Document:

Long-Term Incentive Plan

 Exhibit 10.5 
  
 HERCULES OFFSHORE 
 2004 LONG-TERM
INCENTIVE PLAN 
  
 (Adopted Effective as of November 17,
2004) 
  
 1. Objectives. This Hercules Offshore
2004 Long-Term Incentive Plan (this ”Plan”) is intended as an incentive to retain and attract persons of training, experience and ability to serve as employees, consultants and directors of Hercules Offshore, LLC, a Delaware limited
liability company, and its successors, to encourage the sense of proprietorship of such persons and to stimulate the active interest of such persons in the development and financial success of the Company and its Subsidiaries. 
  
 2. Definitions. As used herein, the terms set forth below shall
have the following respective meanings: 
  
 “Act” means the Securities Act of 1933, as amended from time to time. 
  
 “Award” means any Option, Restricted Stock, Performance Stock Award, Phantom Stock, Cash Award or Stock Award, whether
granted singly, in combination or in tandem, granted to a Participant pursuant to any applicable terms, conditions and limitations as the Committee may establish in order to fulfill the objectives of this Plan. 
  
 “Award Agreement” means a written agreement
between the Company and a Participant that sets forth the terms, conditions and limitations applicable to an Award. 
  
 “Board” means the Managers or the Board of Directors of the Company, as applicable. 
  
 “Cash Award” means an Award payable in
cash. 
  
 “Change in Control”
means (i) the consummation of a reorganization, merger, consolidation or other transaction, in any case, with respect to which persons who were stockholders (or members) of the Company immediately prior to such reorganization, merger or
consolidation do not, immediately thereafter, own equity interests representing at least 51% of the total combined voting power of the Company or the resulting reorganized, merged or consolidated entity, as applicable, (ii) the sale, lease, transfer
or other disposition of all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole (other than to one or more Subsidiaries of the Company), or (iii) the occurrence of (A) the consummation of a transaction or series
of related transactions in which the Company issues, as consideration for the acquisition (through a merger, reorganization, stock purchase, asset purchase or otherwise) of the assets or capital stock of an unaffiliated third party, equity in the
Company representing more than 35% of the outstanding equity of the Company calculated as of the consummation of such transaction or transactions, in conjunction with (B) a change in the composition of the Board, as a result of which fewer than 50%
of the incumbent directors are directors who had been directors of the Company at the time of the approval by the Board of the issuance of such equity in the Company. 
  

 “Code” means the United States Internal Revenue Code of 1986, as amended
from time to time. 
  
 “Committee” means the Compensation Committee of the Board or such other committee of the Board as is designated by the Board to administer this Plan, or in the absence of any such designation, the Board. 
  
 “Common Stock” means (i) prior to the
effective time of a Conversion Transaction, the limited liability company interests in the Company, which the limited liability company agreement of the Company denominates as “Membership Interests,” and (ii) from and after the effective
time of a Conversion Transaction, the common stock of the Company. 
  
 “Company” means (i) prior to the effective time of a Conversion Transaction, Hercules Offshore, LLC, a Delaware limited liability company, and (ii) after the effective time of a Conversion
Transaction, Newco. 
  
 “Conversion
Transaction” means a conversion, merger, share exchange or other reorganization transaction pursuant to which (i) all outstanding Common Stock of Hercules Offshore, LLC is converted into Common Stock of Newco, (ii) Hercules Offshore, LLC is
merged or consolidated with, or converted into or becomes a Subsidiary of, Newco and (iii) Newco assumes or succeeds to all of the obligations of Hercules Offshore, LLC under this Plan, all in connection with, or in anticipation of, an underwritten
public offering of Common Stock under the Act. 
  
 “director” means a Manager or a member of the Board of Directors of the Company, as applicable. 
  
 “Effective Date” means November 17, 2004, subject to Section 23. 
  
 “Employee” means an individual employed by
the Company or a Subsidiary. For purposes of this Plan, an Employee also includes a consultant providing services to the Company or a Subsidiary. 
  
 “Exercise Price” means the price at which the Option Shares may be purchased under the terms of an Award Agreement.

  
 “Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time. 
  
 “Fair Market Value” of a share of Common Stock means, as of a particular date, (a) if shares of Common Stock are listed on a national securities exchange, the mean between the highest and lowest sales
price per share of Common Stock on the consolidated transaction reporting system for the principal national securities exchange on which shares of Common Stock are listed on that date or, if there shall have been no such sale so reported on that
date, on 

  

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the next succeeding date on which such a sale was so reported; (b) if shares of Common Stock are not so listed but are quoted on the Nasdaq National Market,
the mean between the highest and lowest sales price per share of Common Stock reported by the Nasdaq National Market on that date or, if there shall have been no such sale so reported on that date, on the next succeeding date on which such a sale
was so reported; (c) if the Common Stock is not so listed or quoted, the mean between the closing bid and asked price on that date or, if there are no quotations available for such date, on the next succeeding date on which such quotations shall be
available, as reported by the Nasdaq Stock Market or, if not reported by the Nasdaq Stock Market, by the National Quotation Bureau Incorporated; or (d) if none of the above is applicable, then such amount as may be determined by the Committee or the
Board in such a manner as it deems in good faith appropriate to be the fair market value per share of Common Stock. 
  
 “Grant Date” means the date on which an Award is granted by the Committee. 
  
 “Insider” means an individual who is, on
the relevant date, an officer, director or ten percent (10%) beneficial owner of any class of the Company’s equity securities that is registered pursuant to Section 13 of the Exchange Act, all as defined under Section 16 of the Exchange Act.

  
 “IPO” shall mean an
underwritten public offering under the Act of the Common Stock, where such Common Stock is listed or quoted on a national securities exchange or the Nasdaq National Market. 
  
 “ISO” means an incentive stock option within the meaning of Code Section 422. 

 
 “Newco” means a corporation organized or
to be organized and designated by the Board to, among other things, effect the Conversion Transaction and, as a result of the Conversion Transaction, to become the parent entity of Hercules Offshore, LLC or the entity into which Hercules Offshore,
LLC is merged or converted. 
  
 “Operating Agreement” means the Amended and Restated Operating Agreement of Hercules Offshore, LLC, dated as of October 1, 2004. 
  
 “Option” means a right to purchase a particular number of shares of Common Stock at a particular Exercise Price, subject
to certain terms and conditions as provided in this Plan and an Award Agreement. An Option may be in the form of an ISO or a nonqualified stock option within the meaning of Code Section 83. 
  
 “Option Shares” means the shares of Common
Stock covered by a particular Option. 
  
 “Outside Director” means a director who is not an Employee, who qualifies as: 
  
 (a) a “non-employee director” under Rule 16b-3(b)(3) under the Exchange Act, and 
  
 (b) an “outside director” under Code §162(m)
and the regulations promulgated thereunder. 
  

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 “Participant” means an Employee or an Outside Director to whom an Award
has been granted under this Plan. 
  
 “Performance-Based Exception” means the performance-based exception from the tax deductibility limitations of Code §162(m). 
  
 “Performance Stock Award” means an Award that is contingent on the achievement of certain performance objectives
established by the Board, valued by reference to the Fair Market Value of the Common Stock, or increase thereof, by reference to performance measures other than the Common Stock, or a combination of both, over a specified period of time. 

 
 “Phantom Stock” means a right to receive
the value of a specified number of shares of Common Stock. 
  
 “Plan” means the Hercules Offshore 2005 Long-Term Incentive Plan, as amended from time to time. 
  
 “Restricted Stock” means shares of Common Stock that are restricted or subject to forfeiture provisions. 
  
 “Rule 16b-3” means Rule 16b-3 promulgated
under the Exchange Act or any successor rule. 
  
 “Stock Award” means an Award payable in shares of Common Stock, which may be Restricted Stock. 
  
 “Subsidiary” means (a) with respect to any Awards other than ISOs, and as otherwise used in this Plan, (i) in the case of
a corporation, any corporation of which the Company directly or indirectly owns shares representing 50% or more of the combined voting power of the shares of all classes or series of capital stock of such corporation that have the right to vote
generally on matters submitted to a vote of the stockholders of such corporation and (ii) in the case of a partnership or other business entity not organized as a corporation, any such business entity of which the Company directly or indirectly owns
50% or more of the voting, capital or profits interests (whether in the form of partnership interests, membership interests or otherwise), and (b) with respect to Awards of ISOs, any subsidiary within the meaning of Section 424(f) of the Code.

  
 3. Plan Administration and Designation of
Participants. All Employees of the Company and its Subsidiaries and all Outside Directors are eligible for Awards under this Plan. The Committee shall select the Participants from time to time by the grant of Awards under this Plan and,
subject to the terms and conditions of this Plan, shall determine all terms and conditions of the Awards. This Plan shall be administered by the Committee, which shall have full and exclusive power to interpret this Plan and to adopt such rules,
regulations and guidelines for carrying out this Plan as it may deem necessary or appropriate. The Committee may delegate 

  

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its duties hereunder to the Chief Executive Officer or other executive officers of the Company subject to such rules and regulations as the Committee
establishes. The Committee may, in its discretion, provide for the extension of the exercisability of an Award, accelerate the vesting or exercisability of an Award, eliminate or make less restrictive any restrictions contained in an Award
Agreement, waive any restriction or other provision of this Plan or an Award Agreement or otherwise amend or modify an Award in any manner that is either (a) not adverse to the Participant holding the Award or (b) consented to by such Participant.
Notwithstanding the above, the Board may assume the powers and responsibilities granted to the Committee or other delegate at any time, in whole or in part. With respect to Committee appointments and composition, only a Committee (or a sub-committee
thereof) comprised solely of two (2) or more Outside Directors may grant Awards that will meet the Performance-Based Exception, and only a Committee comprised solely of Outside Directors may grant Stock Incentives to Insiders that will be exempt
from Section 16(b) of the Exchange Act. 
  
 4. Award
Agreement. Each Award granted hereunder shall be described in an Award Agreement, which shall be subject to the terms and conditions of this Plan and shall be signed by the Participant and by the appropriate officer for and on behalf of the
Company. 
  
 5. Shares of Common Stock Subject to this
Plan. Subject to adjustment as provided in Section 13 hereof, the total number of shares of Common Stock that may be issued pursuant to Awards under this Plan will not exceed 7,000 shares of Common Stock. All such shares of Common Stock
shall be reserved, to the extent that the Company deems appropriate, from authorized but unissued shares of Common Stock, from shares held in the treasury of the Company or from shares that have been reacquired by the Company. 
  
 The Committee and the appropriate officers of the Company shall from time to
time take whatever actions are necessary to execute, acknowledge, file and deliver any documents required to be filed with or delivered to any governmental authority or any stock exchange or transaction reporting system on which shares of Common
Stock are listed or quoted in order to make shares of Common Stock available for issuance pursuant to this Plan. Awards that are forfeited or terminated or expire unexercised in such a manner that all or some of the shares of Common Stock subject
thereto are not issued to a Participant shall immediately become available for the granting of Awards under this Plan. 
  
 6. Awards to Participants. 
  
 (a) Incentive Stock Options. Options granted to Employees (other than consultants) hereunder may be incentive stock options
within the meaning of Section 422 of the Code (an “ISO”). An ISO shall consist of a right to purchase a specified number of shares of Common Stock at a price specified by the Committee in the Award Agreement or otherwise, which shall not
be less than the Fair Market Value of the Common Stock on the Grant Date. Any ISO granted shall expire not later than ten (10) years after the Grant Date, with the expiration date to be specified by the Committee in the Award Agreement. Any ISO
granted must, in addition to being subject to applicable terms, conditions and limitations established by the Committee, comply with Section 422 of the Code. Pursuant to the ISO requirements of Code Section 422, notwithstanding anything herein

  

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to the contrary, (i) no ISO can be granted under this Plan on or after the tenth (10th) anniversary of the Effective Date of this Plan (or the fifth
anniversary of the Effective Date of this Plan if the ISO is awarded to any person who, at the time of grant, owns stock representing more than 10% of the combined voting power of all classes of stock of the Company or any Subsidiary), (ii) no
Optionee may be granted an ISO to the extent that, upon the grant of the ISO, the aggregate Fair Market Value (determined as of the date the Option is granted) of the Common Stock with respect to which ISOs (including Options hereunder) are
exercisable for the first time by the Optionee during any calendar year (under all plans of the Company and any Subsidiary) would exceed $100,000, and (iii) the Exercise Price of the ISO may not be less than 100% of the Fair Market Value of the
Common Stock at the time of grant (or not less than 110% of such of the Fair Market Value if the ISO is awarded to any person who, at the time of grant, owns stock representing more than 10% of the combined voting power of all classes of stock of
the Company or any Subsidiary). All other terms, conditions and limitations applicable to ISOs shall be determined by the Committee. 
  
 (b) Nonqualified Stock Options. Options granted to Participants (including consultants) may be nonqualified stock options
within the meaning of Section 83 of the Code. A nonqualified stock option shall consist of a right to purchase a specified number of shares of Common Stock at a price specified by the Committee in the Award Agreement or otherwise. The expiration
date of the nonqualified stock option shall be specified by the Committee in the Award Agreement. All other terms, conditions and limitations applicable to nonqualified stock options shall be determined by the Committee. 
  
 (c) Performance Stock Award. An Award may be
in the form of a Performance Stock Award. The terms, conditions and limitations applicable to any Performance Stock Award shall be determined by the Committee. 
  

(d) Stock Award (including Restricted Stock). An Award may consist of Common Stock or may be denominated in units of
Common Stock. All or part of any Stock Award may be subject to conditions established by the Committee and set forth in the Award Agreement, which conditions may include, but are not limited to, continuous service with the Company and its
Subsidiaries, achievement of specific business objectives, increases in specified indices, attaining specified growth rates and other comparable measurements of performance. Such Awards may be based on Fair Market Value or other specified
valuations. The certificates evidencing shares of Common Stock issued in connection with a Stock Award shall contain appropriate legends and restrictions describing the terms and conditions of the restrictions applicable thereto. The terms,
conditions and limitations applicable to any Stock Award pursuant to this Plan shall be determined by the Committee. 
  
 (e) Phantom Stock. An Award may be in the form of Phantom Stock or other bookkeeping account tied to the value of shares of
Common Stock. The terms, conditions and limitations applicable to any Awards of Phantom Stock shall be determined by the Committee. 
  

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 (f) Cash Awards. An Award may be in the form of a Cash Award. The terms,
conditions and limitations applicable to any Cash Awards shall be determined by the Committee. 
  
 7. Payment of Awards. 
  
 (a) General. Payment of Awards may be made in the form of cash or Common Stock or combinations thereof and may include such
restrictions as the Committee shall determine, including, in the case of Common Stock, restrictions on transfer and forfeiture provisions. 
  
 (b) Deferral. The Committee may, in its discretion, (i) permit selected Participants to elect to defer payments of some or
all types of Awards in accordance with procedures established by the Committee or (ii) provide for the deferral of an Award in an Award Agreement or otherwise. Any such deferral may be in the form of installment payments or a future lump-sum
payment. Any deferred payment, whether elected by the Participant or specified by the Award Agreement or by the Committee, may be forfeited if and to the extent that the Award Agreement so provides. 
  
 (c) Dividends and Interest. Distributions or
dividends or dividend equivalent rights may be extended to and made part of any Award denominated in Common Stock or units of Common Stock, subject to such terms, conditions and restrictions as the Committee may establish. The Committee may also
establish rules and procedures for the crediting of interest on deferred cash payments and dividend equivalents for deferred payment denominated in Common Stock or units of Common Stock. 
  
 (d) Substitution of Awards. At the discretion of the Committee, a Participant may be offered
an election to substitute an Award for another Award or Awards of the same or different type. 
  
 8. Stock Option Exercise. The price at which shares of Common Stock may be purchased under an Option shall be paid in full at the time of exercise in cash or, if permitted by the Committee, by means of
tendering Common Stock or surrendering all or part of that or any other Award, including Restricted Stock, that has been held by the Participant for at least six (6) months and that is valued at Fair Market Value on the date of exercise, or any
combination thereof. The Committee shall determine acceptable methods for tendering Common Stock or Awards to exercise an Option as it deems appropriate. The Committee may provide for procedures to permit the exercise or purchase of Awards by (a)
loans from the Company or (b) use of the proceeds to be received from the sale of Common Stock issuable pursuant to an Award. Unless otherwise provided in the applicable Award Agreement, in the event shares of Restricted Stock are tendered as
consideration for the exercise of an Option, a number of the shares issued upon the exercise of the Option, equal to the number of shares of Restricted Stock used as consideration therefor, shall be subject to the same restrictions as the Restricted
Stock so submitted as well as any additional restrictions that may be imposed by the Committee. 
  

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 9. Change of Control of the Company and IPO. 
  
 (a) General Rule for Options. Except as
otherwise provided in an Award Agreement, if (1) the Company consummates an IPO or (2) a Change of Control occurs and the agreements effectuating the Change of Control do not provide for the assumption or substitution of all Options granted under
this Plan, then with respect to (x) any Option, in the event of an IPO, or (y) any Option that is not so assumed or substituted (a “Non-Assumed Option”), in the event of a Change of Control, the Committee, in its sole and absolute
discretion, may (but shall not be required to) take any or all of the following actions to be effective as of the date of the IPO or the Change of Control, as applicable (or as of any other date fixed by the Committee occurring within the thirty
(30) day period immediately preceding the date of the IPO or the Change of Control, but only if such action remains contingent upon the effectuation of the IPO or the Change of Control) (such date referred to as the “Action Effective
Date”): 
  
 (i) accelerate the vesting
and/or exercisability of such Option or Non-Assumed Option; and/or 
  
 (ii) unilaterally cancel such Option or Non-Assumed Option in exchange for: 
  
 (A) whole and/or fractional shares of Common Stock (or for whole shares and cash in lieu of any fractional share) or whole and/or
fractional shares of a successor (or for whole shares of a successor and cash in lieu of any fractional share) that, in the aggregate, are equal in value to the excess of the Fair Market Value of the Option Shares subject to such Option or
Non-Assumed Option determined as of the Action Effective Date (taking into account vesting) over the aggregate Exercise Price for such Option Shares; or 
  
 (B) cash or other property equal in value to the excess of the Fair Market Value of the Option Shares subject to such Option or
Non-Assumed Option determined as of the Action Effective Date (taking into account vesting) over the aggregate Exercise Price for such Option Shares; and/or 
  
 (iii) unilaterally cancel such Option or Non-Assumed Option after providing the holder of such Option with: 
  
 (A) an opportunity to exercise such Option or Non-Assumed
Option to the extent vested within a specified period prior to the date of the IPO or the Change of Control, and 
  
 (B) notice of such opportunity to exercise prior to the commencement of such specified period. 
  
 Notwithstanding the foregoing, to the extent that the recipient of an Option
is an Insider, payment of cash in lieu of whole or fractional shares of Common Stock or shares of a 

  

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successor may only be made to the extent that such payment (1) has met the requirements of an exemption under Rule 16b-3 promulgated under the Exchange Act,
or (2) is a subsequent transaction the terms of which were provided for in a transaction initially meeting the requirements of an exemption under Rule 16b-3 promulgated under the Exchange Act. Unless a Stock Award Agreement provides otherwise, the
payment of cash in lieu of whole or fractional shares of Common Stock or in lieu of whole or fractional shares of a successor shall be considered a subsequent transaction approved by the original grant of an Option. 
  
 (b) General Rule for Other Stock Incentive
Agreements. If a Change of Control occurs, then, except to the extent otherwise provided in the Stock Award Agreement pertaining to a particular Award or as otherwise provided in this Plan, each Award shall be governed by applicable law and
the documents effectuating the Change of Control. 
  
 10.
Termination of Employment or Service. Upon the termination of employment or service by a Participant, any unexercised, deferred or unpaid Awards shall be treated as provided in the specific Award Agreement evidencing the Award. Unless
otherwise specifically provided in the Award Agreement, each Award granted pursuant to this Plan that is an Option may be exercised, to the extent then vested, no more than three months from the date the Participant’s employment or service with
the Company or its Subsidiaries terminates. 
  
 11.
Amendment to Operating Agreement. Prior to a Conversion Transaction, upon the granting of an Award of shares of Common Stock or the exercise of an Option for shares of Common Stock, the Company shall take all action necessary to amend
the Operating Agreement to reflect the issuance of shares of Common Stock to the Participant, and shall take such other actions as may be required to give effect to an Award made hereunder. 
  
 12. Assignability. Except as otherwise provided herein, no
Award granted under this Plan shall be sold, transferred, pledged, assigned or otherwise alienated or hypothecated by a Participant other than by will or the laws of descent and distribution, and during the lifetime of a Participant, any Award shall
be exercisable only by him, or in the case of a Participant who is mentally incapacitated, the Award shall be exercisable by his guardian or legal representative. The Committee may prescribe and include in applicable Award Agreements other
restrictions on transfer. Any attempted assignment or transfer in violation of this Section 12 shall be null and void. Upon a Participant’s death, the personal representative or other person entitled to succeed to the rights of the Participant
(the “Successor Participant”) may exercise such rights. A Successor Participant must furnish proof satisfactory to the Company of his or her right to exercise the Award under the Participant’s will or under the applicable laws of
descent and distribution. 
  
 Subject to approval by the Committee
in its sole discretion, other than with respect to ISOs, all or a portion of the Awards granted to a Participant under this Plan may be transferable by the Participant, to the extent and only to the extent specified in such approval, to (a) the
spouse, parent, brother, sister, children or grandchildren (including adopted and stepchildren and grandchildren) of the Participant (“Immediate Family Members”), (b) a trust or 

  

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trusts for the exclusive benefit of such Immediate Family Members or (c) a partnership or partnerships in which such Immediate Family Members have at least
99% of the equity, profit and loss interests; provided that the Award Agreement pursuant to which such Awards are granted (or an amendment thereto) must expressly provide for transferability in a manner consistent with this Section. Subsequent
transfers of transferred Awards shall be prohibited except by will or the laws of descent and distribution, unless such transfers are made to the original Participant or a person to whom the original Participant could have made a transfer in the
manner described herein. No transfer shall be effective unless and until written notice of such transfer is provided to the Committee, in the form and manner prescribed by the Committee. Following transfer, any such Awards shall continue to be
subject to the same terms and conditions as were applicable immediately prior to transfer, and except as otherwise provided herein, the term “Participant” shall be deemed to refer to the transferee. The consequences of termination of
employment shall continue to be applied with respect to the original Participant, following which the Awards shall be exercisable by the transferee only to the extent and for the periods specified in this Plan and the Award Agreement. 
  
 13. Adjustments. 
  
 (a) The existence of outstanding Awards shall not affect in
any manner the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalization, reorganizations or other changes in the ownership of the Company or its business or any merger or consolidation of the
Company, or any issue of bonds, debentures or other obligations, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other Company act or proceeding of any kind, whether or
not of a character similar to that of the acts or proceedings enumerated above. 
  
 (b) In the event of any Common Stock distribution or split, recapitalization, extraordinary distribution, merger, consolidation,
combination or exchange of shares of Common Stock or similar change or upon the occurrence of any other event that the Committee, in its sole discretion, deems appropriate, (i) the number of shares of Common Stock reserved under this Plan and
covered by outstanding Awards; (ii) the Exercise Price in respect of such Awards; and (iii) the appropriate Fair Market Value and other price determinations for such Awards shall be adjusted as appropriate. 
  
 (c) In the event of a corporate merger, consolidation,
acquisition of property or stock, separation, reorganization or liquidation that is not a Change of Control, the Board shall be authorized (i) to issue or assume Awards by means of substitution of new Awards, as appropriate, for previously issued
Awards or to assume previously issued Awards as part of such adjustment or (ii) to cancel Awards that are Options and give the Participants who are the holders of such Awards notice and opportunity to exercise for thirty (30) days prior to such
cancellation. 
  
 14. Purchase for Investment.
Unless the Awards and shares of Common Stock covered by this Plan have been registered under the Act, as amended, each person receiving shares of Common Stock pursuant to an Award under this Plan may be required by the Company 

  

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to give a representation in writing in form and substance satisfactory to the Company to the effect that he is acquiring such shares for his own account for
investment and not with a view to, or for sale in connection with, the distribution of such shares or any part thereof. 
  
 15. Tax Withholding. The Company shall have the right to deduct applicable taxes from any Award payment and withhold, at the time of
delivery or vesting of cash or shares of Common Stock under this Plan, an appropriate amount of cash or number of shares of Common Stock or a combination thereof for payment of taxes required by law or to take such other action as may be necessary
in the opinion of the Company to satisfy all obligations for withholding of such taxes. The Committee may also permit withholding to be satisfied by the transfer to the Company of shares of Common Stock theretofore owned by the holder of the Award
with respect to which withholding is required. If shares of Common Stock are used to satisfy tax withholding, such shares shall be valued based on the Fair Market Value when the tax withholding is required to be made. 
  
 16. Amendments or Termination. The Company may amend, alter or
discontinue this Plan, except that no amendment or alteration that would impair the rights of any Participant under any Award that he has been granted shall be made without his consent, and no amendment or alteration shall be effective prior to
approval by the Company’s stockholders to the extent such approval is determined by the Board to be required by applicable laws, regulations or exchange requirements. 
  
 17. Restrictions. No shares of Common Stock or other form of payment shall be issued with respect to any Award
unless the Company shall be satisfied based on the advice of its counsel that such issuance will be in compliance with applicable federal and state securities laws. The Award Agreement may include provisions for the repurchase by the Company of
Common Stock acquired pursuant to an Award and repurchase of the Participant’s Option rights. 
  
 18. Unfunded Plan. Insofar as it provides for Awards of cash, Common Stock or rights thereto, this Plan shall be unfunded. Although
bookkeeping accounts may be established with respect to Participants who are entitled to cash, Common Stock or rights thereto under this Plan, any such accounts shall be used merely as a bookkeeping convenience. The Company shall not be required to
segregate any assets that may at any time be represented by cash, Common Stock or rights thereto, nor shall this Plan be construed as providing for such segregation, nor shall the Company, the Board or the Committee be deemed to be a trustee of any
cash, Common Stock or rights thereto to be granted under this Plan. Any liability or obligation of the Company to any Participant with respect to a grant of cash, Common Stock or rights thereto under this Plan shall be based solely upon any
contractual obligations that may be created by this Plan and any Award Agreement, and no such liability or obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the Company. None of the
Company, the Board or the Committee shall be required to give any security or bond for the performance of any obligation that may be created by this Plan. 
  
 19. Indemnification. The Company shall indemnify and hold harmless any member of the Board or any Committee and other individuals, including
Employees and Outside Directors, performing services on behalf of the Committee, against any liability, cost or expense 

  

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arising as a result of any claim asserted by any person or entity under the laws of any state or of the United States with respect to any action or failure
to act of such individuals taken in connection with this Plan, except claims or liabilities arising on account of the willful misconduct or bad faith of such Board member, committee member or individual. 
  
 20. Rule 16b-3. It is intended that this Plan and any grant of
an Award made to a person subject to Section 16 of the Exchange Act meet all of the requirements of Rule 16b-3. If any provision of this Plan or any such Awards would disqualify this Plan or such Award under, or would otherwise not comply with, Rule
16b-3, such provision or Award shall be construed or deemed amended to conform to Rule 16b-3. 
  
 21. Miscellaneous. The granting of any Award shall not impose upon the Company any obligation to maintain any Participant as an Employee or an Outside Director and shall not diminish the power of the
Company to discharge any Participant at any time. 
  
 22.
Governing Law. This Plan and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed by mandatory provisions of the Code or the securities laws of the United States, shall be governed by and
construed in accordance with the laws of the State of Delaware. 
  
 23. Effective Date of Plan. This Plan shall be effective as of the Effective Date, subject to the approval of this Plan by the stockholders (or members) of the Company within twelve (12) months of the adoption of this Plan by
the Board. Unless terminated earlier by the Board, this Plan shall terminate as of the tenth (10th) anniversary of the Effective Date and no further Awards shall be made after such date. Termination of this Plan shall not affect Awards made prior to
the termination date. 
  

	
	Attested to by the Secretary of Hercules Offshore, LLC, as adopted by the Board effective as of the 1st day of January, 2005.
	
	 /s/ Steven A. Manz

	 Name: Steven A. Manz

	 Title: Secretary

  

 -12-Form of Registration Rights Agreement

 Exhibit 10.7 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of
                          , 2005 by and among Hercules Offshore, LLC, a Delaware limited liability
company (the “Company”), and each of the holders listed on the signature page hereto. 
  
 This Agreement is made in connection with the conversion of the Company from a Delaware limited liability company to a Delaware corporation (the
“Conversion”) pursuant to the Plan of Conversion dated as of July 7, 2005 (the “Plan of Conversion”). Upon the effectiveness of the Conversion, the existing registration rights of the members of the Company set forth in
Article XIV of the Amended and Restated Operating Agreement of Hercules Offshore, LLC dated as of October 1, 2004 (as amended from time to time, the “Operating Agreement”) shall terminate, and the parties hereto desire to provide certain
registration rights with respect to the shares of stock to be received by such members in the Conversion. In consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged by each party hereto, the parties hereby agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 Section 1.1 Definitions. The terms set forth below are used herein as so defined: 
  
 “Affiliate” means any Person that directly or indirectly controls,
is controlled by, or is under common control with the Person in question. As used in this definition, the term “control” 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. 
  
 “Claim” has the meaning given that term in Section 2.7(a). 
  
 “Company” means (i) Hercules Offshore, LLC, a Delaware limited liability company, prior to the Conversion, and
(ii) upon consummation of the Conversion, the corporation resulting therefrom. 
  
 “Conversion” has the meaning given that term in the preamble hereto. 
  
 “Conversion Shares” means the shares of common stock or other securities of the Company issued to the Holders upon consummation of the
Conversion. 
  
 “Damages” has the meaning given that
term in Section 2.7(a). 
  
 “Demand Request” has the
meaning given that term in Section 2.1(a). 
  
 “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Form S-3 Demand” has the meaning given that term in Section 2.3(a). 
  

 “Holder” means a Person that (i) is a party to this Agreement (or a permitted transferee under
Section 2.10) and (ii) owns Registrable Securities. 
  
 “Holder Indemnified Parties” has the meaning given that term in Section 2.7(a). 
  
 “Indemnified Party” has the meaning given that term in Section 2.7(c). 
  
 “Indemnifying Party” has the meaning given that term in Section 2.7(c). 
  
 “Initiating Form S-3 Holder” has the meaning given that term in
Section 2.3(a). 
  
 “Inspector” and
“Inspectors” have the meanings given such terms in Section 2.5(a)(ii). 
  
 “IPO” means the initial public offering of the Company’s common stock or other equity securities pursuant to a registration statement of the Company filed with the SEC under the Securities Act to effect
such offering. 
  
 “Lock-Up Period” has the meaning
given that term in Section 2.4(a). 
  
 “Maximum Number of
Registrable Securities” means the total number of securities which a managing underwriter of an underwritten public offering reasonably and in good faith determines can be successfully included in such public offering. 
  
 “NASD” means the National Association of Securities Dealers, Inc.

  
 “Nasdaq” means The Nasdaq Stock Market, Inc.

  
 “Operating Agreement” has the meaning given that
term in the preamble hereto. 
  
 “Participating Holders”
means Holders participating, or electing to participate, in an offering of Registrable Securities. 
  
 “Person” means an individual or a corporation, limited liability company, partnership, trust, estate, unincorporated organization, association,
or other entity. 
  
 “Plan of Conversion” has the
meaning given that term in the preamble hereto. 
  
 “Proposed
Registration” has the meaning given that term in Section 2.2(a). 
  
 “Registrable Securities” means the Conversion Shares and any shares of common stock or other securities issued or issuable to the Holders with respect to the Conversion Shares by virtue of any stock split, combination, stock
dividend, merger, consolidation or other similar event; provided, however, that the Conversion Shares that are considered to be Registrable Securities shall cease to be Registrable Securities (A) upon the sale thereof pursuant to an effective
registration statement, (B) upon the sale thereof pursuant to Rule 144 (or successor rule) under the Securities Act, (C) when such securities cease to be outstanding, or (D) upon the sale thereof in a private transaction where the transferor’s
rights under this Agreement are not 

  

 -2- 

 
assigned, or when the rights hereunder applicable to such securities are assigned otherwise than in accordance with the terms and conditions of this
Agreement. 
  
 “Registration Expenses” mean all expenses
(other than Selling Expenses) arising from or incident to the performance of, or compliance with, Article II hereof, including (i) SEC, stock exchange, NASD and other registration and filing fees, (ii) all fees and expenses incurred by the Company
or any underwriter in connection with complying with any securities or blue sky laws (including reasonable fees, charges and disbursements of counsel in connection with blue sky qualifications of the Registrable Securities), (iii) all printing,
messenger and delivery expenses, (iv) the fees, charges and disbursements of counsel to the Company and of its independent registered public accounting firm and any other accounting and legal fees, charges and expenses incurred by the Company
(including any expenses arising from any special audits or “comfort letters” required in connection with or incident to any registration), (v) the fees, charges and disbursements of any special experts retained by the Company in connection
with any registration pursuant to the terms of this Agreement, (vi) all internal expenses of the Company (including all salaries and expenses of its officers and employees performing legal or accounting duties), (vii) the fees and expenses incurred
in connection with the listing of the Registrable Securities on any securities exchange or Nasdaq and (viii) Securities Act liability insurance (if the Company elects to obtain such insurance), regardless of whether any Registration Statement filed
in connection with such registration is declared effective. “Registration Expenses” shall also include fees, charges and disbursements of one firm of counsel to all of the Participating Holders participating in any underwritten public
offering (which shall be selected by a majority, based on the number of Registrable Securities to be sold, of the Participating Holders; provided, however, that such fees, charges and disbursements of counsel to the Participating Holders
shall not exceed $100,000). 
  
 “Registration Statement”
means any Registration Statement of the Company filed with the SEC on the appropriate form pursuant to the Securities Act which covers any of the Registrable Securities pursuant to the provisions of this Agreement and all amendments and supplements
to any such Registration Statement, including post-effective amendments, in each case including the prospectus contained therein, all exhibits thereto and all materials incorporated by reference therein. 
  
 “Request Notice” has the meaning given that term in Section 2.1(a).

  
 “Requesting Holders” has the meaning given that term
in Section 2.1(a). 
  
 “SEC” means the Securities and
Exchange Commission. 
  
 “Securities Act” means the
Securities Act of 1933, as amended. 
  
 “Selling
Expenses” means all underwriting fees, discounts and commissions attributable to the sale of Registrable Securities, any capital gains, income and transfer taxes and, except as provided in the last sentence of the definition of
“Registration Expenses,” all out-of-pocket expenses of Holders. 
  
 “Valid Business Reason” has the meaning given that term in Section 2.1(e). 
  

 -3- 

  
 ARTICLE II 

REGISTRATION RIGHTS 
  
 Section 2.1 Demand Registration. 
  
 (a) Request by Holders. If the Company receives at any time commencing on the earlier of (i) one hundred and eighty (180) days after the closing of
the Company’s underwritten IPO and (ii) the completion by the Company of a merger, consolidation, sale, transfer, lease or other conveyance of all or substantially all of the assets or any other similar business combination or transaction with
another company listed on the New York Stock Exchange, the American Stock Exchange, the Nasdaq National Market or the Nasdaq Small Cap Market, a written request from Holders that hold at least twenty-five percent (25%) of the Registrable Securities
(“Requesting Holders”) that the Company register Registrable Securities held by Requesting Holders for sale in an underwritten public offering (a “Demand Request”), then the Company shall, within ten (10) days after receipt of
such Demand Request, give written notice of such request (“Request Notice”) to all Holders. Such Demand Request shall (x) specify the number of Registrable Securities that the Requesting Holders intend to sell or dispose of and (y) specify
the expected price range (net of underwriting discounts and commissions) acceptable to the Requesting Holders to be received for such Registrable Securities. Following receipt of a Demand Request, the Company shall: 
  
 (i) cause to be filed, as soon as practicable, but within
ninety (90) days of the date of delivery to the Company of the Demand Request, a Registration Statement covering such Registrable Securities which the Company has been so requested to register by the Requesting Holders and other Holders who request
to the Company that their Registrable Securities be registered within twenty (20) days of the mailing of the Request Notice, providing for the registration under the Securities Act of such Registrable Securities to the extent necessary to permit the
disposition of such Registrable Securities in an underwritten public offering; 
  
 (ii) use its reasonable best efforts to have such Registration Statement declared effective by the SEC as soon as practicable thereafter;
and 
  
 (iii) refrain from filing any other
Registration Statements, other than pursuant to a Registration Statement on Form S-4 or S-8 (or similar or successor forms), with respect to any other equity securities of the Company during the applicable Lock-Up Period. 
  
 (b) Effective Registration Statement. A registration requested
pursuant to this Article II shall not be deemed to have been effected (i) unless a Registration Statement with respect thereto has become effective (unless a substantial cause of the failure of such Registration Statement to become effective shall
be attributable to one or more Participating Holders) and remained effective in compliance with the provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by such Registration Statement until such time
as all of such Registrable Securities have been disposed of, but not longer than 30 days after the Registration Statement became effective; (ii) if, after it has become effective, such registration is interfered with by any stop order, injunction or
other order or requirement of the 

  

 -4- 

 
SEC or other governmental agency or court not resulting from the actions of a Participating Holder or its successors or assigns, and has not thereafter
become effective, or if the offering of Registrable Securities is not consummated for any reason or due to factors beyond the control of Participating Holders, other than if the underwriters advise the Participating Holders that the Registrable
Securities cannot be sold at a net price per share equal to or above the net price disclosed in the preliminary prospectus; (iii) if the conditions to closing specified in the underwriting agreement entered into in connection with such registration
are not satisfied or waived; or (iv) if the Requesting Holders are cut back to fewer than fifty (50%) of the Registrable Securities requested to be registered. 
  

(c) Selection of Underwriters. If the Company is required to file a Registration Statement covering any Registrable Securities of any Requesting
Holders pursuant to Section 2.1(a), the managing underwriter shall be one or more reputable nationally recognized investment banks selected by a majority in interest of the Requesting Holders and reasonably acceptable to the Company. 
  
 (d) Priority for Demand Registration. Notwithstanding any other
provision of this Article II, if the managing underwriter determines and advises the Participating Holders and the Company in writing that the inclusion of all securities proposed to be included by the Company and the Participating Holders in the
underwritten public offering would adversely interfere with the successful marketing of the Participating Holders’ Registrable Securities, then the Company shall not be permitted to include any securities in excess of the amount, if any, of
securities which the managing underwriter of such offering shall reasonably and in good faith agree in writing to include in such public offering in addition to the amount of Registrable Securities to be registered for the Requesting Holders. If the
total number of securities that all Participating Holders requested be included in the registration exceeds the Maximum Number of Registrable Securities, the Company will be obligated to include in such Registration Statement, as to each
Participating Holder, only a portion of the Registrable Securities such Participating Holder has requested be registered equal to the product of (i) Maximum Number of Registrable Securities and (ii) a fraction, the numerator of which is the number
of Registrable Securities such Participating Holder has requested be included in such registration and the denominator of which is the total number of Registrable Securities all Participating Holders requested be included in such registration. It is
acknowledged by the parties hereto that pursuant to the foregoing provision, the securities to be included in a registration requested by the Requesting Holders pursuant to Section 2.1 shall be allocated: 
  
 (i) first, to the Participating Holders; and 
  
 (ii) second, to the Company. 
  
 (e) Limitations on Demand Registrations. 
  
 (i) The Company may delay making a filing of a Registration
Statement or taking action in connection therewith by not more than ninety (90) days if the Company provides a written certificate signed by the President or Chief Executive Officer of the Company to the Holders, prior to the time it would otherwise
have been required to file such Registration Statement or take such action pursuant to this Section 2.1, stating that 

  

 -5- 

 
the Company has determined in good faith that the filing of such Registration Statement would be seriously detrimental to the Company or would otherwise
materially adversely affect a financing, acquisition, disposition, merger or other material transaction (collectively, a “Valid Business Reason”) and that it is therefore essential to defer the filing of the Registration Statement;
provided, however, that such right to delay a Demand Request shall be exercised by the Company not more than once in any twelve month period and the Company shall only have the right to delay a Demand Request so long as such Valid
Business Reason exists, and during such time, the Company may not file a Registration Statement for securities to be issued and sold for its own account or for that of anyone other than the Holders. 
  
 (ii) The Company shall not be obligated to comply with more
than three (3) Demand Requests pursuant to this Section 2.1 or more than one Demand Request in any six-month period. 
  
 (iii) The Company shall not be required to comply with a Demand Request unless the reasonably anticipated aggregate gross proceeds to be
raised (before any underwriting discounts and commissions) would be equal to or exceed $15,000,000. 
  
 (f) Cancellation of Registration. A majority in interest of the Participating Holders shall have the right to cancel a proposed registration of
Registrable Securities pursuant to this Section 2.1 when, (i) in their discretion, market conditions are so unfavorable as to be seriously detrimental to an offering pursuant to such registration and such registration has not become effective or
(ii) the request for cancellation is based upon material adverse information relating to the Company that is different from the information known to the Participating Holders at the time of the Demand Request. Such cancellation of a registration
shall not be counted as one of the Demand Requests and, notwithstanding anything to the contrary in the Agreement, the Company shall be responsible for the expenses of the Participating Holders incurred in connection with the registration prior to
the time of cancellation. 
  
 Section 2.2 Piggyback
Registrations. 
  
 (a) Right to Include Registrable
Securities. Each time the Company proposes for any reason (including pursuant to Demand Requests under Section 2.1) to register any of its securities under the Securities Act, either for its own account or for the account of a securities holder
exercising demand registration rights, other than pursuant to a registration statement on Form S-4 or S-8 (or similar or successor forms) (a “Proposed Registration”), the Company shall promptly give written notice of such Proposed
Registration to all of the Holders of Registrable Securities (which notice shall be given not less than thirty (30) days prior to the expected effective date of the Company’s registration statement) and shall offer such Holders the right to
request inclusion of any of such Holder’s Registrable Securities in the Proposed Registration. No registration pursuant to this Section 2.2 shall relieve the Company of its obligation to register Registrable Securities pursuant to a Demand
Request, as contemplated by Section 2.1. The rights to piggyback registration may be exercised on an unlimited number of occasions. 
  
 (b) Piggyback Procedure. Each Holder of Registrable Securities shall have twenty (20) days from the date of receipt of the Company’s notice
referred to in Section 2.2(a) to 

  

 -6- 

 
deliver to the Company a written request specifying the number of Registrable Securities such Holder intends to sell and such Holder’s intended method
of disposition. Any Participating Holder shall have the right to withdraw such Participating Holder’s request for inclusion of such Participating Holder’s Registrable Securities in any Registration Statement pursuant to this Section 2.2 by
giving written notice to the Company of such withdrawal. Subject to Section 2.2(d), the Company shall use its reasonable best efforts to include in such Registration Statement all such Registrable Securities so requested to be included therein;
provided, however, that the Company may at any time withdraw or cease proceeding with any such Proposed Registration if it shall at the same time withdraw or cease proceeding with the registration of all other shares of securities originally
proposed to be registered. 
  
 (c) Selection of
Underwriters. The managing underwriter for any Proposed Registration that involves an underwritten public offering shall be one or more reputable nationally recognized investment banks selected by the Company. 
  
 (d) Priority for Piggyback Registration. Notwithstanding any other
provision of this Article II, if the managing underwriter of an underwritten public offering determines and advises the Company and the Participating Holders in writing that the inclusion of all Registrable Securities proposed to be included by the
Participating Holders in the underwritten public offering would materially and adversely interfere with the successful marketing of the Company’s securities, then the Participating Holders shall not be permitted to include any Registrable
Securities in excess of the amount, if any, of Registrable Securities which the managing underwriter of such underwritten public offering shall reasonably and in good faith agree in writing to include in such public offering in addition to the
amount of securities to be registered for the Company. The Company will be obligated to include in such Registration Statement, as to each Participating Holder, only a portion of the total number of securities that can be included in such
Registration Statement in excess of those being offered by Company that is equal to the ratio of the number of Registrable Securities such Participating Holder has requested be registered to the total number of Registrable Securities requested to be
included in such Registration Statement by all Participating Holders who have requested that their Registrable Securities be included in such Registration Statement. It is acknowledged by the parties hereto that pursuant to the foregoing provision,
the securities to be included in a registration initiated by the Company shall be allocated: 
  
 (i) first, to the Company; 
  
 (ii) second, pro rata to the Participating Holders, provided, however, that no Registrable Securities requested to be included in
the registration by a Participating Holder shall be excluded from the registration until all shares proposed to be registered by the Company’s directors, officers and employees (as individuals) are excluded from the registration; and

  
 (iii) third, to any others requesting
registration of securities of the Company. 
  
 If as a result of
the provisions of this Section 2.2(d) any Participating Holder is not entitled to include all of its Registrable Securities in a registration that such Participating 

  

 -7- 

 
Holder has requested to be so included, such Participating Holder may withdraw such Participating Holder’s request to include Registrable Securities in
such Registration Statement. 
  
 (e) Underwritten Offering.
If the Proposed Registration by the Company is, in whole or in part, an underwritten public offering of securities of the Company, any request under this Section 2.2 shall specify that the Registrable Securities be included in the underwriting on
the same terms and conditions as the shares, if any, otherwise being sold through underwriters under such registration. 
  
 (f) Notwithstanding the foregoing, the piggyback registration rights provided for pursuant to this Section 2.2 with respect to Registrable Securities held
by any Holder shall not apply to the proposed registration contemplated by the Company’s registration statement on Form S-1 (Registration No.
333-                ) initially filed by the Company with the SEC under the Securities Act on
                     , 2005 unless such Holder has delivered the written request for inclusion pursuant to and in accordance with
Section 14.2(b) of the Operating Agreement. 
  
 Section 2.3
Form S-3 Registration. 
  
 (a) Requesting Holder.
Any Requesting Holder (an “Initiating Form S-3 Holder”) may request at any time that is more than one hundred and eighty (180) days after the Company’s IPO that the Company file a Registration Statement under the Securities Act on
Form S-3 (or similar or successor form) covering the sale or other distribution of all or any portion of the Registrable Securities held by such Initiating Form S-3 Holder pursuant to Rule 415 under the Securities Act (“Form S-3 Demand”)
if (i) the reasonably anticipated aggregate gross proceeds would equal or exceed $10,000,000 and (ii) the Company is a registrant qualified to use Form S-3 (or any similar or successor form) to register such Registrable Securities. If such
conditions are met, the Company shall promptly give written notice of such Proposed Registration to all of the Holders of Registrable Securities (which notice shall be given not less than thirty (30) days prior to the expected effective date of the
Company’s Registration Statement) and shall offer such Holders the right to request inclusion of any of such Holder’s Registrable Securities in the Proposed Registration. Each Holder of Registrable Securities shall have twenty (20) days
from the date of receipt of such notice to deliver to the Company a written request specifying the number of Registrable Securities such Holder intends to sell. The Company shall use its reasonable best efforts to register under the Securities Act
on Form S-3 (or any similar or successor form) as promptly as practicable, for sale in accordance with the method of disposition specified in the Form S-3 Demand, the number of Registrable Securities specified in such Form S-3 Demand and that other
Holders have requested to include. In connection with a Form S-3 Demand, the Company agrees to include in the prospectus included in any Registration Statement on Form S-3, such material describing the Company and intended to facilitate the sale of
securities being so registered as is reasonably requested for inclusion therein by the Initiating Form S-3 Holders, whether or not the rules applicable to preparation of Form S-3 require the inclusion of such information. 
  
 (b) Demand Requests. Form S-3 Demands will not be deemed to be Demand
Requests as described in Section 2.1. 
  

 -8- 

 (c) Form S-3 Demand. Holders may not make a Form S-3 Demand more than one time in any six-month
period, and the Company shall not be obligated to maintain the effectiveness of any registration statement relating to a Form S-3 Demand for longer than one hundred eighty (180) days. 
  
 (d) The Company may delay making a filing of a Registration Statement pursuant to a Form S-3 Demand or taking action in
connection therewith by not more than ninety (90) days if the Company provides a written certificate signed by the President or Chief Executive Officer of the Company to the Holders, prior to the time it would otherwise have been required to file
such Registration Statement or take such action pursuant to this Section 2.3, stating that the Company has determined in good faith that there exists a Valid Business Reason and that it is therefore essential to defer the filing of the Registration
Statement; provided, however, that such right to delay a Form S-3 Demand made by a Holder shall be exercised by the Company not more than once in any twelve month period with respect to such Holder and the Company shall only have the right to delay
a Form S-3 Demand so long as such Valid Business Reason exists, and during such time, the Company may not file a Registration Statement for securities to be issued and sold for its own account or for that of anyone other than the Holders.

  
 Section 2.4 Holdback Agreements. 
  
 (a) Restrictions on Public Sale by Holders. If requested by the lead
managing underwriter, the Company and each Holder of Registrable Securities agrees not to effect any public sale or distribution of any Registrable Securities or of any securities convertible into or exchangeable or exercisable for such Registrable
Securities, including a sale pursuant to Rule 144 under the Securities Act, or otherwise to make a Demand Request or a Form S-3 Demand, during a period of not more than ten (10) days before and one hundred and eighty (180) days after, in the case of
an IPO, or ninety (90) days after, in the case of any other firm underwriting public offering of securities of the Company, commencing on the effective date of the registration statement relating to such IPO or public offering (the “Lock-Up
Period”), unless expressly authorized to do so by the lead managing underwriter; provided, however, that if any other holder of securities of the Company that is subject to a similar lock-up period shall be subject to a shorter period or
receives more advantageous terms than the period or terms relating to the Lock-Up Period, then the Lock-Up Period shall be such shorter period and also on such more advantageous terms and, notwithstanding the foregoing, the Holders shall not be
required to sign lock-up agreements unless all of the Company’s directors, executive officers and securities holders owning five percent (5%) or more of the Registrable Securities have signed lock-up agreements with the managing underwriters.
Any such lock-up agreements signed by the Holders shall contain reasonable and customary exceptions, including the right of a Holder to make transfers to certain Affiliates and transfers related to shares of securities owned by Holders as a result
of open market purchases made following the closing of the IPO. The Company may impose stop-transfer instructions with respect to the securities subject to the foregoing restrictions until the end of the relevant period. 
  
 (b) Restrictions on Public Sale by the Company. The Company agrees not
to effect any public sale or distribution of any securities for its own account (except pursuant to registration statements on Form S-4 or S-8 or any similar or successor form) during the Lock-Up 

  

 -9- 

 
Period, to the extent reasonably requested by the managing underwriter (except for securities being sold by the Company for its own account under such
registration statement). 
  
 Section 2.5 Registration
Procedures. 
  
 (a) Obligations of the Company.
Whenever registration of Registrable Securities is required pursuant to this Agreement, the Company shall use its reasonable best efforts to effect the registration and sale of such Registrable Securities in accordance with the intended method of
distribution thereof as promptly as practicable, and in connection with any such request, the Company shall: 
  
 (i) Preparation of Registration Statement; Effectiveness. Prepare and file with the SEC (in any event not later than ninety (90) days
after receipt of a Demand Request to file a Registration Statement with respect to Registrable Securities), a Registration Statement on any form on which the Company then qualifies, which counsel for the Company shall deem appropriate and pursuant
to which such offering may be made in accordance with the intended method of distribution thereof (except that the Registration Statement shall contain such information as may reasonably be requested for marketing or other purposes by the managing
underwriter), and use its reasonable best efforts to cause any registration required hereunder to become effective as soon as practicable after the initial filing thereof and remain effective for a period of not less than one hundred and eighty
(180) days (or such shorter period in which all Registrable Securities have been sold in accordance with the methods of distribution set forth in the Registration Statement); 
  
 (ii) Participation in Preparation. Provide any Participating Holder, any underwriter participating in
any disposition pursuant to a Registration Statement, and any attorney, accountant or other agent retained by any Participating Holder or underwriter (each, an “Inspector” and, collectively, the “Inspectors”), the opportunity to
participate (including reviewing, commenting on and attending all meetings) in the preparation of such Registration Statement, each prospectus included therein or filed with the SEC and each amendment or supplement thereto; 
  
 (iii) Due Diligence. For a reasonable period prior to
the filing of any Registration Statement pursuant to this Agreement, make available for inspection and copying by the Inspectors such financial and other information and books and records, pertinent corporate documents and properties of the Company
and its subsidiaries and cause the officers, directors, employees, counsel and independent certified public accountants of the Company and its subsidiaries to respond to such inquiries and to supply all information reasonably requested by any such
Inspector in connection with such Registration Statement, as shall be reasonably necessary, in the judgment of the respective counsel referred to in Section 2.5(a)(ii) to conduct a reasonable investigation within the meaning of the Securities Act;
provided that each Participating Holder agrees, for itself and on behalf of each of its Inspectors, that information obtained by it as a result of such inspections shall be deemed confidential and shall not be used by it as the basis for any
market transactions in the securities of the Company or its Affiliates unless and until such information is made generally available to the public; 
  

 -10- 

 (iv) General Notifications. Promptly notify in writing the Participating Holders,
the sales or placement agent, if any, therefor and the managing underwriter of the securities being sold, (A) when such Registration Statement or the prospectus included therein or any prospectus amendment or supplement or post-effective amendment
has been filed and, with respect to any such Registration Statement or any post-effective amendment, when the same has become effective, (B) when the SEC notifies the Company whether there will be a “review” of such Registration Statement,
(C) of any written comments by the SEC and by the blue sky or securities commissioner or regulator of any state with respect thereto and (D) of any request by the SEC for any amendments or supplements to such Registration Statement or the prospectus
or for additional information; 
  
 (v) 10b-5
Notification. Promptly notify in writing the Participating Holders, the sales or placement agent, if any, therefor and the managing underwriter of the securities being sold pursuant to any Registration Statement at any time when a prospectus
relating thereto is required to be delivered under the Securities Act upon discovery that, or upon the happening of any event as a result of which, any prospectus included in such Registration Statement (or amendment or supplement thereto) contains
an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, and the Company shall
promptly prepare a supplement or amendment to such prospectus and file it with the SEC (in any event no later than ten (10) days following notice of the occurrence of such event to each Participating Holder, the sales or placement agent and the
managing underwriter) so that after delivery of such prospectus, as so amended or supplemented, to the purchasers of such Registrable Securities, such prospectus, as so amended or supplemented, shall not contain an 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 in light of the circumstances under which they were made; 
  
 (vi) Notification of Stop Orders; Suspensions of Qualifications and Exemptions. Promptly notify in
writing the Participating Holders, the sales or placement agent, if any, therefor and the managing underwriter of the securities being sold of the issuance by the SEC of (A) any stop order issued or threatened to be issued by the SEC or (B) any
notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, and the Company
agrees to use its reasonable best efforts to (x) prevent the issuance of any such stop order, and in the event of such issuance, to obtain the withdrawal of any such stop order and (y) obtain the withdrawal of any order suspending or preventing the
use of any related prospectus or suspending the qualification of any Registrable Securities included in such Registration Statement for sale in any jurisdiction at the earliest practicable date; 
  
 (vii) Amendments and Supplements, Acceleration.
Prepare and file with the SEC such amendments, including post-effective amendments, to each Registration Statement as may be necessary to keep such Registration Statement continuously effective for the applicable time period required hereunder and,
if applicable, file any 

  

 -11- 

 
Registration Statements pursuant to Rule 462(b) under the Securities Act; cause the related prospectus to be supplemented by any required prospectus
supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated under the Securities Act; and comply in all material respects with the provisions of the Securities Act and the Exchange 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 as so amended or in
such prospectus as so supplemented. If a majority in interest of the Participating Holders so request, to request acceleration of effectiveness of the Registration Statement from the SEC and any post-effective amendments thereto, if any are filed;
provided that at the time of such request, the Company does not in good faith believe that it is necessary to amend further the Registration Statement in order to comply with the provisions of this subparagraph. If the Company wishes to
further amend the Registration Statement prior to requesting acceleration, it shall have five (5) business days to so amend prior to requesting acceleration; 
  

(viii) Copies. Furnish as promptly as practicable to each Participating Holder and Inspector prior to filing a Registration
Statement or any supplement or amendment thereto, copies of such Registration Statement, supplement or amendment as it is proposed to be filed and, after such filing, such number of copies of such Registration Statement, each amendment and
supplement thereto (in each case including all exhibits thereto), the prospectus included in such Registration Statement (including each preliminary prospectus) and such other documents as each such Participating Holder or underwriter may reasonably
request in order to facilitate the disposition of the Registrable Securities owned by such Participating Holder; 
  
 (ix) Blue Sky. Use its reasonable best efforts to, prior to any public offering of the Registrable Securities, register or qualify
(or seek an exemption from registration or qualifications) such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any Participating Holder or underwriter may request, and to continue such qualification in
effect in each such jurisdiction for as long as is permissible pursuant to the laws of such jurisdiction, or for as long as a Participating Holder or underwriter requests or until all of such Registrable Securities are sold, whichever is shortest,
and do any and all other acts and things which may be reasonably necessary or advisable to enable any Participating Holder to consummate the disposition in such jurisdictions of the Registrable Securities; provided, however, that the Company
shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent of process in any such states or jurisdictions or subject itself to material taxation in any such state or jurisdiction,
but for this subparagraph; 
  
 (x) Other
Approvals. Use its reasonable best efforts to obtain all other approvals, consents, exemptions or authorizations from such governmental agencies or authorities as may be necessary to enable the Participating Holders and underwriters to
consummate the disposition of Registrable Securities; 
  

 -12- 

 (xi) Agreements. Enter into customary agreements (including any underwriting
agreements in customary form), and take such other actions as may be reasonably required in order to expedite or facilitate the disposition of Registrable Securities; 
  
 (xii) “Cold Comfort” Letter. Obtain a “cold comfort” letter from the
Company’s independent registered public accounting firm in customary form and covering such matters of the type customarily covered by “cold comfort” letters as the managing underwriter may reasonably request; 
  
 (xiii) Legal Opinion. Furnish, at the request of any
underwriter of Registrable Securities on the date such securities are delivered to the underwriters for sale pursuant to such registration, an opinion, dated such date, of counsel representing the Company for the purposes of such registration,
addressed to the placement agent or sales agent, if any, thereof and the underwriters, if any, thereof, covering such legal matters with respect to the registration in respect of which such opinion is being given as such underwriter may reasonably
request and as are customarily included in such opinions; 
  
 (xiv) SEC Compliance, Earnings Statement. Use its reasonable best efforts to comply with all applicable rules and regulations of the SEC and make available to its stockholders, as soon as reasonably
practicable, but no later than fifteen (15) months after the effective date of any Registration Statement, an earnings statement covering a period of twelve (12) months beginning after the effective date of such Registration Statement, in a manner
which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; 
  
 (xv) Certificates, Closing. Provide officers’ certificates and other customary closing documents; 
  
 (xvi) NASD. Cooperate with each Participating Holder
and each underwriter participating in the disposition of such Registrable Securities and underwriters’ counsel in connection with any filings required to be made with the NASD; 
  
 (xvii) Road Show. Cause appropriate officers as are requested by a managing underwriter to
participate in a “road show” or similar marketing effort being conducted by such underwriter with respect to an underwritten public offering; 
  
 (xviii) Listing. Use its reasonable best efforts to cause all such Registrable Securities to be listed on each securities exchange
on which similar securities issued by the Company are then listed and if not so listed, to be listed on the Nasdaq National Market or other NASD automated quotation system; 
  
 (xix) Transfer Agent, Registrar and CUSIP. Provide a transfer agent and registrar for all Registrable
Securities registered pursuant hereto and a CUSIP number for all such Registrable Securities, in each case, no later than the effective date of such registration; 
  

 -13- 

 (xx) Private Sales. Use its reasonable best efforts to assist a Holder in
facilitating private sales of Registrable Securities by, among other things, providing officers’ certificates and other customary closing documents requested by a Holder; and 
  
 (xxi) Reasonable Best Efforts. Use its reasonable best efforts to take all other actions necessary to
effect the registration of the Registrable Securities contemplated hereby. 
  
 (b) Seller Information. The Company may require each Participating Holder as to which any registration of such Participating Holder’s Registrable Securities is being effected to furnish to the Company such
information regarding such Participating Holder and such Participating Holder’s method of distribution of such Registrable Securities as the Company may from time to time reasonably request in writing. 
  
 (c) Notice to Discontinue. Each Participating Holder whose Registrable
Securities are covered by a Registration Statement filed pursuant to this Agreement agrees that, upon receipt of written notice from the Company of the happening of any event of the kind described in Section 2.5(a)(v), such Participating Holder
shall forthwith discontinue the disposition of Registrable Securities until such Participating Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 2.5(a)(v) or until it is advised in writing 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 into the prospectus, and, if so directed by the Company in the case of an event described in
Section 2.5(a)(v) such Participating Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Participating Holder’s possession, of the prospectus covering such Registrable
Securities which is current at the time of receipt of such notice. If the Company shall give any such notice, the Company shall extend the period during which such Registration Statement is to be maintained effective by the number of days during the
period from and including the date of the giving of such notice pursuant to Section 2.5(a)(v) to and including the date when the Participating Holder shall have received the copies of the supplemented or amended prospectus contemplated by, and
meeting the requirements of, Section 2.5(a)(v). 
  
 Section 2.6
Registration Expenses. Except as otherwise provided herein, all Registration Expenses shall be borne by the Company. All Selling Expenses relating to Registrable Securities registered shall be borne by the Participating Holders of such
Registrable Securities pro rata on the basis of the number of shares so registered. 
  
 Section 2.7 Indemnification. 
  
 (a) Indemnification by the Company. The Company agrees, notwithstanding any termination of this Agreement, to indemnify and hold harmless to the fullest extent permitted by law, each Holder, each of its directors, officers,
employees, advisors, agents and general and limited partners (and the directors, officers, employees, advisors and agents thereof), their respective Affiliates and each Person who controls (within the meaning of the Securities Act or the Exchange
Act) any of such Persons, and each underwriter and each Person who controls (within the meaning of the Securities Act or the Exchange Act) any underwriter (collectively, 

  

 -14- 

 
“Holder Indemnified Parties”) from and against any and all losses, claims, damages, expenses (including reasonable costs of investigation and fees,
disbursements and other charges of counsel and any amounts paid in settlement effected with the Company’s consent, which consent shall not be unreasonably withheld or delayed) or other liabilities (collectively, “Damages”) to which
any such Holder Indemnified Party may become subject under the Securities Act, Exchange Act, any other federal law, any state or common law or any rule or regulation promulgated thereunder or otherwise, insofar as such Damages (or actions or
proceedings, whether commenced or threatened, in respect thereof) are resulting from or arising out of or based upon (i) any untrue, or alleged untrue, statement of a material fact contained in any Registration Statement, prospectus or preliminary
prospectus (as amended or supplemented) or any document incorporated by reference in any of the foregoing or resulting from or arising out of or based upon any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein (in the case of a prospectus, in light of the circumstances under which they were made), not misleading or (ii) any violation by the Company of the Securities Act, Exchange Act, any other federal
law, any state or common law or any rule or regulation promulgated thereunder or otherwise incident to any registration, qualification or compliance and in any such case, the Company will promptly reimburse each such Holder Indemnified Party for any
legal and any other Damages reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability, action or investigation or proceeding (collectively, a “Claim”); provided, however,
that the Company shall not be liable to any Holder Indemnified Party for any Damages that arise out of or are based upon (x) written information provided by a Holder Indemnified Party expressly for use in the Registration Statement or (y) sales of
Registrable Securities by a Holder Indemnified Party to a person to whom there was not sent or given, at or before the written confirmation of such sale, a copy of the prospectus (excluding documents incorporated by reference) or the prospectus as
then amended or supplemented (excluding documents incorporated by reference) if the Company has previously furnished in a timely manner a reasonable number of copies thereof to such Holder Indemnified Party in compliance with this Agreement and the
Damages of such Holder Indemnified Party results from an untrue statement or omission of a material fact contained in such preliminary prospectus which was corrected in the prospectus (or the prospectus as then amended or supplemented). Such
indemnity obligation shall remain in full force and effect regardless of any investigation made by or on behalf of the Holder Indemnified Parties and shall survive the transfer of Registrable Securities by such Holder Indemnified Parties.

  
 (b) Indemnification by Holders. In connection with any
proposed registration in which a Holder is participating pursuant to this Agreement, each such Holder shall furnish to the Company in writing such information with respect to such Holder as the Company may reasonably request or as may be required by
law for use in connection with any Registration Statement or prospectus or preliminary prospectus to be used in connection with such registration and each Holder agrees, severally and not jointly, notwithstanding any termination of this Agreement,
to indemnify and hold harmless the Company, any underwriter retained by the Company and their respective directors, officers, partners, employees, advisors and agents, their respective Affiliates and each Person who controls (within the meaning of
the Securities Act or the Exchange Act) any of such Persons to the same extent as the foregoing indemnity from the Company to the Holders as set forth in Section 2.7(a) (subject to the exceptions set forth in the foregoing indemnity, the proviso to
this sentence and applicable law), but only with respect to any such information furnished in writing by such Holder expressly for use therein and with 

  

 -15- 

 
respect to any violation by the Holder of the Securities Act, Exchange Act, any other federal law, any state or common law or any rule or regulation
promulgated thereunder or otherwise incident to any registration, qualification or compliance not resulting in any respect from the Company’s actions; provided, however, that the liability of any Holder under this Section 2.7(b) shall be
limited to the amount of the net proceeds received by such Holder in the offering giving rise to such liability. Such indemnity obligation shall remain in full force and effect regardless of any investigation made by or on behalf of the Holder
Indemnified Parties (except as provided above) and shall survive the transfer of Registrable Securities by such Holder. 
  
 (c) Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder (the “Indemnified Party”) agrees to give
prompt written notice to the indemnifying party (the “Indemnifying Party”) after the receipt by the Indemnified Party of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in
writing for which the Indemnified Party intends to claim indemnification or contribution pursuant to this Agreement; provided, however, that, the failure so to notify the Indemnifying Party shall not relieve the Indemnifying Party of any
liability that it may have to the Indemnified Party hereunder unless and to the extent such Indemnifying Party is materially prejudiced by such failure. If notice of commencement of any such action is given to the Indemnifying Party as above
provided, the Indemnifying Party shall be entitled to participate in and, to the extent it may wish, jointly with any other Indemnifying Party similarly notified, to assume the defense of such action at its own expense, with counsel chosen by it and
reasonably satisfactory to such Indemnified Party. The Indemnified Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be paid by the
Indemnified Party unless (i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action with counsel satisfactory to the Indemnified Party in its reasonable judgment or (iii) the named
parties to any such action (including, but not limited to, any impleaded parties) reasonably believe that the representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under applicable standards
of professional conduct. In the case of clause (ii) above and (iii) above, the Indemnifying Party shall not have the right to assume the defense of such action on behalf of such Indemnified Party. The Indemnifying Party shall not be liable to pay
the fees and expenses of more than one firm of separate counsel for all Indemnified Parties in each jurisdiction in which any action is threatened or pending. No Indemnifying Party shall be liable for any settlement entered into without its written
consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the written consent of the Indemnified Party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any
pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the Indemnified Party is an actual or potential party to such action or claim) unless such settlement, compromise or
judgment (A) includes an unconditional release of the Indemnified Party from all liability arising out of such action or claim and (B) does not include a statement as to, or an admission of, fault, culpability or a failure to act by or on behalf of
any Indemnified Party. The rights afforded to any Indemnified Party hereunder shall be in addition to any rights that such Indemnified Party may have at common law, by separate agreement or otherwise. 
  
 (d) Contribution. If the indemnification provided for in this Section
2.7 from the Indemnifying Party is unavailable or insufficient to hold harmless an Indemnified Party in 

  

 -16- 

 
respect of any Damages referred to herein, then the Indemnifying Party, in lieu of indemnifying the Indemnified Party, shall contribute to the amount paid or
payable by the Indemnified Party as a result of such Damages in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and the Indemnified Party, as well as any other relevant equitable considerations. The relative
faults of the Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to
state a material fact, was made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the Indemnifying Party’s and Indemnified Party’s relative intent, knowledge, access to information and opportunity
to correct or prevent such action; provided, however, that the liability of any Holder under this Section 2.7(d) shall be limited to the amount of the gross proceeds received by such Holder in the offering giving rise to such liability. The
amount paid or payable by a party as a result of the Damages or other liabilities referred to above shall be deemed to include, subject to the limitations set forth in Sections 2.7(a), 2.7(b) and 2.7(c), any legal or other fees, charges or expenses
reasonably incurred by such party in connection with any investigation or proceeding. 
  
 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2.7(d) were determined by pro rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in the immediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this
Section 2.7(d). 
  
 Section 2.8 Rule 144 and Rule 144A; Other
Exemptions. With a view to making available to the Holders the benefits of Rule 144 and Rule 144A promulgated under the Securities Act and other rules and regulations of the SEC that may at any time permit a Holder to sell securities of the
Company to the public without registration, the Company covenants that it shall use its reasonable best efforts to (i) file in a timely manner all reports and other documents required to be filed by it under the Securities Act and the Exchange Act
and the rules and regulations adopted by the SEC thereunder and (ii) take such further action as each Holder may reasonably request (including, but not limited to, providing any information necessary to comply with Rule 144 and Rule 144A, if
available with respect to resales of the Registrable Securities under the Securities Act), at all times from and after the date which is one hundred and eighty (180) days following the Company’s IPO, all to the extent required from time to time
to enable such Holder to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (x) Rule 144 and Rule 144A (if available with respect to resales of the Registrable Securities)
under the Securities Act, as such rules may be amended from time to time, or (y) any other rules or regulations now existing or hereafter adopted by the SEC. Upon the written request of a Holder, the Company shall deliver to the Holder a written
statement as to whether it has complied with such requirements in all material respects. 
  
 Section 2.9 Certain Limitations on Registration Rights. No Holder may participate in any Registration Statement hereunder unless such Holder completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements, and other documents reasonably required under the terms of such underwriting arrangements and agrees to sell such Holder’s Registrable Securities on the basis provided in any underwriting agreement 

  

 -17- 

 
approved by the Holder or Holders entitled hereunder to approve such arrangements; provided, however, that no such Holder shall be required to make
any representations or warranties to the Company or the underwriters in connection with any such registration other than representations and warranties as to (i) such Holder’s ownership of its Registrable Securities to be sold or transferred,
(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. Such Holders of Registrable Securities to be sold by such underwriters may, at
their option, require that any or all of the representations and warranties by, and the other agreements on the part of the Company to and for the benefit of such underwriters, shall also be made to and for the benefit of such Holders and that any
or all of the conditions precedent to the obligations of the underwriters under the underwriting agreement be conditions precedent to the obligations of the Holders. The Company may, at its option, require that any or all of the representations and
warranties by, and the other agreements on the part of the Holders of Registrable Securities and for the benefit of such underwriters, shall also be made to and for the benefit of the Company and that any or all of the conditions precedent to the
obligations of the underwriters under the underwriting agreement be conditions precedent to the obligations of the Company. 
  
 Section 2.10 Transfer of Registration Rights. The rights of a Holder hereunder may be transferred only to an Affiliate or immediate family member
of such Holder and upon the satisfaction of all of the following additional conditions: (a) such transfer is effected in accordance with applicable securities laws; (b) such Affiliate or immediate family member agrees in writing to become subject to
the terms of this Agreement; and (c) the Company is given written notice by such Holder of such transfer, stating the name and address of such Affiliate or immediate family member and identifying the Registrable Securities with respect to which such
rights are being transferred. 
  
 Section 2.11 Termination of
Registration Rights. The rights contained in Section 2.1, Section 2.2, Section 2.3 and Section 2.8 shall terminate at the earlier of (a) seven years from the effective date of the Company’s IPO or (b) with respect to a Holder, the date that
all Registrable Securities held by such Holder may be sold in a three-month period without registration under the Securities Act pursuant to Rule 144 and such Registrable Securities represent less than one-percent of all outstanding shares of the
Company’s capital stock. 
  
 ARTICLE III 
 MISCELLANEOUS 
  
 Section 3.1 Communications. All notices and other communications provided for or permitted hereunder shall be made in writing by facsimile,
Internet electronic mail, courier service or personal delivery: (a) if to a Holder, at such Holder’s address as shown on the Company’s stock transfer records; and (b) if to the Company, at
[                                ] Houston, Texas
[            ]; or, in each case, to such other address as any party may have furnished to the others in writing in accordance herewith, except that notices of change of address
shall only be effective upon receipt. All such notices and communications shall be deemed to have been received at the time delivered by hand, if personally delivered; when receipt is acknowledged, if sent via facsimile or sent via Internet
electronic mail; and when actually received, if sent by any other means. 
  

 -18- 

 Section 3.2 Successor and Assigns. Subject to Section 2.10, this Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the parties, including subsequent Holders of Registrable Securities to the extent permitted herein. 
  
 Section 3.3 Recapitalization, Exchanges, etc. The provisions of this Agreement shall apply to the full extent set
forth herein with respect to any and all shares of securities of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for or in
substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations, recapitalizations and the like occurring after the date of this Agreement. 
  
 Section 3.4 Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all
signing parties had signed the same document. All counterparts shall be construed together and constitute the same instrument. 
  
 Section 3.5 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning
hereof. 
  
 Section 3.6 Governing Law. This Agreement is
governed by and shall be construed in accordance with the law of the State of Delaware without regard to the conflict of law provisions thereof. 
  
 Section 3.7 Severability. If any provision of this Agreement or the application thereof to any Person or circumstance is held invalid or
unenforceable to any extent, the remainder of this Agreement and the application of that provision to other Persons or circumstances shall not be affected thereby, and that provision shall be enforced to the greatest extent permitted by law.

  
 Section 3.8 Entire Agreement. This Agreement
constitutes the entire agreement among the Company and the Holders with respect to the subject matter hereof and supersedes all prior contracts or agreements, whether oral or written, among the Company and the Holders with respect to the subject
matter hereof. 
  
 Section 3.9 Amendment; Waiver. This
Agreement may be amended only by means of a written amendment signed by the Company and the Holders of a majority of the then outstanding Registrable Securities; provided, however, that no such amendment shall materially and adversely affect
the rights of any Holder hereunder without the consent of such Holder. Any provision of this Agreement may be waived at any time by the party that is, or whose stockholders or partners are, entitled to the benefits thereof. 
  
 Section 3.10 Effectiveness. This Agreement shall become effective and
in full force and effect upon the consummation of the Conversion. 
  

 -19- 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

											
	HERCULES OFFSHORE, LLC
		
	By: 	 	 
	 	 	 Name:
 Title:

	 	 

  

											
	
	HOLDERS:
	
	LR-HERCULES HOLDINGS, L.P.
		
	 By: 
	 	 LR2 GP, L.P.,

	 	 	 Its General Partner

			
	 	 	 By: 
	 	 LR2 GP, LLC,

	 	 	 	 	 Its General Partner

				
	 	 	 	 	 By: 
	 	 
	 	 	 	 	 	 	 Name:
	 	 	 	 
	 	 	 	 	 	 	 Title:
	 	 	 	 

  

											
	 GREENHILL CAPITAL PARTNERS, L.P.

	 GREENHILL CAPITAL PARTNERS

	 (CAYMAN), L.P.

	 GREENHILL CAPITAL PARTNERS

	 (EXECUTIVES), L.P.

	 GREENHILL CAPITAL, L.P.

		
	 By: 
	 	GCP Managing Partner, L.P., as Managing General Partner of each of the foregoing Partnerships
			
	 	 	 By: 
	 	Greenhill Capital Partners, LLC, Its General Partner
				
	 	 	 	 	 By: 
	 	 
	 	 	 	 	 	 	 Name:
	 	 	 	 
	 	 	 	 	 	 	 Title:
	 	 	 	 

  
 SIGNATURE PAGE 
 REGISTRATION RIGHTS AGREEMENT 

 

	
	
	 
	 STEVEN A. WEBSTER

  

									
	 KESTREL CAPITAL, LP

		
	 By: 
	 	 PEREGRINE MANAGEMENT, LLC
 Its General Partner

			
	 	 	 By: 
	 	 
	 	 	 	 	 Name:
	 	 	 	 
	 	 	 	 	 Title:
	 	 	 	 

  

	
	
	 
	 JONATHAN FAIRBANKS

  

											
	 BASSRIG AS

		
	By: 	 	 
	 	 	 Name:
 Title:

	 	 

  

											
	 MIKE MULLEN ENERGY EQUIPMENT RESOURCE INC.

		
	 By: 
	 	 
	 	 	 Name:
 Title:

	 	 

  

											
	 DAVENPORT LIVING TRUST

		
	By: 	 	 
	 	 	 Name:
 Title:

	 	 

  
 SIGNATURE PAGE 
 REGISTRATION RIGHTS AGREEMENT 

 

											
	 HARBOUR CAPITAL CONSULTANTS, INC.

		
	By: 	 	 
	 	 	 Name:
 Title:

	 	 

  

											
	 CLEARFORK CAPITAL, LLC

		
	By: 	 	 
	 	 	 Name:
 Title:

	 	 

  

	
	
	 
	 RUSSELL L. SHERRILL

  

											
	 THOMAS J. SEWARD II DEFINED BENEFIT PLAN

		
	By:  	 	 
	 	 	 Name:
 Title:

	 	 

  

	
	
	 
	 THOMAS J. SEWARD II

  

	
	
	 
	 RANDALL D. STILLEY

  

	
	
	 
	 STEVEN A. MANZ

  
 SIGNATURE PAGE 
 REGISTRATION RIGHTS AGREEMENT 

 

	
	
	 
	 THOMAS E. HORD

  

	
	
	 
	 DON P. RODNEY

  

	
	
	 
	 SEBASTIAN BROOKE

  

	
	
	 
	 SARA PRINA

  
 SIGNATURE PAGE 
 REGISTRATION RIGHTS AGREEMENT

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