 15.9 of the
Operating Agreement) shall be subject to the same treatment as the Confidential Information made
available after the execution of this Agreement.

     21. GENDER AND NUMBER REFERENCES. All references to any gender or any reference to
“it” or “its” shall include all genders, unless the context indicates otherwise; all references to
the singular shall include the plural; and all references to the plural shall include the singular,
unless the context indicates otherwise.

     22. REMEDIES. The parties hereto shall be entitled to enforce their rights under this
Agreement specifically, to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights existing in their favor. The parties hereto agree and
acknowledge that money damages would not be an adequate remedy for any breach of the provisions of
this Agreement and that the Company and any Stockholder may in its sole discretion apply to any
court of law or equity of competent jurisdiction for specific performance and/or injunctive relief
(without posting a bond or other security) in order to enforce or prevent any violation of the
provisions of this Agreement.

     23. DESCRIPTIVE HEADINGS, ETC. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this Agreement. The use of the term
“including” herein shall mean “including without limitation.”

17

 

     24. NO STRICT CONSTRUCTION. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question or intent or
interpretation arises, this Agreement shall be construed as it was drafted jointly by the parties
hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party hereto
by virtue of the authorship of any of the provisions of this Agreement.

     25. COUNTERPARTS. This Agreement may be executed in multiple counterparts (including
by means of telecopied signature pages), each of which shall be an original and all which taken
together shall constitute one and the same agreement.

     26. FORCE MAJEURE. It is expressly acknowledged by the Stockholders that in the event
that any act of government, war conditions (declared or undeclared), fire, explosions, flood,
strikes, labor troubles or other industrial disturbances, inevitable accidents, embargoes,
blockades, legal restrictions, riots or insurrections, or any other act or occurrence of whatever
nature beyond the reasonable control of any Stockholder (“Force Majeure”) shall prevent or
delay compliance by such Stockholder with the terms and conditions of this Agreement, then such
failure or delay in compliance by such Stockholder shall be excused while, but not longer than, the
Force Majeure conditions described herein prevail.

     27. FINANCIAL REPORTS. The Board shall cause the following financial statements to be
prepared, in each case in accordance with GAAP on a consolidated basis, and shall cause to be
delivered to each Person who was a Stockholder during the applicable period described below:

	 (a)	(i)	 	a balance sheet as of the end of each calendar quarter;

	 	(ii)	 	a statement of income and cash flows for such quarter and year-to-date;
and

	 	(iii)	 	a statement of stockholders’ equity as of the
end of such quarter;

each within ninety (90) days after the end of such applicable period (or more frequently if agreed
by the Board);

	 (b)	(i)	 	 a balance sheet as of the end of each fiscal year;
	 
	 	(ii)	 	a statement of income and cash flows for such fiscal year; and
	 
	 	(iii)	 	a statement of stockholders’ equity as of the end of such fiscal year;

each within ninety (90) days after the end of such applicable period (or more frequently if agreed
by the Board); and

          (c) financial statements prepared by a nationally recognized firm of certified public
accountants approved by a majority of the whole Board within the ten (10) days after such
statements are furnished by such certified public accountants to the Company, but in no event

18

 

later than ninety (90) days after the end of each fiscal year.

     28. ACCESS TO RECORDS. Subject to Section 20, each Stockholder or its authorized
representative shall have unrestricted access at the Company’s principal office and other
appropriate locations, during ordinary business hours on reasonable notice, to all properties,
books, records, accounts and information regarding the Company for any purpose reasonably related
to such Stockholder’s interest as a Stockholder of the Company.

     29. INDEMNIFICATION.

          (a) The Company shall defend, indemnify and hold harmless any Stockholder who was or is a
party to, or is threatened to be made a party to, or is involved in, any threatened, pending or
completed Proceeding, by a third party (including any action by or in the right of the Company) by
reason of any acts, omissions or alleged acts or omissions by such Person undertaken on behalf of
the Company, against and from losses, damages, claims, costs and expenses for which such Person has
not otherwise been reimbursed (including (i) reasonable attorneys’ fees, judgments, and fines in
all cases and (ii) amounts paid in settlement if agreed by the required vote of the Board of
Directors pursuant to the Bylaws of the Company) actually and reasonably incurred in connection
with such Proceeding, so long as such act or omission was not done fraudulently or in bad faith or
as a result of willful misconduct or gross negligence or in breach of this Agreement or, with
respect to any criminal Proceeding, such Person had no reasonable cause to believe his/her conduct
was unlawful.

          (b) Each Stockholder shall defend, indemnify and hold harmless the Company and each of the
other Stockholders, and its directors, officers, employees, agents, or representatives, of and from
any and all losses, damages, claims, costs and expenses (including (i) reasonable attorneys’ fees,
judgments, and fines in all cases and (ii) amounts paid in settlement if agreed by the required
vote of the Board of Directors pursuant to the Bylaws of the Company), caused by, resulting from or
attributable to the fraud, bad faith, willful misconduct or gross negligence of or breach of this
Agreement by such Stockholder, its directors, officers, employees, agents, or representatives,
excepting only, and to the extent, such losses, damages, claims, costs and expenses may be caused
by the fraud, bad faith, willful misconduct, gross negligence or breach of any other Stockholder.
The obligation to indemnify under this Agreement will continue in full force and effect
notwithstanding the expiration or termination of this Agreement or the Stockholder ceasing to be a
stockholder of the Company, with respect to any losses, damages, claims, costs or expenses based on
facts or conditions which occurred prior to such termination or withdrawal.

          (c) Indemnification under this Section 29 shall continue as to a Person who has ceased to
serve in the capacity which initially entitled such Person to indemnity hereunder. The rights
granted pursuant to this Section 29 shall be deemed contract rights, and no amendment, modification
or repeal of this Section 29 shall have the effect of limiting or denying any such rights with
respect to actions taken or Proceedings arising prior to any such amendment, modification or
repeal. It is expressly acknowledged that the indemnification provided in this Section 29 could
involve indemnification for negligence but cannot involve indemnification for any act or omission
done fraudulently or in bad faith or as a result of willful

19

 

and wanton misconduct or gross negligence or breach of this Agreement or, with respect to any
criminal Proceeding, if such Person had reasonable cause to believe his/her conduct was unlawful.

          (d) The right to indemnification conferred in this Section 29 shall not be exclusive of any
other right which a Stockholder indemnified pursuant to this Section 29 may have or hereafter
acquire under any law, any provision of the Certificate of Incorporation, this Agreement, any
Ancillary Agreement, any vote of Stockholders or otherwise.

          (e) The amount of any indemnity payment arising hereunder shall be reduced (including, without
limitation, retroactively) by any insurance proceeds or other amounts actually recovered by the
Stockholder seeking indemnification in respect of the indemnified losses, damages, claims, costs
and expenses. If any Stockholder shall have received an indemnity payment for any losses, damages,
claims, costs and expenses and shall subsequently actually receive insurance proceeds or other
amounts for such losses, damages, claims, costs and expenses, then such Stockholder shall pay to
the Company or the Stockholder that made such indemnity payment the lesser of the amount of such
insurance proceeds or other amounts actually received and retained or the net amount of the
indemnity payments actually received previously.

          (f) Expenses (including, without limitation, attorneys’ fees and expenses) incurred by a
Stockholder in defending a Proceeding shall be paid by the Company in advance of the final
disposition of such action, suit or Proceeding upon receipt of an undertaking by or on behalf of
the Stockholder to repay such amount if it shall ultimately be determined that such Stockholder is
not entitled to be indemnified by the Company under this Section 29 or under any other contract or
agreement between such Stockholder and the Company.

          (g) Notwithstanding the foregoing provisions of this Section 29, the Company shall indemnify a
Stockholder otherwise entitled to indemnification hereunder in connection with a proceeding (or
part thereof) initiated by such Stockholder only if such Proceeding (or part thereof) was
authorized by the Board of Directors by a majority vote; provided, however, that any such
Stockholder shall be entitled to reimbursement of its reasonable counsel fees with respect to a
Proceeding (or part thereof) initiated by such Stockholder to enforce its right to indemnity or
advancement of expenses under the provisions of this Section 29 to the extent such Stockholder is
successful on the merits in such Proceeding (or part thereof).

     30. CESSATION DATE. Subject to earlier termination of any such Sections pursuant to
Section 31 hereof, in the event that any Stockholder ceases to own any Shares as of any date (the
“Cessation Date”), from and after the Cessation Date, such Stockholder shall have no
further rights, duties or obligations under this Agreement other than the rights, duties and
obligations set forth in Sections 9, 16, 17, 18, 20, 22 and 29 hereof.

     31. TERMINATION UPON IPO. Sections 2, 3, 4, 6, 7, 8, 10, 12, 13, 27, 28 and 29 hereof
shall terminate immediately prior to closing of the IPO.

20

 

     32. AMENDMENTS AND WAIVERS. Any term hereof may be amended and the observance of any
term hereof may be waived (either generally or in a particular instance and either retroactively or
prospectively) only with the written consent of (i) the Company and (ii) each Stockholder.

21

 

     IN WITNESS WHEREOF, the Stockholders and the Company have signed this Agreement as of the
day and year first above written.

	 	 	 	 	 
	 	ARBORGEN INC.

 	 
	 	By:  	/s/ Barbara H. Wells
 	 
	 	 	Name:  	Barbara H. Wells 	 
	 	 	Its:President and Chief Executive Officer 	 
	 
	 	RUBICON INDUSTRIES USA, LLC

 	 
	 	By:  	/s/ Mark A. Taylor
 	 
	 	 	Name:  	Mark A. Taylor    	 
	 	 	Its: Director 	 
	 
	 	INTERNATIONAL PAPER COMPANY

 	 
	 	By:  	/s/ Errol A. Harris
 	 
	 	 	Name:  	Errol A. Harris    	 
	 	 	Its: Vice President 	 
	 
	 	MEADWESTVACO CORPORATION

 	 
	 	By:  	/s/ Mark T. Watkins
 	 
	 	 	Name:  	Mark T. Watkins    	 
	 	 	Its: Senior Vice President 	 
	 

[Signature Page to Stockholders Agreement]

 

 

SCHEDULE 1

Ownership of Shares by Stockholders as of June 1, 2010

	 	 	 	 	 
	Stockholders	 	Shares of Common Stock
	International Paper Company
	 	 	10,000,000	 
	MeadWestvaco Corporation
	 	 	10,000,000	 
	Rubicon Industries USA, LLC
	 	 	10,000,000	 

 

 

EXHIBIT A

Registration Rights

1. Definitions. Capitalized terms used but not defined in this Exhibit A shall have the meanings
ascribed to such terms in the Stockholders Agreement (the “Agreement”) to which this Exhibit A is
attached. For purposes of this Exhibit A:

     1.1 “Damages” means any loss, damage, or liability (joint or several) to which a party to this
Agreement may become subject under the Securities Act, the Exchange Act, or other federal or state
law, insofar as such loss, damage, or liability (or any action in respect thereof) arises out of or
is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in
any registration statement of the Company (or its successor), including any preliminary prospectus
or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or
alleged omission to state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading; or (iii) any violation or alleged violation by the
indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act,
any state securities law, or any rule or regulation promulgated under the Securities Act, the
Exchange Act, or any state securities law.

     1.2 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     1.3 “Excluded Registration” means (i) a registration relating to the sale of securities to
employees of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar
plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a registration on any form
that does not include substantially the same information as would be required to be included in a
registration statement covering the sale of the Registrable Securities; or (iv) a registration in
which the only Registrable Securities being registered are Registrable Securities issuable upon
conversion of debt securities that are also being registered.

     1.4 “Form S-1” means such form under the Securities Act as in effect on the date hereof or any
successor registration form under the Securities Act subsequently adopted by the SEC.

     1.5 “Form S-3” means such form under the Securities Act as in effect on the date hereof or any
registration form under the Securities Act subsequently adopted by the SEC that permits
incorporation of substantial information by reference to other documents filed by the Company with
the SEC.

     1.6 “Holder” means any Stockholder who is a holder of Registrable Securities.

     1.7 “Initiating Holders” means, collectively, Stockholders holding a majority of the
Registrable Securities then outstanding who elect to exercise any registration rights provided for
in this Exhibit A.

     1.8 “Registrable Securities” means (i) the Shares held by any Stockholder, (ii) any

 

 

securities issued to Holders in connection with any conversion of the Company into any other
form of entity, or as a consequence of any merger, consolidation, reorganization, recapitalization
or similar transaction involving the Company in which Shares are exchanged for or otherwise
replaced with such securities, and (iii) any of the foregoing securities issued or issuable
(directly or indirectly) upon conversion and/or exercise of any other securities of the Company.

     1.9 “Registrable Securities then outstanding” means the number of shares or other units
determined by adding the number of shares or units of outstanding Registrable Securities and the
number of shares or units of Registrable Securities issuable (directly or indirectly) pursuant to
then exercisable and/or convertible securities of the Company.

     1.10 “SEC” means the Securities and Exchange Commission.

     1.11 “SEC Rule 144” means Rule 144 promulgated by the SEC under the Securities Act.

     1.12 “SEC Rule 145” means Rule 145 promulgated by the SEC under the Securities Act.

     1.19 “Selling Expenses” means all underwriting discounts, selling commissions, and stock
transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of
counsel for any Holder, except for the fees and disbursements of the Selling Holder Counsel borne
and paid by the Company as provided in Section 2.6.

     1.20 “Trigger Date” means June 1, 2010.

2. Registration Rights. The Company covenants and agrees as follows:

     2.1 Demand Registration.

          (a) Form S-1 Demand. If at any time after the Trigger Date, the Company receives a request
from the Initiating Holders that the Company file a Form S-1 registration statement with respect to
an amount of Registrable Securities then held by such Initiating Holders that either (i) equals at
least twenty percent (20%) of the then-outstanding equity securities of the Company or (ii) the
Initiating Holders reasonably believe will result in aggregate gross proceeds of at least US$50
million, then the Company shall (i) within ten (10) days after the date such request is given, give
notice thereof (the “Demand Notice”) to all Holders other than the Initiating Holders; and (ii) as
soon as practicable, and in any event within sixty (60) days after the date such request is given
by the Initiating Holders, file a Form S-1 registration statement under the Securities Act covering
all Registrable Securities that the Initiating Holders requested to be registered and any
additional Registrable Securities requested to be included in such registration by any other
Holders, as specified by notice given by each such Holder to the Company within ten (10) days of
the date the Demand Notice is given, and in each case, subject to the limitations of Section 2.1(c)
and Section 2.3.

          (b) Demand Registration. If at any time following the date that is one (1) year after the
date of completion of an IPO, the Company receives a request from Holders of at least five percent
(5%) of the Registrable Securities then outstanding (“Demand Holders”) that the

A-2

 

Company file a registration statement (other than a Form S-1, which the Company shall not be
obligated to file pursuant to this Section 2.1(b)) under the Securities Act or Exchange Act with
respect to outstanding Registrable Securities of such Holders, then the Company shall (i) within
ten (10) days after the date such request is given, give a Demand Notice to all Holders other than
the Demand Holders; and (ii) as soon as practicable, and in any event within forty-five (45) days
after the date such request is given by the Demand Holders, file a registration statement under the
Securities Act covering all Registrable Securities requested to be included in such registration by
any other Holders, as specified by notice given by each such Holder to the Company within ten (10)
days of the date the Demand Notice is given, and in each case, subject to the limitations of
Section 2.1(c) and Section 2.3.

          (c) The Company shall not be obligated to effect, or to take any action to effect, any
registration pursuant to Section 2.1(a): (i) during the period that is sixty (60) days before the
Company’s good faith estimate of the date of filing of, and ending on a date that is one hundred
eighty (180) days after the effective date of, a Company-initiated registration, provided, that the
Company is actively employing in good faith commercially reasonable efforts to cause such
registration statement to become effective; (ii) after the Company has effected one registration
pursuant to Section 2.1(a); or (iii) if the Initiating Holders or Demand Holders (as he case may
be) propose to dispose of shares of Registrable Securities that may be immediately registered on
Form S-3 pursuant to a request made pursuant to Section 2.1(b). The Company shall not be obligated
to effect, or to take any action to effect, any registration pursuant to Section 2.1(b): (i) during
the period that is thirty (30) days before the Company’s good faith estimate of the date of filing
of, and ending on a date that is ninety (90) days after the effective date of, a Company-initiated
registration, provided, that the Company is actively employing in good faith commercially
reasonable efforts to cause such registration statement to become effective; or (ii) if the Company
has effected two registrations pursuant to Section 2.1(b) within the twelve (12)-month period
immediately preceding the date of such request. A registration shall not be counted as “effected”
for purposes of this Section 2.1(c) until such time as the applicable registration statement has
been declared effective by the SEC, unless the Initiating Holders or Demand Holders (as the case
may be) withdraw their request for such registration, elect not to pay the registration expenses
therefor, and forfeit their right to one demand registration statement pursuant to Section 2.6, in
which case such withdrawn registration statement shall be counted as “effected” for purposes of
this Section 2.1(c).

     2.2 Company (“Piggyback”) Registration. If, after the Trigger Date, the Company proposes to
register (whether pursuant to the exercise of any rights hereunder or otherwise) any of its
Registrable Securities then outstanding under the Securities Act in connection with the public
offering of such securities solely for cash (other than in an Excluded Registration), the Company
shall, at such time, promptly give each Holder notice of such registration. Upon the request of
each Holder given within twenty (20) days after such notice is given by the Company, the Company
shall, subject to the provisions of Section 2.3, cause to be registered all of the Registrable
Securities that each such Holder has requested to be included in such registration. The Company
shall have the right to terminate or withdraw any registration initiated by it under this Section
2.2 before the effective date of such registration, whether or not any Holder has elected to
include Registrable Securities in such registration. The expenses (other than Selling Expenses) of
such withdrawn registration shall be borne by the Company in accordance with Section 2.6.

A-3

 

     2.3 Underwriting Requirements.

          (a) If, pursuant to Section 2.1, the Initiating Holders or Demand Holders, as the case may be,
intend to distribute the Registrable Securities covered by their request by means of an
underwriting, they shall so advise the Company as a part of their request made pursuant to Section
2.1, and the Company shall include such information in the Demand Notice. The underwriter(s) will
be selected by the Initiating Holders or Demand Holders, as the case may be, subject only to the
reasonable approval of the Company. In such event, the right of any Holder to include such
Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s
participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting to the extent provided herein. All Holders proposing to distribute their Registrable
Securities through such underwriting shall (together with the Company as provided in Section
2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for
such underwriting. Notwithstanding any other provision of this Section 2.3, if the underwriter(s)
advise(s) the Initiating Holders or Demand Holders, as the case may be, in writing that marketing
factors require a limitation on the number of Registrable Securities to be underwritten, then the
Initiating Holders or Demand Holders, as the case may be, shall so advise all Holders of
Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of
Registrable Securities that may be included in the underwriting shall be allocated among such
Holders of Registrable Securities, including the Initiating Holders or the Demand Holders, as the
case may be, in proportion (as nearly as practicable) to the number of Registrable Securities owned
by each Holder or in such other proportion as shall mutually be agreed to by all such selling
Holders; provided, however, that the number of Registrable Securities held by the Holders to be
included in such underwriting shall not be reduced unless all other securities (other than those to
be issued by the Company in such public offering) are first entirely excluded from the
underwriting.

          (b) In connection with any offering involving an underwriting of Registrable Securities
pursuant to Section 2.2, the Company shall not be required to include any of the Holders’
Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting
as agreed upon between the Company and its underwriters, and then only in such quantity as the
underwriters in their sole discretion determine will not jeopardize the success of the offering by
the Company. If the total number of Registrable Securities requested by Holders to be included in
such offering exceeds the number of securities to be sold (other than by the Company) that the
underwriters in their reasonable discretion determine is compatible with the success of the
offering, then the Company shall be required to include in the offering only that number of such
Registrable Securities which the underwriters and the Company in their sole discretion determine
will not jeopardize the success of the offering. If the underwriters determine that less than all
of the Registrable Securities requested to be registered can be included in such offering, then the
Registrable Securities that are included in such offering shall be allocated among the selling
Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by
each selling Holder or in such other proportions as shall mutually be agreed to by all such selling
Holders. Notwithstanding the foregoing, in no event shall the number of Registrable Securities
included in the offering be reduced unless all other securities (other than securities to be sold
by the Company) are first entirely excluded from the offering. For purposes of the provision in
this Section 2.3(b) concerning apportionment, for any selling Holder that is a partnership, limited
liability company, or corporation, the partners,members, retired partners, retired members, stockholders, and Affiliates of such Holder shall be

A-4

 

deemed to be a single “selling Holder,” and any pro rata reduction with respect to such
“selling Holder” shall be based upon the aggregate number of Registrable Securities owned by all
Persons included in such “selling Holder,” as defined in this sentence.

          2.4 Obligations of the Company. Whenever required under this Section 2 to effect the
registration of any Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

          (a) prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use its commercially reasonable efforts to cause such registration statement to
become effective and, upon the request of the Holders of a majority of the Registrable Securities
registered thereunder, keep such registration statement effective for a period of up to one hundred
twenty (120) days or, if earlier, until the distribution contemplated in the registration statement
has been completed; provided, however, that such one hundred twenty (120) day period shall be
extended for a period of time equal to the period the Holder refrains, at the request of an
underwriter of securities of the Company, from selling any Registrable Securities included in such
registration;

          (b) prepare and file with the SEC such amendments and supplements to such registration
statement, and the prospectus used in connection with such registration statement, as may be
necessary to comply with the Securities Act in order to enable the disposition of all securities
covered by such registration statement;

          (c) furnish to the selling Holders such numbers of copies of a prospectus, including a
preliminary prospectus, as required by the Securities Act, and such other documents as the Holders
may reasonably request in order to facilitate their disposition of their Registrable Securities;

          (d) use its commercially reasonable efforts to register and qualify the securities covered by
such registration statement under such other securities or blue-sky laws of such jurisdictions as
shall be reasonably requested by the selling Holders; provided that the Company shall not be
required to qualify to do business or to file a general consent to service of process in any such
states or jurisdictions, unless the Company is already subject to service in such jurisdiction and
except as may be required by the Securities Act;

          (e) in the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the underwriter(s) of such
offering;

          (f) use its commercially reasonable efforts to cause all such Registrable Securities covered
by such registration statement to be listed on a national securities exchange or trading system and
each securities exchange and trading system (if any) on which similar securities issued by the
Company are then listed;

          (g) provide a transfer agent and registrar for all Registrable Securities registered pursuant
to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not
later than the effective date of such registration;

A-5

 

          (h) promptly make available for inspection by the selling Holders, any underwriter(s)
participating in any disposition pursuant to such registration statement, and any attorney or
accountant or other agent retained by any such underwriter or selected by the selling Holders, all
financial and other records, pertinent corporate documents, and properties of the Company, and
cause the Company’s officers, directors, employees, and independent accountants to supply all
information reasonably requested by any such seller, underwriter, attorney, accountant, or agent,
in each case, as necessary or advisable to verify the accuracy of the information in such
registration statement and to conduct appropriate due diligence in connection therewith;

          (i) notify each selling Holder, promptly after the Company receives notice thereof, of the
time when such registration statement has been declared effective or a supplement to any prospectus
forming a part of such registration statement has been filed;

          (j) after such registration statement becomes effective, notify each selling Holder of any
request by the SEC that the Company amend or supplement such registration statement or prospectus;
and

          (k) in the event of any underwritten public offering, make reasonably available its management
personnel for participation in “road shows” and other reasonable marketing efforts and otherwise
provide reasonable assistance to the underwriters (taking into account the needs of the Company’s
business and the requirements of the marketing process) in the marketing of Registrable Securities
in any underwritten offering.

     2.5 Furnish Information. It shall be a condition precedent to the obligations of the Company
to take any action pursuant to this Section 2 with respect to the Registrable Securities of any
selling Holder that such Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of such securities as is
reasonably required to effect the registration of such Holder’s Registrable Securities.

     2.6 Expenses of Registration. All expenses (other than Selling Expenses) incurred in
connection with registrations, filings, or qualifications pursuant to Section 2, including all
registration, filing, and qualification fees; printers’ and accounting fees; fees and disbursements
of counsel for the Company; and the reasonable fees and disbursements of one counsel for the
selling Holders (“Selling Holder Counsel”), shall be borne and paid by the Company; provided,
however, that the Company shall not be required to pay for any expenses of any registration
proceeding begun pursuant to Section 2.1 if the registration request is subsequently withdrawn at
the request of the Holders of a majority of the Registrable Securities to be registered (in which
case all selling Holders shall bear such expenses pro rata based upon the number of Registrable
Securities that were to be included in the withdrawn registration), unless the Holders of a
majority of the Registrable Securities agree to forfeit their right to one registration pursuant to
Section 2.1(a) or Section 2.1(b), as the case may be. All Selling Expenses relating to Registrable
Securities registered pursuant to this Section 2 shall be borne and paid by the Holders pro rata on
the basis of the number of Registrable Securities registered on their behalf.

     2.7 Delay of Registration. No Holder shall have any right to obtain or seek an
injunction restraining or otherwise delaying any registration pursuant to this Agreement as the

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result of any controversy that might arise with respect to the interpretation or implementation of
this Section 2.

     2.8 Indemnification. If any Registrable Securities are included in a registration statement
under this Section 2:

          (a) To the extent permitted by law, the Company will indemnify and hold harmless each selling
Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal
counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act)
for each such Holder; and each Person, if any, who controls such Holder or underwriter within the
meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to
each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or
other expenses reasonably incurred thereby in connection with investigating or defending any claim
or proceeding from which Damages may result, as such expenses are incurred; provided, however, that
the indemnity agreement contained in this Section 2.8(a) shall not apply to amounts paid in
settlement of any such claim or proceeding if such settlement is effected without the consent of
the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for
any Damages to the extent that they arise out of or are based upon actions or omissions made in
reliance upon and in conformity with written information furnished by or on behalf of any such
Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in
connection with such registration.

          (b) To the extent permitted by law, each selling Holder, severally and not jointly, will
indemnify and hold harmless the Company, and each of its directors, each of its officers who has
signed the registration statement, each Person (if any), who controls the Company within the
meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as
defined in the Securities Act), any other Holder selling securities in such registration statement,
and any controlling Person of any such underwriter or other Holder, against any Damages, in each
case only to the extent that such Damages arise out of or are based upon actions or omissions made
in reliance upon and in conformity with written information furnished by or on behalf of such
selling Holder expressly for use in connection with such registration; and each such selling Holder
will pay to the Company and each other aforementioned Person any legal or other expenses reasonably
incurred thereby in connection with investigating or defending any claim or proceeding from which
Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement
contained in this Section 2.8(b) shall not apply to amounts paid in settlement of any such claim or
proceeding if such settlement is effected without the consent of the Holder, which consent shall
not be unreasonably withheld; and provided further that in no event shall the aggregate amounts
payable by any Holder by way of indemnity or contribution under Sections 2.8(b) and 2.8(d) exceed
the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such
Holder), except in the case of fraud or willful misconduct by such Holder.

          (c) Promptly after receipt by an indemnified party under this Section 2.8 of notice of the
commencement of any action (including any governmental action) for which a party may be entitled to
indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made
against any indemnifying party under this Section 2.8, give the indemnifying party notice of the
commencement thereof. The indemnifying party shall have the

A-7

 

right to participate in such action and, to the extent the indemnifying party so desires,
participate jointly with any other indemnifying party to which notice has been given, and to assume
the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an
indemnified party (together with all other indemnified parties that may be represented without
conflict by one counsel) shall have the right to retain one separate counsel, with the fees and
expenses to be paid by the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual or potential
differing interests between such indemnified party and any other party represented by such counsel
in such action.

          (d) To provide for just and equitable contribution to joint liability under the Securities Act
in any case in which either (i) any party otherwise entitled to indemnification hereunder makes a
claim for indemnification pursuant to this Section 2.8 but it is judicially determined (by the
entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time
to appeal or the denial of the last right of appeal) that such indemnification may not be enforced
in such case, notwithstanding the fact that this Section 2.8 provides for indemnification in such
case, or (ii) contribution under the Securities Act may be required on the part of any party hereto
for which indemnification is provided under this Section 2.8, then, and in each such case, such
parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which
they may be subject (after contribution from others) in such proportion as is appropriate to
reflect the relative fault of each of the indemnifying party and the indemnified party in
connection with the statements, omissions, or other actions that resulted in such loss, claim,
damage, liability, or expense, as well as to reflect any other relevant equitable considerations.
The relative fault of the indemnifying party and of the indemnified party shall be determined by
reference to, among other things, whether the untrue or allegedly untrue statement of a material
fact, or the omission or alleged omission of a material fact, relates to information supplied by
the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge,
access to information, and opportunity to correct or prevent such statement or omission; provided,
however, that, in any such case, (x) no Holder will be required to contribute any amount in excess
of the public offering price of all such Registrable Securities offered and sold by such Holder
pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation; and provided further that in no
event shall a Holder’s liability pursuant to this Section 2.8(d), when combined with the amounts
paid or payable by such Holder pursuant to Section 2.8(b), exceed the proceeds from the offering
received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of
willful misconduct or fraud by such Holder.

          (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control.

          (f) Unless otherwise superseded by an underwriting agreement entered into in connection with
the underwritten public offering, the obligations of the Company and Holders under this Section 2.8
shall survive the completion of any offering of Registrable Securities in a registration under this
Section 2, and otherwise shall survive the termination of this Agreement.

A-8

 

     2.9 Reports Under Exchange Act. With a view to making available to the Holders the benefits
of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to
sell securities of the Company to the public without registration or pursuant to a registration on
Form S-3, the Company shall:

          (a) make and keep available adequate current public information, as those terms are understood
and defined in SEC Rule 144, at all times after the effective date of the registration statement
filed by the Company for the IPO;

          (b) use commercially reasonable efforts to file with the SEC in a timely manner all reports
and other documents required of the Company under the Securities Act and the Exchange Act (at any
time after the Company has become subject to such reporting requirements); and

          (c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) to the extent accurate, a written statement by the Company that it has complied
with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the
effective date of the registration statement filed by the Company for the IPO), the Securities Act,
and the Exchange Act (at any time after the Company has become subject to such reporting
requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form
S-3 (at any time after the Company so qualifies); (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by the Company; and
(iii) such other information as may be reasonably requested in availing any Holder of any rule or
regulation of the SEC that permits the selling of any such securities without registration (at any
time after the Company has become subject to the reporting requirements under the Exchange Act) or
pursuant to Form S-3 (at any time after the Company so qualifies to use such form).

     2.10 “Market Stand Off” Agreement. Each Holder hereby agrees that it will not, without the
prior written consent of the managing underwriter, during the period commencing on the date of the
final prospectus relating to the registration by the Company of shares of any equity securities
under the Securities Act on a registration statement on Form S-1 or Form S-3, and ending on the
date specified by the Company and the managing underwriter (such period not to exceed (x) one
hundred eighty (180) days in the case of the IPO (the “IPO Lock-up Period”), provided, however,
that if (1) during the last 17 days of the IPO Lock-Up Period, the Company releases earnings
results or announces material news or a material event or (2) prior to the expiration of the IPO
Lock-Up Period, the Company announces that it will release earnings results during the 15-day
period following the last day of the IPO Lock-Up Period, then in each case the IPO Lock-Up Period
will be automatically extended until the expiration of the 18-day period beginning on the date of
release of the earnings results or the announcement of the material news or material event, as
applicable, unless the managing underwriter waives, in writing, such extension, or (y) ninety (90)
days in the case of any registration other than the IPO (the “Non-IPO Lock-Up Period”), provided,
however, that if (1) during the last 17 days of the Non-IPO Lock-Up Period, the Company releases
earnings results or announces material news or a material event or (2) prior to the expiration of
the Non-IPO Lock-Up Period, the Company announces that it will release earnings results during the
15-day period following the last day of the Non-IPO Lock-Up Period, then in each case the Non-IPO
Lock-Up Period will be

A-9

 

automatically extended until the expiration of the 18-day period beginning on the date of release
of the earnings results or the announcement of the material news or material event, as applicable,
unless the managing underwriter waives, in writing, such extension, (i) lend; offer; pledge; sell;
contract to sell; sell any option or contract to purchase; purchase any option or contract to sell;
grant any option, right, or warrant to purchase; or otherwise transfer or dispose of, directly or
indirectly, any Registrable Securities or any securities convertible into or exercisable or
exchangeable (directly or indirectly) for Registrable Securities held immediately before the
effective date of the registration statement for such offering or (ii) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of such Registrable Securities, whether any such transaction described in clause (i)
or (ii) above is to be settled by delivery of Registrable Securities, in cash, or otherwise. The
foregoing provisions of this Section 2.10 shall not apply to the sale of any Shares to an
underwriter pursuant to an underwriting agreement, and shall be applicable to the Holders only if
all officers, directors and other equity owners of the Company are subject to the same
restrictions. The underwriters in connection with such registration are intended third party
beneficiaries of this Section 2.10 and shall have the right, power, and authority to enforce the
provisions hereof as though they were a party hereto. Each Holder further agrees to execute such
agreements as may be reasonably requested by the underwriters in connection with such registration
that are consistent with this Section 2.10 or that are necessary to give further effect thereto.

A-10

 

EXHIBIT B

SIGNATURE PAGE TO THE STOCKHOLDERS AGREEMENT

DATED AS OF JUNE 1, 2010 AMONG ARBORGEN INC. AND ITS STOCKHOLDERS

     The undersigned hereby executes the Stockholders Agreement (the “Agreement”),
authorizes this Signature Page to be attached as a counterpart of the Agreement, and hereby agrees
to be bound by the Agreement; and this Signature Page, together with the Signature Pages of
ArborGen Inc. and the other Stockholders shall constitute counterpart copies of the Agreement in
accordance with the terms of the Agreement.

	 	 	 	 	 
	 
	 	Print Stockholder Name

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Address:  	 	 
	 	 	  	 	 
	 	 	  	 	 
	 

If joint ownership:

	 	 	 	 	 
	 	Print Stockholder Name

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Address:

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