Document:

exv10w3

 

Exhibit 10.3

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of                                         , 2006,
is entered into by and between Cal Dive International, Inc., a Delaware corporation (including its
successors, the “Company”), and Helix Energy Solutions Group, Inc., a Minnesota corporation
(“Helix”).

RECITALS

     WHEREAS, the Company and Helix are parties to that certain Master Agreement dated as of
                                        , 2006 (the “Master Agreement”);

     WHEREAS, pursuant to the Company’s Amended and Restated Certificate of Incorporation, the
Company is authorized to issue up to
                     shares of common stock, par value $.01 per share (the
“Common Stock”);

     WHEREAS, the Company has filed and obtained the effectiveness of a Registration Statement with
the Securities and Exchange Commission on Form S-1 (the “Registration Statement”) in
connection with the initial public offering (the
“IPO”) of approximately
                     shares
of its Common Stock;

     WHEREAS,
following the IPO, Helix will own approximately
                     shares of Common Stock; and

     WHEREAS, the Company has agreed to provide Helix with the registration rights specified in
this Agreement following the IPO with respect to any shares of Common Stock held by Helix or any
other Holder on the terms and subject to the conditions set forth herein.

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

ARTICLE 1

DEFINITIONS

     1.1 Definitions. Capitalized terms used in this Agreement and not otherwise defined
herein shall have the meanings ascribed to such terms in the Master Agreement. The following terms
shall have the meanings set forth in this Section 1.1:

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar
federal statute, and the rules and regulations promulgated by the SEC thereunder.

 

 

     “Excluded Registration” means a registration under the Securities Act of (i)
securities pursuant to one or more Demand Registrations pursuant to Section 2 hereof, (ii)
securities registered on Form S-8 or any similar successor form, and (iii) securities registered to
effect the acquisition of, or combination with, another Person.

     “Holder” means (i) Helix and (ii) any direct or indirect transferee of Helix who shall
become a party to this Agreement in accordance with Section 2.9 and has agreed in writing
to be bound by the terms of this Agreement.

     “Person” or “persons” means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust, unincorporated
organization or government or other agency or political subdivision thereof.

     “Register,” “registered” and “registration” refer to a registration
effected by preparing and filing a registration statement in compliance with the Securities Act,
and the declaration or ordering of the effectiveness of such registration statement.

     “Registrable Shares” means the Common Stock owned by the Holders, whether owned on the
date hereof or acquired hereafter; provided, however, that shares of Common Stock that, pursuant to
Section 3.1, no longer have registration rights hereunder shall not be considered
Registrable Shares.

     “Requesting Holders” shall mean any Holder(s) requesting to have its (their)
Registrable Shares included in any Demand Registration or Shelf Registration.

     “SEC” means the Securities and Exchange Commission or any other federal agency at the
time administering the Securities Act.

     “Securities Act” means the Securities Act of 1933, as amended, or any similar federal
statute, and the rules and regulations promulgated by the SEC thereunder.

     1.2 Other Terms. For purposes of this Agreement, the following terms have the
meanings set forth in the section or agreement indicated.

	 	 	 
	Term

	 	Section
	Adverse Effect

	 	Section 2.1.5
	Advice

	 	Section 2.6
	Affiliate

	 	Master Agreement
	Agreement

	 	Introductory Paragraph
	CCU

	 	Introductory Paragraph
	Common Stock

	 	Recitals
	Company

	 	Introductory Paragraph
	Demand Registration

	 	Section 2.1.1(a)
	Demanding Shareholders

	 	Section 2.1.1(a)
	Demand Request

	 	Section 2.1.1(a)
	Inspectors

	 	Section 2.5(xiii)
	IPO

	 	Recitals
	Master Agreement

	 	Recitals

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	Majority Holders

	 	Section 2.1.3
	NASD

	 	Section 2.5(q)
	No-Black-Out Period

	 	Section 2.1.6(b)
	Piggyback Registration

	 	Section 2.2.1
	Records

	 	Section 2.5(xiii)
	Registration Statement

	 	Recitals
	Required Filing Date

	 	Section 2.1.1(b)
	Seller Affiliates

	 	Section 2.8.1
	Shelf Registration

	 	Section 2.1.2
	Suspension Notice

	 	Section 2.6

1.3 Rules of Construction. Unless the context otherwise requires

          (1) a term has the meaning assigned to it;

          (2) “or” is not exclusive;

          (3) words in the singular include the plural, and words in the plural include the
singular;

          (4) provisions apply to successive events and transactions; and

          (5) “herein,” “hereof” and other words of similar import refer to this Agreement as a
whole and not to any particular Article, Section or other subdivision.

ARTICLE 2

REGISTRATION RIGHTS

2.1 Demand Registration.

2.1.1 Request for Registration.

(a) Commencing on the date hereof, any Holder or Holders of Registrable Shares shall
have the right to require the Company to file a registration statement on Form S-1,
S-2 or S-3 or any similar or successor to such forms under the Securities Act for a
public offering of all or part of its or their Registrable Shares (a “Demand
Registration”), by delivering to the Company written notice stating that such
right is being exercised, naming, if applicable, the Holders whose Registrable
Shares are to be included in such registration (collectively, the “Demanding
Shareholders”), specifying the number of each such Demanding Shareholder’s
Registrable Shares to be included in such registration and, subject to Section
2.1.3 hereof, describing the intended method of distribution thereof (a
“Demand Request”). The IPO Registration Statement shall not constitute a
Demand Registration for any purpose under this Agreement.

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(b) Each Demand Request shall specify the aggregate number of Registrable Shares
proposed to be sold. Subject to Section 2.1.6, the Company shall file the
registration statement in respect of a Demand Registration as soon as practicable
and, in any event, within forty-five (45) days after receiving a Demand Request (the
“Required Filing Date”) and shall use reasonable best efforts to cause the
same to be declared effective by the SEC as promptly as practicable after such
filing; provided, however, that:

(i) the Company shall not be obligated to effect a Demand Registration
pursuant to Section 2.1.1(a) (A) within 60 days after the effective
date of a previous Demand Registration, other than a Shelf Registration
pursuant to this Article 2, or (B) within 180 days after the
effective date of the IPO Registration Statement;

(ii) the Company shall not be obligated to effect a Demand Registration
pursuant to Section 2.1.1(a) unless the Demand Request is for a
number of Registrable Shares with a market value that is equal to at least
$150 million as of the date of such Demand Request; and

(iii) the Company shall not be obligated to effect pursuant to Section
2.1.1(a) (A) more than two Demand Registrations during the first 12
months following the date hereof or (B) more than three Demand Registrations
during any 12-month period thereafter.

     2.1.2 Shelf Registration. With respect to any Demand Registration, the
Requesting Holders may request the Company to effect a registration of the Common Stock
under a registration statement pursuant to Rule 415 under the Securities Act (or any
successor rule) (a “Shelf Registration”).

     2.1.3 Selection of Underwriters. At the request of Requesting Holders
representing a majority of shares subject to the Demand Registration (“Majority
Holders”), the offering of Registrable Shares pursuant to a Demand Registration shall be
in the form of a “firm commitment” underwritten offering. The Majority Holders shall select
the investment banking firm or firms to manage the underwritten offering, provided that such
selection shall be subject to the consent of the Company, which consent shall not be
unreasonably withheld or delayed. No Holder may participate in any registration pursuant to
Section 2.1.1 unless such Holder (x) agrees to sell such Holder’s Registrable Shares
on the basis provided in any underwriting arrangements described above and (y) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting arrangements;
provided, however, that no such Holder shall be required to make any representations or
warranties in connection with any such registration other than representations and
warranties as to (a) such Holder’s ownership of his or its Registrable Shares to be
transferred free and clear of all liens, claims, and encumbrances, (b) such Holder’s power
and authority to effect such transfer, and (c) such matters pertaining to compliance with
securities laws as may be reasonably requested; provided, further, however, that the
obligation of such Holder to indemnify

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pursuant to any such underwriting arrangements shall be several, not joint and several,
among such Holders selling Registrable Shares, and the liability of each such Holder will be
in proportion thereto, and provided, further, that such liability will be limited to the net
amount received by such Holder from the sale of his or its Registrable Shares pursuant to
such registration.

     2.1.4 Rights of Nonrequesting Holders. Upon receipt of any Demand Request, the
Company shall promptly (but in any event within ten (10) days) give written notice of such
proposed Demand Registration to all other Holders, who shall have the right, exercisable by
written notice to the Company within twenty (20) days of their receipt of the Company’s
notice, to elect to include in such Demand Registration such portion of their Registrable
Shares as they may request. All Holders requesting to have their Registrable Shares
included in a Demand Registration in accordance with the preceding sentence shall be deemed
to be “Requesting Holders” for purposes of this Section 2.1.

     2.1.5 Priority on Demand Registrations. No securities to be sold for the
account of any Person (including the Company) other than a Requesting Holder shall be
included in a Demand Registration unless the managing underwriter or underwriters shall
advise the Requesting Holders in writing that the inclusion of such securities will not
adversely affect the price, timing or distribution of the offering or otherwise adversely
affect its success (an “Adverse Effect”). Furthermore, if the managing underwriter
or underwriters shall advise the Requesting Holders that, even after exclusion of all
securities of other Persons pursuant to the immediately preceding sentence, the amount of
Registrable Shares proposed to be included in such Demand Registration by Requesting Holders
is sufficiently large to cause an Adverse Effect, the Registrable Shares of the Requesting
Holders to be included in such Demand Registration shall equal the number of shares which
the Requesting Holders are so advised can be sold in such offering without an Adverse Effect
and such shares shall be allocated pro rata among the Requesting Holders on the basis of the
number of Registrable Shares requested to be included in such registration by each such
Requesting Holder.

     2.1.6 Deferral of Filing.

(a) The Company may defer the filing (but not the preparation) of a registration
statement required by Section 2.1 until a date not later than ninety (90)
days after the Required Filing Date if (i) at the time the Company receives the
Demand Request, the Company or any of its Subsidiaries are engaged in confidential
negotiations or other confidential business activities, disclosure of which would be
required in such registration statement (but would not be required if such
registration statement were not filed), and the board of directors of the Company or
a committee of the board of directors of the Company determines in good faith that
such disclosure would be materially detrimental to the Company and its shareholders,
or (ii) prior to receiving the Demand Request, the Company had determined to effect
a registered underwritten public offering of the Company’s securities for the
Company’s account and the Company had taken substantial steps (including, but not
limited to, selecting a managing underwriter for such offering) and is proceeding
with reasonable diligence to effect such

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offering. A deferral of the filing of a registration statement pursuant to this
Section 2.1.6 shall be lifted, and the requested registration statement
shall be filed immediately, if, in the case of a deferral pursuant to clause (i) of
the preceding sentence, the negotiations or other activities are disclosed or
terminated, or, in the case of a deferral pursuant to clause (ii) of the preceding
sentence, the proposed registration for the Company’s account is abandoned. In
order to defer the filing of a registration statement pursuant to this Section
2.1.6, the Company shall promptly (but in any event within ten (10) days), upon
determining to seek such deferral, deliver to each Requesting Holder a certificate
signed by an executive officer of the Company stating that the Company is deferring
such filing pursuant to this Section 2.1.6 and a general statement of the
reason for such deferral and an approximation of the anticipated delay. Within
twenty (20) days after receiving such certificate, the Majority Holders for which
registration was previously requested may withdraw such Demand Request by giving
notice to the Company; if withdrawn, the Demand Request shall be deemed not to have
been made for all purposes of this Agreement. The Company may defer the filing of a
particular registration statement pursuant to this Section 2.1.6(a) only
once.

(b) Notwithstanding Section 2.1.6(a), with respect to two Demand
Registrations only, if Helix or any Affiliate thereof makes a request for any such
Demand Registration, the Company shall not have the right under Section
2.1.6(a) to defer the filing of such registration or to not file such
registration statement during the period from and including the date of this
Agreement through and including the second anniversary thereof (the
“No-Black-Out Period”).

2.2 Piggyback Registrations.

     2.2.1 Right to Piggyback. Each time the Company proposes to register any of
its equity securities (other than pursuant to an Excluded Registration or the IPO
Registration) under the Securities Act for sale to the public (whether for the account of
the Company or the account of any security holder of the Company) (a “Piggyback
Registration”), the Company shall give prompt written notice to each Holder of
Registrable Shares (which notice shall be given not less than twenty (20) days prior to the
anticipated filing date of the Company’s registration statement), which notice shall offer
each such Holder the opportunity to include any or all of its Registrable Shares in such
registration statement, subject to the limitations contained in Section 2.2.2
hereof. Each Holder who desires to have its Registrable Shares included in such
registration statement shall so advise the Company in writing (stating the number of shares
desired to be registered) within ten (10) days after the date of such notice from the
Company. Any Holder shall have the right to withdraw such Holder’s request for inclusion of
such Holder’s Registrable Shares in any registration statement pursuant to this Section
2.2.1 by giving written notice to the Company of such withdrawal. Subject to
Section 2.2.2 below, the Company shall include in such registration statement all
such Registrable Shares so requested to be included therein; provided, however, that the
Company may at any time withdraw or cease proceeding with any such registration if it shall
at the same time withdraw or cease proceeding with the registration of all other equity
securities originally proposed to be registered.

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2.2.2 Priority on Piggyback Registrations.

(a) If a Piggyback Registration is an underwritten offering and was initiated by the
Company, and if the managing underwriter advises the Company that the inclusion of
Registrable Shares requested to be included in the Registration Statement would
cause an Adverse Effect, the Company shall include in such registration statement
(i) first, the securities the Company proposes to sell, (ii) second, the Registrable
Shares requested to be included in such registration, pro rata among the Holders of
such Registrable Shares on the basis of the number of Registrable Shares owned by
each such Holder, and (iii) third, any other securities requested to be included in
such registration. If as a result of the provisions of this Section
2.2.2(a) any Holder shall not be entitled to include all Registrable Shares in a
registration that such Holder has requested to be so included, such Holder may
withdraw such Holder’s request to include Registrable Shares in such registration
statement.

(b) If a Piggyback Registration is an underwritten offering and was initiated by a
security holder of the Company, and if the managing underwriter advises the Company
that the inclusion of Registrable Shares requested to be included in the
Registration Statement would cause an Adverse Effect, the Company shall include in
such registration statement (i) first, the securities requested to be included
therein by the security holders requesting such registration and the Registrable
Shares requested to be included in such registration, pro rata among the holders of
such securities on the basis of the number of securities owned by each such holder,
and (ii) second, any other securities requested to be included in such registration
(including securities to be sold for the account of the Company). If as a result of
the provisions of this Section 2.2.2(b) any Holder shall not be entitled to
include all Registrable Shares in a registration that such Holder has requested to
be so included, such Holder may withdraw such Holder’s request to include
Registrable Shares in such registration statement.

(c) No Holder may participate in any registration statement in respect of a
Piggyback Registration hereunder unless such Holder (x) agrees to sell such Holder’s
Registrable Shares on the basis provided in any underwriting arrangements approved
by the Company and (y) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents, each in
customary form, reasonably required under the terms of such underwriting
arrangements; provided, however, that no such Holder shall be required to make any
representations or warranties in connection with any such registration other than
representations and warranties as to (i) such Holder’s ownership of his or its
Registrable Shares to be sold or transferred free and clear of all liens, claims,
and encumbrances, (ii) such Holder’s power and authority to effect such transfer,
and (iii) such matters pertaining to compliance with securities laws as may be
reasonably requested; provided, further, however, that the obligation of such Holder
to indemnify pursuant to any such underwriting arrangements shall be several, not
joint and several, among such Holders selling Registrable Shares, and the liability
of each such Holder will be in proportion to,

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and provided, further, that such liability will be limited to, the net amount
received by such Holder from the sale of his or its Registrable Shares pursuant to
such registration.

     2.2.3 Selection of Underwriters. If any Piggyback Registration is an
underwritten offering and any of the investment banking firms selected to manage the
offering was not one of the managers of the IPO, any such investment banking firm shall not
administer such offering if the Majority Holders included in such Piggyback Registration are
Helix or Affiliates thereof and such Holders reasonably object thereto.

2.3 SEC Form S-3. The Company shall use its commercially reasonable best efforts to
cause Demand Registrations to be registered on Form S-3 (or any successor form) once the Company
becomes eligible to use Form S-3, and if the Company is not then eligible under the Securities Act
to use Form S-3, Demand Registrations shall be registered on the form for which the Company then
qualifies. The Company shall use its commercially reasonable best efforts to become eligible to
use Form S-3 and, after becoming eligible to use Form S-3, shall use its commercially reasonable
best efforts to remain so eligible.

2.4 Holdback Agreements.

     2.4.1 The Company shall not effect any public sale or distribution of its equity
securities, or any securities convertible into or exchangeable or exercisable for such
securities, during the seven days prior to and during the 90-day period beginning on the
effective date of any registration statement in connection with a Demand Registration (other
than a Shelf Registration) or a Piggyback Registration, except pursuant to registrations on
Form S-4 or Form S-8 or any successor form or unless the underwriters managing any such
public offering otherwise agree.

     2.4.2 Except with the prior written consent of the Majority Holders of Registrable
Shares, such consent not to be withheld unless any such Holder intends to, or in good faith
believes that it is reasonably likely to, request a Demand Registration that could
reasonably be expected to be in registration or become effective during the No-Black-Out
Period, the Company shall not file during the No-Black-Out Period any registration statement
(except as part of a Demand Registration or pursuant to registrations on Forms S-4 or S-8 or
any successor forms) relating to the public sale or distribution of its equity securities,
or any securities convertible into or exchangeable or exercisable for such securities.

     2.4.3 If any Holders of Registrable Shares notify the Company in writing that they
intend to effect an underwritten sale of Common Stock registered pursuant to a Shelf
Registration pursuant to Article 2 hereof, the Company shall not effect any public
sale or distribution of its equity securities, or any securities convertible into or
exchangeable or exercisable for its equity securities, during the seven days prior to and
during the 90-day period beginning on the date such notice is received, except pursuant to
registrations on Form S-4 or Form S-8 or any successor form or unless the underwriters
managing any such public offering otherwise agree.

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     2.4.4 Each Holder agrees, in the event of an underwritten offering by the Company
(whether for the account of the Company or otherwise), not to offer, sell, contract to sell
or otherwise dispose of any Registrable Securities, or any securities convertible into or
exchangeable or exercisable for such securities, including any sale pursuant to Rule 144
under the Securities Act (except as part of such underwritten offering), during the seven
days prior to, and during the 90-day period (or such lesser period as the lead or managing
underwriters may require) beginning on, the effective date of the registration statement for
such underwritten offering (or, in the case of an offering pursuant to an effective shelf
registration statement pursuant to Rule 415, the pricing date for such underwritten
offering).

     2.5 Registration Procedures. Whenever any Holder has requested that any Registrable
Shares be registered pursuant to this Agreement, the Company will use its commercially reasonable
best efforts to effect the registration and the sale of such Registrable Shares in accordance with
the intended method of disposition thereof as promptly as is practicable, and pursuant thereto the
Company will as expeditiously as possible:

(a) prepare and file with the SEC, pursuant to Section 2.1.1(b) with respect
to any Demand Registration, a registration statement on any appropriate form under
the Securities Act with respect to such Registrable Shares and use its commercially
reasonable best efforts to cause such registration statement to become effective,
provided that as far in advance as practicable before filing such registration
statement or any amendment thereto, the Company will furnish to the selling Holders
copies of reasonably complete drafts of all such documents prepared to be filed
(including exhibits), and any such Holder shall have the opportunity to object to
any information contained therein and the Company will make corrections reasonably
requested by such Holder with respect to such information prior to filing any such
registration statement or amendment;

(b) except in the case of a Shelf Registration, prepare and file with the SEC such
amendments, post-effective amendments, and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to
keep such registration statement effective for a period of not less than one hundred
eighty (180) days (or such lesser period as is necessary for the underwriters in an
underwritten offering to sell unsold allotments) and comply with the provisions of
the Securities Act with respect to the disposition of all securities covered by such
registration statement during such period in accordance with the intended methods of
disposition by the sellers thereof set forth in such registration statement;

(c) in the case of a Shelf Registration, prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement
effective and to comply with the provisions of the Securities Act with respect to
the disposition of all Registrable Shares subject thereto for a period ending on the
earlier of (x) 24 months after the effective date of such registration

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statement and (y) the date on which all the Registrable Shares subject thereto have
been sold pursuant to such registration statement;

(d) furnish to each seller of Registrable Shares and the underwriters of the
securities being registered such number of copies of such registration statement,
each amendment and supplement thereto, the prospectus included in such registration
statement (including each preliminary prospectus), any documents incorporated by
reference therein and such other documents as such seller or underwriters may
reasonably request in order to facilitate the disposition of the Registrable Shares
owned by such seller or the sale of such securities by such underwriters (it being
understood that, subject to Section 2.6 and the requirements of the
Securities Act and applicable state securities laws, the Company consents to the use
of the prospectus and any amendment or supplement thereto by each seller and the
underwriters in connection with the offering and sale of the Registrable Shares
covered by the registration statement of which such prospectus, amendment or
supplement is a part);

(e) use its commercially reasonable best efforts to register or qualify such
Registrable Shares under such other securities or blue sky laws of such
jurisdictions as the managing underwriter reasonably requests (or, in the event the
registration statement does not relate to an underwritten offering, as the Majority
Holders may reasonably request); use its commercially reasonable best efforts to
keep each such registration or qualification (or exemption therefrom) effective
during the period in which such registration statement is required to be kept
effective; and do any and all other acts and things which may be reasonably
necessary or advisable to enable each seller to consummate the disposition of the
Registrable Shares owned by such seller in such jurisdictions (provided, however,
that the Company will not be required to (i) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
subparagraph or (ii) consent to general service of process in any such
jurisdiction);

(f) promptly notify each seller and each underwriter and (if requested by any such
Person) confirm such notice in writing (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed and, with respect to a
registration statement or any post-effective amendment, when the same has become
effective, (ii) of the issuance by any state securities or other regulatory
authority of any order suspending the qualification or exemption from qualification
of any of the Registrable Shares under state securities or “blue sky” laws or the
initiation of any proceedings for that purpose, and (iii) of the happening of any
event which makes any statement made in a registration statement or related
prospectus untrue or which requires the making of any changes in such registration
statement, prospectus or documents so that they will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and, as
promptly as practicable thereafter, prepare and file with the SEC and furnish a
supplement or amendment to such prospectus so that, as

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thereafter deliverable to the purchasers of such Registrable Shares, such prospectus
will not contain any untrue statement of a material fact or omit a material fact
necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading;

(g) permit any selling Holder, which in such Holder’s sole and exclusive judgment,
might reasonably be deemed to be an underwriter or a controlling person of the
Company, to participate in the preparation of such registration or comparable
statement and to require the insertion therein of material, furnished to the Company
in writing, which in the reasonable judgment of such Holder and its counsel should
be included;

(h) make reasonably available members of management of the Company, as selected by
the Majority Holders, for assistance in the selling effort relating to the
Registrable Shares covered by such registration, including, but not limited to, the
participation of such members of the Company’s management in road show
presentations;

(i) otherwise use its commercially reasonable best efforts to comply with all
applicable rules and regulations of the SEC, including the Securities Act and the
Exchange Act and the rules and regulations promulgated thereunder, and make
generally available to the Company’s security holders an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act no later than
thirty (30) days after the end of the twelve (12) month period beginning with the
first day of the Company’s first fiscal quarter commencing after the effective date
of a registration statement, which earnings statement shall cover said twelve (12)
month period, and which requirement will be deemed to be satisfied if the Company
timely files complete and accurate information on Forms 10-Q, 10-K and 8-K under the
Exchange Act and otherwise complies with Rule 158 under the Securities Act;

(j) if requested by the managing underwriter or any seller, promptly incorporate in
a prospectus supplement or post-effective amendment such information as the managing
underwriter or any seller reasonably requests to be included therein, including,
without limitation, with respect to the Registrable Shares being sold by such
seller, the purchase price being paid therefor by the underwriters and with respect
to any other terms of the underwritten offering of the Registrable Shares to be sold
in such offering, and promptly make all required filings of such prospectus
supplement or post-effective amendment;

(k) as promptly as practicable after filing with the SEC of any document which is
incorporated by reference into a registration statement (in the form in which it was
incorporated), deliver a copy of each such document to each seller;

(l) cooperate with the sellers and the managing underwriter to facilitate the timely
preparation and delivery of certificates (which shall not bear any restrictive
legends unless required under applicable law) representing securities sold under

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any registration statement, and enable such securities to be in such denominations
and registered in such names as the managing underwriter or such sellers may request
and keep available and make available to the Company’s transfer agent prior to the
effectiveness of such registration statement a supply of such certificates;

(m) promptly make available for inspection by any seller, any underwriter
participating in any disposition pursuant to any registration statement, and any
attorney, accountant or other agent or representative retained by any such seller or
underwriter (collectively, the “Inspectors”), all financial and other
records, pertinent corporate documents and properties of the Company (collectively,
the “Records”), as shall be reasonably necessary to enable them to exercise
their due diligence responsibility, and cause the Company’s officers, directors and
employees to supply all information requested by any such Inspector in connection
with such registration statement; provided, however, that, unless the disclosure of
such Records is necessary to avoid or correct a misstatement or omission in the
registration statement or the release of such Records is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction, the Company shall
not be required to provide any information under this subparagraph if (i) the
Company believes, after consultation with counsel for the Company, that to do so
would cause the Company to forfeit an attorney-client privilege that was applicable
to such information or (ii) if either (A) the Company has requested and been granted
from the SEC confidential treatment of such information contained in any filing with
the SEC or documents provided supplementally or otherwise or (B) the Company
reasonably determines in good faith that such Records are confidential and so
notifies the Inspectors in writing, unless prior to furnishing any such information
with respect to clause (ii) such Holder of Registrable Shares requesting such
information agrees to enter into a confidentiality agreement in customary form and
subject to customary exceptions; and provided, further, that each Holder of
Registrable Shares agrees that it will, upon learning that disclosure of such
Records is sought in a court of competent jurisdiction, give notice to the Company
and allow the Company, at its expense, to undertake appropriate action and to
prevent disclosure of the Records deemed confidential;

(n) furnish to each seller and underwriter a signed counterpart of (i) an opinion or
opinions of counsel to the Company, and (ii) a comfort letter or comfort letters
from the Company’s independent public accountants, each in customary form and
covering such matters of the type customarily covered by opinions or comfort
letters, as the case may be, as the sellers or managing underwriter reasonably
requests;

(o) cause the Registrable Shares included in any registration statement to be (i)
listed on each securities exchange, if any, on which similar securities issued by
the Company are then listed, or (ii) quoted on the National Association of
Securities Dealers, Inc. Automated Quotation System or the Nasdaq National Market if
similar securities issued by the Company are quoted thereon;

- 12 -

 

(p) provide a transfer agent and registrar for all Registrable Securities registered
hereunder;

(q) cooperate with each seller and each underwriter participating in the disposition
of such Registrable Shares and their respective counsel in connection with any
filings required to be made with the National Association of Securities Dealers,
Inc. (“NASD”);

(r) during the period when the prospectus is required to be delivered under the
Securities Act, promptly file all documents required to be filed with the SEC
pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act;

(s) notify each seller of Registrable Shares promptly of any request by the SEC for
the amending or supplementing of such registration statement or prospectus or for
additional information;

(t) enter into such agreements (including underwriting agreements in the managing
underwriter’s customary form) as are customary in connection with an underwritten
registration; and

(u) advise each seller of such Registrable Shares, promptly after it shall receive
notice or obtain knowledge thereof, of the issuance of any stop order by the SEC
suspending the effectiveness of such registration statement or the initiation or
threatening of any proceeding for such purpose and promptly use its commercially
reasonable best efforts to prevent the issuance of any stop order or to obtain its
withdrawal at the earliest possible moment if such stop order should be issued.

     2.6 Suspension of Dispositions. Each Holder agrees by acquisition of any Registrable
Shares that, upon receipt of any notice (a “Suspension Notice”) from the Company of the
happening of any event of the kind described in Section 2.5(f)(iii) such Holder will
forthwith discontinue disposition of Registrable Shares until such Holder’s receipt of the copies
of the supplemented or amended prospectus, or until it is advised in writing (the “Advice”)
by the Company that the use of the prospectus may be resumed, and has received copies of any
additional or supplemental filings which are incorporated by reference in the prospectus, and, if
so directed by the Company, such Holder will deliver to the Company all copies, other than
permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable
Shares current at the time of receipt of such notice. In the event the Company shall give any such
notice, the time period regarding the effectiveness of registration statements set forth in
Sections 2.5(b) and 2.5(c) hereof shall be extended by the number of days during the period
from and including the date of the giving of the Suspension Notice to and including the date when
each seller of Registrable Shares covered by such registration statement shall have received the
copies of the supplemented or amended prospectus or the Advice. The Company shall use its
commercially reasonable best efforts and take such actions as are reasonably necessary to render
the Advice as promptly as practicable.

- 13 -

 

     2.7 Registration Expenses.

     2.7.1 Demand Registrations. All reasonable, out-of-pocket fees and expenses
incident to any Demand Registration including, without limitation, the Company’s performance
of or compliance with this Article 2, all registration and filing fees, all fees and
expenses associated with filings required to be made with the NASD (including, if
applicable, the reasonable fees and expenses of any “qualified independent underwriter” as
such term is defined in Schedule E of the Bylaws of the NASD, and of its counsel), as may be
required by the rules and regulations of the NASD, fees and expenses of compliance with
securities or “blue sky” laws (including reasonable fees and disbursements of counsel in
connection with “blue sky” qualifications of the Registrable Shares), rating agency fees,
printing expenses (including expenses of printing certificates for the Registrable Shares in
a form eligible for deposit with Depository Trust Company and of printing prospectuses if
the printing of prospectuses is requested by a Holder of Registrable Shares), messenger and
delivery expenses, the fees and expenses incurred in connection with any listing or
quotation of the Registrable Shares, fees and expenses of counsel for the Company and its
independent certified public accountants (including the expenses of any special audit or
“cold comfort” letters required by or incident to such performance), and the fees and
expenses of any special experts retained by the Company in connection with such
registration, will be borne by the Holders pro rata on the basis of the number of shares
subject to the Demand Registration whether or not any registration statement becomes
effective, and any underwriting discounts, commissions, or fees attributable to the sale of
the Registrable Shares, will be borne by the Holders pro rata on the basis of the number of
shares so registered and the fees and expenses of any counsel, accountants, or other persons
retained or employed by any Holder will be borne by such Holder.

     2.7.2 Piggyback Registrations. All fees and expenses incident to any Piggyback
Registration including, without limitation, the Company’s performance of or compliance with
this Article 2, all registration and filing fees, all fees and expenses associated
with filings required to be made with the NASD (including, if applicable, the reasonable
fees and expenses of any “qualified independent underwriter” as such term is defined in
Schedule E of the Bylaws of the NASD, and of its counsel), as may be required by the rules
and regulations of the NASD, fees and expenses of compliance with securities or “blue sky”
laws (including reasonable fees and disbursements of counsel in connection with “blue sky”
qualifications of the Registrable Shares), rating agency fees, printing expenses (including
expenses of printing certificates for the Registrable Shares in a form eligible for deposit
with Depository Trust Company and of printing prospectuses), messenger and delivery
expenses, the fees and expenses incurred in connection with any listing or quotation of the
Registrable Shares, fees and expenses of counsel for the Company and its independent
certified public accountants (including the expenses of any special audit or “cold comfort”
letters required by or incident to such performance), the fees and expenses of any special
experts retained by the Company in connection with such registration, and the fees and
expenses of other persons retained by the Company, will be borne by the Company (unless paid
by a security holder that is not a Holder for whose account the registration is being
effected) whether or not any registration statement becomes effective; provided, however,
that any underwriting discounts,

- 14 -

 

commissions, or fees attributable to the sale of the Registrable Shares will be borne
by the Holders pro rata on the basis of the number of shares so registered and the fees and
expenses of any counsel, accountants, or other persons retained or employed by any Holder
will be borne by such Holder.

2.8 Indemnification.

     2.8.1 The Company agrees to indemnify and reimburse, to the fullest extent permitted by
law, each seller of Registrable Shares, and each of its employees, advisors, agents,
representatives, partners, officers, and directors and each Person who controls such seller
(within the meaning of the Securities Act or the Exchange Act) and any agent or investment
advisor thereof (collectively, the “Seller Affiliates”) (a) against any and all
losses, claims, damages, liabilities, and expenses, joint or several (including, without
limitation, attorneys’ fees and disbursements except as limited by Section 2.8.3)
based upon, arising out of, related to or resulting from any untrue or alleged untrue
statement of a material fact contained in any registration statement, prospectus, or
preliminary prospectus or any amendment thereof or supplement thereto, or any omission or
alleged omission of a material fact required to be stated therein or necessary to make the
statements therein not misleading, (b) against any and all loss, liability, claim, damage,
and expense whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation or investigation or proceeding by any governmental agency or
body, commenced or threatened, or of any claim whatsoever based upon, arising out of,
related to or resulting from any such untrue statement or omission or alleged untrue
statement or omission, and (c) against any and all costs and expenses (including reasonable
fees and disbursements of counsel) as may be reasonably incurred in investigating,
preparing, or defending against any litigation, or investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon,
arising out of, related to or resulting from any such untrue statement or omission or
alleged untrue statement or omission, or such violation of the Securities Act or Exchange
Act, to the extent that any such expense or cost is not paid under subparagraph (a) or (b)
above; except insofar as any such statements are made in reliance upon and in strict
conformity with information furnished in writing to the Company by such seller or any Seller
Affiliate for use therein or arise from such seller’s or any Seller Affiliate’s failure to
deliver a copy of the registration statement or prospectus or any amendments or supplements
thereto after the Company has furnished such seller or Seller Affiliate with a sufficient
number of copies of the same. The reimbursements required by this Section 2.8.1
will be made by periodic payments during the course of the investigation or defense, as and
when bills are received or expenses incurred.

     2.8.2 In connection with any registration statement in which a seller of Registrable
Shares is participating, each such seller will furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in connection with any
such registration statement or prospectus and, to the fullest extent permitted by law, each
such seller will indemnify the Company and each of its employees, advisors, agents,
representatives, partners, officers and directors and each Person who controls the Company
(within the meaning of the Securities Act or the

- 15 -

 

Exchange Act) and any agent or investment advisor thereof against any and all losses,
claims, damages, liabilities, and expenses (including, without limitation, reasonable
attorneys’ fees and disbursements except as limited by Section 2.8.3) resulting from
any untrue statement or alleged untrue statement of a material fact contained in the
registration statement, prospectus, or any preliminary prospectus or any amendment thereof
or supplement thereto or any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, but only to the
extent that such untrue statement or alleged untrue statement or omission or alleged
omission is contained in any information or affidavit so furnished in writing by such seller
or any of its Seller Affiliates specifically for inclusion in the registration statement;
provided that the obligation to indemnify will be several, not joint and several, among such
sellers of Registrable Shares, and the liability of each such seller of Registrable Shares
will be in proportion to, and will be limited to, the net amount received by such seller
from the sale of Registrable Shares pursuant to such registration statement; provided,
however, that such seller of Registrable Shares shall not be liable in any such case to the
extent that prior to the filing of any such registration statement or prospectus or
amendment thereof or supplement thereto, such seller has furnished in writing to the Company
information expressly for use in such registration statement or prospectus or any amendment
thereof or supplement thereto which corrected or made not misleading information previously
furnished to the Company.

     2.8.3 Any Person entitled to indemnification hereunder will (a) give prompt written
notice to the indemnifying party of any claim with respect to which it seeks indemnification
(provided that the failure to give such notice shall not limit the rights of such Person)
and (b) unless in such indemnified party’s reasonable judgment a conflict of interest
between such indemnified and indemnifying parties may exist with respect to such claim,
permit such indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided, however, 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 (x) the indemnifying party has agreed to pay such fees or
expenses, or (y) the indemnifying party shall have failed to assume the defense of such
claim and employ counsel reasonably satisfactory to such person. If such defense is not
assumed by the indemnifying party as permitted hereunder, the indemnifying party will not be
subject to any liability for any settlement made by the indemnified party without its
consent (but such consent will not be unreasonably withheld). If such defense is assumed by
the indemnifying party pursuant to the provisions hereof, such indemnifying party shall not
settle or otherwise compromise the applicable claim unless (1) such settlement or compromise
contains a full and unconditional release of the indemnified party or (2) the indemnified
party otherwise consents in writing. An indemnifying party who is not entitled to, or
elects not to, assume the defense of a claim will not be obligated to pay the fees and
expenses of more than one counsel for all parties indemnified by such indemnifying party
with respect to such claim, unless in the reasonable judgment of any indemnified party, a
conflict of interest may exist between such indemnified party and any other of such
indemnified parties with respect to such claim, in which event the indemnifying party shall
be

- 16 -

 

obligated to pay the reasonable fees and disbursements of such additional counsel or
counsels.

     2.8.4 Each party hereto agrees that, if for any reason the indemnification provisions
contemplated by Section 2.8.1 or Section 2.8.2 are unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, claims,
damages, liabilities, or expenses (or actions in respect thereof) referred to therein, then
each indemnifying party shall contribute to the amount paid or payable by such indemnified
party as a result of such losses, claims, liabilities, or expenses (or actions in respect
thereof) in such proportion as is appropriate to reflect the relative fault of the
indemnifying party and the indemnified party in connection with the actions which resulted
in the losses, claims, damages, liabilities or expenses as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and indemnified
party shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact
relates to information supplied by such indemnifying party or indemnified party, and the
parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 2.8.4 were determined by pro rata
allocation (even if the Holders or any underwriters or all of them were treated as one
entity for such purpose) or by any other method of allocation which does not take account of
the equitable considerations referred to in this Section 2.8.4. The amount paid or
payable by an indemnified party as a result of the losses, claims, damages, liabilities, or
expenses (or actions in respect thereof) referred to above shall be deemed to include any
legal or other fees or expenses reasonably incurred by such indemnified party in connection
with investigating or, except as provided in Section 2.8.3, defending any such
action or claim. Notwithstanding the provisions of this Section 2.8.4, no Holder
shall be required to contribute an amount greater than the dollar amount by which the net
proceeds received by such Holder with respect to the sale of any Registrable Shares exceeds
the amount of damages which such Holder has otherwise been required to pay by reason of any
and all untrue or alleged untrue statements of material fact or omissions or alleged
omissions of material fact made in any registration statement, prospectus or preliminary
prospectus or any amendment thereof or supplement thereto related to such sale of
Registrable Shares. 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 Holders’ obligations in this
Section 2.8.4 to contribute shall be several in proportion to the amount of
Registrable Shares registered by them and not joint.

     If indemnification is available under this Section 2.8, the indemnifying
parties shall indemnify each indemnified party to the full extent provided in Section
2.8.1 and Section 2.8.2 without regard to the relative fault of said
indemnifying party or indemnified party or any other equitable consideration provided for in
this Section 2.8.4 subject, in the case of the Holders, to the limited dollar
amounts set forth in Section 2.8.2.

- 17 -

 

     2.8.5 The indemnification and contribution provided for under this Agreement will
remain in full force and effect regardless of any investigation made by or on behalf of the
indemnified party or any officer, director, or controlling Person of such indemnified party
and will survive the transfer of securities.

     2.9 Transfer of Registration Rights. The rights of each Holder under this Agreement
may be assigned to any direct or indirect transferee of a Holder who agrees in writing to be
subject to and bound by all the terms and conditions of this Agreement.

     2.10 Rule 144. The Company will file the reports required to be filed by it under
the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder
(or, if the Company is not required to file such reports, will, upon the request of the Holders,
make publicly available other information) and will take such further action as the Holders may
reasonably request, all to the extent required from time to time to enable the Holders to sell
Common Stock without registration under the Securities Act within the limitation of the exemptions
provided by (i) Rule 144 under the Securities Act, as such rule may be amended from time to time or
(ii) any similar rule or regulation hereafter adopted by the SEC. Upon the reasonable request of
any Holder, the Company will deliver to such parties a written statement as to whether it has
complied with such requirements and will, at its expense, immediately upon the request of any such
Holder, deliver to such Holder a certificate, signed by the Company’s principal financial officer,
stating (a) the Company’s name, address and telephone number (including area code), (b) the
Company’s Internal Revenue Service identification number, (c) the Company’s SEC file number, (d)
the number of shares of each class of capital stock outstanding as shown by the most recent report
or statement published by the Company, and (e) whether the Company has filed the reports required
to be filed under the Exchange Act for a period of at least ninety (90) days prior to the date of
such certificate and in addition has filed the most recent annual report required to be filed
thereunder.

     2.11 Preservation of Rights. The Company will not (a) grant any registration rights
to third parties which are more favorable than or inconsistent with the rights granted hereunder or
(b) enter into any agreement, take any action, or permit any change to occur, with respect to its
securities that violates or subordinates the rights expressly granted to the Holders in this
Agreement.

ARTICLE 3

TERMINATION

     3.1 Termination. The Holders may exercise the registration rights granted hereunder
in such manner and proportions as they shall agree among themselves. The registration rights
hereunder shall cease to apply to any particular Registrable Share when: (a) a registration
statement with respect to the sale of such shares of Common Stock shall have become effective under
the Securities Act and such shares of Common Stock shall have been disposed of in accordance with
such registration statement; (b) such shares of Common Stock shall have been sold to the public
pursuant to Rule 144 under the Securities Act (or any successor provision); (c) such shares of
Common Stock shall have been otherwise transferred, new certificates for them not bearing a legend
restricting further transfer shall have been delivered by the Company and subsequent public
distribution of them shall not require registration or qualification of them

- 18 -

 

under the Securities Act or any similar state law then in force; (d) such shares shall have
ceased to be outstanding or (e) in the case of Registrable Shares held by a Holder that is not
Helix or any Affiliate thereof, such Holder holds less than three percent (3%) of the then
outstanding Registrable Shares and such Registrable Shares are eligible for sale pursuant to Rule
144(k) under the Securities Act (or any successor provision). The Company shall promptly upon the
request of any Holder furnish to such Holder evidence of the number of Registrable Shares then
outstanding.

ARTICLE 4

MISCELLANEOUS

     4.1 Notices. All notices, requests, claims, demands and other communications under
this Agreement shall be in writing and shall be given or made (and shall be deemed to have been
duly given or made upon receipt) by delivery in person, by overnight courier service, by facsimile
with receipt confirmed (followed by delivery of an original via overnight courier service) or by
registered or certified mail (postage prepaid, return receipt requested) to the respective parties
at the following addresses (or at such other address for a party as shall be specified in a notice
given in accordance with this Section 4.1):

If to the Company:

Cal Dive International, Inc.

400 N. Sam Houston Parkway East, Suite 400

Houston, Texas 77060

Attention: President

Fax:

If to Helix:

Helix Energy Solutions Group, Inc.

400 N. Sam Houston Parkway East, Suite 400

Houston, Texas 77060

Attention: President

Fax:

If to any other Holder:

The address indicated for such Holder in the Company’s stock transfer
records with copies, so long as Helix owns any Registrable Shares, to
Helix as provided above.

     Any notice or communication hereunder shall be deemed to have been given or made as of the
date so delivered if personally delivered; when answered back, if telexed; when receipt is
acknowledged, if telecopied; and five (5) calendar days after mailing if sent by registered or
certified mail (except that a notice of change of address shall not be deemed to have been given
until actually received by the addressee).

     Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it.

- 19 -

 

     4.2 Authority. Each of the parties hereto represents to the other that (a) it has the
corporate power and authority to execute, deliver and perform this Agreement, (b) the execution,
delivery and performance of this Agreement by it has been duly authorized by all necessary
corporate action and no such further action is required, (c) it has duly and validly executed and
delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation,
enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and general
equity principles.

     4.3 Governing Law. This Agreement shall be governed by and construed and interpreted
in accordance with the laws of the State of New York irrespective of the choice of laws principles
of the State of New York other than Section 5-1401 of the General Obligations Law of the State of
New York.

     4.4 Successors and Assigns. Except as otherwise expressly provided herein, this
Agreement shall be binding upon and benefit the Company, each Holder, and their respective
successors and assigns.

     4.5 Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced under any Law or as a matter of public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect.
Upon such determination that any term or other provision is invalid, illegal or incapable of being
enforced, the parties to this Agreement shall negotiate in good faith to modify this Agreement so
as to effect the original intent of the parties as closely as possible in a mutually acceptable
manner in order that the transactions contemplated by this Agreement be consummated as originally
contemplated to the greatest extent possible.

     4.6 Remedies. Any dispute, controversy or claim arising out of, or relating to, the
transactions contemplated by this Agreement, or the validity, interpretation, breach or termination
of any provision of this Agreement shall be resolved in accordance with Article VII of the Master
Agreement.

     4.7 Waivers. The observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively) by the party
entitled to enforce such term, but such waiver shall be effective only if it is in a writing signed
by the party against whom the existence of such waiver is asserted. Unless otherwise expressly
provided in this Agreement, no delay or omission on the part of any party in exercising any right
or privilege under this Agreement shall operate as a waiver thereof, nor shall any waiver on the
part of any party of any right or privilege under this Agreement operate as a waiver of any other
right or privilege under this Agreement nor shall any single or partial exercise of any right or
privilege preclude any other or further exercise thereof or the exercise of any other right or
privilege under this Agreement. No failure by either party to take any action or assert any right
or privilege hereunder shall be deemed to be a waiver of such right or privilege in the event of
the continuation or repetition of the circumstances giving rise to such right unless expressly
waived in writing by the party against whom the existence of such waiver is asserted.

- 20 -

 

     4.8 Amendment. This Agreement may not be amended or modified in any respect except by
a written agreement signed by the Company, Helix (so long as Helix owns any Common Stock) and the
Majority Holders (if other than Helix).

     4.9 Counterparts. This Agreement may be executed in one or more counterparts, and by
the different parties to each such agreement in separate counterparts, each of which when executed
shall be deemed to be an original but all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile
or electronic mail shall be as effective as delivery of a manually executed counterpart of any such
Agreement.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

- 21 -

 

     IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights Agreement to be
duly executed as of the date first written above.

	 	 	 	 	 	 	 
	 	 	HELIX ENERGY SOLUTIONS GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CAL DIVE INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

S-1exv10w4

 

Exhibit 10.4

TAX MATTERS AGREEMENT

BY AND BETWEEN

HELIX ENERGY SOLUTIONS GROUP, INC.

AND

CAL DIVE INTERNATIONAL, INC.

Dated as of ___________, 2006

 

 

	 	 	 	 	 
	Section 1. Definition and Construction
	 	 	2	 
	Section 1.1. Definitions of Capitalized Terms
	 	 	2	 
	Section 1.2. Construction
	 	 	9	 
	Section 2. Indemnification; Allocation of Responsibility for Taxes
	 	 	9	 
	Section 2.1. Indemnification
	 	 	9	 
	Section 2.2. Allocation of Federal Income Taxes
	 	 	9	 
	Section 2.3. Allocation of State Income Taxes
	 	 	10	 
	Section 2.4. Foreign Income Taxes
	 	 	10	 
	Section 2.5. Allocation of Other Taxes
	 	 	11	 
	Section 2.6. Restructuring Taxes; Additional Taxes
	 	 	11	 
	Section 3. Proration of Taxes; Allocation of Tax Items
	 	 	12	 
	Section 3.1. Proration of Tax Items
	 	 	12	 
	Section 3.2. Allocation of Tax Assets and Earnings & Profits
	 	 	13	 
	Section 3.3. Parent Equity Awards
	 	 	13	 
	Section 3.4. Separation Transactions Occurring After the IPO Closing Date
	 	 	14	 
	Section 4. Preparation and Filing of Tax Returns
	 	 	14	 
	Section 4.1. Parent’s Responsibility
	 	 	14	 
	Section 4.2. Cal Dive Filed Returns
	 	 	15	 
	Section 4.3. Tax Accounting Practices
	 	 	15	 
	Section 4.4. Right to Review Combined Tax Returns
	 	 	16	 
	Section 4.5. Adjustment Requests; Carrybacks; Utilization of Tax Assets
	 	 	16	 
	Section 5. Payments Under this Agreement
	 	 	17	 
	Section 5.1. Joint Taxes
	 	 	17	 
	Section 5.2. Payments to Tax Authority
	 	 	18	 
	Section 5.3. Timing of Payments
	 	 	18	 
	Section 5.4. Tax Treatment of Payments
	 	 	18	 
	Section 5.5. Interest
	 	 	19	 
	Section 5.6. Refunds
	 	 	19	 
	Section 5.7. Payments by or to Other Members of the Groups
	 	 	19	 
	Section 5.8. Tax Benefits from Payment of Taxes
	 	 	19	 
	Section 6. Assistance and Cooperation; Retention of Tax Records
	 	 	20	 
	Section 6.1. Assistance and Cooperation
	 	 	20	 
	Section 6.2. Tax Records
	 	 	20	 

i

 

	 	 	 	 	 
	Section 7. Tax Contests
	 	 	21	 
	Section 7.1. Notice
	 	 	21	 
	Section 7.2. Control of Tax Contests
	 	 	21	 
	Section 7.3. Reimbursement of Expenses
	 	 	22	 
	Section 8. Continuing Covenants
	 	 	22	 
	Section 9. Dispute Resolution
	 	 	22	 
	Section 10. General Provisions
	 	 	23	 
	Section 10.1. Effectiveness; Termination of Prior Tax Allocation Agreements
	 	 	23	 
	Section 10.2. Survival of Obligations
	 	 	23	 
	Section 10.3. Addresses and Notices
	 	 	23	 
	Section 10.4. Binding Effect
	 	 	24	 
	Section 10.5. Waiver
	 	 	24	 
	Section 10.6. Invalidity of Provisions
	 	 	24	 
	Section 10.7. Further Action
	 	 	24	 
	Section 10.8. Integration
	 	 	24	 
	Section 10.9. Construction
	 	 	25	 
	Section 10.10. No Double Recovery
	 	 	25	 
	Section 10.11. Setoff
	 	 	25	 
	Section 10.12. Counterparts
	 	 	25	 
	Section 10.13. No Third Party Rights
	 	 	25	 
	Section 10.14. Governing Law
	 	 	25	 

ii

 

TAX MATTERS AGREEMENT

     This Tax Matters Agreement (this “Agreement”) is entered into as of ___, 2006,
by and between Helix Energy Solutions Group, Inc., a Minnesota corporation (“Parent”), and
Cal Dive International, Inc., a Delaware corporation and a wholly-owned subsidiary of Parent
(“Cal Dive”).

Recitals

     Whereas, as of the date hereof, Cal Dive is a direct wholly owned subsidiary of
Parent;

     Whereas, Parent is the common parent corporation of an affiliated group (as defined
in Section 1504 of the Code) of corporations (the “Parent Consolidated Group”) that has
elected to file consolidated U.S. federal income tax returns;

     Whereas, the Parent Consolidated Group has included Cal Dive and its direct and
indirect eligible domestic Subsidiaries;

     Whereas, certain Parent Group Members, on the one hand, and certain Cal Dive Group
Members, on the other hand, file Income Tax Returns on a consolidated, combined and/or unitary
basis for certain State Income Tax and Foreign Income Tax purposes;

     Whereas, Parent and Cal Dive currently contemplate that Cal Dive will make an initial
public offering (“IPO”) of shares of Cal Dive common stock pursuant to a registration
statement on Form S-1 filed pursuant to the Securities Act of 1933, as amended;

     Whereas, as a result of the IPO, Cal Dive and its direct and indirect eligible
domestic Subsidiaries will cease to be members of the Parent Consolidated Group, and Parent Group
Members and Cal Dive Group Members will cease to file Income Tax Returns on a consolidated,
combined and/or unitary basis for State Income Tax and Foreign Income Tax purposes;

     Whereas, following the IPO, Cal Dive will be a common parent corporation of an
affiliated group of corporations, which will elect to file consolidated U.S. federal income tax
returns; and

     Whereas, in contemplation of the IPO, the Companies desire to enter into this
Agreement to provide for the allocation among them of the liabilities for Taxes arising prior to,
as a result of and subsequent to the IPO, and to provide for and agree upon other matters relating
to Taxes;

Agreements

     Now, Therefore, in consideration of the mutual agreements contained herein, the
Companies hereby agree as follows:

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Section 1. Definition and Construction.

     Section 1.1. Definitions of Capitalized Terms.

     For purposes of this Agreement (including the recitals hereof), the following capitalized
terms shall have the meanings set forth below:

     “Additional Tax” means:

	 	(a)	 	with respect to any Post-IPO Event that affects the amount of
any Tax imposed on or attributable to any Group Member for which Parent is
otherwise responsible under this Agreement, an amount equal to the excess (if
any) of (1) the cumulative amount of Tax for which Parent is otherwise
responsible under this Agreement determined after taking into account any and
all Post-IPO Events, over (2) the cumulative amount of Tax that Parent would
otherwise be responsible for under this Agreement determined without taking
into account any Post-IPO Event; and
	 
	 	(b)	 	subject to clause (a) and without duplication, with respect to
any Post-IPO Event that affects a Tax Asset of any Group Member, an amount
equal to the Tax Benefits from such Tax Asset that Parent would have otherwise
recognized if such Post-IPO Event had not occurred.

     “Adjustment Request” means any formal or informal claim or request filed with any Tax
Authority, or with any administrative agency or court, for the adjustment, refund or credit of
Taxes, including (i) any amended Tax Return claiming adjustment to the Taxes as reported on the Tax
Return or, if applicable, as previously adjusted, or (ii) any claim for refund or credit of Taxes
previously paid.

     “Affiliate” means any Person that directly or indirectly is “controlled” by the other
Person in question. For purposes of the term Affiliate, “controlled” means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting securities, by contract or otherwise.
Except as otherwise provided herein, the term Affiliate shall refer to Affiliates of a Person as
determined after the IPO.

     “Agreement” shall have the meaning provided in the preamble.

     “Assets” means, collectively, the Parent Assets and the Cal Dive Assets.

     “Cal Dive Assets” means those assets and equity interests in Entities related to the
Cal Dive Business that were held by Parent Group Members before the Restructuring and are held by
Cal Dive Group Members after the Restructuring.

     “Cal Dive Business” has the meaning set forth in the Master Agreement.

     “Cal Dive Filed Returns” shall have the meaning provided in Section 4.2.

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     “Cal Dive Group” means, collectively, Cal Dive and its direct and indirect
Subsidiaries immediately after the IPO, including, without limitation, the Subsidiaries set forth
on Schedule 1.1.

     “Cal Dive Group Member” means, individually, each member of the Cal Dive Group, and
the term “Cal Dive Group Members” means, collectively, as the context requires, all or less
than all of the members of the Cal Dive Group.

     “Cal Dive Indemnitees” shall have the meaning provided in Section 2.1(a).

     “Cal Dive Separate Return” means a Tax Return that includes one or more Cal Dive Group
Members and does not include any Parent Group Member, including any such Tax Return filed for
Federal Income Tax purposes by an affiliated group (as defined in Section 1504 of the Code) of
corporations the common parent of which is a Cal Dive Group Member or any other corporation that is
not a Parent Group Member.

     “Cal Dive’s Allocated Tax Liability” shall have the meaning provided in Section
5.1(a).

     “Cal Dive’s Cumulative Tax Payment” shall have the meaning provided in Section 5.1(a).

     “Cal Dive’s Redetermined Allocated Tax Liability” shall have the meaning provided in
Section 5.1(b).

     “Carryback Item” means any net operating loss, net capital loss, excess tax credit or
other similar Tax item which may or must be carried from one Tax Year to another Tax Year under the
Code or other applicable Tax Law.

     “Code” means the Internal Revenue Code of 1986, as amended, or any successor law.

     “Combined Tax Return” means, with respect to any Income Tax, a Tax Return that is
filed by one or more Parent Group Members and which includes, to any extent, one or more Cal Dive
Group Members or in which income, deductions, or credits of any Parent Group Member may be combined
with, or offset against, income, deductions or credits of any Cal Dive Group Member, including the
Consolidated Return filed by Parent for the Parent Consolidated Group.

     “Companies” means Parent and Cal Dive, collectively, and “Company” means, as
the context requires, any one of Parent or Cal Dive.

     “Consolidated Return” means any Federal Income Tax Return which is filed on a
consolidated basis by Parent (or any other member of the Parent Group), as common parent, and its
eligible Subsidiaries (as determined under Section 1504(a) of the Code or any successor provision)
and which includes, to any extent, any Cal Dive Group Member (as determined under Section 1504(a)
of the Code or any successor provision).

     “Controlling Company” shall have the meaning provided in Section 7.2(a).

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     “Default Rate” means a rate of interest equal to the underpayment rate provided in
Section 6621(c) of the Code, determined as of the date any applicable payment required to be made
under this Agreement is due.

     “Dividend” means the dividend declared by Cal Dive prior to the IPO and payable to
Parent after the IPO out of the IPO proceeds received by Cal Dive.

     “Entity” means a partnership (whether general or limited), a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization or any other entity, without regard to whether it is treated as a
disregarded entity for U.S. federal tax purposes.

     “Equity Award” means any equity-based incentive compensation award, grant or agreement
that provides for the delivery of shares of Parent stock to any Person as compensation for
services, including, but is not limited to, an option to acquire shares of Parent stock (or other
equity-based incentives the economic value of which is designed to mirror that of an option,
including incentive stock options, non-qualified stock options, discounted non-qualified stock
options, cliff options and tandem stock options), restricted stock, restricted stock units, stock
appreciation rights, phantom stock units, performance shares, dividend equivalents, stock payments,
deferred stock payments, performance-based awards or warrants granted under any plan, agreement or
arrangement to the extent shares of Parent stock are issued, issuable or transferred (as opposed to
cash compensation).

     “Federal Income Tax” means any Tax imposed by Subtitle A or F of the Code.

     “Federal Income Tax Return” means any report of Federal Income Taxes due, any claims
for refund of Federal Income Taxes paid, any information return with respect to Federal Income
Taxes, or any other similar report, statement, declaration, or document required to be filed under
U.S. federal income Tax Law, including any attachments, exhibits, or other materials submitted with
any of the foregoing, and including any amendments or supplements to any of the foregoing.

     “Final Determination” means the final resolution of liability for any Tax, which
resolution may be for a specific issue or adjustment or for a Tax Year, (a) by IRS Form 870 or
870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the
Controlling Company, or by a comparable form under the Tax Laws of a state, local or foreign taxing
jurisdiction, except that an IRS Form 870 or 870-AD or comparable form shall not constitute a Final
Determination to the extent that it reserves (whether by its terms or by operation of law) the
right of the Controlling Company to file a claim for refund or the right of the Tax Authority to
assert a further deficiency in respect of such issue or adjustment or for such Tax Year (as the
case may be); (b) by a decision, judgment, decree, or other order by a court of competent
jurisdiction, which has become final and unappealable; (c) by a closing agreement or accepted offer
in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the Tax Laws
of a state, local or foreign taxing jurisdiction; (d) by any allowance of a refund or credit in
respect of an overpayment of Tax, but only after the expiration of all periods during which such
refund may be recovered (including by way of offset) by the jurisdiction imposing such Tax; (e) by
a final settlement resulting from a treaty-based competent

4

 

authority determination; or (f) by any other final disposition, including by reason of the
expiration of the applicable statute of limitations.

     “Foreign Income Tax” means any Tax imposed by any foreign country or any possession of
the United States, or by any political subdivision of any foreign country or possession of the
United States, which is an income tax as defined in Treasury Regulations Section 1.901-2.

     “Group” means the Parent Group or the Cal Dive Group, as the context requires, and the
term “Groups” means the Parent Group and the Cal Dive Group.

     “Group Member” means any Parent Group Member or any Cal Dive Group Member.

     “Income Tax” means each of any Federal Income Tax, State Income Tax or Foreign Income
Tax, as the context requires.

     “Indemnification Expenses” shall have the meaning provided in Section 7.3.

     “Indemnified Company” means (i) Parent, in cases where it is entitled to be
indemnified for Losses by Cal Dive under this Agreement, and (ii) Cal Dive, in cases where it is
entitled to be indemnified for Losses by Parent under this Agreement.

     “Indemnifying Company” means (i) Parent, in cases where it is obligated to indemnify
Cal Dive for Losses under this Agreement, and (ii) Cal Dive, in cases where it is obligated to
indemnify Parent for Losses under this Agreement.

     “Independent Firm” means a nationally recognized accounting firm; provided,
however, that such term shall not include any accounting firm that performs or has
preformed audit services with respect to Parent or Cal Dive.

     “IPO” shall have the meaning provided in the recitals to this Agreement.

     “IPO Closing Date” means the first date on which the proceeds of any sale of Cal Dive
stock to the underwriters in the IPO are received by Cal Dive or any of its Subsidiaries.

     “IRS” means the Internal Revenue Service.

     “Joint Taxes” shall have the meaning provided in Section 5.1.

     “Loss” means any loss, cost, fine, penalty, fee, damage, obligation, liability,
payment in settlement, Tax or other expense of any kind, including reasonable attorneys’ fees and
costs, but excluding any consequential, special, punitive or exemplary damages.

     “Master Agreement” means that certain Master Separation Agreement dated ___,
2006, as amended from time to time, between Parent and Cal Dive setting forth ___,
and to which this Agreement is attached as an exhibit.

5

 

     “Other Tax” means any Tax that is not an Income Tax, including any value added tax,
any real or personal property Tax, any flat minimum dollar Tax, any withholding Tax or any capital
duty Tax.

     “Parent Assets” means those assets and equity interests in Entities, if any, related
to the Parent Business that were held by Cal Dive Group Members before the Restructuring and are
held by Parent Group Members after the Restructuring.

     “Parent Business” has the meaning set forth in the Master Agreement.

     “Parent Consolidated Group” shall have the meaning provided in the recitals to this
Agreement.

     “Parent Filed Returns” shall have the meaning provided in Section 4.1(a).

     “Parent Group” means, collectively, Parent and its direct and indirect Subsidiaries,
other than Cal Dive Group Members, as determined immediately after the IPO, including, without
limitation, the Subsidiaries set forth on Schedule 1.2.

     “Parent Group Member” means, individually, each member of the Parent Group, and the
term “Parent Group Members” means, collectively, as the context requires, all or less than
all of the members of the Parent Group.

     “Parent Indemnitees” shall have the meaning provided in Section 2.1(b).

     “Parent Separate Return” means, with respect to any Tax, a Tax Return that includes
only Parent Group Members.

     “Payment Date” means (i) with respect to any Federal Income Tax, (a) each of the due
dates for any required installment of estimated Federal Income Taxes determined under Section 6655
of the Code, (b) the due date (determined without regard to extensions) for filing any Tax Return
determined under Section 6072 of the Code and (c) the date any Tax Return is filed, and (ii) with
respect to any other Tax, the corresponding due dates determined under the applicable Tax Law.

     “Payment Period” shall have the meaning provided in Section 5.5.

     “Person” means an individual, any Entity or a governmental entity or any department,
agency or political subdivision thereof.

     “Post-IPO Events” shall have the meaning provided in Section 2.6(b).

     “Post-IPO Period” means, with respect to any Tax, any Tax Year beginning after the IPO
Closing Date, and, in the case of any Straddle Period, the portion of such Straddle Period
beginning on the day after the IPO Closing Date.

6

 

     “Pre-IPO Period” means, with respect to any Tax, any Tax Year ending on or before the
IPO Closing Date, and, in the case of any Straddle Period, the portion of such Straddle Period
ending on and including the IPO Closing Date.

     “Prior Tax Allocation Agreements” means any written or oral agreement or any other
arrangements relating to the allocation of Taxes existing between or among any Parent Group Member
and any Cal Dive Group Member prior to the date hereof (other than this Agreement).

     “Reimbursement Statement” shall have the meaning provided in Section 7.3.

     “Restructuring” means the restructuring by Parent of the Assets to cause the Parent
Assets to be held by the Parent Group and the Cal Dive Assets to be held by the Cal Dive Group.

     “Restructuring Taxes” means any and all Taxes imposed on or attributable to any Group
Member that arise from or are attributable to such Group Member’s distribution, transfer,
assignment, other disposition, receipt, purchase or other acquisition of Assets pursuant to the
Restructuring, however effected.

     “Separate Company Tax” means any Tax computed by reference to the assets and
activities of a member or members of a single Group.

     “Straddle Period” means, with respect to any Tax, any Tax Year beginning on or before
the IPO Closing Date and ending after the IPO Closing Date.

     “State Income Tax” means any Tax imposed by any state of the United States, the
District of Columbia or any political subdivision of the foregoing, which is imposed on or
measured, in whole or in part, by income, capital or net worth or a taxable base in the nature of
income, capital or net worth, including franchise Taxes based on such factors.

     “Subsidiary” means, with respect to any Person, each Entity that such Person directly
or indirectly owns, beneficially or of record, (i) an amount of voting securities or other
interests in such Entity that is sufficient to enable such Person to elect at least a majority of
the members of such Entity’s board of directors or other governing body or (ii) at least 50% of the
outstanding equity or financial interests of such Entity.

     “Tax” or “Taxes” means any income, gross income, gross receipts, profits,
capital stock, capital duty, franchise, withholding, payroll, social security, workers
compensation, unemployment, disability, property, ad valorem, stamp, excise, severance, occupation,
service, sales, use, license, lease, transfer, import, export, value added, alternative minimum,
estimated or other similar tax (including any fee, assessment, or other charge in the nature of or
in lieu of any tax) imposed by any Tax Authority, and any interest, penalties, additions to tax or
additional amounts in respect of the foregoing.

     “Tax Asset” means any Tax Item that has accrued for Tax purposes, but has not been
used during a Tax Year, and that could reduce a Tax in another Tax Year, including a net operating
loss, net capital loss, investment tax credit, foreign tax credit, research and experimentation
credit, charitable deduction or credit related to alternative minimum tax or any other Tax credit,
but does not include the tax basis of an asset.

7

 

     “Tax Authority” means, with respect to any Tax, the governmental entity or political
subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of
such Tax for such governmental entity or political subdivision, including the IRS.

     “Tax Benefit” means any refund received or credit or other Tax Item that actually
reduces otherwise required Tax payments (including any reduction in estimated Tax payments).

     “Tax Contest” means an audit, review, examination or any other administrative or
judicial proceeding with the purpose or effect of redetermining Taxes of any Group Member
(including any administrative or judicial review of any claim for refund) for any Tax Year.

     “Tax Detriment” means an increase in the Tax liability of any Group Member for any Tax
Year or a decrease in a Tax Asset of any Group Member. Except as otherwise provided in this
Agreement, a Tax Detriment shall be deemed to have been realized from a Tax Item in a Tax Year only
if and to the extent that the Tax liability of the Group Member for such Tax Year, after taking
into account the effect of the Tax Item on the Tax liability of such Group Member in the current
Tax Year and all prior Tax Years, is more than it would have been if such Tax liability were
determined without regard to such Tax Item.

     “Tax Item” means, with respect to any Tax, any item of income, gain, loss, deduction
or credit, or other attribute that may have the effect of increasing or decreasing any Tax.

     “Tax Law” means the law of any governmental entity or political subdivision thereof
relating to any Tax, including the Code, and any controlling judicial or administrative
interpretations of such law relating to any Tax.

     “Tax Records” means Tax Returns, Tax Return workpapers, documentation relating to any
Tax Contests and any other books of account or records required to be maintained under the Code or
other applicable Tax Laws or under any record retention agreement with any Tax Authority.

     “Tax Return” means any report of Taxes due, any claims for refund of Taxes paid, any
information return with respect to Taxes or any other similar report, statement, declaration or
document required to be filed under the Code or other Tax Law, including any attachments, exhibits
or other materials submitted with any of the foregoing, and including any amendments or supplements
to any of the foregoing.

     “Tax Year” means, with respect to any Tax, the year, or shorter period, if applicable,
for which the Tax is reported as provided under applicable Tax Law.

     “Treasury Regulations” means the regulations promulgated from time to time under the
Code as in effect for the relevant Tax Year.

     Other capitalized terms defined elsewhere in this Agreement shall have the meanings given
them.

8

 

     Section 1.2. Construction.

     Unless the context otherwise requires: (i) references to a Section (other than in connection
with the Code or the Treasury Regulations) refer to a section of this Agreement; (ii) the word
“including” shall mean “including, but not limited to”; and (iii) words used in the singular shall
also denote the plural, and words used in the plural shall also denote the singular. The headings
contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

Section 2. Indemnification; Allocation of Responsibility for Taxes.

     Section 2.1. Indemnification.

     (a) Parent’s Indemnity of Cal Dive.

     Parent shall indemnify Cal Dive, each other Cal Dive Group Member and their respective
directors, officers and employees (collectively, the “Cal Dive Indemnitees”), and hold them
harmless from and against any and all Losses that arise from or are attributable to:

     (1) any and all Taxes that are specifically allocated to or the responsibility
of Parent under this Agreement;

     (2) any failure by Parent to make a payment required by this Agreement to Cal
Dive when due; and

     (3) any breach or nonperformance by Parent of any of its representations,
warranties or covenants contained in this Agreement.

     (b) Cal Dive’s Indemnity of Parent.

     Cal Dive shall indemnify Parent, each other Parent Group Member and their respective
directors, officers and employees (collectively, the “Parent Indemnitees”), and hold them
harmless from and against any and all Losses that arise from or are attributable to:

     (1) any and all Taxes that are specifically allocated to or the responsibility
of Cal Dive under this Agreement;

     (2) any failure by Cal Dive to make a payment required by this Agreement to
Parent when due; and

     (3) any breach or nonperformance by Cal Dive of any of its representations,
warranties or covenants contained in this Agreement.

     Section 2.2. Allocation of Federal Income Taxes.

     Except as provided in Section 2.6, the responsibility for Federal Income Taxes,
including any adjustment to such Federal Income Taxes as a result of a Final Determination, imposed
on or

9

 

attributable to any Cal Dive Group Member shall be allocated between Parent and Cal Dive as
follows:

     (a) Parent’s Responsibility for Federal Income Taxes.

     Parent shall be responsible for any and all Federal Income Taxes, including any adjustment to
such Federal Income Taxes as a result of a Final Determination, to the extent such Federal Income
Taxes are imposed on or are attributable to any Cal Dive Group Member for any Pre-IPO Period.

     (b) Cal Dive’s Responsibility for Federal Income Taxes.

     Cal Dive shall be responsible for any and all Federal Income Taxes, including any adjustment
to such Federal Income Taxes as a result of a Final Determination, that are imposed on or are
attributable to any Cal Dive Group Member for any Post-IPO Period.

     Section 2.3. Allocation of State Income Taxes.

     Except as provided in Section 2.6, the responsibility for any and all State Income
Taxes, including any adjustment to such State Income Taxes as a result of a Final Determination,
imposed on or attributable to any Cal Dive Group Member shall be allocated between Parent and Cal
Dive as follows:

     (a) Parent’s Responsibility for State Income Taxes.

     Parent shall be responsible for any and all State Income Taxes, including any adjustment to
such State Income Taxes as a result of a Final Determination, that are imposed on or are
attributable to any Cal Dive Group Member for any Pre-IPO Period.

     (b) Cal Dive’s Responsibility for State Income Taxes.

     Cal Dive shall be responsible for any and all State Income Taxes, including any adjustment to
such State Income Taxes as a result of a Final Determination, that are imposed on or are
attributable to any Cal Dive Group Member for any Post-IPO Period.

     Section 2.4. Foreign Income Taxes.

     Except as provided in Section 2.6, the responsibility for Foreign Income Taxes,
including any adjustment to such Foreign Income Taxes as a result of a Final Determination, that
are imposed on or are attributable to any Cal Dive Group Member shall be allocated between Parent
and Cal Dive as follows:

     (a) Parent’s Responsibility for Foreign Income Taxes.

     Parent shall be responsible for any and all Foreign Income Taxes, including any adjustment to
such Foreign Income Taxes as a result of a Final Determination, that are imposed on or are
attributable to any Cal Dive Group Member for any Pre-IPO Period.

10

 

          (b) Cal Dive’s Responsibility for Foreign Income Taxes.

     Cal Dive shall be responsible for any and all Foreign Income Taxes, including any adjustment
to such Foreign Income Taxes as a result of a Final Determination, that are imposed on or are
attributable to any Cal Dive Group Member for any Post-IPO Period.

     Section 2.5. Allocation of Other Taxes.

     Except as provided in Section 2.6, the responsibility for Other Taxes, including any
adjustment to such Other Taxes as result of a Final Determination, imposed on or attributable to
any Cal Dive Group Member shall be allocated between Parent and Cal Dive as follows:

          (a) Other Taxes imposed on Cal Dive Group Members.

     Cal Dive shall be responsible for any and all Other Taxes imposed on or attributable to any
Cal Dive Group Member with respect to any Tax Year.

          (b) Other Taxes Imposed on Multiple Group Members.

     Notwithstanding anything to the contrary in Section 2.5(a), with respect to any Other
Taxes for any Tax Year that are imposed under applicable Tax Law on one or more Parent Group
Members and one or more Cal Dive Group Members:

     (1) Parent shall be responsible for any and all such Other Taxes to the extent
any Parent Group Member is primarily responsible for such Other Taxes under
applicable Tax Law; and

     (2) Cal Dive shall be responsible for any and all such Other Taxes to the
extent any Cal Dive Group Member is primarily responsible for such Other Taxes under
applicable Tax Law.

     Section 2.6. Restructuring Taxes; Additional Taxes.

          (a) Restructuring Taxes.

     Notwithstanding any other provision of this Agreement to the contrary, the responsibility for
Restructuring Taxes imposed on or attributable to any Group Member shall be allocated between
Parent and Cal Dive as follows:

     (1) Parent’s Responsibility for Restructuring Taxes. Except as
provided in Section 2.6(a)(2), Parent shall be responsible for any and all
Restructuring Taxes, including any adjustment to such Restructuring Taxes as a
result of a Final Determination, that are imposed on or attributable to any Group
Member with respect to any Tax Year.

     (2) Cal Dive’s Responsibility for Restructuring Taxes. Notwithstanding
Section 2.6(a)(1), Cal Dive shall be responsible for any and all
Restructuring Taxes, including any adjustment to such Restructuring Taxes as a

11

 

result of a Final Determination, that are imposed on or attributable to any
Group Member to the extent that such Restructuring Taxes result, in whole or in
part, from any act or failure to act by any Cal Dive Group Member after the IPO
Closing Date, including any such act or failure to act that results in Parent
recognizing income or gain for Federal Income Tax purposes in excess of the amount
of the Dividend.

          (b) Additional Taxes.

     Subject to Section 2.6(a), but notwithstanding any other provision of this Agreement
to the contrary, Cal Dive shall be responsible for one hundred percent (100%) of any Additional
Taxes, determined for each applicable Tax Year, imposed on any Group Member that result or arise,
in whole or in part, from any act, failure to act, event or transaction that relates to any Cal
Dive Group Member’s breach of any representation, covenant or agreement contained in this Agreement
that occurs after the IPO Closing Date (a “Post-IPO Event”), including Additional Taxes
resulting or arising from any Cal Dive Group Member failing to provide assistance and cooperation
to Parent in accordance with Section 6.1 or failing to retain Tax Records in accordance
with Section 6.2.

          (c) Combined Tax Returns Filed After the IPO Closing Date.

     Subject to Section 2.6(a) and Section 2.6(b), but notwithstanding any other
provision of this Agreement to the contrary, in the event any Combined Tax Return includes any
portion of a Post-IPO Period, the Income Taxes that are treated as imposed on or attributable to
the Cal Dive Group Members included in such Combined Tax Return for purposes of this Agreement
shall be determined as if such Cal Dive Group Members were not required to join and did not join in
the filing of the Combined Tax Return for the Post-IPO Period but instead filed their own
consolidated, combined or unitary Tax Return based solely on their income, apportionment factors
and other Tax Items included in such Combined Tax Return for the Post-IPO Period, with such Income
Taxes being calculated in accordance with the principles of Treasury Regulations Section
1.1552-1(a)(2)(ii) for calculating the “separate tax liability” of a member of an affiliated group
or an applicable corresponding provision under the Tax Laws of any state, local or foreign
jurisdiction, as such corresponding provision is reasonably interpreted by Parent.

Section 3. Proration of Taxes; Allocation of Tax Items.

     For purposes of apportioning Taxes and Tax Items between Pre-IPO Periods and Post-IPO Periods
and preparing and filing Tax Returns under this Agreement, the following provisions shall apply:

     Section 3.1. Proration of Tax Items.

          (a) General Method.

     Except as provided in Section 3.1(b), Tax Items of the Cal Dive Group Members shall be
apportioned between Pre-IPO Periods and Post-IPO Periods in accordance with the principles of
Treasury Regulations Section 1.1502-76(b) or an applicable corresponding provision under the Tax
Laws of any state, local or foreign jurisdiction, as such corresponding provision is

12

 

reasonably interpreted and applied by Parent. No election shall be made under Treasury
Regulations Section 1.1502-76(b)(2)(ii) (relating to ratable allocation of a year’s items).

          (b) Restructuring Tax Items.

     In determining the apportionment of Tax Items between Pre-IPO Periods and Post-IPO Periods,
any Tax Items relating to the Restructuring shall be treated as extraordinary items described in
Treasury Regulations Section 1.1502-76(b)(2)(ii)(C) and shall be allocated to Pre-IPO Periods, and
any Taxes related to such Tax Items shall be treated under Treasury Regulations Section
1.1502-76(b)(2)(iv) as relating to such extraordinary item and shall be allocated to Pre-IPO
Periods.

     Section 3.2. Allocation of Tax Assets and Earnings & Profits.

          (a) Allocation of Tax Assets.

     Parent shall determine in accordance with applicable Tax Laws the allocation of any applicable
Tax Assets among Parent, each other Parent Group Member, Cal Dive and each other Cal Dive Group
Member. The Companies hereby agree that in the absence of controlling legal authority or unless
otherwise provided under this Agreement, each Tax Asset shall be allocated to the Group Member who
generated such Tax Asset.

          (b) Earnings and Profits.

     On or before the first anniversary of the IPO Closing Date, Parent shall advise Cal Dive in
writing of the decrease in Parent’s earnings and profits under Section 312(h) of the Code
attributable to the IPO; provided, however, that Parent shall provide Cal Dive with
estimates of such amounts (determined in accordance with past practice) prior to such anniversary
as reasonably requested by Cal Dive.

     Section 3.3. Parent Equity Awards.

     Except as otherwise required by applicable Tax Law and subject to the following sentence,
Parent shall be entitled to claim on its Tax Returns any and all Tax deductions attributable to an
exercise, or a disqualifying disposition, grant, vesting, payment or delivery of shares, or other
consideration in lieu of shares, by Parent under or in connection with an Equity Award (including a
payment of dividends in connection with an Equity Award), and no Cal Dive Group Member shall
attempt to claim on any Tax Return any such Tax deductions. Notwithstanding the foregoing
sentence, if Parent determines that under applicable Tax Law (or as a result of a Final
Determination) that no Parent Group Member is entitled to claim such Tax deductions but a Cal Dive
Group Member is entitled to claim such Tax deductions, such Cal Dive Group Member shall be entitled
to claim such Tax deductions on its applicable Tax Returns, and Cal Dive shall pay to Parent the
“deemed tax benefit” of such Tax deductions, regardless of whether any Cal Dive Group Member
actually claims such Tax deductions or realizes a Tax Benefit from claiming any such Tax
deductions. For purposes of this Section 3.3, the “deemed tax benefit” shall conclusively
be the total amount of the available Tax deductions for any such exercise, disqualifying
disposition, grant, vesting or payment multiplied by 40%. Cal Dive shall pay the “deemed tax
benefit” amount, if any, to Parent no later than twenty (20)

13

 

days after the later of (a) Parent’s notification to Cal Dive that a Cal Dive Group Member is
entitled to claim such Tax deductions or (b) the occurrence of any applicable exercise,
disqualifying disposition, grant, vesting, payment or delivery of shares, or other consideration in
lieu of shares, by Parent under or in connection with an Equity Award. Further, if due to any
change in Tax Law or the interpretation thereof by any Tax Authority subsequent to the date of this
Agreement the performance of the obligations described in this Section 3.3 shall become
impracticable or impossible, the parties hereto shall use their best efforts to find an alternative
means to achieve the same or substantially the same result as that contemplated by this Section
3.3.

     Section 3.4. Separation Transactions Occurring After the IPO Closing Date.

     If the Parent Group Member transfers any part of the Cal Dive Business (including any
Subsidiary) to the Cal Dive Group, or any Cal Dive Group Member transfers any part of the Parent
Business (including any Subsidiary) to the Parent Group, after the IPO Closing Date in a
transaction contemplated by the Restructuring, such transfer will be deemed to have occurred
immediately before the IPO Closing Date for purposes of computing the Taxes imposed on or
attributable to the Cal Dive Group and the Parent Group.

Section 4. Preparation and Filing of Tax Returns.

     Section 4.1. Parent’s Responsibility.

          (a) Parent Filed Returns.

     Parent shall have the exclusive obligation and right to prepare and file, or to cause to be
prepared and filed, all Tax Returns that include any Group Member if Parent is responsible under
this Agreement for any portion of the Taxes reported on such Tax Returns (“Parent Filed
Returns”), including (i) all Combined Tax Returns and (ii) all Cal Dive Separate Returns for
which Parent is responsible for any portion of any Tax reported on such Cal Dive Separate Return,
and Parent shall have the exclusive obligation and right to prepare and file, or to cause to be
prepared and filed, all Adjustment Requests made with respect to Parent Filed Returns. Cal Dive
shall, and shall cause each other Cal Dive Group Member to, assist and cooperate with Parent in
accordance with Section 6 with respect to the preparation and filing of all Parent Filed
Returns, including providing information required to be provided in Section 6. In the case
of any Parent Filed Return which is required by applicable Tax Law to be signed by any Cal Dive
Group Member (or by its authorized representative), Cal Dive shall cause such Cal Dive Group Member
(or its authorized representative) to sign such Parent Filed Return.

          (b) Preparation of Parent Filed Returns.

     Parent shall have the exclusive right, in its sole discretion, with respect to each Parent
Filed Return to determine (i) the manner in which such Parent Filed Return shall be prepared and
filed, including the elections, methods of accounting, positions, conventions and principles of
taxation to be used and the manner in which any Tax Item shall be reported, (ii) whether any
extensions may be requested, (iii) the elections that will be made on such Parent Filed Return,
(iv) whether an Adjustment Request should be made with respect to any Parent Filed Return, (v)
whether any refunds shall be paid by way of refund or credited against any liability for the

14

 

related Tax and (vi) whether to retain outside firms to prepare or review such Parent Filed
Returns.

          (c) Election to Join Combined Tax Returns.

     Cal Dive shall cause each Cal Dive Group Member to elect and join in filing Combined Tax
Returns with any Parent Group Member that Parent reasonably determines are required to be filed
under applicable Tax Laws or will result in the minimization of the net present value of the
aggregate Tax to the Group Members eligible to join in such Combined Tax Returns.

          (d) Appointment as Agent.

     Cal Dive hereby irrevocably designates, and agrees to cause each other Cal Dive Group Member
to so designate, Parent as its sole and exclusive agent and attorney-in-fact to take such action
(including execution of documents) as Parent, in its sole discretion, may deem appropriate in any
and all matters (including Tax Contests) relating to Combined Tax Returns.

     Section 4.2. Cal Dive Filed Returns.

     Cal Dive shall have the exclusive obligation and right to prepare and file, or to cause to be
prepared and filed, all Cal Dive Separate Returns that are not Parent Filed Returns (“Cal Dive
Filed Returns”), and Cal Dive shall have the exclusive obligation and right to prepare and
file, or to cause to be prepared and filed, all Adjustment Requests made with respect to Cal Dive
Filed Returns.

     Section 4.3. Tax Accounting Practices.

          (a) In General.

     Except as otherwise provided in Section 4.3(b), to the extent the Tax accounting
practices or reporting position with respect to Tax Items reported on any Cal Dive Filed Return
might adversely affect any Parent Group Member, Cal Dive shall prepare such Cal Dive Filed Return
and report such Tax Items in a manner that is consistent with Parent’s past Tax accounting
practices and reporting positions with respect to such Tax Items (unless such past Tax accounting
practices or reporting positions are no longer permissible under the Code or other applicable Tax
Law), and to the extent any Tax Items are not covered by past Tax accounting practices or reporting
positions (or in the event such past Tax accounting practices or reporting positions are no longer
permissible under the Code or other applicable Tax Law), in accordance with reasonable Tax
accounting practices and reporting positions selected by Parent.

          (b) Reporting of Restructuring Tax Items.

     Parent shall determine the proper Tax treatment of any Tax Items relating to the Restructuring
and the method for reporting such Tax Item on any Tax Return. Such treatment and reporting method
shall be used by Cal Dive in preparing and filing any Cal Dive Filed Return unless there is no
reasonable basis for such Tax treatment. To the extent any Cal Dive Filed Return includes a Tax
Item relating to the Restructuring, Cal Dive shall submit a copy of such Cal Dive Filed Return to
Parent for its review. Cal Dive shall use its reasonable best efforts

15

 

to make such Cal Dive Filed Return available for Parent’s review sufficiently in advance of
the due date for filing such Cal Dive Filed Return to provide Parent with a meaningful opportunity
to analyze and comment on such Cal Dive Filed Return and have such Cal Dive Filed Return modified
before filing.

     Section 4.4. Right to Review Combined Tax Returns.

     Parent shall make each Combined Tax Return and related workpapers available for review by Cal
Dive, if requested, to the extent (i) such Combined Tax Return relates to Taxes for which Cal Dive
may be responsible under this Agreement or (ii) Cal Dive reasonably determines that it must inspect
such Combined Tax Return to confirm its compliance with the terms of this Agreement. Parent shall
use its reasonable best efforts to make such Combined Tax Return available for review as required
under this paragraph sufficiently in advance of the due date for filing such Combined Tax Return to
provide Cal Dive with a meaningful opportunity to analyze and comment on such Combined Tax Return
and have such Combined Tax Return modified before filing. Parent and Cal Dive shall attempt in
good faith to resolve any issues arising out of the review of such Combined Tax Returns.

     Section 4.5. Adjustment Requests; Carrybacks; Utilization of Tax Assets.

          (a) Adjustment Requests and Carrybacks Requiring Parent’s Consent.

     Except as otherwise required by applicable Tax Law or unless Parent otherwise consents in
writing, Cal Dive hereby agrees to cause each Cal Dive Group Member (i) to not make any Adjustment
Request with respect to any Income Tax for any Pre-IPO Period and (ii) to make any available
elections to relinquish the right to claim in any Pre-IPO Period any Carryback Items of any Cal
Dive Group Member arising in a Post-IPO Period, including making the election under Section
172(b)(3) of the Code (and any similar provision of any other applicable Tax Laws) to relinquish
the right to carry back net operating losses. With respect to any Adjustment Request to which
Parent grants its consent under the preceding sentence, Cal Dive shall reimburse Parent for its
legal, accounting, administrative and other related expenses incurred in preparing, filing and
making any such Adjustment Request.

          (b) Carrybacks to Pre-IPO Periods.

     Notwithstanding Section 4.5(a), if any Cal Dive Group Member is required by applicable
Tax Law to carry back a Carryback Item arising in a Post-IPO Period to a Pre-IPO Period, the
Companies agree that any Carryback Item of any Parent Group Member that may be carried back to the
same Pre-IPO Period shall be deemed to be used before any Carryback Item of any Cal Dive Group
Member. If any Parent Group Member receives a refund or realizes a Tax Benefit as a result of a
Carryback Item of any Cal Dive Group Member arising in a Post-IPO Period being carried back to a
Pre-IPO Period, Parent shall make a payment to Cal Dive in an amount equal to such refund or the
realized Tax Benefit within 30 days following either the receipt of such refund or the filing of
the Tax Return reflecting the realization of such Tax Benefit.

16

 

          (c) Other Adjustment Requests Permitted.

     With respect to any Tax imposed on or attributable to any Group Member for any applicable
Pre-IPO Period, Parent may make an Adjustment Request with respect to such Tax, including carrying
back a Carryback Item of any Parent Group Member arising in a Post-IPO Period to any Pre-IPO
Period. Any refund or other Tax Benefit obtained as a result of any such Adjustment Request
pursuant to the preceding sentence shall be for the account of Parent, and Parent shall have no
obligation to compensate or make a payment to any Cal Dive Group Member in the event any such
Adjustment Request results in a Tax Detriment to any Cal Dive Group Member.

          (d) Utilization of Tax Assets.

     With respect to each Combined Tax Return and any adjustment to the Income Taxes reflected on a
Combined Tax Return as a result of a Tax Contest, Adjustment Request or otherwise, each Group
Member included in such Combined Tax Return shall be entitled to use, in accordance with applicable
Tax Laws, any and all Tax Assets of each other Group Member included in such Combined Tax Return.
Except as provided in Section 5.1(c) with respect to Joint Taxes, no Group Member that
utilizes the Tax Assets of any other Group Member shall be required to compensate or make any
payment to such other Group Member with respect to the utilization of such Tax Assets.

Section 5. Payments Under this Agreement.

     Section 5.1. Joint Taxes.

     With respect to any Tax for any Tax Year for which Parent and Cal Dive are each responsible
for a portion of such Tax under this Agreement (a “Joint Tax”), the following provisions
shall apply:

          (a) In General.

     With respect to any Joint Tax that is reflected or reported on any Parent Filed Return, Parent
shall determine the amount of such Joint Tax that Cal Dive is responsible for under Section
2 (“Cal Dive’s Allocated Tax Liability”). At least 15 days prior to an applicable
Payment Date, Parent shall deliver to Cal Dive a statement setting forth in appropriate detail
Parent’s determination of Cal Dive’s Allocated Tax Liability and the amount (if any) of the
cumulative net payments made with respect to such Joint Tax prior to the date of such statement by
the Cal Dive Group (“Cal Dive’s Cumulative Tax Payment”). Not more than 30 days after Cal
Dive’s receipt of such statement, Cal Dive shall pay Parent an amount equal to the excess (if any)
of Cal Dive’s Allocated Tax Liability, over Cal Dive’s Cumulative Tax Payment. If Cal Dive’s
Cumulative Tax Payment is greater than Cal Dive’s Allocated Tax Liability, then Parent shall pay
such excess to Cal Dive within 30 days of Parent’s receipt of the corresponding Tax Benefit
(i.e., through either a reduction in Parent’s otherwise required Tax payment or a refund of
prior Tax payments).

17

 

          (b) Adjustments to Joint Taxes.

     If there is any adjustment to any Joint Tax described in this Section 5.1(a), whether
as a result of a Tax Contest, Adjustment Request or otherwise, Parent shall redetermine Cal Dive’s
Allocated Tax Liability (“Cal Dive’s Redetermined Allocated Tax Liability”). After
determining Cal Dive’s Redetermined Allocated Tax Liability, Parent shall deliver to Cal Dive a
statement setting forth in appropriate detail Parent’s determination of Cal Dive’s Redetermined
Allocated Tax Liability and the amount (if any) of Cal Dive’s Cumulative Tax Payments made with
respect to such Joint Tax prior to the date of such statement. Not more than 30 days after Cal
Dive’s receipt of such statement, Cal Dive shall pay Parent an amount equal to the excess (if any)
of Cal Dive’s Redetermined Allocated Tax Liability, over Cal Dive’s Cumulative Tax Payments. If
Cal Dive’s Cumulative Tax Payment is greater than Cal Dive’s Redetermined Allocated Tax Liability,
then Parent shall pay such excess to Cal Dive within 30 days of Parent’s receipt of the
corresponding Tax Benefit (i.e., through either a reduction in Parent’s otherwise required
Tax payment or a refund of prior Tax payments).

          (c) Payments for Use of Tax Assets.

     If a Parent Group Member realizes a Tax Benefit upon its utilization of a Tax Asset of a Cal
Dive Group Member, Parent shall make a payment to Cal Dive equal to the Tax Benefit realized to the
extent such utilized Tax Asset of the Cal Dive Group Member arose or accrued during any Post-IPO
Period. If a Cal Dive Group Member realizes a Tax Benefit upon its utilization of a Tax Asset of a
Parent Group Member, Cal Dive shall make a payment to Parent equal to the Tax Benefit realized to
the extent such utilization occurs during any Post-IPO Period. Any payment required to be made
under this Section 5.1(c) shall be paid within 30 days following either the receipt of a
refund or the filing of the Tax Return reflecting the realization of such Tax Benefit.

     Section 5.2. Payments to Tax Authority.

     With respect to each Tax Return that a Company is required to prepare and file under this
Agreement, such Company shall pay, or cause to be paid, to the applicable Tax Authority when due
(including extensions) all Taxes determined to be due and payable. With respect to any Joint Taxes
described in Section 5.1(a), Parent shall pay, or cause to be paid, to the applicable Tax
Authority when due such Joint Taxes.

     Section 5.3. Timing of Payments.

     In the event a Company is required to make a payment to the other Company under this Agreement
and the time for making such payment is not otherwise provided for in this Agreement, the first
Company shall make such payment within 30 days of its receipt of such other Company’s written
demand for such payment, which written demand shall include in reasonable detail an explanation and
computation of the amount due.

     Section 5.4. Tax Treatment of Payments.

     Unless otherwise required by applicable Tax Law, the Companies agree that any payments made by
one Company to the other Company (other than any reimbursement of

18

 

expense pursuant to Section 4.5(a) and interest payments pursuant to Section
5.5) pursuant to this Agreement shall be treated for all Tax and financial accounting purposes
as nontaxable payments (dividend distributions or capital contributions, as the case may be) made
immediately prior to the IPO and, accordingly, as not includible in the Taxable income of the
recipient Company or as deductible by the payor Company. If, notwithstanding the previous
sentence, there is a Final Determination that the recipient Company’s receipt of such payment is
subject to Tax, the payor Company shall pay to the recipient Company an additional amount that,
when added to the prior payment, will result in the recipient Company receiving an amount equal to
such prior payment, after taking into account all Taxes that are payable by the recipient Company
with respect to the receipt of such prior payment and such additional amount.

     Section 5.5. Interest.

     Any payment that is not made within the period prescribed in this Agreement (the “Payment
Period”) shall bear interest at the Default Rate, compounded semiannually, for the period from
and including the date immediately following the last date of the Payment Period through and
including the date of payment. Notwithstanding Section 5.4, the interest payment shall be
treated as interest expense to the payor (deductible to the extent provided by applicable Tax Law)
and as interest income by the recipient (includible in income to the extent provided by applicable
Tax Law).

     Section 5.6. Refunds.

          (a) Refund Received by Parent Group Members.

     If a Parent Group Member receives a Tax refund with respect to Taxes for which a Cal Dive
Group Member is responsible hereunder, Parent shall pay to Cal Dive within 30 days following the
receipt of the Tax refund, an amount equal to such Tax refund.

          (b) Refund Received by Cal Dive Group Members.

     If a Cal Dive Group Member receives a Tax refund with respect to Taxes for which a Parent
Group Member is responsible hereunder, Cal Dive shall pay to Parent within 30 days following the
receipt of the Tax refund, an amount equal to such Tax refund.

     Section 5.7. Payments by or to Other Members of the Groups.

     When appropriate under the circumstances to reflect the underlying liability for a Tax or
entitlement to a Tax refund or Tax Benefit, a payment which is required to be made by or to a
Company may be made by or to another member of the Group to which that Company belongs, but nothing
in this Section 5.7 shall relieve any Company of its obligations under this Agreement.

     Section 5.8. Tax Benefits from Payment of Taxes.

     With respect to any Tax Benefits received by a Cal Dive Group Member after the IPO Closing
Date that result from Taxes for which Parent is responsible hereunder, including as a result of the
utilization of foreign tax credits and minimum tax credits, Cal Dive shall make a

19

 

payment to Parent in an amount equal to the Tax Benefit received, with such payment being made
within 30 days following the filing of the Tax Return reflecting the realization of such Tax
Benefit. For purposes of this Section 5.8, the Cal Dive Group Member (i) shall be deemed
to recognize such Tax Benefit in the first Tax Year (or Tax Years) that such Tax Benefit (or the
Tax Item giving rise to such Tax Benefit) may be recognized under applicable Tax Law, (ii) shall be
deemed to pay Tax at the highest marginal corporate Tax rates in effect in each relevant Tax Year
and (iii) shall be deemed to have utilized the Tax Items attributable to the Taxes that are the
responsibility of Parent giving rise to such Tax Benefit prior to similar Tax Items of any Cal Dive
Group Member that could have otherwise been utilized by the Cal Dive Group Member.

Section 6. Assistance and Cooperation; Retention of Tax Records.

     Section 6.1. Assistance and Cooperation.

     Cal Dive shall cause each Cal Dive Group Member to cooperate with Parent and its agents,
including accounting firms and legal counsel, in connection with Tax matters relating to (i) the
preparation and filing of Tax Returns, (ii) determining the liability for and the amount of any
Taxes due (including estimated Taxes) or the right to an amount of any refund of Taxes and (iii)
any Tax Contest. Such cooperation shall include making all information and documents, including
Tax Records, in any Cal Dive Group Member’s possession relating to any Group Member available to
Parent for inspection during normal business hours upon reasonable notice and, upon request by
Parent, providing copies, at Cal Dive’s expense, of such information and documents, including Tax
Records. Cal Dive shall also make available to Parent, as reasonably requested and available,
personnel (including each Cal Dive Group Member’s officers, directors, employees and agents)
responsible for preparing, maintaining and interpreting information and documents relevant to
Taxes, and personnel reasonably required as witnesses or for purposes of providing information or
documents in connection with any Tax Contest. Any information or documents provided under this
Section 6 shall be kept confidential by Parent, except as may otherwise be necessary in
connection with the filing of Tax Returns or in connection with any Tax Contest.

     Section 6.2. Tax Records.

          (a) Retention of Tax Records.

     Each Company shall preserve and keep all Tax Records exclusively relating to Separate Company
Taxes of its Group for Pre-IPO Periods, and Parent shall preserve and keep all other Tax Records
relating to Taxes of the Groups for Pre-IPO Periods, for so long as the contents thereof may become
material in the administration of any matter under the Code or other applicable Tax Law, but in any
event until the later of (i) the expiration of any applicable statutes of limitation, and (ii)
seven years after the IPO Closing Date. If, prior to the expiration of the applicable statute of
limitation and such seven-year period, a Company reasonably determines that any Tax Records which
it is required to preserve and keep under this Section 6.2 are no longer material in the
administration of any matter under the Code or other applicable Tax Law, such Company may dispose
of such Tax Records upon 90 days prior notice to the other Company. Such notice shall include a
list of the Tax Records to be disposed of describing in reasonable detail each file, book or other
record accumulation being disposed. The notified

20

 

Company shall have the opportunity, at its cost and expense, to copy or remove, within such
90-day period, all or any part of such Tax Records.

          (b) Access to Tax Records.

     The Companies shall make available to members of the other Group for inspection and copying
during normal business hours upon reasonable notice all Tax Records in their possession to the
extent reasonably requested by any such member of the other Group in connection with the
preparation of Tax Returns, Tax Contests or the resolution of items under this Agreement.

Section 7. Tax Contests.

     Section 7.1. Notice.

     Each of the Companies shall provide prompt notice to the other Company of any pending or
threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware that
could affect any Tax liability for which the other Company may be responsible under this Agreement;
provided, however, that failure to give prompt notice shall not affect the
indemnification obligations hereunder except to the extent the Indemnifying Company is actually
prejudiced thereby. Such notice shall contain factual information (to the extent known) describing
such audit, assessment or proceeding in reasonable detail and shall be accompanied by copies of any
notice and other documents received from any Tax Authority in respect of any such matters.

     Section 7.2. Control of Tax Contests.

          (a) Tax Contests Relating to Tax Returns.

     Except as otherwise provided in this Agreement, the Company responsible for preparing and
filing a Tax Return pursuant to Section 4 of this Agreement (the “Controlling
Company”) shall have the exclusive right, in its sole discretion, to control, contest and
represent the interests of each Group in any Tax Contest relating to such Tax Return and to
resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed in
connection with or as a result of any such Tax Contest. The Controlling Company’s rights shall
extend to any matter pertaining to the management and control of the Tax Contest, including
execution of waivers, choice of forum, scheduling of conferences and the resolution of any Tax
Item.

          (b) Additional Taxes & Restructuring Taxes.

     Notwithstanding any other provision of this Agreement to the contrary, Parent shall have the
exclusive right, in its sole discretion, to control, contest and represent the interests of each
Group in any Tax Contest relating, in whole or in part, to Additional Taxes and Restructuring Taxes
and to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or
assessed in connection with or as a result of any such Tax Contest. Parent’s rights shall extend
to any matter pertaining to the management and control of the Tax Contest, including execution of
waivers, choice of forum, scheduling of conferences and the resolution of any Tax Item.

21

 

          (c) Other Taxes.

     In the case of any Tax Contest with respect to any Other Tax for which Cal Dive is solely
responsible under Section 2.5, Cal Dive shall have the exclusive right, in its sole
discretion, to control, contest and represent the interests of the Cal Dive Group in such Tax
Contest and to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted
or assessed in connection with or as a result of any such Tax Contest. With respect to any Other
Tax not described in the preceding sentence, Parent shall have the exclusive right, in its sole
discretion, to control, contest and represent the interests of the Groups in such Tax Contest and
to resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted or assessed
in connection with or as a result of any such Tax Contest.

     Section 7.3. Reimbursement of Expenses.

     If the Indemnifying Company is not the Controlling Company, the Indemnifying Company shall
reimburse the Controlling Company for its costs (including accountant’s fees, investigatory fees
and fees and disbursements of tax counsel) (“Indemnification Expenses”) incurred in any Tax
Contest that are reasonably allocable to the portion of the contested Taxes that would be the
responsibility of the Indemnifying Company hereunder upon a Final Determination that such contested
Taxes are due. The Controlling Company shall provide the Indemnifying Company with a written
statement (a “Reimbursement Statement”) periodically (but not more often than monthly) that
sets forth the amount of the Controlling Company’s Indemnification Expenses since the most recent
Reimbursement Statement and due hereunder. Within 15 days of the Indemnifying Company’s receipt of
each Reimbursement Statement, the Indemnifying Company shall pay to the Controlling Company the
total amount of the Indemnification Expenses shown on such Reimbursement Statement.

Section 8. Continuing Covenants.

     Except as otherwise provided in this Agreement, each of Parent (for itself and each other
Parent Group Member) and Cal Dive (for itself and each other Cal Dive Group Member) agrees (i) not
to take any action reasonably expected to result in an increased Tax liability to another Group, a
reduction in a Tax Asset of another Group or an increased liability to another Group under this
Agreement, (ii) not to take any action, fail to take any action or commit any omission that would
result in Additional Taxes and (iii) to take any action reasonably requested by a Company that
would reasonably be expected to result in a Tax Benefit or avoid a Tax Detriment to such Company;
provided, that such action does not result in any additional direct or indirect cost not
fully compensated for by the requesting Company.

Section 9. Dispute Resolution.

     In the event that the Companies disagree as to the amount or calculation of any payment to be
made under this Agreement, or the interpretation or application of any provision under this
Agreement, the Companies shall attempt in good faith to resolve such dispute. If such dispute is
not resolved within 60 days following the commencement of the dispute, the Companies shall jointly
retain an Independent Firm, reasonably acceptable to the Companies, to resolve the dispute;
provided, however, that in order to pursue any such dispute resolution under this
Section 

22

 

9, the Indemnifying Company must first pay to the Indemnified Company, or place in an
escrow reasonably satisfactory to the Indemnified Company pending resolution of such dispute, an
amount equal to the payment which is the subject of such dispute. The Independent Firm shall act
as an arbitrator to resolve all points of disagreement and its decision shall be final and binding
upon the Companies. Following the decision of the Independent Firm, the Companies shall take, or
cause to be taken, any action necessary to implement the decision of the Independent Firm. The
fees and expenses relating to the Independent Firm shall be borne by the Company that does not
prevail in the dispute resolution proceeding. Notwithstanding any provision of this Agreement to
the contrary, the dispute resolution provisions set forth in this Section 9 shall not be
applicable to any disagreement between the Companies relating to Restructuring Taxes or any matter
relating to any Tax Contest.

Section 10. General Provisions.

     Section 10.1. Effectiveness; Termination of Prior Tax Allocation Agreements.

     This Agreement shall be effective on the date first written above. Immediately prior to the
close of business on the date hereof (i) all Prior Tax Allocation Agreements shall be terminated,
and (ii) amounts due under such Prior Tax Allocation Agreements as of the date hereof shall be
settled. Upon such termination and settlement, no further payments by or to any Parent Group
Member or by or to any Cal Dive Group Member, with respect to such Prior Tax Allocation Agreements,
shall be made, and all other rights and obligations resulting from such Prior Tax Allocation
Agreements between the Companies and their Affiliates shall cease at such time. Any payments
pursuant to such Prior Tax Allocation Agreements shall be ignored for purposes of computing amounts
due under this Agreement.

     Section 10.2. Survival of Obligations.

     The representations, warranties, covenants and agreements set forth in this Agreement shall be
unconditional and absolute and shall remain in effect without limitation as to time.

     Section 10.3. Addresses and Notices.

     All notices, consents, requests, instructions, approvals, statements, reports and other
communications provided for herein shall be validly given, made or served, if in writing and
delivered personally or sent by registered mail, postage prepaid, or by facsimile transmission:

     If to Parent:

	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Attn: Chief Executive Officer	 	 

23

 

     If to Cal Dive:

	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Attn: Chief Executive Officer	 	 

or to such other address that a Company may, from time to time, designate in a written notice to
the other Company given in a like manner. Notice delivered personally shall be deemed delivered
when received by the recipient. Notice given by mail as set out above shall be deemed delivered
five calendar days after the date the same is mailed. Notice given by facsimile transmission shall
be deemed delivered on the day of transmission provided telephone confirmation of receipt is
obtained promptly after completion of transmission.

     Section 10.4. Binding Effect.

     This Agreement shall be binding upon and inure to the benefit of the Companies and their
successors and assigns.

     Section 10.5. Waiver.

     No failure by any Company to insist upon the strict performance of any obligation under this
Agreement or to exercise any right or remedy under this Agreement shall constitute waiver of any
such obligation, right or remedy or any other obligation, rights or remedies under this Agreement.

     Section 10.6. Invalidity of Provisions.

     If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not be affected thereby.

     Section 10.7. Further Action.

     Each Company shall execute and deliver all documents, provide all information and take or
refrain from taking action as may be necessary or appropriate to achieve the purposes of this
Agreement, including the execution and delivery to the other Company and their Affiliates and
representatives of such powers of attorney or other authorizing documentation as is reasonably
necessary or appropriate in connection with Tax Contests under the control of any such other
Company in accordance with Section 7.

     Section 10.8. Integration.

     This Agreement constitutes the entire agreement between the Companies pertaining to the
subject matter of this Agreement and supersedes all prior agreements and understandings pertaining
thereto. In the event of any inconsistency between this Agreement and the Separation Agreement or
any other agreements relating to the transactions contemplated by the Separation Agreement, the
provisions of this Agreement shall control.

24

 

     Section 10.9. Construction.

     The language in all parts of this Agreement shall in all cases be construed according to its
fair meaning and shall not be strictly construed for or against any Company.

     Section 10.10. No Double Recovery.

     No provision of this Agreement shall be construed to provide an indemnity or other recovery
for any costs, damages or other amounts for which the damaged Company has been fully compensated
under any other provision of this Agreement or under any other agreement or action at law or
equity. Unless expressly required in this Agreement, a Company shall not be required to exhaust
all remedies available under other agreements or at law or equity before recovering under the
remedies provided in this Agreement.

     Section 10.11. Setoff.

     All payments to be made by any Company under this Agreement may be netted against payments due
to such Company under this Agreement, but otherwise shall be made without setoff, counterclaim or
withholding, all of which are hereby expressly waived.

     Section 10.12. Counterparts.

     This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, and all of which taken together shall constitute one and the same instrument.

     Section 10.13. No Third Party Rights.

     This Agreement is only intended to allocate the responsibility for certain Taxes between
Parent and Cal Dive and to address the other Tax matters stated herein. Nothing in this Agreement,
express or implied, is intended or shall confer any right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement upon any Group Member or Person other than Parent
and Cal Dive. Parent and Cal Dive acknowledge and agree that the respective rights of the Parent
Indemnitees and the Cal Dive Indemnitees expressly provided under this Agreement may only be
enforced by Parent and Cal Dive, respectively.

     Section 10.14. Governing Law.

     This Agreement shall be governed by and construed in accordance with the laws of the State of
                                         applicable to contracts executed in and to be performed in the State of                                         .

[Signature Page Follows]

25

 

     In Witness Whereof, the Companies have caused this Agreement to be executed by their
respective officers as of the date set forth above.

	 	 	 	 	 
	HELIX ENERGY SOLUTIONS GROUP, INC.
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	CAL DIVE INTERNATIONAL, INC.
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 

26

 

SCHEDULE 1.1

List of Cal Dive Subsidiaries

 

SCHEDULE 1.2

List of Parent Subsidiaries

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]