Document:

exv10w1

Exhibit 10.1

[Superior Energy Services, Inc. letterhead]

December 10, 2010

Mr. Terence E. Hall

601 Poydras Street

Suite 2400

New Orleans, LA 70130

     Re: Termination of Executive Chairman Agreement

Dear Terry:

     This letter agreement sets forth our mutual understanding with respect to the termination of
the Executive Chairman Agreement dated effective April 28, 2010 (the “Executive Chairman
Agreement”), between Superior Energy Services, Inc. (the “Company”) and you, effective
as of December 10, 2010 (the “Effective Date”). In consideration of the agreements set
forth herein, and other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Company and you agree that:

	 	1.	 	The Executive Chairman Agreement will be terminated as of the Effective Date
and from and after the Effective Date, neither the Company nor you shall have any
further obligation to each other by reason of the covenants or agreements contained in
the Executive Chairman Agreement;
	 
	 	2.	 	As of the Effective Date, you will continue to serve as Chairman of the Board
of Directors of the Company, but you will no longer serve as an employee of the Company
without any further action by either the Company or you. As Chairman of the Board, you
will continue to have use of the corporate airplane under the same terms and conditions
that existed during your tenure as Executive Chairman, and will continue to have the
use of an office and support staff in fulfilling your duties as a Chairman of the Board
and senior advisor to the Company;
	 
	 	3.	 	The Board of Directors of the Company will nominate you for re-election to the
Board of Directors at the Company’s annual meeting held in 2011;
	 
	 	4.	 	The effective date of that certain Senior Advisor Agreement dated effective May 20, 2011 (the
“Senior Advisor Agreement”) between the Company and you will be accelerated to December 11,
2010, and except as provided herein, you will have all rights and privileges afforded you under
that agreement, including the provision of medical coverage under Section 4(b), which includes
participation in

 

 

Terence E. Hall

December 10, 2010

Page 2

	 	 	 	Execucare; however, you will not receive the advisory fee under Section 4(a) of the Senior
Advisor Agreement prior to May 20, 2011;
	 
	 	5.	 	The Company will pay to you $371,844, representing the base salary and car
allowance you would have received under the Executive Chairman Agreement through May
20, 2011, less any taxes required to withheld, payable as follows: $219,411 shall be
paid on the Effective Date, and the remaining $152,433 shall be paid on April 21, 2011;
	 
	 	6.	 	You will remain eligible to receive an annual bonus under the Company’s annual
bonus program for the full fiscal year 2010, which bonus will be paid out in accordance
with the terms of the annual bonus program based on the Company’s achievement of the
applicable performance objectives for 2010;
	 
	 	7.	 	You will remain eligible to receive a pro-rata annual bonus under the Company’s
annual bonus program for fiscal year 2011 as set forth in the Executive Chairman
Agreement, which bonus shall be calculated as 140/365 times the amount of the annual
bonus you would have received had you been employed during all of fiscal year 2011, and
such bonus will be paid out in accordance with the terms of the annual bonus program
based on the Company’s achievement of the applicable performance objectives established
for 2011;
	 
	 	8.	 	Pursuant to the terms of the Company’s Supplemental Executive Retirement Plan
(“SERP”), you will receive a credit for 2010 based on the salary you receive in 2010
(including the portion of the payment on the Effective Date that is attributable to
salary), which credit will be made in 2011, at the same time credits are made to other
participants in the SERP;
	 
	 	9.	 	You will receive a credit under the Company’s SERP for 2011 based on the bonus
payments you receive in 2011 and the payments you receive in 2011 in lieu of your 2011
base salary, which credit will be made in 2012, at the same time credits are made to
other participants in the SERP;
	 
	 	10.	 	All of your outstanding unvested stock options and restricted stock will fully
vest as of the Effective Date, and except as otherwise provided herein, all other terms
and conditions of your outstanding stock option agreements and restricted stock
agreements will remain in full force and effect;
	 
	 	11.	 	You will receive an additional five months employment credit under your
outstanding performance share units as of the Effective Date, and except as
otherwise provided herein, all other terms and conditions of your outstanding
performance share unit agreements will remain in full force and effect; and

 

 

Terence E. Hall

December 10, 2010

Page 3

	 	12.	 	Except as otherwise provided herein, from and after the Effective Date, each of
the Company and you hereby fully release and forever discharge the other party from any
and all claims and liabilities, whether known or unknown, foreseen or unforeseen, in
contract or tort, that either may have against the other relating to the early
termination of the Executive Chairman Agreement.

     With respect to any payments required to be made by the Company to you pursuant to this letter
agreement, you acknowledge and agree that the timing of any such payments will be structured to
comply with Internal Revenue Code Section 409A, and that the Company is authorized to withhold, and
to pay over to any federal, state or local government, any amounts required to be withheld pursuant
to the Internal Revenue Code or any provisions of any other federal, state or local law.

     If the foregoing is acceptable to you, please execute this letter agreement in the appropriate
space provided below and return an executed counterpart to my attention whereupon it will become a
valid, legal and binding agreement between the Company and you.

	 	 	 	 	 
	 	SUPERIOR ENERGY SERVICES, INC.

 	 
	 	By:  	/s/ David D. Dunlap 	 
	 	 	David D. Dunlap 	 
	 	 	Chief Executive Officer 	 
	 

Accepted and Agreed as of the date set forth above:

	 	 	 	 	 
	 	 	 
	  	/s/ Terence E. Hall 	 	 
	 	Terence E. Hallexv10w2

	 	 	 	 	 

Exhibit 10.2

[Superior Energy Services, Inc. letterhead]

December 10, 2010

Mr. Kenneth L. Blanchard

601 Poydras Street

Suite 2400

New Orleans, LA 70130

     Re: Termination of Employment Agreement

Dear Ken:

     This letter agreement sets forth our mutual understanding with respect to the termination of
the Employment Agreement dated June 1, 2007 (the “Employment Agreement”), between Superior
Energy Services, Inc. (the “Company”) and you, effective as of December 10, 2010 (the
“Effective Date”). In consideration of the agreements set forth herein, and other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and
you agree that:

	 	1.	 	The Employment Agreement will be terminated as of the Effective Date, and you
will retire as President and Chief Operating Officer of the Company and you will cease
to be an employee of the Company effective as of the Effective Date, and neither the
Company nor you shall have any further obligation to each other by reason of the
covenants or agreements contained in the Employment Agreement, except for any covenants
and agreements continuing after expiration of the employment period (as defined in the
Employment Agreement), including those contained in Sections 7, 10, and 11;
	 
	 	2.	 	The effective date of that certain Senior Advisor Agreement dated effective
January 1, 2011 (the “Senior Advisor Agreement”) between the Company and you will be
accelerated to December 11, 2010, and except as provided herein, you will have all
rights and privileges afforded you under that agreement, including the provision of
medical coverage under Section 4(b), which includes participation in Execucare;
however, you will not receive the advisory fee under Section 4(a) of the Senior Advisor
Agreement prior to January 1, 2011;
	 
	 	3.	 	The Company will pay to you $28,192, representing the base salary you would
have received for the remainder of 2010, less any taxes required to withheld, on the
Effective Date;

 

 

Kenneth L. Blanchard

December 10, 2010

Page 2

	 	4.	 	You will remain eligible to receive an annual bonus under the Company’s annual
bonus program for the full fiscal year 2010, which bonus will be paid out in accordance
with the terms of the annual bonus program based on the Company’s achievement of the
applicable performance objectives for 2010;
	 
	 	5.	 	You will receive a credit under the Company’s Supplemental Executive Retirement
Plan for 2010 in the amount of $122,500 based on your 2010 base salary, which credit
will be made in 2011, at the same time credits are made to other participants in the
Supplemental Executive Retirement Plan;
	 
	 	6.	 	All of your outstanding unvested stock options and restricted stock will fully
vest as of the Effective Date, and except as otherwise provided herein, all other terms
and conditions of your outstanding stock option agreements and restricted stock
agreements will remain in full force and effect. Any outstanding performance share
units will be governed by the terms of the applicable performance share unit
agreements; and
	 
	 	7.	 	Except as otherwise provided herein, from and after the Effective Date, each of
the Company and you hereby fully release and forever discharge the other party from any
and all claims and liabilities, whether known or unknown, foreseen or unforeseen, in
contract or tort, that either may have against the other relating to the early
termination of the Employment Agreement.

     With respect to any payments required to be made by the Company to you pursuant to this letter
agreement, you acknowledge and agree that the timing of any such payments will be structured to
comply with Internal Revenue Code Section 409A, and that the Company is authorized to withhold, and
to pay over to any federal, state or local government, any amounts required to be withheld pursuant
to the Internal Revenue Code or any provisions of any other federal, state or local law.

     If the foregoing is acceptable to you, please execute this letter agreement in the appropriate
space provided below and return an executed counterpart to my attention whereupon it will become a
valid, legal and binding agreement between the Company and you.

	 	 	 	 	 
	 	SUPERIOR ENERGY SERVICES, INC.

 	 
	 	By:  	/s/ David D. Dunlap 	 
	 	 	David D. Dunlap 	 
	 	 	Chairman and Chief Executive Officer 	 

 

 

	 	 	 	 	 

Kenneth L. Blanchard

December 10, 2010

Page 3

Accepted and Agreed as of the date set forth above:

	 	 	 	 	 
	 	 	 
	  	/s/ Kenneth L. Blanchard 	 	 
	 	Kenneth L. Blanchard

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