Document:

exv10w2

 

Exhibit 10.2

STOCK OPTION
AGREEMENT
FOR THE GRANT OF

NON-QUALIFIED STOCK OPTIONS UNDER THE

SUPERIOR ENERGY SERVICES, INC.

2005 STOCK INCENTIVE PLAN

     THIS AGREEMENT is dated as of June ___, 2005, by and between Superior Energy Services, Inc.
(“Superior”), and ___(“Optionee”).

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

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

I.

Grant of Option

     Superior hereby grants to Optionee effective June ___, 2005 (the “Date of Grant”), the right,
privilege and option to purchase ___shares of Common Stock (the “Option”) at an exercise
price of $___per share (the “Exercise Price”). The Option shall be exercisable at the time
specified in Article II below. The Option is a non-qualified stock option and shall not be treated
as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”).

II.

Time of Exercise

     2.1 Subject to the provisions of the Plan and the other provisions of this Agreement, the
Optionee shall be entitled to exercise the Option beginning on December 31, 2005. The Option shall
expire and may not be exercised later than the tenth anniversary of the Date of Grant.

     2.2 Upon the termination of Optionee’s employment with the Company, any portion of the Option
that has not yet become exercisable shall terminate immediately.

     2.3 (a) Except as provided in Section 2.3(b), if Optionee’s employment with the Company is
terminated, other than as a result of death, disability, Cause or retirement on or after reaching
age 55 with five years of service, the Option must be exercised, to the extent exercisable at the
time of termination of employment, within 30 days of the date on which Optionee ceases to be an
employee, but in no event later than the tenth anniversary of the Date of Grant.

 

 

            (b) (i) If there has been a Change of Control (as defined in the Plan) of Superior, (ii) if
the Option remains outstanding after the Change of Control, either as a right to purchase Common
Stock or as a right to purchase that number and class of shares of stock or other securities or
property (including without limitation, cash) to which the Optionee would have been entitled if,
immediately prior to the Change of Control, the Optionee had been the record owner of the number of
shares of Common Stock then covered by the Option and (iii) if the Optionee’s employment is
terminated by the Company other than for Cause within a one-year period following the Change of
Control, then the Option must be exercised within three years following the date of termination of
employment, but in no event later than the tenth anniversary of the Date of Grant.

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

     2.4 If Optionee’s employment by the Company is terminated for Cause, the Option shall
terminate in full immediately, whether or not exercisable at the time of termination of employment.

     2.5 If Optionee ceases to be an employee of the Company because of disability within the
meaning of Section 22(e)(3) of the Code or retirement, as described in Section 2.3(a), the Option
must be exercised, to the extent exercisable at the time of termination of employment, within one
year from the date on which Optionee ceases to be an employee, but in no event later than the tenth
anniversary of the Date of Grant.

     2.6 In the event of Optionee’s death, the Option must be exercised by his estate, or by the
person to whom such right devolves from him by reason of his death, to the extent exercisable at
the time of death, within one year from the date of death, but in no event later than the tenth
anniversary of the Date of Grant.

III.

Forfeiture of Option and Option Gain

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

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

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

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

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

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

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

then the Option shall terminate without any payment to Optionee effective the date on which
Optionee engages in such activity, unless terminated sooner by operation of another term or
condition of this Agreement or the Plan, and Optionee shall pay in cash to the Company, without
interest, any option gain realized by Optionee from exercising all or a portion of the Option
during the period beginning one year prior to termination of employment (or one year prior to the
date Optionee first engages in such activity if no termination occurs) and ending on the date on
which the Option terminates. For purposes hereof, “option gain” shall mean the difference between
the closing market price of the Common Stock on the date of exercise minus the exercise price,
multiplied by the number of shares purchased.

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IV.

Method of Exercise of Option

     Optionee may exercise all or a portion of the Option by delivering to the Company a signed
written notice of his intention to exercise the Option, specifying therein the number of shares to
be purchased. Upon receiving such notice, and after the Company has received payment of the
exercise price as provided in the Plan, the appropriate officer of the Company shall cause the
transfer of title of the shares purchased to Optionee on the Company’s stock records and cause to
be issued to Optionee a stock certificate for the number of shares being acquired. Optionee shall
not have any rights as a stockholder until the stock certificate is issued to him.

V.

No Contract of Employment Intended

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

VI.

Binding Effect and Successors

     6.1 This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective heirs, executors, administrators and successors.

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

VII.

Non-Transferability

     The Option may not be transferred, assigned, pledged or hypothecated in any manner, by
operation of law or otherwise, other than by will or by the laws of descent and distribution and
shall not be subject to execution, attachment or similar process.

VIII.

Inconsistent Provisions

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

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day
and year first above written.

	 	 	 	 	 	 	 
	 
	 	SUPERIOR ENERGY SERVICES, INC.	 	 

	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 
	 	 	 	 

	 

	 	 	 	Optionee

5<PAGE>
                     AMENDMENT NO. 2 TO DEBTOR-IN-POSSESSION
                       CREDIT AGREEMENT AND LOAN DOCUMENTS

         THIS AMENDMENT dated as of June 17, 2005 (this "Amendment"), under the
Debtor-in-Possession Credit Agreement dated as of January 12, 2005, as amended
by that certain Amendment No. 1 to Debtor-in-Possession Credit Agreement and
Loan Documents dated as of March 31, 2005 (the "DIP Credit Agreement"), among
Torch Offshore, Inc., a Delaware corporation (the "Borrower"), Torch Offshore,
LLC, a Delaware limited liability company ("TOLLC") and Torch Express, LLC, a
Louisiana limited liability company ("TELLC"; TOLLC and TELLC are each referred
to herein as a "Guarantor"), Regions Bank, for itself as a "Lender" defined
under the DIP Credit Agreement ("Regions") and Export Development Canada, as a
Lender ("EDC").

         The parties hereto agree as follows:

         SECTION 1. Defined Terms; References. Unless otherwise specifically
defined herein, each term used herein which is defined in the DIP Credit
Agreement and not defined herein has the meaning assigned to such term in the
DIP Credit Agreement. Each reference to "hereof", "hereunder", "herein" and
"hereby" and each other similar reference and each reference to "this Agreement"
and each other similar reference contained in the DIP Credit Agreement shall,
after this Amendment becomes effective, refer to the DIP Credit Agreement as
amended hereby.

         SECTION 2. Amendments. (a) Each of the following definitions contained
in Section 1.1 of the DIP Credit Agreement is hereby amended and restated in its
entirety as follows:

                  Termination Date means the earlier to occur of (i) August 5,
         2005 (which date may be extended up to 90 additional days thereafter
         upon the written consent of the Agent and the Lenders in the exercise
         of their sole discretion, such consent, if any, to be conditioned,
         among other things, upon receipt of a new Budget and the Agent's and
         the Lenders' complete satisfaction therewith), (ii) the Consummation
         Date, and (iii) the acceleration of the Loans and the termination of
         the Line of Credit Commitments in accordance with the terms hereof.

         (b) Section 8.3 of the DIP Credit Agreement is hereby amended and
restated in its entirety as follows:

                  8.3 Use of Proceeds. Borrower covenants and agrees that the
         proceeds of the Line of Credit Loans will be used solely as set forth
         in the 9 week cash flow forecast as agreed upon between the Borrower,
         the Agent and the Lenders (as may be amended from time to time, the
         "Budget"). The Letters of Credit will be used solely for the
         requirements of the Company Business in the ordinary course of
         business. In no event may the proceeds of any Loan or Letter of Credit
         be used in violation of any applicable law or regulation.

         SECTION 3. Representations. The Borrower and each Guarantor represents
and warrants that (i) the representations and warranties set forth in the Loan
Documents are true and correct in all material respects on and as of the date
hereof with the same effect as if made on and as of such date and (ii) after
giving effect to this Amendment, no Default or Event of Default under the DIP
Credit Agreement has occurred and is continuing on such date.

         SECTION 4. Reaffirmation; Release. Borrower hereby reaffirms and
restates each and every agreement, covenant, warranty and representation set
forth in the DIP Credit Agreement, each Note and the other Loan Documents to
which it is a party, as amended and affected by this Amendment. Each Guarantor
hereby reaffirms and restates each and every agreement, covenant, warranty and
representation set forth in the DIP Credit Agreement, the Continuing Guarantees,
the Security Documents and the other

<PAGE>

Loan Documents to which it is a party, as amended and affected by this
Amendment. The Borrower and each Guarantor further acknowledges, represents and
warrants that the Loan Documents, as amended and affected by this Amendment,
constitute valid and enforceable obligations of Borrower and each Guarantor as
of this date, free from any defense, counterclaim, offset or recoupment. The
Borrower and each Guarantor hereby waives, releases and discharges Agent and the
Lenders from any and all claims, demands, actions or causes of action arising
out of or in any way relating to the Loans and the other Obligations, the Credit
Agreement and the other Loan Documents and any documents, agreements, dealings,
or other matters connected with the Loans, any Letter of Credit or other
Obligations, including, without limitation, all known and unknown matters,
claims, transactions, or things occurring prior to the date of this Amendment
related to the Loans or any Letter of Credit.

         SECTION 5. No Waiver or Implication; No Novation. Nothing herein shall
constitute a waiver of any default, whether known or unknown, which may exist
under the Loan Documents, except as expressly set forth herein. No action,
inaction or agreement by the Agent or any Lender, including, without limitation,
any extension, indulgence, waiver, consent or agreement of modification which
may have occurred or have been granted or entered into (or which may be
occurring or be granted or entered into hereunder or otherwise) with respect to
nonpayment of the Loans or reimbursement for draws under any Letter of Credit or
any portion thereof, or with respect to matters involving security for the Loans
or reimbursement for draws under any Letter of Credit, or with respect to any
other matter relating to the Loans or reimbursement for draws under any Letter
of Credit, shall require or imply any future extension, indulgence, waiver,
consent or agreement by Agent or any Lender. Borrower and each Guarantor hereby
acknowledges and agrees that none of the Agent and the Lenders has made any
agreement, and none of them is in anyway obligated, to grant any future
extension, indulgence, waiver or consent with respect to the Loans, any Letter
of Credit or any matter relating to the Loan Documents. This Amendment shall not
constitute a novation of the Loans, any Note, the DIP Credit Agreement or any
other of the Loan Documents, and the terms and provisions of the Loan Documents
are hereby affirmed and shall remain valid and in full force and effect as
amended and affected by this Amendment.

         SECTION 6. Governing Law; Counterparts; Expenses; Successors and
Assigns. This Amendment shall be governed by and construed in accordance with
the laws of the State of Louisiana. This Amendment may be signed and delivered
in any number of counterparts (including by facsimile), each of which shall be
an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument. Borrower agrees to promptly pay the attorney fees and
expenses incurred by the Agent and the Lenders in connection with the drafting,
negotiation, execution, delivery and performance of this Amendment. This
Amendment shall be binding upon and inure to the benefit of Borrower, each
Guarantor, Agent and the Lenders and their respective successors and assigns,
whether voluntary by act of the parties or involuntary by operation of law.

         SECTION 7. Effectiveness. This Amendment shall become effective as of
the date hereof on the date when the Agent shall have received from the
Borrower, each Guarantor and each Lender a counterpart hereof signed by such
party.

                     [signatures contained on the next page]

                                       2
<PAGE>

         IN WITNESS WHEREOF, Borrower, the Guarantors, the Agent and the Lenders
have executed this Amendment as of the date first written above.

                                         TORCH OFFSHORE, INC.

                                         By:
                                             -----------------------------------
                                             Name:
                                             Title:

                                         TORCH OFFSHORE, L.L.C.

                                         By:
                                             -----------------------------------
                                             Name:
                                             Its Manager

                                         TORCH EXPRESS, L.L.C.

                                         By:
                                             -----------------------------------
                                             Name:
                                             Its Manager

                                         REGIONS BANK, as a Lender and as Agent

                                         By:
                                             -----------------------------------
                                             Mike J. Paternostro
                                             Senior Vice President

                                         EXPORT DEVELOPMENT CANADA, as a Lender

                                         By:
                                             -----------------------------------
                                             Sean Mitchell
                                             Manager Special Risks

                                         By:
                                             -----------------------------------
                                             Bruce Dunlop
                                             Portfolio Manager

                                       3

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