Document:

exv10w21

Exhibit 10.21

PERFORMANCE SHARE UNIT AWARD AGREEMENT

     This PERFORMANCE SHARE UNIT AWARD AGREEMENT (this “Agreement”), executed by the parties on the
dates indicated on the signature page, is by and between Superior Energy Services, Inc.
(“Superior”) and                      (the “Participant”).

     WHEREAS, Superior has adopted its 2005 Stock Incentive Plan (the “Plan”), to attract, retain
and motivate officers and key employees; and

     WHEREAS, the Compensation Committee (the “Committee”) believes that entering into this
Agreement with the Participant is consistent with the purpose for which the Plan was adopted.

     NOW, THEREFORE, in consideration of the services rendered by the Participant, the mutual
covenants hereinafter set forth and other good and valuable consideration, Superior and the
Participant hereby agree as follows:

     Section 1. The Plan. The Plan, a copy of which has been made available to the
Participant, is incorporated by reference and made a part of this Agreement as if fully set forth
herein. This Agreement uses a number of defined terms that are defined in the Plan or in the body
of this Agreement. These defined terms are capitalized wherever they are used.

     Section 2. Award.

     (a) On                     , 20___, Superior granted to the Participant an Other Stock Based Award
consisting of___Performance Share Units (the “Units”), subject to the terms and conditions of this
Agreement.

     (b) Depending on the Company’s achievement of the performance goals specified in Section 2(c)
during the period beginning January 1, 20___and ending December 31, 20___(the “Performance
Period”), the Participant shall be entitled to a payment equal to the value of the Units determined
pursuant to Section 2(d) if, except as otherwise provided in Section 3, he remains actively
employed with the Company on January 2, 20___.

     (c) The amount paid with respect to the Units shall be based upon the Company’s achievement of
the following performance criteria as determined by the Committee: (i) return on invested capital
relative to the return on invested capital of the Company’s “Peer Group” listed on Schedule A
attached hereto (“Relative ROIC”); and (ii) the Company’s total shareholder return relative to the
total shareholder return of the Company’s “Peer Group” listed on Schedule A attached hereto
(“Relative TSR”) in accordance with the following matrix:

 

 

Relative ROIC

	 	 	 	 	 
	 	 	 	 	Performance
	Performance Level Compared to Peer Group	 	Percentage(%)
	 	 	 
	 
	 	 	 	 
	 
Threshold 

Target 

Maximum

	 	Below 40th Percentile

40th Percentile

60th Percentile

80th Percentile or above
	 	0 %

25 %

50 %

100 %

Relative TSR

	 	 	 	 	 
	Performance Level Compared to Peer Group	 	Performance

Percentage(%)
	 

	 	 
	 	 
	 
	 	 	 	 
	 
Threshold 

Target 

Maximum

	 	Below 40th Percentile

40th Percentile

60th Percentile

80th Percentile or above
	 	0 %

25 %

50 %

100 %

     The Committee shall adjust the performance criteria to recognize special or non-recurring
situations or circumstances with respect to the Company or any other company in the peer group for
any year during the Performance Period arising from the acquisition or disposition of assets, costs
associated with exit or disposal activities or material impairments that are reported on a Form 8-K
filed with the Securities and Exchange Commission.

     (d) The amount payable to the Participant pursuant to this Agreement shall be an amount equal
to the number of Units awarded to the Participant multiplied by the product of (i) $100 and (ii)
the sum of the Performance Percentages set forth above for the level of achievement of each of the
performance criteria set forth in Section 2(c). By way of example, if the Company reached the
40th percentile in Relative ROIC and the 60th percentile in Relative TSR, the
sum of the Performance Percentages would be 75% and the amount payable with respect to each Unit
would be $75. If Relative ROIC reached the 80th percentile but Relative TSR was below
the 40th percentile, the sum of the Performance Percentages would be 100% and the amount
payable with respect to each Unit would be $100. Performance results between the threshold, target
and maximum levels will be calculated on a pro rata basis. The maximum payout for each Unit is
$200.

     (e) Except as provided in Section 3(b), payment of amounts due under the Units shall be made
on March 30, 20___. Any amount paid in respect of the Units shall be payable in such combination of
cash and Common Stock (with the Common Stock valued at its Fair Market Value) as determined by the
Committee in its sole discretion; provided, however, that no more than fifty percent (50%) of the
payment may be made in Common Stock. Prior to any payments under this Agreement, the Committee
shall certify in writing, by resolution or otherwise, the amount to be paid in respect of the Units
as a result of the achievement of Relative ROIC and Relative TSR. The Committee shall not increase
the amount payable to the Participant to an amount that is higher than the amount payable under the
formula described herein.

     Section 3. Early Termination; Change of Control.

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     (a) In the event of the Participant’s termination of employment prior to the end of the
Performance Period due to (i) any reason other than voluntary termination by the Participant (other
than as permitted under Section 3(a)(iv)) or cause as determined by the Committee in its sole
discretion, (ii) death, (iii) disability (within the meaning of Section 22(e)(3) of the Internal
Revenue Code of 1986, as amended (the “Code”)), or (iv) Retirement (as hereinafter defined), the
Participant shall forfeit as of the date of termination a number of Units determined by multiplying
the number of Units by a fraction, the numerator of which is the number of full months following
the date of termination, death, disability or retirement to the end of the Performance Period and
the denominator of which is thirty six (36). The Committee shall determine the number of Units
forfeited and the amount to be paid to the Participant or his beneficiary in accordance with
Section 2(e) based on the performance criteria for the entire Performance Period. As used herein,
“Retirement” is defined as the voluntary termination of employment at or after age 55 with at least
five years of service and the Participant not, at any time on or before March 30, 20___, accepting
employment with, acquiring a 5% or more equity or participation interest in, serving as a
consultant, advisor, director or agent of, directly or indirectly soliciting or recruiting any
employee of the Company who was employed at any time during Participant’s service with the Company,
or otherwise assisting in any other capacity or manner any company or enterprise that is directly
or indirectly in competition with or acting against the interests of the Company or any of its
lines of business, except for any service or assistance that is provided at the request or with the
written permission of Superior.

     (b) In the event of a Change of Control, the Participant shall be deemed to have achieved the
maximum level for Relative ROIC and Relative TSR in accordance with the terms of the Plan. Payment
shall be made to the Participant as soon as administratively practical following the Change of
Control, but in no event later than 2.5 months following the end of the year in the such Change of
Control occurs. Notwithstanding the foregoing, if the Change of Control does not qualify as a
“change in control event” under Section 409A of the Code, and any regulations or guidance
promulgated thereunder, then payment shall be made at the time specified in Section 2(e).

     Section 4. Miscellaneous.

     (a) Participant understands and acknowledges that he is one of a limited number of employees
of the Company who have been selected to receive grants of Units and that the grant is considered
confidential information. Participant hereby covenants and agrees not to disclose the award of
Units pursuant to this Agreement to any other person except (i) Participant’s immediate family and
legal or financial advisors who agree to maintain the confidentiality of this Agreement, (ii) as
required in connection with the administration of this Agreement and the Plan as it relates to this
award or under applicable law, and (iii) to the extent the terms of this Agreement have been
publicly disclosed by the Company.

     (b) The Company shall be entitled to require a cash payment by or on behalf of the Participant
and/or to deduct from other compensation payable to the Participant any sums required by federal,
state or local tax law to be withheld with respect to the award or payments in respect of any Units
or the issuance of Common Stock. Alternatively, the Participant may irrevocably elect, in such
manner and at such time or times prior to any applicable tax date, as may be permitted by the
Committee, to have the Company withhold and reacquire Units or Common Stock to satisfy any
withholding obligations of the Company. Any election to have

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Units or Common Stock so held back and reacquired shall be subject to the Committee’s
approval.

     (c) The authority to manage and control the operation and administration of this Agreement
shall be vested in the Committee, and the Committee shall have all powers with respect to this
Agreement as it has with respect to the Plan. Any interpretation of this Agreement by the Committee
and any decision made by it with respect to this Agreement shall be final and binding on all
persons.

     (d) Notwithstanding anything in this Agreement to the contrary, the terms of this Agreement
shall be subject to the terms of the Plan, and this Agreement is subject to all interpretations,
amendments, rules and regulations promulgated by the Committee from time to time pursuant to the
Plan.

     (e) This Agreement shall be construed and interpreted to comply with Section 409A of the
Internal Revenue Code of 1986, as amended. Superior reserves the right to amend this Agreement to
the extent it reasonably determines is necessary in order to preserve the intended tax consequences
of the Units in light of Section 409A and any regulations or other guidance promulgated thereunder.
Neither the Company nor the members of the Committee shall be liable for any determination or
action taken or made with respect to this Agreement or the Units granted thereunder.

     (f) Each notice relating to this Agreement shall be in writing and delivered in person or by
mail to Superior at its office, 601 Poydras Street, Suite 2400, New Orleans, LA 70130, to the
attention of the Secretary or at such other address as Superior may specify in writing to the
Participant by a notice delivered in accordance with this Section 4(f). All notices to the
Participant shall be delivered to the Participant’s address specified below or at such other
address as the Participant may specify in writing to the Secretary by a notice delivered in
accordance with this Section 4(f).

     (g) Neither this Agreement nor the rights of Participant hereunder shall be transferable by
the Participant during his life other than by will or pursuant to applicable laws of descent and
distribution. No rights or privileges of the Participant in connection herewith shall be
transferred, assigned, pledged or hypothecated by Participant or by any other person in any way,
whether by operation of law, or otherwise, and shall not be subject to execution, attachment,
garnishment or similar process. In the event of any such occurrence, this Agreement shall
automatically be terminated and shall thereafter be null and void.

     (h) Nothing in this Agreement shall confer upon the Participant any right to continue in the
employment of the Company, or to interfere in any way with the right of the Company to terminate
the Participant’s employment relationship with the Company at any time.

     (i) This Agreement shall be governed by and construed in accordance with the laws of the State
of Louisiana.

     (j) If any term or provision of this Agreement, shall at any time or to any extent be invalid,
illegal or unenforceable in any respect as written, the Participant and Superior intend for any
court construing this Agreement to modify or limit such provision so as to render it valid and
enforceable to the fullest extent allowed by law. Any such provision that is not susceptible of

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such reformation shall be ignored so as to not affect any other term or provision hereof, and
the remainder of this Agreement, or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid, illegal or unenforceable, shall not
be affected thereby and each term and provision of this Agreement shall be valid and enforced to
the fullest extent permitted by law.

     (k) The Plan and this Agreement contain the entire agreement between the parties with respect
to the subject matter contained herein and may not be modified, except as provided herein or in the
Plan or as it may be amended from time to time by a written document signed by each of the parties
hereto. Any oral or written agreements, representations, warranties, written inducements, or other
communications with respect to the subject matter contained herein made prior to the execution of
the Agreement shall be void and ineffective for all purposes.

     (l) Superior’s obligation under the Plan and this Agreement is an unsecured and unfunded
promise to pay benefits that may be earned in the future. Superior shall have no obligation to set
aside, earmark or invest any fund or money with which to pay its obligations under this Agreement.
The Participant or any successor in interest shall be and remain a general creditor of Superior in
the same manner as any other creditor having a general claim for matured and unpaid compensation.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered on the dates indicated below.

	 	 	 	 	 
	 	SUPERIOR ENERGY SERVICES, INC.

 	 
	_______________, 20__ 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	_______________, 20__

	 	
Participant
 	 
	 	 	 
	 	 	 
	 	 	 

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Schedule A

PEER GROUP COMPANIES

BJ Services Co.

Helix Energy Solutions Group Inc.

Helmerich & Payne Inc.

Oceaneering International, Inc.

Oil States International, Inc.

Pride International, Inc.

RPC, Inc.

Seacor Holdings, Inc.

Smith International Inc.

Tetra Technologies, Inc.

Weatherford International Inc.

     If any peer group company’s Relative ROIC or Relative TSR shall cease to be publicly available
(due to a business combination, receivership, bankruptcy or other event) or if any such company is
no longer publicly held, the Committee shall exclude that company from the peer group and, in its
sole discretion, substitute another comparable company.

A-1exv10w22

Exhibit 10.22

STOCK OPTION AGREEMENT

     THIS AGREEMENT, executed by the parties on the dates indicated on the signature page, is by
and between Superior Energy Services, Inc. (“Superior”), and _______________ (“Optionee”).

     WHEREAS Optionee is a key employee of Superior or one of its subsidiaries (collectively, the
“Company”) and Superior considers it desirable and in its best interest that Optionee be given an
inducement to acquire a proprietary interest in the Company and an added incentive to advance the
interests of the Company by possessing an option to purchase shares of the common stock of
Superior, $.001 par value per share (the “Common Stock”), in accordance with the Superior Energy
Services, Inc. 2005 Stock Incentive Plan (the “Plan”).

     NOW, THEREFORE, in consideration of the premises, it is agreed by and between the parties as
follows:

1.

GRANT OF OPTION

     On _______________, 20___ (the “Date of Grant”), Superior granted to Optionee the right,
privilege and option to purchase ___ shares of Common Stock (the “Option”) at an exercise price of
$____________  per share (the “Exercise Price”). The Option shall be exercisable at the time specified
in Article II below. The Option is a non-qualified stock option and shall not be treated as an
incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”).

2.

TIME OF EXERCISE

     2.1 Subject to the provisions of the Plan and the other provisions of this Agreement, the
Option shall vest in equal annual installments as follows:

	 	 	 
	Scheduled Vesting Date	 	Number of Shares To Vest
	December 31, 20___

	 	 
	December 31, 20___
	 	 
	December 31, 20___
	 	 

     The Option shall expire and may not be exercised later than the tenth anniversary of the Date
of Grant.

     2.2 Except as otherwise provided herein, upon the termination of Optionee’s employment with
the Company, any portion of the Option that has not yet become exercisable shall terminate
immediately. If Optionee’s employment by the Company is terminated because of death or disability
(within the meaning of Section 22(e)(3) of the Code), any portion of the Option that has not yet
vested shall become immediately exercisable on the date of such termination of employment. If the
Optionee’s employment by the Company is terminated

 

 

because of (a) Optionee’s retirement on or after reaching age 55 with five years of service,
or (b) the Company’s termination of Optionee’s employment without Cause (as defined below), then,
if approved by the Compensation Committee of the Board of Directors of Superior, any portion of the
Option that has not yet vested shall become immediately exercisable on the date of such termination
of employment.

     2.3 If Optionee’s employment by the Company is terminated for Cause, the Option shall
terminate in full immediately, whether or not exercisable at the time of termination of employment.
“Cause” for termination of employment shall be deemed to exist upon either (a) a final
determination is made in accordance with the terms of Optionee’s employment agreement, if any, with
the Company that the Optionee’s employment has been terminated for “cause” within the meaning of
the employment agreement or (b), if the Optionee is not subject to an employment agreement: (i)
failure to abide by the Company’s rules and regulations governing the transaction of its business,
including without limitation, its Code of Business Ethics and Conduct; (ii) inattention to duties,
or the commission of acts within employment with the Company amounting to negligence or misconduct;
(iii) misappropriation of funds or property of the Company or committing any fraud against the
Company or against any other person or entity in the course of employment with the Company; (iv)
misappropriation of any corporate opportunity, or otherwise obtaining personal profit from any
transaction which is adverse to the interests of the Company or to the benefits of which the
Company is entitled; or (v) the commission of a felony or other crime involving moral turpitude.

     2.4 Except as provided in Sections 2.5 and 2.6, if Optionee’s employment with the Company is
terminated, the Option must be exercised, to the extent exercisable at the time of termination of
employment, within 30 days of the date on which Optionee ceases to be an employee, but in no event
later than the tenth anniversary of the Date of Grant.

     2.5 If Optionee’s employment by the Company is terminated because of (a) death, (b) disability
(within the meaning of Section 22(e)(3) of the Code) or (c) retirement on or after reaching age 55
with five years of service, the Option must be exercised, to the extent exercisable at the time of
termination of employment, on or before the tenth anniversary of the Date of Grant. In the event
of Optionee’s death, the Option may, to the extent exercisable at the time of death, be exercised
by his estate, or by the person to whom such right devolves from him by reason of his death. If
the Optionee’s employment is terminated by the Company other than for Cause, then the Option must
be exercised, to the extent exercisable at the time of termination of employment, within five years
following the date of termination of employment, but in no event later than the tenth anniversary
of the Date of Grant.

     2.6 If there has been a Change of Control (as defined in the Plan) of Superior, (a) if the
Option remains outstanding after the Change of Control, either as a right to purchase Common Stock
or as a right to purchase that number and class of shares of stock or other securities or property
(including without limitation, cash) to which the Optionee would have been entitled if, immediately
prior to the Change of Control, the Optionee had been the record owner of the number of shares of
Common Stock then covered by the Option and (b) if the Optionee’s employment is terminated by the
Company other than for Cause within a one-year period following the Change of Control, then the
Option must be exercised within five years

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following the date of termination of employment, but in no event later than the tenth
anniversary of the Date of Grant.

3.

FORFEITURE OF OPTION AND OPTION GAIN

     If at any time during Optionee’s employment by the Company or within 36 months after
termination of employment, Optionee engages in any activity in competition with any activity of the
Company, or inimical, contrary or harmful to the interests of the Company, including but not
limited to:

     (a) conduct relating to Optionee’s employment for which either criminal or civil penalties
against Optionee may be sought;

     (b) conduct or activity that results in termination of Optionee’s employment for Cause;

     (c) violation of Company policies, including, without limitation, the Company’s Code of
Business Ethics and Conduct;

     (d) accepting employment with, acquiring a 5% or more equity or participation interest in,
serving as a consultant, advisor, director or agent of, directly or indirectly soliciting or
recruiting any employee of the Company who was employed at any time during Optionee’s tenure with
the Company, or otherwise assisting in any other capacity or manner any company or enterprise that
is directly or indirectly in competition with or acting against the interests of the Company or any
of its lines of business (a “competitor”), except for (i) any isolated, sporadic accommodation or
assistance provided to a competitor, at its request, by Optionee during Optionee’s tenure with the
Company, but only if provided in the good faith and reasonable belief that such action would
benefit the Company by promoting good business relations with the competitor and would not harm the
Company’s interests in any substantial manner or (ii) any other service or assistance that is
provided at the request or with the written permission of the Company;

     (e) disclosing or misusing any confidential information or material concerning the Company; or

     (f) making any statement or disclosing any information to any customers, suppliers, lessors,
lessees, licensors, licensees, regulators, employees or others with whom the Company engages in
business that is defamatory or derogatory with respect to the business, operations, technology,
management, or other employees of the Company, or taking any other action that could reasonably be
expected to injure the Company in its business relationships with any of the foregoing parties or
result in any other detrimental effect on the Company;

then the Company shall provide written notice to the Optionee of the Optionee’s violation of this
Agreement, and the Optionee shall pay in cash to the Company, without interest, any option gain
realized by Optionee from exercising all or a portion of the Option during the period beginning one
year prior to termination of employment (or one year prior to the date Optionee first engages in
such activity if no termination occurs) and ending on the date on which the Option terminates,

3

 

and the Option shall terminate without any payment to Optionee effective the date on which Optionee
engages in such activity, unless terminated sooner by operation of another term or condition of
this Agreement or the Plan. For purposes hereof, “option gain” shall mean the difference between
the closing market price of the Common Stock on the date of exercise minus the exercise price,
multiplied by the number of shares purchased.

4.

METHOD OF EXERCISE OF OPTION

     Optionee may exercise all or a portion of the Option by contacting Merrill Lynch, the
Company’s third party administrator, or any successor administrator, in accordance with the
procedures established by the Company. Optionee shall specify the number of shares to be purchased
and must pay the total exercise price of the shares, which may be accomplished in any manner set
forth in the Plan or approved by the Company. Once the Company or its delegee has received the
exercise price for the shares, the appropriate officer of the Company shall cause the transfer of
title of the shares purchased to Optionee on the Company’s stock records and cause such shares to
be issued in Optionee’s name or to an account in Optionee’s name with his brokerage firm. Optionee
shall not have any rights as a stockholder until such shares are issued to him.

5.

NO CONTRACT OF EMPLOYMENT INTENDED

     Nothing in this Agreement shall confer upon Optionee any right to continue in the employ of
the Company, or to interfere in any way with the right of the Company to terminate Optionee’s
employment relationship with the Company at any time.

6.

NON-TRANSFERABILITY, BINDING EFFECT AND SUCCESSORS

     6.1 The Option may not be transferred, assigned, pledged or hypothecated in any manner, by
operation of law or otherwise, other than by will or by the laws of descent and distribution, or
pursuant to a domestic relations order, as defined in the Code, and shall not be subject to
execution, attachment or similar process. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, executors and administrators and
permitted successors.

     6.2 If in connection with a Change of Control, the Option is assumed by a successor to the
Company, then, as used herein, “Company” shall include any successor to the Company’s business and
assets that assumes and agrees to perform this Agreement.

7.

INCONSISTENT PROVISIONS

     The Option is subject to the provisions of the Plan as in effect on the date hereof and as it
may be amended. In the event any provision of this Agreement conflicts with such a provision of the
Plan, the Plan provision shall control.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the dates
indicated below.

	 	 	 	 	 
	 	SUPERIOR ENERGY SERVICES, INC.

 	 
	_______________, 20__  	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	_______________, 20__ 	
 	 
	 	
Optionee	 
	 	 	 
	 	 	 
	 

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