Document:

exv10w7

 

Exhibit 10.7

SUPERIOR OFFSHORE INTERNATIONAL, INC.

NONQUALIFIED STOCK OPTION AGREEMENT

(2007 Stock Incentive Plan)

     This Nonqualified Stock Option Agreement (“Option Agreement”) is between Superior Offshore
International, Inc., a Delaware corporation (the “Company”), and [employee] (the “the
Optionee”).

W I T N E S S E T H:

     The Company has heretofore adopted the Superior Offshore International, Inc. 2007 Stock
Incentive Plan (the “Plan”) for the purpose of providing officers, employees, directors and/or
consultants of the Company and its Affiliates (as defined in the Plan) with additional incentive to
promote the success of the business, to increase their proprietary interest in the success of the
Company, and to encourage them to remain in the employ or service of the Company and its Affiliates
(collectively hereinafter referred to as the “Company”).

     NOW THEREFORE, for and in consideration of these premises it is agreed as follows:

     1. Option. Subject to the terms and conditions contained herein, the Company,
effective as of
                    ,
200         (the “Grant Date”), hereby irrevocably grants to the Optionee
the right and option (“Option”) to purchase from the Company [number of shares] shares of
the Company’s Common Stock, $0.01 par value (“Common Stock”), at a price of $                 per share.

     2. Option Period and Vesting. Unless otherwise provided for herein, the Option herein
granted may be exercised by the Optionee in whole or in part at any time during a ten (10) year
period (the “Option Period”) beginning on the Grant Date, subject to the limitation that said
Option shall not be exercisable for more than a portion of the aggregate number of shares offered
by this Option (“Vested”) determined by the Optionee’s number of full years of employment or
service with the Company from
                    ,
200         (the “Vesting Commencement Date”) to the date
of such exercise, in accordance with the following schedule:

	 	 	 	 	 
	Number of Full Years	 	 
	of Employment or Service	 	 
	from the Vesting	 	Cumulative Percentage of Total Shares
	Commencement Date	 	That
May Be Purchased (“Vested”)
	Less than One Year
	 	 	0	%
	One Year
	 	 	25	%
	Two Years
	 	 	50	%
	Three Years
	 	 	75	%
	Four Years or more
	 	 	100	%

 

 

     Notwithstanding anything in this Agreement to the contrary, the Committee (as defined in the
Plan), in its sole discretion, may waive the foregoing schedule of vesting, and upon written notice
to the Optionee, accelerate the earliest date or dates on which the Option granted hereunder is
exercisable.

     3. Procedure for Exercise. The Option herein granted may be exercised by written
notice by the Optionee to the Chief Financial Officer of the Company setting forth the number of
shares of Common Stock with respect to which the Option is to be exercised accompanied by payment
for the shares to be purchased, and specifying the address to which the certificate for such shares
is to be mailed. Payment shall be by means of cash, or a cashier’s check, bank draft, postal or
express money order payable to the order of the Company, or at the discretion of the Committee, in
Common Stock theretofore owned by the Optionee (or deemed to be owned by the Optionee under the
Plan), or a combination of cash and such Common Stock. Notice may also be delivered by fax or
telecopy provided that the purchase of such shares is delivered to the Company via wire transfer on
the same day the fax is received by the Chief Financial Officer of the Company. As promptly as
practicable after receipt of such written notification and payment, the Company shall deliver to
the Optionee certificates for the number of shares of Common Stock with respect to which the Option
has been so exercised.

     4. Termination of Employment or Services.

          (a) For Cause. If the Optionee’s employment or service with the Company is terminated
during the Option Period for “Cause” (as defined below), the Option granted to him or her, whether
exercisable (Vested) or not on such date of termination of employment or service shall thereupon
expire.

          As used in this Agreement, the term “Cause” means (i) willful misconduct by the Optionee or
gross neglect by the Optionee of his duties as an employee, consultant, or officer of the Company,
which continues for more than thirty (30) days after the Optionee’s receipt of written notice from
the Board to the Optionee specifically identifying the willful misconduct or gross neglect by the
Optionee and directing the Optionee to discontinue the same, (ii) the conviction of the Optionee of
a crime constituting a felony, (iii) the commission by the Optionee of an act, other than an act
taken in good faith within the course and scope of the Optionee’s employment or service, which is
directly detrimental to the Company and exposes the Company to material liability, (iv) an act of
fraud by the Optionee committed with respect to the Company, or (v) the breach of any covenant not
to compete or confidentiality agreement with the Company.

          (b) Non-Voluntary Termination and Voluntary Resignation. If at any time during the
Option Period the Optionee’s employment or service with the Company is terminated by the Company
without “Cause” or as a result of the Optionee’s voluntary resignation or for any other reason or
for no reason (other than termination for “Cause” as described in paragraph (a) above, death, or
disability, as defined in paragraph (c) below), then the shares for which the Option is then
exercisable (Vested) may be exercised by the Optionee at any time prior to the close of business on
the 90th day following the date of such termination, at which time the Option (whether
or not Vested) shall expire. Upon the occurrence of an event described in the foregoing
provisions of this paragraph, the shares for which the Option is not then exercisable
(Non-Vested) shall thereupon expire. The Committee, in its sole discretion, may condition any

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exercise of the Option pursuant to the foregoing provisions of this paragraph upon receipt of
evidence satisfactory to the Committee that the Optionee has not been, since the date of
termination of the Optionee’s employment or service with the Company, and is not at the time of
exercise, employed by a Competitor (as defined below), and such evidence may include written
representations, certificates and affidavits from the Optionee, in such form as the Committee shall
require. In no event may the Option be exercised after the end of the Option Period.
Notwithstanding the other provisions of this paragraph, if the Optionee (i) voluntarily resigns his
or her employment with the Company and (ii) thereafter is employed by any person or entity that is
engaged in any line of business in which the Company is engaged as of the date of such resignation
(a “Competitor”), then the Option held by the Optionee shall expire on the day of the commencement
of the Optionee’s employment with such Competitor.

          (c) Death or Disability. If at anytime during the Option Period the Optionee’s
employment or service with the Company is terminated as a result of the Optionee’s death or
disability, then the shares for which the Option is then exercisble (Vested) may be excercised by
the Optionee at anytime prior to the close of business on the first anniversary date of the date of
such termination, at which time the Option (whether or not Vested) shall expire. Upon the
occurrence of the death or disability of the Optionee, the shares for which the Option is not then
exercisable (Non-Vested) shall there upon expire. The Optionee shall be deemed subject to a
“disability” if, in the opinion of a physician selected by the Committee, the Optionee is incapable
of performing services for the Company of the kind the Optionee was performing at the time the
disability occurred by reason of any medically determinable physical or mental impairment which can
be expected to result in death or to be of long, continued and indefinite duration. The date of
determination of disability for purposes hereof shall be the date of such determination by such
physician. Notwithstanding anything herein to the contrary, only to the extent the Option is
subject to Section 409A of the Code, the definition of “disability” shall have the meaning set
forth in Section 409A(a)(2)(C) of the Code.

     5. Cashing Out Option. On receipt of written notice of exercise pursuant to Section
3, the Committee may elect to cash-out all or a part of the portion of the shares of Common Stock
for which all or a portion of the Option is being exercised by paying the Optionee an amount, in
cash or Common Stock, equal to the excess of the Fair Market Value (as defined in the Plan) of the
Common Stock over the option price times the number of shares of Common Stock for which the Option
is being exercised on the effective date of such exercise.

     6. Transferability. The Option shall not be transferable by the Optionee otherwise
than in accordance with the Plan. No such transfer of the Option to heirs or legatees of the
Optionee shall be effective to bind the Company unless the Company shall have been furnished with
written notice thereof and a copy of such evidence as the Committee may deem necessary to establish
the validity of the transfer and the acceptance by the transferee or transferees of the terms and
conditions hereof.

     7. No Rights as Stockholder. The Optionee shall have no rights as a stockholder with
respect to any shares of Common Stock covered by this Option Agreement until the date of issuance
of a certificate for shares of Common Stock purchased pursuant to this Option Agreement. Until
such time, the Optionee shall not be entitled to dividends or to vote at meetings of the
stockholders of the Company. No adjustment shall be made for dividends

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(ordinary or extraordinary, whether in cash or securities or other property) paid or
distributions or other rights granted in respect of any share of Common Stock for which the record
date for such payment, distribution or grant is prior to the date upon which the Optionee shall
have been issued share certificates, as provided herein above.

     8. No Limitation on Changes in Capital Structure. The existence of any outstanding
Option shall not affect in any way the right or power of the Company or its stockholders to make or
authorize any or all adjustments, recapitalizations, reorganizations or other changes in the
Company’s capital structure or its business, or any merger or consolidation of the Company, or any
issuance of Common Stock or subscription rights thereto, or any issuance of bonds, debentures,
preferred or prior preference stock ahead of or affecting the Common Stock or the rights thereof,
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 corporate act or proceedings, whether of a similar character or
otherwise.

     9. Compliance With Securities Laws. Upon the acquisition of any shares pursuant to
the exercise of the Option herein granted, the Optionee (or any person acting under Section 6) will
enter into such written representations, warranties and agreements as the Company may reasonably
request in order to comply with applicable securities laws or with this Option Agreement.

     10. Compliance With Laws. Notwithstanding any of the other provisions hereof, the
Optionee agrees that the Optionee will not exercise the Option granted hereby, and that the Company
will not be obligated to issue any shares pursuant to this Option Agreement, if the exercise of the
Option or the issuance of such shares of Common Stock would constitute a violation by the Optionee
or by the Company of any provision of any law or regulation of any governmental authority.

     11. Withholding of Tax. To the extent that the exercise of the Option or the
disposition of shares of Common Stock acquired by exercise of the Option results in compensation
income to the Optionee for federal or state income tax purposes, the Optionee shall pay to the
Company at the time of such exercise or disposition (or such other time as the law permits if the
Optionee is subject to Section 16(b) of the Securities Exchange Act of 1934, as amended) such
amount of money as the Company may require to meet its obligation under applicable tax laws or
regulations; and, if the Optionee fails to do so, the Company is authorized to withhold from any
cash remuneration then or thereafter payable to the Optionee, any tax required to be withheld by
reason of such resulting compensation income or Company may otherwise refuse to issue or transfer
any shares otherwise required to be issued or transferred pursuant to the terms hereof. Payment of
the withholding tax by the Optionee shall be made in accordance with Section 15(d) of the Plan.

     12. Stockholders Agreement. The Optionee, or the Optionee’s representative upon the
Optionee’s death, agrees that with respect to all shares of Common Stock purchased pursuant to the
Option and as a condition to the exercise of the Option, he or she shall have adopted and agreed to
be bound by the Employee Stockholders Agreement (in the form in use by the Company at the date of
exercise, if any), which agreement may restrict the transfer of shares of Common Stock, unless the
Company otherwise waives the Optionee’s obligation under this

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sentence or there is no such agreement then in effect or required by the Company. If an
underwritten public offering by the Company of its equity securities pursuant to a registration
statement filed under the Securities Act of 1933, as amended, including the Company’s initial
public offering, is filed, the Optionee shall not sell, make any short sale of, loan, hypothecate,
pledge, grant any option for the repurchase of, transfer the economic consequences of ownership or
otherwise dispose or transfer for value or otherwise agree to engage in any of the foregoing
transactions with respect to any capital stock of the Company without the prior written consent of
the Company or its underwriters for such period of time from and after the effective date of such
registration statement as may be requested by the Company or such underwriters (the “Market
Stand-Off”). In order to enforce the Market Stand-Off, the Company may impose stop-transfer
instructions with respect to the shares of Common Stock acquired under this Option Agreement until
the end of the applicable stand-off period. If there is any change in the number of outstanding
shares of Common Stock by reason of a stock split, reverse stock split, stock dividend,
recapitalization, combination, reclassification, dissolution or liquidation of the Company, any
corporate separation or division (including, but not limited to, a split-up, a split-off or a
spin-off), a merger or consolidation, a reverse merger or similar transaction, then any new,
substituted or additional securities which are by reason of such transaction distributed with
respect to any shares of Common Stock subject to the Market Stand-Off, or into which such shares of
Common Stock thereby become convertible, shall immediately be subject to the Market Stand-Off.

     13. Resolution of Disputes. As a condition of the granting of the Option hereby, the
Optionee and the Optionee’s heirs and successors agree that any dispute or disagreement which may
arise hereunder shall be determined by the Committee in its sole discretion and judgment, and that
any such determination and any interpretation by the Committee of the terms of this Option
Agreement shall be final and shall be binding and conclusive, for all purposes, upon the Company,
the Optionee and the Optionee’s heirs and personal representatives.

     14. Legends on Certificate. The certificates representing the shares of Common Stock
purchased by exercise of the Option will be stamped or otherwise imprinted with legends in such
form as the Company or its counsel may require with respect to any applicable restrictions on sale
or transfer and the stock transfer records of the Company will reflect stop-transfer instructions
with respect to such shares.

     15. Notices. Every notice hereunder shall be in writing and shall be given by
registered or certified mail or by fax or telecopy. All notices of the exercise of the Option
hereunder shall be directed to Superior Offshore International, Inc., 900 S. College Road, Suite
301, Lafayette, Louisiana 70503, Attention: Chief Financial Officer. Any notice given by the
Company to the Optionee directed to the Optionee at the Optionee’s address on file with the Company
shall be effective to bind the Optionee and any other person who shall acquire rights hereunder.
The Company shall be under no obligation whatsoever to advise the Optionee of the existence,
maturity or termination of any of the Optionee’s rights hereunder and the Optionee shall be deemed
to have familiarized himself or herself with all matters contained herein and in the Plan which may
affect any of the Optionee’s rights or privileges hereunder.

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     16. Construction and Interpretation. Whenever the term “Optionee” is used herein
under circumstances applicable to any other person or persons to whom this award, in accordance
with the provisions of Section 6 hereof, may be transferred, the word “Optionee” shall be deemed to
include such person or persons. References to the masculine gender herein also include the
feminine gender for all purposes.

     17. Agreement Subject to Plan. This Option Agreement is subject to the Plan. The
terms and provisions of the Plan (including any subsequent amendments thereto) are hereby
incorporated herein by reference herein. The exercise price and the securities or other property
issuable upon exercise of the Option, the duration of the Option and the other terms thereof are
subject to adjustment or modification as provided in the Plan upon the occurrence of certain
events, including a recapitalization, merger, or similar transaction or upon the occurrence of a
Change of Control (as defined in the Plan). In the event of a conflict between any term or
provision contained herein and a term or provision of the Plan, the applicable terms and provisions
of the Plan will govern and prevail. All definitions of words and terms contained in the Plan
shall be applicable to this Option Agreement.

     18. Employment or Service Relationship. Employees shall be considered to be in the
employment of the Company as long as they remain employees of the Company or a parent or subsidiary
corporation (as defined in Section 424 of the Internal Revenue Code of 1986, as amended). Any
questions as to whether and when there has been a termination of employment or service as a
consultant, and the cause of such termination, shall be determined by the Committee, and its
determination shall be final. Nothing contained herein shall be construed as conferring upon the
Optionee the right to continue in the employ of the Company, nor shall anything contained herein be
construed or interpreted to alter any “employment at will” relationship between the Optionee and
the Company.

     19. Section 409A Limitation. In the event the Committee determines at any time that
the Option has been granted with an exercise price less than Fair Market Value of the Common Stock
subject to the Option on the date the Option is granted (regardless of whether or not such exercise
price is intentionally or unintentionally priced at less than Fair Market Value, or is materially
modified at a time when the Fair Market Value exceeds the exercise price), or is otherwise
determined to constitute “‘nonqualified deferred compensation” within the meaning of Section 409A
of the Code, notwithstanding any provision of the Plan or this Option Agreement to the contrary,
the Option shall satisfy the additional conditions applicable to nonqualified deferred compensation
under Section 409A of the Code, in accordance with Paragraph XIV(h) of the Plan. Notwithstanding
the foregoing, the Company shall have no liability to the Optionee or any other person if an Option
designated as an Incentive Stock Option fails to qualify as such at any time or if an Option is
determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A of
the Code and the terms of such Option do not satisfy the additional conditions applicable to
nonqualified deferred compensation under Section 409A of the Code.

     20. Binding Effect. This Option Agreement shall be binding upon and inure to the
benefit of the Company and any successors to the Company and the Optionee and all persons lawfully
claiming under the Optionee.

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     IN WITNESS WHEREOF, this Option Agreement has been executed this              day of                     ,
2              .

	 	 	 	 	 
	 	 	SUPERIOR OFFSHORE INTERNATIONAL, INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	OPTIONEE
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	(Employee]

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Exhibit 10.8

SUPERIOR OFFSHORE INTERNATIONAL, INC.

RESTRICTED STOCK AGREEMENT

(2007 Stock Incentive Plan)

     This Restricted Stock Agreement (“Agreement”), entered into on the           day of                     ,
2007 (the “Effective Date”), which is the date on which the Grant described below was approved by
[the Compensation Committee (the “Committee”) of] the Board of Directors of Superior Offshore
International, Inc., a Delaware corporation (the “Company”), is between the Company and
                     (the “Employee”).

     [WHEREAS, the Company and the Employee are entering into an Employment Agreement, dated as of
                    , 2007 (the “Employment Agreement”), contemporaneously with this Agreement;]

     WHEREAS, to carry out the purposes of the Superior Offshore International, Inc. 2007 Stock
Incentive Plan (the “Plan”), shares of restricted Common Stock (as defined below) are hereby
granted to the Employee in accordance with this Restricted Stock Agreement; and

     WHEREAS, the Company and Employee agree as follows:

     1. Award of Common Stock. The Company hereby grants (the “Grant”) to Employee
                                shares (the “Shares”) of common stock, par value $0.01 per share (“Common Stock”), of the
Company, which shall be subject to the restrictions on transferability set forth in Section 2(d)
herein (the “Restrictions”) and to the other provisions of this Agreement.

     2. Restricted Period.

          (a) For a period of                      (       ) years [and                      (    
   ) months] commencing on the
Effective Date (the “Restricted Period”), the Shares shall be subject to the Restrictions and any
other restrictions as set forth herein. The Restrictions shall lapse and expire as to the Shares
in accordance with the following schedule provided the Employee has been continuously employed by
the Company from the Effective Date through the lapse date:

	 	 	 
	 	 	Percentage of Total
	 	 	Number of Restricted Shares as to
	Lapse Date	 	Which Forfeiture Restrictions Lapse
	 
	 	 
	[The later of the (i) date that is six
months after the Effective Date and
(ii)                      day after the consummation
of an Initial Public Offering]

	 	                    %
	 
	 	 
	The date that is                      year [and
                     months] after the Effective
Date

	 	An additional                     %

 

 

	 	 	 
	 	 	Percentage of Total
	 	 	Number of Restricted Shares as to
	Lapse Date	 	Which Forfeiture Restrictions Lapse
	 
	 	 
	The date that is                      year [and
                     months] after the Effective
Date

	 	An additional                     %
	 
	 	 
	The date that is                      year [and
                     months] after the Effective
Date

	 	The final                     %

          The Shares which are subject to the Restrictions shall hereinafter be referred to as
“Restricted Shares.” The Shares which are no longer subject to the Restrictions as set forth above
and in paragraph (f) below shall hereinafter be referred to as “Transferable Shares.”

          (b) The Company shall effect the issuance of the Shares out of authorized but unissued shares
of Common Stock or out of treasury shares of Common Stock and shall also effect the issuance of a
certificate or certificates for the Shares. Each certificate issued for Restricted Shares to the
Employee shall be registered in Employee’s name and shall be either deposited with the Secretary of
the Company or its designee in an escrow account or held by the Secretary of the Company, at the
election of the Company, together with stock powers or other instruments of transfer appropriately
endorsed in blank by Employee (Employee hereby agreeing to execute such stock powers or other
instruments of transfer as requested by the Company). Such certificate or certificates shall
remain in such escrow account or with the Secretary of the Company until the corresponding
Restricted Shares become Transferable Shares as set forth in paragraph (a) above or paragraph (f)
below. Certificates representing the Restricted Shares shall bear a legend in substantially the
following form:

“THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY
ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE SUPERIOR
OFFSHORE INTERNATIONAL, INC. 2007 STOCK INCENTIVE PLAN AND AN AWARD AGREEMENT.
COPIES OF SUCH PLAN AND AGREEMENT ARE ON FILE AT THE OFFICES OF SUPERIOR OFFSHORE
INTERNATIONAL, INC., 900 S. COLLEGE ROAD, SUITE 301, LAFAYETTE, LOUISIANA.

The Company may place appropriate stop transfer instructions with respect to the Restricted Shares
with the transfer agent for the Common Stock. Upon Restricted Shares becoming Transferable Shares,
the Company shall effect, in exchange for the legended certificates, the issuance and delivery of a
certificate or certificates for such Shares to the Employee free of the legend set forth above.

          (c) [Except as provided in Section 13,] the Employee shall, during the Restricted Period, have
all of the other rights of a stockholder with respect to the Shares including, but not limited to,
the right to receive dividends, if any, as may be declared on such Restricted Shares from time to
time, and the right to vote (in person or by proxy) such Restricted Shares at any meeting of
stockholders of the Company.

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          (d) The Restricted Shares and the right to vote the Restricted Shares and to receive dividends
thereon, may not be sold, assigned, transferred, exchanged, pledged, hypothecated, or otherwise
encumbered and no such sale, assignment, transfer, exchange, pledge, hypothecation, or encumbrance,
whether made or created by voluntary act of Employee or any agent of Employee or by operation of
law, shall be recognized by, or be binding upon, or shall in any manner affect the rights of, the
Company or any agent or any custodian holding certificates for the Restricted Shares during the
Restricted Period, unless the Restrictions have then expired pursuant to the provisions of
paragraph (a) above or paragraph (f) below. This provision shall not prohibit Employee from
granting revocable proxies in customary form to vote the Shares.

          (e) If the status of employment (hereinafter referred to as “employment”) of Employee with the
Company and its Subsidiaries (as defined in the Plan) shall terminate prior to the expiration of
the Restricted Period by reason of death or Disability or as a result of the termination of
employment by the Company without Cause [or as a result of the termination of employment by
Employee for Good Reason,] the Restrictions on any Restricted Shares held by such Employee shall
immediately lapse. If the employment of Employee shall terminate prior to the expiration of the
Restricted Period for any other reason not specified in the immediately preceding sentence, then,
in that event, any Restricted Shares outstanding shall thereupon be forfeited by Employee to the
Company, without payment of any consideration or further consideration by the Company, and neither
the Employee nor any successors, heirs, assigns or legal representatives of Employee shall
thereafter have any further rights or interest in the Restricted Shares or certificates therefor,
and Employee’s name shall thereupon be deleted from the list of the Company’s stockholders with
respect to the Restricted Shares.

          (f) Upon the occurrence of a Change in Control (as defined in the Plan), any Restrictions on
the Restricted Shares set forth in this Agreement shall be deemed to have expired, and the
Restricted Shares shall thereby be Transferable Shares.

          (g) If the employment of Employee with the Company shall terminate prior to the expiration of
the Restricted Period, and there exists a dispute between Employee and the Company as to the
satisfaction of the conditions to the release of the Shares from the Restrictions hereunder or the
terms and conditions of the Grant, the Shares shall remain subject to the Restrictions until the
resolution of such dispute, regardless of any intervening expiration of the Restricted Period,
except that any dividends that may be payable to the holders of record of Common Stock as of a date
during the period from termination of Employee’s employment to the resolution of such dispute
shall:

          (1) to the extent to which such dividends would have been payable to Employee
on the Shares, be held by the Company as part of its general funds, and shall be
paid to or for the account of Employee only upon, and in the event of, a resolution
of such dispute in a manner favorable to Employee, and

          (2) be canceled upon, and in the event of, a resolution of such dispute in a
manner unfavorable to Employee.

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     3. Taxes. To the extent that the receipt of the Restricted Shares, Transferable
Shares, or the lapse of any Restrictions results in income to Employee for federal or state income
tax purposes, Employee shall deliver to the Company at the time of such receipt or lapse, as the
case may be, such amount of money or, if the Company so determines, shares of unrestricted Common
Stock as the Company may require to meet its obligation under applicable tax laws or regulations,
and, if Employee fails to do so, the Company is authorized to withhold from any cash or Common
Stock remuneration then or thereafter payable to Employee any tax required to be withheld by
reasons of such resulting compensation income. Employee agrees to notify the Company promptly of
any tax election made by Employee with respect to the Shares.

     4. Changes in Capital Structure. If the outstanding shares of Common Stock shall at
any time be changed or exchanged or augmented by declaration of a stock dividend, stock split,
combination of shares, merger, consolidation, recapitalization or similar event, the Shares, being
outstanding shares of Common Stock, shall be treated in the same manner as all other issued and
outstanding shares. Any cash, property or securities into which the Shares are so changed or
exchanged or so augmenting the Shares or so issued in respect of the Shares shall be subject to the
Restrictions in the same manner as the Shares.

     5. Compliance with Securities Laws.

          (a) Employee represents and warrants to the Company that Employee is acquiring the Shares for
his own account, for investment, and without a view to any sale or distribution thereof in
violation of any federal or state securities laws. Employee understands that the grant of the
Shares to Employee has not been registered under the Securities Act of 1933, as amended, or the
securities laws of any state, and, accordingly, that in addition to the other restrictions placed
on the Shares by this Agreement, the Shares may not be offered, sold, assigned, transferred,
exchanged, pledged, hypothecated or otherwise encumbered in absence of either (a) an effective
registration statement under the Securities Act of 1933, as amended, and applicable state
securities laws or (b) an opinion of counsel satisfactory to the Company that such registration is
not required.

          (b) Employee agrees that the certificates representing the Shares (whether the Shares are
Restricted Shares or Transferable Shares) shall bear a legend in substantially the following form:

     THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND, ACCORDINGLY,
MAY NOT BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, EXCHANGED, PLEDGED, HYPOTHECATED OR
OTHERWISE ENCUMBERED IN THE ABSENCE OF EITHER (1) AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
SECURITIES LAWS OR (2) AN OPINION OF COUNSEL SATISFACTORY TO SUPERIOR OFFSHORE
INTERNATIONAL, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

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          (c) Upon the execution of this Agreement and receipt of any certificates for the Shares
pursuant to this Agreement, Employee (or Employee’s legal representative upon Employee’s death or
disability) will enter into such additional written representations, warranties and agreements as
the Company may reasonably request in order to comply with applicable securities laws or with this
Agreement .

     6. Employment Relationship. Employee shall be considered to be in the employment of
the Company as long as he remains as an employee of the Company or its Affiliates. Any questions
as to whether and when there has been a termination of such employment, and the cause of such
termination, shall be determined by the Committee (as defined in the Plan), with the advice of the
employing corporation (if an Affiliate of the Company), and the Company’s determination shall be
final. For purposes of this Agreement, “Affiliates” shall mean any “parent corporation” of the
Company and any “subsidiary corporation” of the Company within the meaning of Sections 424(e) and
(f), respectively, of the Internal Revenue Code of 1986, as amended.

     7. Binding Effect. The terms and conditions hereof shall, in accordance with their
terms, be binding upon, and inure to the benefit of, all successors of Employee, including, without
limitation, Employee’s estate and the executors, administrators, or trustees thereof, heirs and
legatees, and any receiver, trustee in bankruptcy, or representative of creditors of Employee.
This Agreement shall be binding upon and inure to the benefit of any successors to the Company.

     8. Notice. All notices, requests, demands and other communications given under or by
reason of this Agreement shall be in writing and shall be deemed given when delivered in person or
when mailed, by certified mail (return receipt requested), postage prepaid, addressed as follows
(or to such other address as a party may specify by notice pursuant to this provision):

	 	 	 	 	 	 	 
	 

	 	(a)
	 	To the Company:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Superior Offshore International, Inc.	 	 
	 

	 	 	 	900 S. College Road, Ste. 301	 	 
	 

	 	 	 	Lafayette, Louisiana 70503	 	 
	 

	 	 	 	Attn: General Counsel	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to (which copy shall not constitute notice):	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Bracewell & Giuliani LLP	 	 
	 

	 	 	 	711 Louisiana Street, Suite 2300	 	 
	 

	 	 	 	Houston, Texas 77005	 	 
	 

	 	 	 	Attn: William S. Anderson	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	To the Employee:	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

-5-

 

     9. Arbitration. Any dispute or controversy arising under or in connection with this
Agreement shall be settled by binding arbitration in Houston, Texas by one arbitrator appointed in
the manner set forth by the American Arbitration Association. Any arbitration proceeding pursuant
to this paragraph shall be conducted in accordance with the Employment Dispute Resolution Rules of
the American Arbitration Association. Judgment may be entered on the arbitrators’ award in any
court having jurisdiction.

     10. Release. Employee hereby irrevocably releases the Company and each and every
affiliate, officer, member, shareholder, manager, director and employee of the Company (the
“Releasees”) from any claims, liabilities, costs, expenses, actions, suits or demands however
arising, whether at law or in equity, contingent, known or unknown, which the Employee or his
heirs, successors or assigns may have or assert against the Releasees as of the date of the
Effective Date in respect of any ownership interest in the Releasees or in connection with or
arising out of any employment relationship with the Releasees prior to the Effective Date
(including claims for breach of any contract relating to employment or compensation, or for
discrimination based upon race, color, ethnicity, sex, age, national origin, religion, disability,
sexual orientation, or any other unlawful criterion or circumstance); provided, however, that this
release shall not apply to the Employee’s rights to accrued but unpaid salary, accrued but unpaid
vacation and unpaid reimbursable expenses, in each case to the extent accrued prior to the
Effective Date; provided, further, that this release shall not apply to any rights, benefits,
obligations or restrictions arising under this Agreement [or the Employment Agreement] on or after
the Effective Date.

     11. Entire Agreement and Amendments. This Agreement [and the Employment Agreement]
constitute the entire agreement of the parties with regard to the subject matter hereof and thereof
and supersede all prior agreements and understandings, oral or written, between the parties with
respect to the subject matter hereof and thereof, and contain all the covenants, promises,
representations, warranties and agreements between the parties with respect to employment of
Employee by Company. Without limiting the scope of the preceding sentence, all understandings and
agreements between the Employee, on the one hand, and the Company or any of its shareholders or
officers, on the other hand, preceding the date of execution of this Agreement [and the Employment
Agreement] and relating to the subject matter hereof [or thereof] are hereby null and void and of
no further force and effect. This Agreement may be changed only by an agreement in writing signed
by the party against whom enforcement of any waiver, change, modification, extension or discharge
is sought.

     12. Separability. If any provision of the Agreement is rendered or declared illegal
or unenforceable by reason of any existing or subsequently enacted legislation or by the decision
of any arbitrator or by decree of a court of last resort, the parties shall promptly meet and
negotiate substitute provisions for those rendered or declared illegal or unenforceable to preserve
the original intent of this Agreement to the extent legally possible, but all other provisions of
this Agreement shall remain in full force and effect.

     13. [Dividends. Notwithstanding the provisions of Section 2(c), Employee shall not
receive any dividends declared by the Company prior to the Initial Public Offering that are paid
prior to or after the consummation of the Initial Public Offering. For the avoidance of doubt,
Employee understands and agrees that Employee will not receive any portion of the dividend

-6-

 

referred to under the caption “Use of Proceeds” in the Prospectus filed by the Company with
the Securities and Exchange Commission.]

     14. [Certain Defined Terms. Certain terms used herein have definitions given to them
in the first place in which they are used. In addition, the terms “Cause”, “Disability” and “Good
Reason” shall have the meanings ascribed to such terms in the Employment Agreement. The term
“Initial Public Offering” shall mean an initial public offering of Common Stock by the Company
pursuant to an effective registration statement under the Securities Act of 1933, as amended.]

     15. Governing Law. The execution, validity, interpretation, and performance of this
Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware
except to the extent pre-empted by federal law.

-7-

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by one of its
officers thereunto duly authorized, and Employee has executed this Agreement, all as of the day and
year first above written.

	 	 	 	 	 
	 	SUPERIOR OFFSHORE INTERNATIONAL, INC.

 	 
	 	By:  	 	 
	 	 	     Authorized Officer 	 
	 	 	 	 
	 
	 	EMPLOYEE

 	 
	 	 	 
	 	Name:  	 	 
	 	 	 
	 

-8-

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