Document:

Registration Rights Agreement

 Exhibit 10.101 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 This Registration Rights Agreement (the “Agreement”) is made and entered into as of this 16th day of
September, 2003 by and among Incara Pharmaceuticals Corporation, a Delaware corporation (“Parent” or the “Company”), Incara, Inc. (f/k/a Incara Cell Technologies, Inc.), a Delaware corporation
(“Survivor”), and Goodnow Capital, L.L.C., a Delaware limited liability company (the “Investor”). Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the
Debenture and Warrant Purchase Agreement, of even date herewith, by an among Parent, Survivor and the Investor (the “Purchase Agreement”). 
  
 WHEREAS, pursuant to the terms of an Agreement and Plan of Merger, dated as of September 16, 2003, by and between
Parent and Survivor (the “Merger Agreement”), Parent shall merge with and into Survivor (the “Merger”) with Survivor surviving as the surviving corporation; 
  
 WHEREAS, by virtue of the Merger, Survivor will become the successor
to all of the rights, interests, duties and obligations of Parent, including without limitation, those arising under this Agreement, and after the Merger, all references in this Agreement to the “Company” shall be deemed to be references
to Survivor; 
  
 WHEREAS, pursuant to the terms of the
Purchase Agreement, the Investor has been issued the Parent Warrant and the ICT Warrant and, upon consummation of the Closing, will be issued the Debenture; 
  
 WHEREAS, the parties hereto desire to enter into this Agreement for the purpose of establishing the registration rights of the Investor.

  
 NOW, THEREFORE, in consideration of the foregoing and
the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
  
 1. Certain Definitions. 
  
 As used in this Agreement, the following terms shall have the following
meanings: 
  
 “Affiliate” means, with respect to
any person, any other person which directly or indirectly controls, is controlled by, or is under common control with, such person. 
  
 “Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of
business. 
  
 “Conversion Shares” means the
Debenture Shares and the Warrant Shares. 
  
 “ICT
Warrant” means the warrant issued by Survivor to the Investor pursuant to the Purchase Agreement. 

 “Common Stock” means: (A) before consummation of the Merger, the Parent’s common
stock, par value $0.001 per share, and any securities into which such shares may thereafter be reclassified, whether by merger, consolidation or otherwise (including without limitation all shares issued in connection with the Merger), and (B) after
consummation of the Merger, the Survivor’s common stock, par value $0.001 per share, and any securities into which such shares may thereafter be reclassified, whether by merger, consolidation or otherwise (including without limitation all
shares of Parent’s common stock issued in connection with the Merger). 
  
 “Debenture Shares” means the shares of Common Stock issuable to the holder(s) of the Debentures upon conversion thereof. 
  
 “Investors” shall mean the Investor identified in the Purchase Agreement and any Affiliate or permitted
transferee of any Investor who is a subsequent holder of all or any part of (i) the Parent Warrant, (ii) the ICT Warrant, (iii) the Debentures, or (iv) Registrable Securities. 
  
 “Prospectus” shall mean the prospectus included in any Registration Statement, as amended or supplemented
by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments and supplements to the prospectus, including post-effective
amendments and all material incorporated by reference in such prospectus. 
  
 “Register,” “registered” and “registration” refer to a registration made by preparing and filing a Registration Statement or similar document in compliance with the
1933 Act (as defined below), and the declaration or ordering of effectiveness of such Registration Statement or document. 
  
 “Registrable Securities” means: (A) the shares of Common Stock (i) issuable upon exercise of the Parent Warrant, and (ii) issuable in
satisfaction of the Parent’s obligations under the Parent Guaranty (as that term is defined in the Purchase Agreement), as the same may be further amended and/or restated from time to time, and (iii) issued in the Merger in exchange for shares
described in clauses (A)(i) and (A)(ii); (B) from and after consummation of the Merger, the shares of Common Stock (i) issuable upon the exercise of the ICT Warrant, (ii) issuable upon conversion of the Debentures, as the same may be amended and/or
restated from time to time, and (iii) issued to an Investor in the Merger in exchange for the shares of Parent Common Stock; and (C) in each case, the shares of Common Stock (i) held by the Investor(s), (ii) issuable upon the conversion or exercise
of any security or instrument held by an Investor which, pursuant to its terms, is convertible into or exercisable for Common Stock or (iii) issuable with respect to or in exchange for Registrable Securities. Notwithstanding the foregoing, a
security shall cease to be a Registrable Security upon sale pursuant to a Registration Statement. 
  
 “Registration Statement” shall mean any registration statement of the Company filed under the 1933 Act that covers the resale of any of
the Registrable Securities pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all material incorporated by reference in such Registration
Statement. 
  
 “SEC” means the U.S. Securities
and Exchange Commission. 
  
 “1933 Act” means the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 
  

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 “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder. 
  
 “Warrants” means the Parent Warrant and the ICT Warrant issued to the Investor pursuant to the Purchase Agreement. 
  
 “Warrant Shares” means the shares of Common Stock issuable upon the exercise of the Warrants. 
  
 2. Registration. 
  
 (a) Registration Statements. 
  
 (i) Within thirty (30) days following the earlier to occur of the
consummation of the Merger or the payment of the Break-Up Fee, but in no event later than January 31, 2004 (the “Filing Deadline”), the Company shall prepare and file with the SEC one Registration Statement on Form S-1
(unless Form S-3 or such other form of registration statement is then available to effect a registration for resale of the Registrable Securities, subject to the Investor’s consent), covering the resale of all of the Registrable Securities
without regard to any limitation on the exercise of the Warrants or the Debentures. Such Registration Statement shall comply as to form in all material respects with the requirements of the applicable form and include all financial statements
required by the SEC to be filed thereunder. Such Registration Statement also shall cover, to the extent allowable under the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common
Stock resulting from stock splits, stock dividends or similar transactions with respect to the Registrable Securities. The Company shall use its reasonable best efforts to obtain from each person (other than Ruffin Woody and Elan Corporation, plc)
who has piggyback registration rights a waiver of those rights with respect to the Registration Statement. The Registration Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be
provided in accordance with Section 3(c) to the Investors and their counsel prior to its filing or other submission. If a Registration Statement covering the Registrable Securities is not filed with the SEC on or prior to the Filing Deadline, the
Company will make pro rata payments to each Investor, as liquidated damages and not as a penalty, in an amount equal to 0.5% of the aggregate amount invested by such Investor for each 10-day period or pro rata for any portion thereof following the
date by which such Registration Statement should have been filed for which no Registration Statement is filed with respect to the Registrable Securities. Such payments shall be in partial compensation to the Investors, and shall not constitute the
Investors’ exclusive remedy for such events. Such payments shall be made to each Investor in cash, or, at the Investor’s election, in a number of shares of Common Stock determined by dividing the amount of such payment by $0.10. In the
case of cash payments, the amounts payable as liquidated damages pursuant to this paragraph shall be payable in lawful money of the United States, and all such amounts payable or shares deliverable as liquidated damages shall be paid or certificates
shall be delivered, as the case may be, within two (2) Business Days of the last day of each such 10-day period during which the Registration Statement should have been filed for which no Registration Statement was filed with respect to the
Registrable Securities. 
  
 (ii) Additional Registrable
Securities. Upon any change in the number of Conversion Shares issuable under the Warrants or the Debentures, such that additional shares 
  

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of Common Stock become issuable upon the exercise of the Warrants or the conversion of the Debentures, the Company shall prepare and file with the SEC one or
more Registration Statements on Form S-1 (unless Form S-3 or such other form of registration statement is then available to effect a registration for resale of the Registrable Securities, subject to the Investor’s consent)(the
“Additional Shares”) covering the resale of the Additional Shares, but only to the extent the Additional Shares are not at the time covered by an effective Registration Statement. Such Registration Statement shall comply as
to form in all material respects with the requirements of the applicable form and include all financial statements required by the SEC to be filed thereunder. Such Registration Statement also shall cover, to the extent allowable under the 1933 Act
and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Additional Shares. The Company shall
use its best efforts to obtain from each person (other than Ruffin Woody and Elan Corporation, plc) who has piggyback registration rights a waiver of those rights with respect to such Registration Statement. The Registration Statement (and each
amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided in accordance with Section 3(c) to the Investors and their counsel prior to its filing or other submission. If a Registration Statement
covering the Additional Shares is required to be filed under this Section 2(a)(ii) and is not filed with the SEC within thirty (30) days of any change in the number of Conversion Shares issuable under the Warrants or the Debentures, the Company will
make pro rata payments to each Investor, as liquidated damages and not as a penalty, in an amount equal to 0.5% of the aggregate amount invested by such Investor for each 10-day period or pro rata for any portion thereof following the date by which
such Registration Statement should have been filed for which no Registration Statement is filed with respect to the Additional Shares. Such payments shall be made to each Investor in cash, or, at the Investor’s election, in a number of shares
of Common Stock determined by dividing the amount of such payment by $0.10. In the case of cash payments, the amounts payable as liquidated damages pursuant to this paragraph shall be payable in lawful money of the United States, and all such
amounts payable or shares deliverable as liquidated damages shall be paid or certificates shall be delivered, as the case may be, within two (2) Business Days of the last day of each such 10-day period during which the Registration Statement should
have been filed for which no Registration Statement was filed with respect to the Additional Shares. 
  
 (b) Expenses. The Company will pay all expenses associated with each registration, including filing and printing fees, counsel and accounting fees
and expenses, costs associated with clearing the Registrable Securities for sale under applicable state securities laws and listing fees, but excluding the fees and disbursements of more than one law firm serving as counsel to the Investors and
discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar securities industry professionals with respect to the Registrable Securities being sold. 
  
 (c) Effectiveness. 
  
 (i) The Company shall use its best efforts to have the Registration Statement declared effective not later than the earlier to occur of (y) 60 days after
the date of filing of such Registration Statement, or (z) ten (10) Business Days following the Company’s receipt of a no-review letter from the SEC relating to the Registration Statement; provided, 
  

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however, if the Registration Statement is not declared effective within the time period set forth above, the Company shall continue to use its best
efforts to have the Registration Statement declared effective as soon as possible thereafter. If (A) the Company does not use its best efforts to have the Registration Statement declared effective in accordance with the preceding sentence, or (B)
after a Registration Statement has been declared effective by the SEC sales cannot be made pursuant to such Registration Statement for any reason (including, without limitation, by reason of a stop order, or the Company’s failure to update the
Registration Statement), but except as excused pursuant to subparagraph (ii) below, then the Company will make pro rata payments to each Investor, as liquidated damages and not as a penalty, in an amount equal to 0.5% of the aggregate amount
invested by such Investor for each 10-day period or pro rata for any portion thereof following the date (1) by which such Registration Statement should have been effective as described in (A) above had the Company used its best efforts to have the
Registration Statement declared effective or (2) sales cannot be made pursuant to such Registration Statement after it has been declared effective as described in (B) above (the “Blackout Period”). Such payments shall be in
partial compensation to the Investors, and shall not constitute the Investors’ exclusive remedy for such events. The Blackout Period shall terminate upon (x) the effectiveness of the Registration Statement in the case of (A) above; and (y) the
Registration Statement again being available for sales by the Investors in the case of (B) above. Such payments shall be made to each Investor in cash, or, at the Investor’s election, in a number of shares of Common Stock determined by dividing
the amount of such payment by $0.10. In the case of cash payments, the amounts payable as liquidated damages pursuant to this paragraph shall be payable in lawful money of the United States, and all such amounts payable or shares deliverable as
liquidated damages shall be paid or certificates shall be delivered, as the case may be, within two (2) Business Days of the last day of each 10-day period following the commencement of the Blackout Period until the termination of the Blackout
Period. 
  
 (ii) For not more than fifteen (15) consecutive days
or for a total of not more than thirty (30) days in any twelve (12) month period, the Company may delay the disclosure of material non-public information concerning the Company, by terminating or suspending effectiveness of any registration
contemplated by this Section 2 containing such information, the disclosure of which at the time is not, in the good faith opinion of the Company, in the best interests of the Company (an “Allowed Delay”); provided,
that the Company shall promptly (a) notify the Investors in writing of the existence of (but in no event, without the prior written consent of an Investor, shall the Company disclose to such Investor any of the facts or circumstances regarding)
material non-public information giving rise to an Allowed Delay, and (b) advise the Investors in writing to cease all sales under the Registration Statement until the end of the Allowed Delay. 
  
 (d) Underwritten Offering. If any offering pursuant to a Registration
Statement filed pursuant to Section 2(a) hereof involves an underwritten offering, the Company shall have the right to select an investment banker and manager to administer the offering, which investment banker or manager shall be satisfactory to a
majority of the Investors. 
  
 (e) Exception. The Company
shall not be required to file a Registration Statement pursuant to this Section 2 if the Company shall furnish to the Investors a certificate signed by the Chief Executive Officer of the Company or the Chairman of the Board stating that, in the good
faith judgment of the Board of Directors of the Company, it would be 
  

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seriously detrimental to the Company and its stockholders for such Registration Statement to be filed at such time, in which event the Company shall have the
right to defer such filing for a period of not more than thirty (30) days; provided that such right to delay the filing of any Registration Statement shall be exercised by the Company not more than once in any twelve (12) month period. 

 
 3. Company Obligations. The Company will use its best efforts to
effect the registration of the Registrable Securities in accordance with the terms hereof, and pursuant thereto the Company will, as expeditiously as reasonably possible: 
  
 (a) use its best efforts to cause such Registration Statement to become effective and to remain continuously effective for
a period that will terminate upon the earlier of the date on which all Registrable Securities, covered by such Registration Statement, as amended from time to time, have been sold or at such time as all Registrable Securities held by the Investors
can be sold in any three (3) month period without registration in compliance with Rule 144 of the 1933 Act; 
  
 (b) prepare and file with the SEC such amendments, supplements and post-effective amendments to the Registration Statement and the Prospectus as may be
necessary to keep the Registration Statement effective for the period specified in Section 3(a) and to comply with the provisions of the 1933 Act and the 1934 Act with respect to the distribution of all Registrable Securities; 
  
 (c) provide copies to and permit counsel designated by the Investors to
review each Registration Statement and all amendments and supplements thereto no fewer than five (5) days prior to their filing with the SEC and not file any document to which such counsel reasonably objects within four (4) days following receipt by
the Investors and counsel designated by the Investors of such Registration Statement and/or amendments and supplements thereto; 
  
 (d) furnish, without charge, to the Investors and their legal counsel (i) promptly after the same is prepared and publicly distributed, filed with the
SEC, or received by the Company (but not later than two (2) Business Days after the filing date, receipt date or sending date, as the case may be), at least five (5) copies of any Registration Statement and any amendment thereto, each preliminary
prospectus and Prospectus and each amendment or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the staff of the SEC, and each item of correspondence from the SEC or the staff of the SEC, in each case
relating to such Registration Statement (other than any portion thereof which contains information for which the Company has sought confidential treatment), and (ii) such number of copies of a Prospectus, including a preliminary prospectus, and all
amendments and supplements thereto and such other documents as each Investor may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Investor, which in any event, shall not exceed ten (10)
Prospectuses; 
  
 (e) in the event the Company selects an
underwriter for the offering, the Company shall enter into and perform its reasonable obligations under an underwriting 
  

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agreement, in usual and customary form, including, without limitation, customary indemnification and contribution obligations, with the underwriter of such
offering; 
  
 (f) if required by the underwriter, the Company
shall furnish, on the effective date of the Registration Statement (i) an opinion, dated as of such date, from independent legal counsel representing the Company for purposes of such Registration Statement, in form, scope and substance as is
customarily given in an underwritten public offering, addressed to the underwriter and (ii) a letter, dated such date, from the Company’s independent certified public accountants in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering, addressed to the underwriter and the Investors; 
  
 (g) use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness and, if such order is issued, use its
best efforts to obtain the withdrawal of any such order at the earliest possible moment; 
  
 (h) prior to any public offering of Registrable Securities, use its reasonable best efforts to register or qualify or cooperate with the Investors and their counsel in connection with the registration or qualification
of such Registrable Securities for offer and sale under the securities or blue sky laws of such jurisdictions reasonably requested by the Investors and do any and all other reasonable acts or things necessary or advisable to enable the distribution
in such jurisdictions of the Registrable Securities covered by the Registration Statement; 
  
 (i) cause all Registrable Securities covered by a Registration Statement to be listed on each securities exchange, interdealer quotation system or other market on which similar securities issued by the Company are
then listed; 
  
 (j) immediately notify the Investors, at any
time when a Prospectus relating to the Registrable Securities is required to be delivered under the 1933 Act, upon discovery that, or upon the happening of any event as a result of which, the Prospectus included in such Registration Statement, as
then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and at the
request of any such holder, promptly prepare and furnish to such holder a reasonable number of copies of a supplement to or an amendment of such Prospectus as may be necessary so that, as thereafter delivered to the purchasers of such Registrable
Securities, such Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then
existing; and 
  
 (k) otherwise use its best efforts to comply
with all applicable rules and regulations of the SEC under the 1933 Act and the 1934 Act and take such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder; and, if the Company is not
filing periodic reports with the SEC pursuant to the 1934 Act, make available to its security holders, as soon as reasonably practicable, but not later than the Availability Date (as defined below), an earnings statement covering a period of at
least twelve 
  

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(12) months, beginning after the effective date of each Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the
1933 Act (for the purpose of this subsection 3(k), “Availability Date” means the 45th day following the end of the fourth fiscal quarter that includes the effective date of such Registration Statement, except that, if such fourth
fiscal quarter is the last quarter of the Company’s fiscal year, “Availability Date” means the 90th day after the end of such fourth fiscal quarter). 
  
 4. Due Diligence Review; Information. The Company shall make available, during normal business hours, for inspection
and review by the Investors, advisors to and representatives of the Investors (who may or may not be affiliated with the Investors), and any underwriter participating in any disposition of Common Stock on behalf of the Investors pursuant to a
Registration Statement or amendments or supplements thereto or any blue sky, NASD or other filing, all financial and other records, all filings with the SEC, and all other corporate documents and properties of the Company as may be reasonably
necessary for the purpose of such review, and cause the Company’s officers, directors and employees, within a reasonable time period, to supply all such information reasonably requested by the Investors or any such representative, advisor or
underwriter in connection with such Registration Statement (including, without limitation, in response to all questions and other inquiries reasonably made or submitted by any of them), prior to and from time to time after the filing and
effectiveness of the Registration Statement for the sole purpose of enabling the Investors and such representatives, advisors and underwriters and their respective accountants and attorneys to conduct initial and ongoing due diligence with respect
to the Company and the accuracy of such Registration Statement. 
  
 Notwithstanding the foregoing, the Company shall not disclose material nonpublic information to the Investors, or to advisors to or representatives of the Investors, unless prior to disclosure of such information the Company identifies such
information as being material nonpublic information and provides the Investors, such advisors and representatives with the opportunity to accept or refuse to accept such material nonpublic information for review. 
  
 5. Obligations of the Investors. 
  
 (a) Each Investor shall furnish in writing to the Company such information
regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such
documents in connection with such registration as the Company may reasonably request. At least fifteen (15) Business Days prior to the first anticipated filing date of any Registration Statement, the Company shall notify each Investor of the
information the Company requires from such Investor. An Investor shall provide such information to the Company at least five (5) Business Days prior to the first anticipated filing date of such Registration Statement. For purposes of the first
sentence of this Section 5(a), the methods of distribution to be specified by the Investors shall include, without limitation, the sale of the Registrable Securities through (i) options transactions relating to the Registrable Securities, whether
such options are listed on an options exchange or otherwise, or (ii) short sales of the Registrable Securities. The Registration Statement shall also provide that, for purposes of the distribution of the Registrable Securities, the Investors may (i)
enter into 
  

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hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the Registrable Securities and deliver
the Registrable Securities to close out their short positions or (ii) loan or pledge the Registrable Securities to broker-dealers or other financial institutions, which in turn may sell the Registrable Securities. 
  
 (b) Each Investor, by its acceptance of the Registrable Securities, agrees
to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of a Registration Statement hereunder. 
  
 (c) Each Investor agrees that, upon receipt of any notice from the Company of the happening of any event rendering a Registration Statement no longer
effective, such Investor will immediately discontinue disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities, until the Investor’s receipt of the copies of the supplemented or amended
Prospectus filed with the SEC and declared effective and, if so directed by the Company, the Investor shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in the
Investor’s possession of the Prospectus covering the Registrable Securities current at the time of receipt of such notice. 
  
 (d) No Investor may participate in any third party underwritten registration hereunder unless it (i) agrees to sell the Registrable Securities on the
basis provided in any underwriting arrangements in usual and customary form entered into by the Company, and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements. Notwithstanding the foregoing, no Investor shall be required to make any representations to such underwriter, other than those with respect to itself and the Registrable Securities owned by
it, including its right to sell the Registrable Securities, and any indemnification in favor of the underwriter by the Investors shall be several and not joint and limited in the case of any Investor, to the proceeds received by such Investor from
the sale of its Registrable Securities. The scope of any such indemnification in favor of an underwriter shall be limited to the same extent as the indemnity provided in Section 6(b) hereof. 
  
 6. Indemnification. 
  
 (a) Indemnification by the Company. The Company will indemnify and
hold harmless each Investor and their respective Affiliates, officers, directors, members, employees and agents, successors and assigns, against any losses, claims, damages or liabilities, joint or several, to which such Investor, Affiliate,
officer, director, member, or controlling person may become subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or
alleged untrue statement of any material fact contained in any Registration Statement, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof; (ii) the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not misleading; (iii) any blue sky application or other document executed by the Company specifically for that purpose or based upon written information
furnished by the Company filed in any state or other jurisdiction in order to qualify any or all of the Registrable Securities under the securities laws thereof (any 
  

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such application, document or information herein called a “Blue Sky Application”); (iv) any violation by the Company or its agents of
any rule or regulation promulgated under the 1933 Act applicable to the Company or its agents and relating to action or inaction required of the Company in connection with such registration; or (v) any failure to register or qualify the Registrable
Securities included in any such Registration in any state where the Company or its agents has affirmatively undertaken or agreed in writing that the Company will undertake such registration or qualification on an Investor’s behalf (the
undertaking of any underwriter chosen by the Company being attributed to the Company) and will reimburse such Investor, Affiliate and each such officer, director or member and each such controlling person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case if and to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished in writing by such Investor, Affiliate or any such controlling person
specifically for use in such Registration Statement or Prospectus; provided, further, however, that the foregoing indemnity agreement with respect to any Registration Statement or Prospectus shall not inure to the benefit of any
Investor or underwriter, or any person controlling such Investor or underwriter, from whom the person asserting any such losses, claims, damages or liabilities purchased shares in the offering (the “Shares”), if a copy of the
Prospectus (as then amended or supplemented if the Company shall have furnished to such Investor or underwriter any amendments or supplements thereto prior to such purchase) was furnished to such Investor or underwriter by the Company in accordance
with Section 3(d) hereof and not sent or given by or on behalf of such Investor or underwriter to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the Shares to such person, and if the
Prospectus (as so amended or supplemented) would have completely cured the defect giving rise to such loss, claim, damage or liability. 
  
 (b) Indemnification by the Investors. Each Investor, severally but not jointly, will indemnify and hold harmless, to the fullest extent permitted
by law, the Company, its Subsidiaries and its and their respective directors, officers, employees, shareholders and each person who controls the Company (within the meaning of the 1933 Act) against any losses, claims, damages, liabilities and
expenses (including reasonable attorney fees) resulting from any untrue statement of a material fact or any omission of a material fact required to be stated in the Registration Statement or Prospectus or preliminary prospectus or amendment or
supplement thereto or necessary to make the statements therein not misleading, to the extent, but only to the extent that such untrue statement or omission is contained in any information furnished in writing by such Investor to the Company
specifically for inclusion in such Registration Statement or Prospectus or amendment or supplement thereto and will reimburse the Company, its Subsidiaries and its and their respective directors, officers, employees, shareholders and each person who
controls the Company for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action. In no event shall the liability of an Investor be greater in amount
than the aggregate dollar amount of the proceeds (net of all expense paid by such Investor and the amount of any damages such Investor has otherwise been required to pay by reason of such untrue statement or omission) received by such Investor upon
the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification obligation. 
  

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 (c) Conduct of Indemnification Proceedings. Any person entitled to indemnification hereunder
shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party; provided that any person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the
expense of such person unless (a) the indemnifying party has agreed to pay such fees or expenses, or (b) the indemnifying party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such person or (c) in
the reasonable judgment of any such person, based upon advice of its counsel, a conflict of interest exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies the indemnifying party in
writing that such person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such person); and provided, further,
that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations hereunder, except to the extent that such failure to give notice shall materially adversely affect the
indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party shall not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm of
attorneys at any time for all such indemnified parties. No indemnifying party will, except with the prior written consent of the indemnified party, consent to entry of any judgment or enter into any settlement that does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation. 
  
 (d) Contribution. If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is
unavailable to an indemnified party or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such loss, claim,
damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations. No person guilty of fraudulent misrepresentation
within the meaning of Section 11(f) of the 1933 Act shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation. In no event shall the contribution obligation of a holder of Registrable Securities be greater in
amount than the aggregate dollar amount of the proceeds (net of all expenses paid by such holder and the amount of any damages such holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation. 
  
 (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, except with respect to the limitations on liability of the Investors contained in
Section 6(b). 
  

 11 

 (f) The obligations of the Company and the Investors under this Section 6 shall survive the completion
of any offering of Registrable Securities in a Registration Statement and shall also survive the termination of this Agreement, and otherwise. 
  
 7. Miscellaneous. 
  
 (a) Amendments and Waivers. This Agreement may be amended only by a writing signed by the parties hereto. The Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it, only if the Company shall have obtained the written consent to such amendment, action or omission to act, of each Investor. 
  
 (b) Notices. All notices and other communications provided for or
permitted hereunder shall be made as set forth in Section 11.4 of the Purchase Agreement. 
  
 (c) Assignments and Transfers by Investors. The provisions of this Agreement shall be binding upon and inure to the benefit of the Investors and their respective successors and assigns. An Investor may transfer
or assign, in whole or from time to time in part, to one or more persons it rights hereunder in connection with the transfer of Registrable Securities by such Investor to such person, provided that such Investor complies with all applicable laws
thereto and provides written notice of assignment to the Company promptly after such assignment is effected. 
  
 (d) Assignments and Transfers by the Company; Effect of the Merger. This Agreement shall not be assigned by the Company without the prior written
consent of each Investor, except that without the prior written consent of the Investors, but after notice duly given, the Company shall assign its rights and delegate its duties hereunder to any successor-in-interest corporation, and such
successor-in-interest shall assume such rights and duties, in the event of a merger or consolidation of the Company with or into another corporation or the sale of all or substantially all of the Company’s assets. By virtue of the Merger,
Survivor will become the successor to all of the rights, interests, duties and obligations of Parent, including without limitation, those arising under this Agreement, and after the Merger, all references in this Agreement to the “Company”
shall be deemed to be references to Survivor. 
  
 (e) Benefits
of the Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 
  
 (f) Counterparts; Faxes. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may also be executed via facsimile, which shall be deemed an original. 
  

 12 

 (g) Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement. 
  
 (h) Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law, the parties hereby waive any provision of law which renders any provisions hereof prohibited or unenforceable in any respect.

  
 (i) Further Assurances. The parties shall execute and
deliver all such further instruments and documents and take all such other actions as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained. 
  
 (j) Entire Agreement. This Agreement is intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter. 
  
 (k) Applicable Law. This Agreement and all matters arising directly or indirectly hereunder shall be governed by, and construed in accordance with, the internal laws of the State of New York, without reference
to the choice of law principles thereof. Any legal action, suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby shall only be instituted, heard and adjudicated (excluding appeals) in a state or
federal court located in the Southern District of New York, and each party hereto knowingly, voluntarily and intentionally waives any objection which such party may now or hereafter have to the laying of the venue of any such action, suit or
proceeding, and irrevocably submits to the exclusive personal jurisdiction of any such court in any such action, suit or proceeding. Service of process in connection with any such action, suit or proceeding may be served on each party hereto
anywhere in the world by the same methods as are specified for the giving of notices under this Agreement. 
  
 [SIGNATURES ON NEXT PAGE] 
  

 13 

 IN WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized officers to
execute this Agreement as of the date first above written. 
  

	 INCARA PHARMACEUTICALS CORPORATION

	
	 By:

	 Name:
	 	 
	 Title:
	 	 
	
	 INCARA, INC.

	
	 By:

	 Name:
	 	 
	 Title:
	 	 
	
	 GOODNOW CAPITAL, L.L.C.

	
	 By:

	 Name:
	 	 
	 Title:
	 	 

  
 [Registration
Rights Agreement - Signature Page]<PAGE>

                                                                     Exhibit 4.6

                             STOCKHOLDERS AGREEMENT

     This Stockholders Agreement (this "Agreement") dated as of October 27, 2000
is by and among SCF-IV, L.P., a Delaware limited partnership ("SCF"), Cari
Investment Company, a Louisiana corporation ("CIC"), Todd M. Hornbeck, Troy A.
Hornbeck (collectively, Todd and Troy Hornbeck are referred to as the
"Hornbecks") and HORNBECK-LEEVAC Marine Services, Inc., a Delaware corporation
(the "Company").

     WHEREAS, the Company and SCF have entered into a Subscription Agreement
(the "Subscription Agreement") regarding the sale of Common Stock (as defined
herein) of the Company; and

     WHEREAS, the Company and SCF have entered into that certain Registration
Rights Agreement (the "Registration Rights Agreement") of even date herewith;
and

     WHEREAS, the Company made certain representations and warranties in the
Subscription Agreement and granted SCF certain demand registration rights in
Section 2.2 of the Registration Rights Agreement in partial consideration for
the provisions of this Agreement; and

     WHEREAS, the parties desire to set forth their agreement with respect to
certain matters relating to the transfer and voting of shares of Common Stock
and the preemptive rights of SCF;

     NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     1. Definitions. Capitalized terms used herein without definition shall have
the meanings given them in the Securities Purchase Agreement. The following are
defined terms within this Agreement:

          "Affiliate" of any specified Person means any other Person other than
     the Company directly or indirectly controlling or controlled by or under
     direct or indirect common control with such specified Person. For the
     purposes of this definition, "control," when used with respect to any
     Person, means the power to direct the management and policies of such
     Person, directly or indirectly, whether through the ownership of voting
     securities, by contract or otherwise, and the terms "controlling" and
     "controlled" have meanings correlative to the foregoing.

          "Business Day" means a day that is not a Saturday, a Sunday or a day
     on which banking institutions in New Orleans, Louisiana are not required to
     be open for business.

          "Capital Stock" of any Person means any and all shares, interests,
     participation, or other equivalents (however designated) of, or rights,
     warrants, or options to purchase, corporate stock or any other equity
     interest (however designated) of or in such Person.

          "CIC" has the meaning specified therefor in the preamble to this
     Agreement.

          "Common Stock" shall mean common stock, par value $.01, of the Company
     and

<PAGE>

     all equity securities received in connection with any stock split, stock
     dividend, reorganization, recapitalization, merger or consolidation of the
     Company with or into another entity or a similar event. All references
     herein to Common Stock owned by a Stockholder shall include: (i) the
     community interest or similar marital property interest, if any, of a
     spouse of such Stockholder in such Common Stock; and (ii) all of the equity
     interests and voting rights in the Company which are reflected by Common
     Stock ownership.

          "Company" has the meaning specified therefor in the preamble of this
     Agreement.

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
     amended, and the rules and regulations promulgated thereunder.

          "Initial Public Offering" shall mean (i) an underwritten public
     offering of Common Stock pursuant to an effective registration statement
     filed under the Securities Act (other than any registration statement on
     Form S-4 or S-8 or any forms succeeding thereto, for purposes permissible
     under such forms as of the date hereof) wherein the aggregate net proceeds
     (after deducting all costs, discounts, commissions and other expenses of
     the offering) is at least $25,000,000, or (ii) a merger or other business
     combination if, following the consummation of such merger or business
     combination, the Common Stock is registered under the Exchange Act.

          "Person" means any natural person, partnership, corporation, and any
     other form of business or legal entity.

          "Securities Act" shall mean the Securities Act of 1933, as amended,
     and the rules and regulations promulgated thereunder.

          "Transfer" shall mean any direct or indirect transfer, assignment,
     donation, devise, sale, gift, pledge, hypothecation, encumbrance, or other
     disposition of any security, or any interest therein, whether voluntary or
     involuntary, including without limitation any disposition or transfer as a
     part of any liquidation of assets or any reorganization pursuant to the
     United States' or any other jurisdiction's bankruptcy law or other similar
     debtor relief laws. The term "Transfer," shall also include a transaction
     involving a change of ownership interest or voting power of a
     Securityholder entered into for the purpose or with the effect of avoiding
     the restrictions on the Transfer of the Common Stock provided herein or
     other any other provision hereof governing Transfers.

          "Transferee" shall mean every Person who acquires Common Stock from
     SCF.

     2. Preemptive Rights. From and after the date hereof and until the date on
which the Company completes an Initial Public Offering (the "Termination Date"),
SCF shall have a preemptive right to purchase its proportionate share of any
additional shares of Capital Stock issued by the Company (other than (a) shares
issued pursuant to plans for the benefit of employees, consultants, or directors
of the Company or any of its subsidiaries (b) shares issued pursuant to warrants
to purchase Common Stock outstanding on the date hereof and (c) shares issued
otherwise than for cash), at the same price and on the same terms as the shares
to be sold

<PAGE>

by the Company. In determining the number of shares SCF shall have a right to
purchase in any issuance of shares by the Company, the number of shares
outstanding shall be determined on a fully diluted basis and the number of
shares SCF shall be entitled to purchase shall be calculated by multiplying the
total number of shares of Capital Stock to be issued in such issuance by a
fraction the numerator of which shall be the aggregate number of shares of
Common Stock then owned by SCF that were acquired pursuant to the Subscription
Agreement or this Section 2 and the denominator of which shall be the total
shares of Common Stock then outstanding or issuable pursuant to then outstanding
options, warrants and convertible securities. The Company shall notify SCF in
writing at least 10 Business Days prior to the issuance of any shares of Capital
Stock that is to occur prior to the Termination Date. The Company may sell to
others the securities offered to SCF but not subscribed by SCF within 10
Business Days after the receipt of such offer, during a period not to exceed 60
Business Days after the receipt by SCF of such offer. Thereafter, any issuance
by the Company must again be preceded by an offer to SCF. SCF shall be entitled
to delay the purchase of the securities for which it has subscribed for up to 15
Business Days.

     3. Standstill.

          (a) After the date hereof, SCF will not, and SCF and L. E. Simmons &
     Associates Incorporated ("LESA") will cause their direct or indirect
     majority owned entities not to, acquire, either directly or indirectly, any
     voting securities of the Company other than pursuant to Section 2 hereof,
     unless such acquisition has been approved in advance by the Board of
     Directors of the Company; provided that SCF may acquire such additional
     voting securities of the Company as long as, after giving effect to such
     acquisition, the percentage of the Company's outstanding voting securities
     owned by SCF does not exceed 22.1% of the Company's securities on a fully
     diluted basis, as such percentage has been subsequently decreased by any
     issuances of capital stock by the Company. Notwithstanding any decrease
     referred to in the final clause of the preceding sentence, SCF shall be
     entitled (provided it does not solicit such purchases) to purchase shares
     of capital stock of the Company that are offered to it for purchase so long
     as, upon consummation of any such purchases, the percentage of the
     Company's outstanding voting securities owned by SCF on a fully diluted
     basis would not exceed 20%. SCF will not act together with any other
     person(s) so that, were such rule applicable, SCF would be deemed to be a
     beneficial owner of such securities under Rule 13d-5(b)(1) where such
     actions have a purpose or effect of changing control of the Company.
     Notwithstanding the foregoing, nothing herein shall affect the ability of a
     director of the Company, SCF or LESA to fulfill applicable fiduciary
     duties.

     4. Competing Offer. SCF agrees to give the Company within ten (10) days
following such occurrence written notice of the occurrence of an "Event" as that
term is hereinafter defined. For purposes of this Section 4, an Event is any of
the following:

          (a) A decision by SCF to sell to one person, or group of persons
     acting in concert, shares of Common Stock representing five percent (5%) or
     more of the Company's Common Stock (hereinafter a "Block Sale");

<PAGE>

          (b) A decision by SCF to consider accepting an unsolicited offer to
     make a Block Sale to one person or group of persons acting in concert;

          (c) A decision by SCF to request an investment banker or broker to
     locate a purchaser for a Block Sale.

Upon giving notice to the Company of an Event, SCF will meet with the Company to
discuss the Event and provide the Company with the terms of any solicited or
unsolicited offer to sell received by SCF, and the opportunity to make or
sponsor a competing offer. Ten (10) days after such meeting or if the Company
indicates it is not interested in such a meeting or if the Company is unwilling
to meet SCF within five (5) days after the giving of notice by SCF, SCF shall be
entitled to sell its shares of Common Stock to any person in SCF's sole
discretion subject to the other provisions of this Agreement. SCF will give
notice (a "Termination Notice") to the Company at the time that the potential
transaction leading to the notice of an Event ceases to be under active
consideration by SCF. If a new or revived potential transaction constituting an
Event occurs within 90 days after the giving of such Termination Notice and SCF
gives notice of such an Event to the Company within that 90 day period, then the
ten (10) day notice requirement will again be applicable. If the Company
breaches its obligation to effect a Special Demand Registration under the terms
of the Registration Rights Agreement, the provisions of this Section 4 shall
terminate.

     5. Transfers of Common Stock. SCF may not Transfer any of its Common Stock
to any Person who is, either directly or indirectly through one or more
subsidiaries, a competitor of the Company, or affiliate of such competitor,
engaged in the business of operating marine vessels; provided that following a
public offering of shares of Common Stock by the Company, sales in "brokers'
transactions" within the meaning of Section 4(4) of the Securities Act of 1933,
pursuant to an underwritten offering or otherwise, to the extent SCF does not
knowingly sell to a competitor, shall not be subject to this prohibition. The
Company agrees to notify SCF within three (3) Business Days following any
request from SCF addressed to the attention of the President and/or the Chief
Executive Officer regarding whether a prospective purchaser of Common Stock
would constitute such a competitor.

     6. Tag-Along Rights.

          (a) For purposes of this Agreement, the following shall constitute a
     "Triggering Event":

          The receipt by Todd M. Hornbeck, Christian G. Vaccari or SCF (the
          "Potential Sellers") from any person or entity of a bona fide written
          offer to purchase or otherwise acquire for a valuable consideration
          any Common Stock held by Todd M. Hornbeck, Christian G. Vaccari or
          SCF, respectively, that such person desires to accept (a "Purchase
          Offer").

     Upon the occurrence of a Triggering Event, the recipient of a Purchase
     Offer shall promptly give notice to the other Potential Sellers of the
     occurrence of the Triggering Event together with a copy of the offer
     executed by the offeror (a "Trigger Notice").

<PAGE>

          (b) Upon the occurrence of a Triggering Event, the following
     provisions shall apply.

               (i) If Todd M. Hornbeck and/or Christian G. Vaccari is the
          recipient of a Purchase Offer, SCF shall have the right and option to
          participate along with either or both of Mr. Hornbeck or Mr. Vaccari,
          as sellers, in the sale of Common Stock pursuant to a Purchase Offer
          received by Mr. Hornbeck or Mr. Vaccari or both, which right and
          option shall be exercised by delivering written notice to such effect
          to the Potential Seller(s) that provided the Trigger Notice within 15
          days after the date of the Trigger Notice. SCF and each of the
          Potential Sellers that provided the Trigger Notice shall be entitled
          to sell shares of Common Stock pursuant to the Purchase Offer on the
          terms and conditions set forth on the Purchase Offer and in a quantity
          calculated by multiplying (X) the total number of shares of Common
          Stock that are subject to the Purchase Offer by (Y) a fraction, the
          numerator of which is equal to the number of shares of Common Stock
          owned by such Potential Seller and the denominator of which is equal
          to the number of shares of Common Stock owned by all the Potential
          Sellers desiring to sell in the Purchase Offer. In such circumstances,
          the Potential Seller(s) providing the Trigger Notice shall not sell
          any of the Common Stock which it owns pursuant to the Purchase Offer
          unless SCF is permitted to participate in the sale as provided herein.

               (ii) If SCF, in compliance with its other contractual obligations
          hereunder, including restrictions on the transfer of its Common Stock,
          is the recipient of a Purchase Offer, Todd M. Hornbeck and Christian
          G. Vaccari shall have the right and option to participate along with
          SCF in the sale of the Common Stock pursuant to the Purchase Offer,
          which right and option shall be exercised by delivering written notice
          to such effect to SCF within fifteen (15) days after the date of the
          Trigger Notice. In such event, SCF and each of the other Potential
          Sellers that elects to participate in such sale shall be entitled to
          sell shares of Common Stock pursuant to the Purchase Offer on the
          terms and conditions set forth in the Purchase Offer and in a quantity
          calculated by multiplying (X) the total number of shares of Common
          Stock that are subject to the Purchase Offer by (Y) a fraction, the
          numerator of which is equal to the number of shares of Common Stock
          owned by such Potential Seller and the denominator of which is equal
          to the number of shares of Common Stock owned by all the Potential
          Sellers desiring to sell in the Purchase Offer; provided, however,
          that for the purposes of this subsection 6(b)(ii) and the
          determination of the applicable percentage interests, each of Mr.
          Hornbeck and Mr. Vaccari shall be deemed to own only 35% of the shares
          that they own on the date of such calculation, including shares deemed
          owned pursuant to clause (iii) below. SCF shall not be entitled to
          sell any of its Common Stock pursuant to the Purchase Offer unless
          each electing Potential Seller is permitted to participate in the sale
          as provided herein.

<PAGE>

               (iii) For purposes of this Section 6, Mr. Vaccari shall be deemed
          to own 1/3 of the shares owned by Cari Investment Company in addition
          to those shares owned by him directly. Mr. Vaccari agrees to cause
          Cari Investment Company to comply with this Section to allow Potential
          Sellers to tag-along with sales of shares of Common Stock by Cari
          Investment Company to the extent such shares to be sold by Cari
          Investment Company are attributable to Mr. Vaccari's 1/3 interest in
          Cari Investment Company.

               (iv) The rights and obligations set forth in this Section 6 shall
          terminate upon the Company's Initial Public Offering.

     7. Corporate Governance Matters.

          (a) Designation of Directors. The Company agrees that, so long as SCF
     owns at least 5% of the outstanding Common Stock (or other applicable
     voting securities of the Company, or, prior to the Initial Public Offering,
     so long as it owns at least 80% of the Common Stock acquired pursuant to
     the Subscription Agreement), SCF shall have the right to designate one (1)
     director to the Board of Directors of the Company. SCF recognizes and
     acknowledges that pursuant to that certain Voting Agreement between the
     Company, Cari and the Hornbecks dated June 5, 1997, as amended by the
     Amendment to Voting Agreement between the Company, Cari and the Hornbecks
     dated June 5, 1998, the Hornbecks, collectively, and Cari each have the
     right to designate an equal number of directors, that number being two (2)
     each as of the date hereof.

          (b) Vacancies and Removals. The Company and SCF agree that any
     designee specified in (a) above may be removed only by the party
     designating such director, and any vacancy resulting from the resignation,
     removal or death of any director designated by a party hereto may be filled
     only by a designee of the party designating such director. The Company, the
     Hornbecks, Cari and SCF shall take no action to remove any such director
     designated by any party hereto or to fill any such vacancy, except as
     provided in this Agreement.

          (c) Stockholder Action. The Hornbecks and Cari hereby agree, and Mr.
     Vaccari agrees to cause Cari Investment Company to vote their respective
     shares of Common Stock (and to execute any requested written consent in
     lieu of a meeting) from time to time as may be necessary to elect the
     designee of SCF to the Board of Directors and to take any other action
     necessary to accomplish the purposes of this Section; provided that the
     Hornbecks', Cari's and Mr. Vaccari's obligations under this paragraph shall
     terminate if, at any time following an Initial Public Offering, SCF ceases
     to own more than 5% of the then outstanding shares of Common Stock. SCF
     hereby agrees to vote its shares of Common Stock (and to execute any
     requested written consent in lieu of a meeting) from time to time as may be
     necessary to elect two (2) designees of the Hornbecks and two (2)

<PAGE>

     designees of Cari to the Board of Directors, and to take any other action
     necessary to accomplish the purposes of this Section; provided that SCF's
     obligation under this paragraph shall terminate if, at any time following
     an Initial Public Offering, SCF ceases to own more than 5% of the then
     outstanding shares of Common Stock.

     8. Legend on Certificate; Stop Transfer Orders. SCF agrees to the placement
of a conspicuous legend on all certificates representing shares of Common Stock
indicating that such securities may not be Transferred except in accordance with
this Agreement and to the entry of a stop transfer order with the transfer agent
for such securities against the transfer of such securities except in accordance
with this Agreement. Such legend shall be substantially in the following form:

     BY THE TERMS OF A STOCKHOLDERS AGREEMENT DATED __________, 2000 AMONG
     CERTAIN STOCKHOLDERS AND THE CORPORATION (THE "STOCKHOLDER'S AGREEMENT"),
     CERTAIN RESTRICTIONS HAVE BEEN PLACED ON THE TRANSFER AND VOTING OF THE
     SHARES REPRESENTED BY THIS CERTIFICATE. NEITHER THESE SECURITIES NOR ANY
     INTEREST HEREIN MAY BE TRANSFERRED, BY MEANS OF A DIRECT OR INDIRECT SALE,
     ASSIGNMENT, DONATION, TRANSFER, DEVISE, PLEDGE, HYPOTHECATION, ENCUMBRANCE
     OR OTHER DISPOSITION OF LEGAL TITLE OR BENEFICIAL INTEREST HEREIN, EXCEPT
     IN ACCORDANCE WITH THE STOCKHOLDERS AGREEMENT. A COPY OF THE STOCKHOLDERS
     AGREEMENT HAS BEEN PLACED ON FILE BY THE CORPORATION AT ITS PRINCIPAL PLACE
     OF BUSINESS OR REGISTERED OFFICE AND IS AVAILABLE FOR INSPECTION.

     9. Miscellaneous.

          (a) Termination. Except as otherwise set forth herein and except for
     Section 5 hereof which shall survive for so long as SCF and its affiliates
     own at least 5% of the Company's Common Stock, the terms of this Agreement
     shall terminate on the closing of an Initial Public Offering.

          (b) Assignment; Successors and Assigns. This Agreement is not
     assignable by SCF. This Agreement shall inure to the benefit of and be
     binding upon the successors of the parties hereto.

          (c) Arbitration. Any controversy, dispute or claim arising out of or
     related to this Agreement (a "Dispute") shall be settled by arbitration in
     accordance with the Commercial Arbitration Rules of the American
     Arbitration Association, by an arbitrator mutually agreed to by the
     parties. In the event the parties are unable to agree to the selection of
     an arbitrator within 10 days after the written notification by either party
     to this Agreement of the commencement of a Dispute, each party shall
     appoint one arbitrator, who shall be an impartial person. Those two persons
     shall select a third person to serve as the arbitrator. Any arbitration
     shall be held in New Orleans, Louisiana within 90 days of the appointment
     of the arbitrator.

<PAGE>

     The decision by the arbitrator shall be final and binding on each party.
     The arbitrator shall execute and deliver to each party its decision in
     writing. Judgment upon the award, if any, rendered by the arbitrator may be
     entered in any court having jurisdiction over the parties. No award by the
     arbitrator shall assess consequential, exemplary or punitive damages, but
     may assess the arbitration costs and expenses, including without
     limitation, attorneys fees of the parties, in a manner deemed equitable by
     the arbitrator, taking into account the arbitration decision. The parties
     to any Dispute shall maintain the confidentiality of any Dispute and any
     related arbitration proceeding for a period of 18 months, unless such
     disclosure is required by law and except to the extent either party shall
     reasonably designate in writing any information as being subject to
     confidentiality for a longer period, in which event the obligation to
     maintain confidentiality shall not terminate but shall continue for the
     period specified by such party. Notwithstanding the foregoing, the
     obligation of confidentiality specified herein shall not include any
     information which (i) is or becomes generally available to the public
     through no fault of the party bound by such obligation of confidentiality,
     (ii) was known by such party at the time of disclosure or is thereafter
     acquired from a source that was not known after inquiry to be prohibited
     from making such disclosure or (iii) is independently developed by such
     party.

          (d) Counterparts. This Agreement may be executed in any number of
     counterparts and by different parties hereto in separate counterparts, each
     of which counterparts, when so executed and delivered, shall be deemed to
     be an original and all of which counterparts, taken together, shall
     constitute but one and the same Agreement.

          (e) Headings. The headings in this Agreement are for convenience of
     reference only and shall not limit or otherwise affect the meaning hereof.

          (f) Choice of Law. The laws of the State of Delaware shall govern this
     Agreement without regard to principles of conflict of laws.

          (g) Saving Clause. Any provision of this Agreement that is prohibited
     or unenforceable in any jurisdiction shall, as to such jurisdiction, be
     ineffective to the extent of such prohibition or unenforceability without
     invalidating the remaining provisions hereof or affecting or impairing the
     validity or enforceability of such provision in any other jurisdiction.

          (h) Integrated Agreement. This Agreement, together with the
     Subscription Agreement and the documents and instruments to be executed in
     connection therewith, is intended by the parties as a final expression of
     their agreement and intended to be a complete and exclusive statement of
     the agreement and understanding of the parties hereto in respect of the
     subject matter contained herein. This Agreement, the Subscription Agreement
     and the documents and instruments to be executed in connection therewith
     supersede all prior agreements and understandings between the parties with
     respect to such subject matter.

<PAGE>

          (i) Amendment. This Agreement may be amended only by means of a
     written amendment signed by all of the parties hereto.

          (j) Notices. All notices provided for hereunder shall be given by
     telecopy (confirmed by overnight delivery), air courier guaranteeing
     overnight delivery or personal delivery at the following addresses:

          HORNBECK-LEEVAC Marine Services, Inc.
          414 North Causeway Boulevard
          Mandeville, Louisiana 70471
          Attention: Christian G. Vaccari

          Cari Investment Company
          1100 Poydras Street, Suite 2000
          New Orleans, Louisiana 70163
          Attention: Christina G. Vaccari
          Telecopier: 504-727-2006

          Todd M. Hornbeck
          c/o HORNBECK-LEEVAC Marine Services, Inc.
          414 North Causeway Boulevard
          Mandeville, Louisiana 70471
          Telecopier:  504-727-2006

          Troy A. Hornbeck
          c/o HORNBECK-LEEVAC Marine Services, Inc.
          414 North Causeway Boulevard
          Mandeville, Louisiana 70471
          Telecopier:  504-727-2006

     or to such other address as any such party may designate by notice in the
     manner provided above. All such notices shall be deemed to have been
     delivered and received at the time delivered by hand, if personally
     delivered, when receipt acknowledged, if telecopied, and on the next
     business day, if timely delivered to an air courier guaranteeing overnight
     delivery.

          (k) Authority. Each signatory hereto signing in a representative
     capacity represents and warrants to every party that his principal has duly
     authorized him to execute this Agreement on its behalf and that he has the
     power to bind his principal to this Agreement by such signature.

          (l) Effective and Binding. Notwithstanding anything else in this
     Agreement, this Agreement will only become effective and binding on the
     parties hereto upon the closing under the Subscription Agreement of the
     sale of 8,150,944 shares of Common Stock to SCF.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first written above.

                                     HORNBECK-LEEVAC MARINE SERVICES, INC.

                                     By: /s/ Christian G. Vaccari
                                     Name: Christian G. Vaccari
                                     Title: Chief Executive Offices

                                     SCF-IV, L.P.
                                     a Delaware limited partnership

                                     By: SCF-IV, G.P., Limited Partnership,
                                         its general partner

                                         By: L. E. Simmons & Associates
                                             Incorporated, its general partner

                                             By: /s/ Anthony F. DeLuca
                                                 Anthony F. DeLuca
                                                 Managing Director

                                     CARI INVESTMENT COMPANY

                                     By: /s/ Christian G. Vaccari
                                     Name: Christian G. Vaccari
                                     Title: President

                                     /s/ Todd M. Hornbeck
                                     Todd M. Hornbeck

                                     /s/ Todd M. Hornbeck
                                     Troy A. Hornbeck, by
                                     Todd M. Hornbeck,
                                     Attorney-in-Fact

                   [Signature Page to Stockholders Agreement]

<PAGE>

ACKNOWLEDGED AND AGREED TO
solely for purposes of being bound by Section 3 hereof.

L. E. SIMMONS & ASSOCIATES INCORPORATED

By: /s/ Anthony F. DeLuca
    Anthony F. DeLuca
    Managing Director

                   [Signature Page to Stockholders Agreement]

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