Document:

exv10w3

 

Exhibit 10.3

SUBSCRIPTION AND REGISTRATION RIGHTS AGREEMENT

 

Private Offering

of Shares of

Common Stock

     This Subscription and Registration Rights Agreement (this “Agreement”), made as
of the date set forth below by and between Horizon Offshore, Inc., a Delaware corporation (the
“Company”), and the undersigned (the “Subscriber”), is intended to set forth
certain representations, covenants and agreements between the Company and the Subscriber, with
respect to the offering (the “Offering”) for sale by the Company of shares of Common Stock,
par value $0.00001 per share (the “Common Stock”), as described in the Company’s Private
Placement Memorandum dated December 6, 2005 (the “Memorandum”), a copy of which has been
delivered to Subscriber. The Shares are being offered by the Company through Energy Capital
Solutions, LLC, as placement agent (the “Placement Agent”).

     1. Subscription. Subject to the terms and conditions hereof, the Subscriber hereby
irrevocably subscribes for and agrees to purchase from the Company the number of shares of Common
Stock (the “Shares”) set forth under the Subscriber’s name on the signature page hereto at
a purchase price of $0.38 per share (the “Offering Price”), and the Company agrees to sell
such Shares to the Subscriber at the Offering Price, subject to the Company’s right to sell to the
Subscriber such lesser number of Shares as the Company may, in its sole discretion, deem necessary
or desirable.

     2. Delivery of Subscription Amount; Acceptance of Subscription; Delivery of Shares.
Subscriber understands and agrees that this subscription is made subject to the following terms and
conditions:

     (a) Subscriber understands that separate subscription agreements will be executed with other
Subscribers for up to the maximum number of shares of Common Stock offered to be sold in the
Offering (including any shares subscribed for hereby);

     (b) Contemporaneously with the execution and delivery of this Agreement, Subscriber shall
execute and deliver the Certificate of Accredited Investor Status attached as Exhibit B hereto, and
shall submit payment in the form of a wire to the Company, to hold in a non-interest bearing
account, immediately available funds in the amount equal to the Offering Price multiplied by the
number of Shares for which the Subscriber has subscribed (the “Subscription Amount”) in
accordance with the Subscription Instructions set forth on Exhibit A hereto;

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     (c) The Subscriber’s subscription for Shares shall be deemed to be accepted only when this
Agreement has been signed by an authorized officer of the Company, and the deposit of the
Subscription Amount for clearance will not be deemed an acceptance of this Agreement;

     (d) The Company shall have the right to reject this subscription, in whole or in part and
shall have the right to allocate Shares among subscribers in any manner it may desire;

     (e) The payment of the Subscription Amount (or, in the case of rejection of a portion of the
Subscriber’s subscription, the part of the payment relating to such rejected portion) will be
returned promptly, without interest, if Subscriber’s subscription is rejected in whole or in part
or if the Offering is withdrawn or canceled;

     (f) The Company may, in its sole discretion, terminate the Offering at any time and accept any
subscriptions then in its receipt;

     (g) Certificates representing the Shares purchased will be issued in the name of each
Subscriber within 14 days of the acceptance of the Subscriber’s subscription; and

     (h) The representations and warranties of the Company and Subscriber set forth herein shall be
true and correct as of the date that the Company accepts this subscription.

     3. Terms of Subscription.

     (a) The Placement Agent will receive a servicing fee of $7,500 and a placement management fee
equal to six percent (6%) of the aggregate purchase price of the Shares sold. The Company shall
also pay all expenses in connection with the Offering, except for those expenses that the Placement
Agent has agreed to pay.

     (b) If the Subscriber is not a United States citizen, the Subscriber hereby represents that it
has satisfied itself as to the full observance of the laws of its jurisdiction in connection with
any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal
requirements within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange
restrictions applicable to such purchase, (iii) any governmental or other consents that may need to
be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to
the purchase, holding, redemption, sale or transfer of the Shares. The Subscriber further
represents and warrants that the Subscriber’s subscription and payment for, and his or her
continued beneficial ownership of the Shares, will not violate any applicable securities or other
laws of the Subscriber’s jurisdiction.

     4. Registration Rights.

     (a) Subscriber acknowledges that it is acquiring the Shares for its own account and for the
purpose of investment and not with a view to any distribution or resale thereof within the meaning
of the Securities Act of 1933, as amended (the “Securities Act”). The Subscriber further
agrees that it will not sell, assign or transfer the Shares at any time in violation of the
Securities Act and acknowledges that, in taking unregistered securities, it must continue to bear
the economic risk of its investment for an indefinite period of time because of the fact that the
Shares have not been registered under the Securities Act, and further realizes that the Shares

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cannot be sold unless subsequently registered under the Securities Act or an exemption from
such registration is available. The Subscriber also acknowledges that appropriate legends
reflecting the status of the Shares under the Securities Act may be placed on the face of the
certificates for such shares at the time of their transfer and delivery to the holder thereof.

     (b) The Shares may not be transferred except in a transaction which is in compliance with the
Securities Act. Except as provided hereafter with respect to registration of the Shares, it shall
be a condition to any such transfer that the Company shall be furnished with an opinion of counsel
to the holder of such Shares, reasonably satisfactory to the Company, to the effect that the
proposed transfer would be in compliance with the Securities Act.

     (c) Within 60 days after the last sale of shares of Common Stock in the Offering, the Company
shall use its commercially reasonable efforts to prepare and file with the Securities and Exchange
Commission (the “SEC”), a registration statement on Form S-3 (or other appropriate form or
any replacement thereof) and such other documents as may be necessary in the opinion of counsel for
the Company, and use its commercially reasonable efforts to have such registration statement
declared effective as soon as reasonably practicable after such filing, in order to comply with the
provisions of the Securities Act so as to permit the registered resale of the Shares, for a period
of two (2) years following the last Closing of the Offering by each and every holder of Shares,
except for those holders who designate on the signature page hereto that they do not wish to have
their Shares included in the registration statement. The Shares that are registered for resale
under such registration statement are referred to herein as the “Offering Shares,” and the
Subscribers who are eligible to sell their Offering Shares under such registration statement,
together with their affiliates, are hereafter referred to as “Offering Holders.” The Company will
include in such registration statement (i) the information required under the Securities Act to be
so included concerning the Offering Holders, as provided by the Offering Holders on the signature
pages to this Agreement and the other Subscription and Registration Rights Agreements entered into
in connection with the Offering, including any changes in such information that may be provided by
the Offering Holders in writing to the Company from time to time, and (ii) a section entitled “Plan
of Distribution,” substantially in the form of Exhibit C hereto, that describes the various
procedures that may be used by the Offering Holders in the sale of their Offering Shares.

     (d) Notwithstanding the foregoing provisions of this Section 4, the Company may voluntarily
suspend the effectiveness of any such registration statement for a limited time, which in no event
shall be longer than 60 days in any three month period and no longer than 120 days in any twelve
month period, if the Company has been advised in writing by counsel or underwriters to the Company
that the offering of any Offering Shares pursuant to the registration statement would materially
adversely affect, or would be improper in view of (or improper without disclosure in a prospectus),
a proposed financing, reorganization, recapitalization, merger, consolidation, or similar
transaction involving the Company. The Company shall notify all Offering Holders to such effect,
and, upon receipt of such notice, each such Offering Holder shall immediately discontinue any sales
of Offering Shares pursuant to such Registration Statement until such Offering Holder has received
copies of a supplemented or amended prospectus or until such Offering Holder is advised in writing
by the Company that the then current prospectus may be used and has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated by reference in
such prospectus.

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     (e) If any event occurs that would cause any such registration statement to contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements contained therein not misleading or causes such registration
statement not to be effective and usable during the period that such registration statement is
required to be effective and usable, the Company shall promptly notify the Offering Holders of such
event and, if requested, the Offering Holders shall immediately cease making offers of Offering
Shares and return all prospectuses to the Company. The Company shall promptly file an amendment to
the registration statement to correct such misstatement or omission and use its commercially
reasonable efforts to cause such amendment to be declared effective as soon as practicable
thereafter. The Company shall promptly provide the Offering Holders with revised prospectuses and,
following receipt of the revised prospectuses, the Offering Holders shall be free to resume making
offers of the Offering Shares.

     (f) Notwithstanding any provision contained herein to the contrary, the Company’s obligation
to include, or continue to include, Offering Shares in any such registration statement under this
Section 4 shall terminate to the extent such shares are eligible for resale under Rule 144(k)
promulgated under the Securities Act.

     (g) If and whenever the Company is required by the provisions of this Agreement to use its
commercially reasonable efforts to effect the registration of the Offering Shares under the
Securities Act for the account of an Offering Holder, the Company will:

          (i) prepare and file with the SEC a registration statement with respect to such
securities and use its commercially reasonable efforts to cause such registration statement
to become and remain effective in accordance with the terms and subject to the conditions
set forth in this Agreement;

          (ii) as promptly as practicable, prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection therewith
as may be necessary to keep such registration statement effective and to comply with the
requirements of the Securities Act and the rules and regulations promulgated by the SEC
thereunder relating to the sale or other disposition of the securities covered by such
registration statement; and

          (iii) as promptly as practicable, furnish to each Offering Holder such numbers of
copies of a prospectus, including a preliminary prospectus, complying with the requirements
of the Securities Act, and such other documents as such Offering Holder may reasonably
request in order to facilitate the public sale or other disposition of the Offering Shares
owned by such Offering Holder, but such Offering Holder shall not be entitled to use any
selling materials other than a prospectus and such other materials as may be approved by the
Company, which approval will not be unreasonably withheld.

     (h) Except as provided below in this Section 4, the expenses incurred by the Company in
connection with action taken by the Company to comply with this Section 4, including, without
limitation, all registration and filing fees, printing and delivery expenses, accounting fees, fees
and disbursements of counsel to the Company, consultant and expert fees, premiums for liability
insurance, if the Company chooses to obtain such insurance, obtained in

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connection with a registration statement filed to effect such compliance and all expenses,
including counsel fees, of complying with any state securities laws, shall be paid by the Company.
All fees and disbursements of any counsel, experts, or consultants employed by any Offering Holder
shall be borne by such Offering Holder. The Company shall not be obligated in any way in
connection with any registration pursuant to this Section 4 for any selling commissions or
discounts payable by any Offering Holder to any underwriter or broker of securities to be sold by
such Offering Holder. Subscriber agrees to pay all expenses required to be borne by such Offering
Holder.

     (i) In the event of any registration of shares of Common Stock pursuant to this Section 4, the
Company will indemnify and hold harmless each Offering Holder, its officers, directors and each
underwriter of such securities, and any person who controls such Offering Holder or underwriter
within the meaning of Section 15 of the Securities Act, against all claims, actions, losses,
damages, liabilities and expenses, joint or several, to which any of such persons may become
subject under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities
or actions arise out of or are based upon any untrue statement of any material fact contained in
any registration statement under which such securities were registered under the Securities Act,
any preliminary prospectus or final prospectus contained therein, or any amendment or supplement
thereof, or arise out of or are based upon the omission to state therein a material fact required
to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, and will reimburse such Offering Holder, its officers,
directors and each underwriter of such securities, and each such controlling person or entity for
any legal and any other expenses reasonably incurred by such Offering Holder, such underwriter, or
such controlling person or entity in connection with investigating or defending any such loss,
claim, damage, liability, or action; provided, however, that the Company will not be liable in any
such case to the extent that any such loss, claim, damage, liability or action arises directly out
of or is based primarily upon an untrue statement or omission made in said registration statement,
said preliminary prospectus or said final prospectus, or said amendment of supplement in reliance
upon and in conformity with written information furnished to the Company by such Offering Holder or
such underwriter specifically for use in the preparation thereof; and provided, further however,
that the Company will not be liable in any such case to the extent that any such loss, claim,
damage or liability or action arises directly out of or is based primarily upon an untrue statement
or omission made in any preliminary prospectus or final prospectus if (i) such Offering Holder
failed to send or deliver a copy of the final prospectus or prospectus supplement with or prior to
the delivery of written confirmation of the sale of the Offering Shares, and (ii) the final
prospectus or prospectus supplement would have corrected such untrue statement or omission.

     (j) At any time when a prospectus relating to the Offering is required to be delivered under
the Securities Act, the Company will notify the Offering Holder of the happening of any event, upon
the notification or awareness of such event by an executive officer of the Company, as a result of
which the prospectus included in such registration statement, as then in effect, includes an untrue
statement of material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the circumstances then
existing.

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     (k) In the event of any registration of any securities under the Securities Act pursuant to
this Section 4, Subscriber agrees to indemnify and hold harmless the Company, its officers,
directors and any person who controls the Company within the meaning of Section 15 of the
Securities Act, against any losses, claims, damages, liabilities, or actions, joint or several, to
which the Company, its officers, directors, or such controlling person or entity may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities, or
actions arise out of or are based upon any untrue statement of any material fact contained in any
registration statement under which such securities were registered under the Securities Act, any
preliminary prospectus or final prospectus contained therein, or any amendment or supplement
thereto, or arise out of or are based upon the omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading, in each case to
the extent and only to the extent that any such loss, claim, damage, liability, or action arises
out of or is based upon an untrue statement or omission made in said registration statement, said
preliminary prospectus or said final prospectus or said amendment or supplement in reliance upon
and in conformity with written information furnished to the Company by Subscriber or any affiliate
(as defined in the Securities Act) of Subscriber specifically for use in the preparation thereof.

     (l) Any party entitled to indemnification hereunder will (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless in
such indemnified party’s reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume
the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such
defense is assumed, the indemnifying party will not be subject to any liability for any settlement
made by the indemnified party without its consent (which consent may not be unreasonably withheld).
An indemnifying party who is not entitled to, or elects not to, assume the defense of a claim will
not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified
by such indemnifying party with respect to such claim, unless in the reasonable judgment of any
indemnified party a conflict of interest may exist between such indemnified party and any other of
such indemnified parties with respect to such claim.

     (m) With a view to making available to the Offering Holder the benefits of Rule 144
promulgated under the Securities Act, the Company agrees that it will use its commercially
reasonable efforts to maintain registration of its Common Stock under Section 12 or 15 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and to file with the SEC
in a timely manner all reports and other documents required to be filed by an issuer of securities
registered under the Exchange Act so as to maintain the availability of Rule 144. Upon the request
of any record owner, the Company will deliver to such owner a written statement as to whether it
has complied with the reporting requirements of Rule 144.

     5. Representations and Warranties of the Subscriber. Subscriber hereby represents and
warrants to the Company as follows:

     (a) Subscriber is acquiring the Shares for its own account, for investment and not with a view
to, or for resale in connection with, any distribution or public offering thereof within the
meaning of the Securities Act, and applicable state securities laws.

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     (b) The Subscriber understands that (A) the Shares (1) have not been registered under the
Securities Act or any state securities laws, (2) will be issued in reliance upon an exemption from
the registration and prospectus delivery requirements of the Securities Act pursuant to Section
4(2) and/or Regulation D thereof, (3) will be issued in reliance upon exemptions from the
registration and prospectus delivery requirements of state securities laws which relate to private
offerings and (4) must be held by the Subscriber indefinitely, and (B) the Subscriber must
therefore bear the economic risk of such investment indefinitely unless a subsequent disposition
thereof is registered under the Securities Act and applicable state securities laws or is exempt
therefrom. Subscriber further understands that such exemptions depend upon, among other things,
the bona fide nature of the investment intent of the Subscriber expressed herein. Pursuant to the
foregoing, the Subscriber acknowledges that the certificates representing the Shares acquired by
the Subscriber shall bear a restrictive legend substantially as follows:

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON
TRANSFER UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND STATE
SECURITIES LAWS, AND MAY NOT BE OFFERED FOR SALE, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS (I) REGISTERED UNDER
THE APPLICABLE SECURITIES LAWS OR (II) AN OPINION OF COUNSEL, WHICH
OPINION AND COUNSEL ARE BOTH REASONABLY SATISFACTORY TO THE COMPANY, HAS
BEEN DELIVERED TO THE COMPANY AND SUCH OPINION STATES THAT THE SHARES MAY
BE TRANSFERRED WITHOUT SUCH REGISTRATION.”

     (c) The Subscriber has knowledge, skill and experience in financial, business and investment
matters relating to an investment of this type and is capable of evaluating the merits and risks of
such investment and protecting the Subscriber’s interest in connection with the acquisition of the
Shares. The Subscriber understands that the acquisition of the Shares is a speculative investment
and involves substantial risks and that the Subscriber could lose the Subscriber’s entire
investment in the Shares. Further, the undersigned has carefully read and considered the matters
set forth under the section entitled “Risk Factors” in the Memorandum, and has taken full
cognizance of and understands all of the risks related to the purchase of the Shares. To the
extent deemed necessary by the Subscriber, the Subscriber has retained, at its own expense, and
relied upon, appropriate professional advice regarding the investment, tax and legal merits and
consequences of purchasing and owning the Shares. The Subscriber has the ability to bear the
economic risks of the Subscriber’s investment in the Company, including a complete loss of the
investment, and the Subscriber has no need for liquidity in such investment.

     (d) The Subscriber has been furnished by the Company all information (or provided access to
all information) regarding the business and financial condition of the Company, its expected plans
for future business activities, the attributes of the Shares and the merits and risks of an
investment in the Shares which the Subscriber has requested or otherwise needs to evaluate the
investment in the Company.

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     (e) Subscriber is in receipt of and has carefully read and understands the following items:

          (i) the Memorandum;

          (ii) the Annual Report on Form 10-K/A of the Company filed with the SEC on or about
August 16, 2005;

          (iii) the Quarterly Reports on Form 10-Q’s of the Company filed with the SEC on or
about August 15, 2005 and November 9, 2005;

          (iv) the Amended Quarterly Report on Form 10-Q/A of the Company filed with the SEC on
or about August 16, 2005;

          (v) the Company’s form of Definitive Information Statement on Schedule 14C filed with
the SEC on or about November 8, 2005

          (vi) the Company’s form of Proxy Statement on Schedule 14A filed with the SEC on or
about August 22, 2005; and

          (vii) the Current Report(s) on form 8-K of the Company filed with the SEC on or about
November 11, 2005.

     (f) In making the proposed investment decision, the Subscriber is relying solely on
investigations made by the Subscriber and the Subscriber’s representatives. The offer to sell the
Shares was communicated to the Subscriber in such a manner that the Subscriber was able to ask
questions of and receive answers from the management of the Company concerning the terms and
conditions of the proposed transaction and that at no time was the Subscriber presented with or
solicited by or through any advertisement, article, leaflet, public promotional meeting, notice or
other communication published in any newspaper, magazine or similar media or broadcast over
television or radio or presented at any seminar or meeting or any other form of general or public
advertising or solicitation.

     (g) The Subscriber acknowledges that the Subscriber has been advised that:

          (i) The Shares offered hereby have not been approved or disapproved by the SEC or any
state securities commission nor has the SEC or any state securities commission passed upon
the accuracy or adequacy of any representations by the Company. Any representation to the
contrary is a criminal offense.

          (ii) In making an investment decision, the Subscriber must rely on its own examination
of the Company and the terms of the Offering, including the merits and risks involved. The
Shares have not been recommended by any federal or state securities commission or regulatory
authority. Furthermore, the foregoing authorities have not confirmed the accuracy or
determined the adequacy of any representation. Any representation to the contrary is a
criminal offense.

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          (iii) The Shares will be “restricted securities” within the meaning of Rule 144 under
the Securities Act, are subject to restrictions on transferability and resale and may not be
transferred or resold except as permitted under the Securities Act and applicable state
securities laws, pursuant to registration or exemption therefrom. The Subscriber is aware
that the Subscriber may be required to bear the financial risks of this investment for an
indefinite period of time.

     (h) The Subscriber acknowledges and is aware that there has never been any representation,
guarantee or warranty made by the Company or any officer, director, employee, agent or
representative of the Company, expressly or by implication, as to (i) the approximate or exact
length of time that the Subscriber will be required to remain an owner of the Shares; (ii) the
percentage of profit and/or amount of or type of consideration, profit or loss to be realized, if
any, as a result of this investment; or (iii) that the limited past performance (if any) or
experience on the part of the Company, or any future expectations will in any way indicate the
predictable results of the ownership of Shares or of the overall financial performance of the
Company.

     (i) The Subscriber agrees to furnish the Company such other information as the Company may
reasonably request in order to verify the accuracy of the information contained herein and agrees
to notify the Company immediately of any material change in the information provided herein that
occurs prior to the Company’s acceptance of this Agreement.

     (j) The Subscriber further represents and warrants that the Subscriber is an “accredited
investor” within the meaning of Rule 501 of Regulation D under the Securities Act, and Subscriber
has executed the Certificate of Accredited Investor Status, attached hereto as Exhibit B.

     (k) As of the date of this Agreement the Subscriber and its affiliates do not have, and during
the 30 day period prior to the date of this Agreement the Subscriber and its affiliates have not
entered into, any “put equivalent position” as such term is defined in Rule 16a-1 of under the
Exchange Act or short sale positions with respect to the Common Stock of the Company. Until the
registration statement referred to in Section 4(c) is declared effective, the Subscriber hereby
agrees not to, and will cause its affiliates not to, enter into any such “put equivalent position”
or short sale position.

     (l) If the Subscriber is a natural person, the Subscriber has reached the age of majority in
the state in which the Subscriber resides, has adequate means of providing for the Subscriber’s
current financial needs and contingencies, is able to bear the substantial economic risks of an
investment in the Shares for an indefinite period of time, has no need for liquidity in such
investment and, at the present time, could afford a complete loss of such investment.

     (m) If this Agreement is executed and delivered on behalf of a partnership, corporation,
trust, estate or other entity (an “Entity”): (i) such Entity has the full legal right and
power and all authority and approval required (a) to execute and deliver, or authorize execution
and delivery of, this Agreement and all other instruments executed and delivered by or on behalf of
such Entity in connection with the purchase of the Shares, (b) to delegate authority pursuant to
power of attorney and (c) to purchase and hold such Shares, (ii) the signature of the party signing
on behalf of such Entity is binding upon such Entity; and (iii) such Entity has not been formed

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for the specific purpose of acquiring such Shares, unless each beneficial owner of such entity
is qualified as an accredited investor within the meaning of Rule 501(a) of Regulation D
promulgated under the Securities Act and has submitted information substantiating such individual
qualification.

     (n) If the Subscriber is a retirement plan or is investing on behalf of a retirement plan, the
Subscriber acknowledges that investment in the Common Stock poses additional risks including the
inability to use losses generated by an investment in the Common Stock to offset taxable income.

     The foregoing representations and warranties and undertakings are made by the Subscriber with
the intent that they be relied upon in determining its suitability as an investor and the
Subscriber hereby agrees that such representations and warranties shall survive its purchase of the
Shares.

     6. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Subscriber as follows:

     (a) The Company is duly incorporated, validly existing and in good standing under the laws of
its state of incorporation, and is duly qualified to do business as a foreign corporation in all
jurisdictions in which the failure to be so qualified would materially and adversely affect the
business or financial condition, properties or operations of the Company.

(b) The Company has duly authorized the issuance and sale of the Shares in accordance with the
terms of this Agreement (as described herein) by all requisite corporate action, including the
authorization of the Company’s Board of Directors of the issuance and sale of the Shares in
accordance herewith, and the execution, delivery and performance of any other agreements and
instruments executed in connection herewith. This Agreement constitutes a valid and legally
binding obligation of the Company, enforceable in accordance with its terms, except (i) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general
application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief, or other equitable remedies, and
(iii) to the extent the indemnification provisions contained herein may be limited by applicable
federal or state securities laws.

(c) The execution and delivery by the Company of this Agreement, and the issuance and sale of
the Shares do not require any consents (except those consents already obtained), do not and will
not conflict with, result in any violation of, or constitute any default under, any provision of
any contractual obligation of Company.

(d) As of the date of this Agreement, the Memorandum does not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading.

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(e) The documents incorporated by reference or included with the Memorandum, at the time they were
filed with the SEC, complied in all material respects with the requirements of the Exchange Act,
and, when read together and with the other information in the Memorandum, do not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

     7. Understandings. The Subscriber understands, acknowledges and agrees with the
Company as follows:

     (a) This Subscription may be rejected, in whole or in part, by the Company in its sole and
absolute discretion, at any time before the Closing, notwithstanding prior receipt by the
undersigned of notice of acceptance of the undersigned’s Subscription. The Company may terminate
this Offering at any time in its sole discretion. The execution of this Agreement or solicitation
of the investment contemplated hereby, shall create no obligation of the Company to accept any
subscription or complete the Offering.

     (b) Except as set forth in Section 7(a) above, the Subscriber hereby acknowledges and agrees
that the subscription hereunder is irrevocable by the Subscriber, that, except as required by law,
the Subscriber is not entitled to cancel, terminate or revoke this Agreement or any agreements of
the Subscriber hereunder and that this Agreement and such other agreements shall survive the death
or disability of the Subscriber and shall be binding upon and inure to the benefit of the parties
and their heirs, executors, administrators, successors, legal representatives and permitted
assigns. If the Subscriber is more than one person, the obligations of the Subscriber hereunder
shall be joint and several and the agreements, representations, warranties and acknowledgments
herein contained shall be deemed to be made by and be binding upon each such person and his/her
heirs, executors, administrators, successors, legal representatives and permitted assigns.

     (c) No federal or state agency has made any finding or determination as to the accuracy or
adequacy of the Memorandum or as to the suitability of this offering for investment nor any
recommendation or endorsement of the Shares.

     (d) The Offering is intended to be exempt from registration under the Securities Act by virtue
of Section 4(2) of the Securities Act and the provisions of Regulation D thereunder, which is in
part dependent upon the truth, completeness and accuracy of the statements made by the Subscriber
herein.

     (e) There is only a limited public market for the Common Stock. There can be no assurance
that the Subscriber will be able to sell or dispose of the Shares. It is understood that in order
not to jeopardize the Offering’s exempt status under Section 4(2) of the Securities Act and
Regulation D, any transferee will, at a minimum, be required to fulfill the investor suitability
requirements thereunder.

11

 

     (f) The Subscriber acknowledges that the information contained in the Memorandum is
confidential and non-public and agrees that all such information shall be kept in confidence by the
Subscriber and neither used for the Subscriber’s personal benefit (other than in connection with
this subscription) nor disclosed to any third party for any reason; provided, however, that this
confidentiality obligation shall not apply to any such information that (i) is part of the public
knowledge or literature, (ii) becomes part of the public knowledge or literature (except as a
result of a breach of this provision) or (iii) is received from third parties (except third parties
who disclose such information in violation of any confidentiality agreements or obligations,
including, without limitation, any subscription agreement entered into with the Company). In
addition, the Subscriber may disclose any information as may be required by law or applicable legal
process; provided, however, to the extent permitted by law or applicable legal process, the
Subscriber shall provide the Company at least five business days prior written notice before making
any such disclosure.

     (g) The representations, warranties and agreements of the Subscriber contained herein and in
any other writing delivered in connection with the transactions contemplated hereby shall be true
and correct in all respects on and as of the date of the Closing of the sale of the Shares as if
made on and as of such date and shall survive the execution and delivery of this Agreement and the
purchase of the Shares.

     8. Survival; Indemnification. All representations, warranties and covenants contained
in this Agreement and the indemnification contained in this Section 8 shall survive (i) the
acceptance of this Agreement by the Company, (ii) changes in the transactions, documents and
instruments described herein which are not material or which are to the benefit of Subscriber, and
(iii) the death or disability of Subscriber. Subscriber acknowledges the meaning and legal
consequences of the representations, warranties and covenants in Section 5 hereof and that the
Company has relied upon such representations, warranties and covenants in determining Subscriber’s
qualification and suitability to purchase the Shares. Subscriber hereby agrees to indemnify,
defend and hold harmless the Company, its officers, directors, employees, agents and controlling
persons, from and against any and all losses, claims, damages, liabilities, expenses (including
attorneys’ fees and disbursements), judgments or amounts paid in settlement of actions arising out
of or resulting from the untruth of any representation of Subscriber herein or the breach of any
warranty or covenant herein by Subscriber. Notwithstanding the foregoing, however, no
representation, warranty, covenant or acknowledgment made herein by Subscriber shall in any manner
be deemed to constitute a waiver of any rights granted to it under the Securities Act or state
securities laws.

     9. Notices. All notices and other communications provided for herein shall be in
writing and shall be deemed to have been duly given if delivered personally or sent by registered
or certified mail, return receipt requested, postage prepaid:

     (a) if to the Company, to the following address:

Horizon Offshore, Inc.

2500 CityWest Blvd.

Suite 2200

Houston, TX 77042-3097

12

 

Attn: Bill Gibbens

(713) 361-2601

     (b) if to Subscriber, to the address set forth on the signature page hereto.

     (c) or at such other address as any party shall have specified by notice in writing to the
others.

     10. Notification of Changes. Subscriber agrees and covenants to notify the Company
immediately upon the occurrence of any event prior to the consummation of this Offering that would
cause any representation, warranty, covenant or other statement contained in this Agreement to be
false or incorrect or of any change in any statement made herein occurring prior to the
consummation of this Offering.

     11. Assignability. This Agreement is not assignable by the Subscriber, and may not be
modified, waived or terminated except by an instrument in writing signed by the party against whom
enforcement of such modification, waiver or termination is sought.

     12. Binding Effect. Except as otherwise provided herein, this Agreement shall be
binding upon and inure to the benefit of the parties and their heirs, executors, administrators,
successors, legal representatives and assigns, and the agreements, representations, warranties and
acknowledgments contained herein shall be deemed to be made by and be binding upon such heirs,
executors, administrators, successors, legal representatives and assigns.

13

 

     13. Obligations Irrevocable. The obligations of the Subscriber shall be irrevocable,
except with the consent of the Company, until the consummation or termination of the Offering.

     14. Entire Agreement. This Agreement constitutes the entire agreement of the
Subscriber and the Company relating to the matters contained herein, superseding all prior
contracts or agreements, whether oral or written.

     15. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to the principles of conflicts of law
thereof that would require the application of the laws of any jurisdiction other than New York law.

     16. Severability. If any provision of this Agreement or the application thereof to
Subscriber or any circumstance shall be held invalid or unenforceable to any extent, the remainder
of this Agreement and the application of such provision to other subscriptions or circumstances
shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

     17. Headings. The headings in this Agreement are inserted for convenience and
identification only and are not intended to describe, interpret, define, or limit the scope, extent
or intent of this Agreement or any provision hereof.

     18. Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed to be an original and all of which together
shall be deemed to be one and the same agreement.

     19. Counsel. Subscriber hereby acknowledges that the Company and its counsel, Jones,
Walker, Waechter, Poitevent, Carrère & Denègre, LLP, represent the interests of the Company and not
those of the Subscriber in any agreement (including this Agreement) to which the Company is a
party.

[Signature Page to follow]

14

 

     IN WITNESS WHEREOF, Subscriber has executed this Subscription and Registration Rights
Agreement as of                                                              , 200                    .

	 	 	 	 	 
	 

	 	SUBSCRIBER	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Number of Shares:

 

	 	 
	 

	 	Offering Price per Share: $                    	 	 
	 

	 	Subscription Amount: $

 

	 	 
	 
	 	 	 	 
	 

	 	By:

 

	 	 
	 

	 	Name:

 

	 	 
	 

	 	Title:

 

	 	 
	 

	 	Address:

 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

     The Company hereby accepts the foregoing subscription subject to the terms and conditions
hereof as of                                                              , 200                    .

	 	 	 	 	 	 	 
	 	 	Horizon Offshore, Inc.
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

 

 

Exhibit A

SUBSCRIPTION INSTRUCTIONS

     (1) If you are subscribing for the purchase of Shares, please date and sign the signature page
to this Subscription and Registration Rights Agreement in the applicable spaces. Please signify
the amount of Shares you are purchasing by inserting such amount in the space provided for on the
signature page to the Agreement.

     (2) Complete and sign the accompanying Accredited Investor Certificate.

     (3) Send all completed documents to:

Energy Capital Solutions

1990 Post Oak Boulevard, Suite 2160

Houston, TX 77056

Attn: Brandon Neff

Telephone: (713) 933 – 0382

Fax:            (713) 933 – 0383

     (4) Transmit funds via wire to the following account of Horizon Offshore Contractors, Inc..

	 	 	 
	Receiving Bank Information:

	 	Amegy Bank of Texas
	ABA Number:

	 	113011258 
	Account Name:

	 	Horizon Offshore Contractors, Inc.
	Account Number:

	 	159506 

Amount should equal the number of shares you are purchasing multiplied by the Offering Price.

ATTENTION SUBSCRIBERS: NO SUBSCRIPTION WILL BE ACCEPTED UNLESS ALL DOCUMENTATION
PRESCRIBED HEREIN IS FULLY COMPLETED AND EXECUTED. ANY MATERIALS RECEIVED THAT ARE INCOMPLETE IN
ANY RESPECT WILL BE RETURNED BY THE COMPANY.

 

 

Exhibit B

CERTIFICATE OF ACCREDITED INVESTOR STATUS

     Except as may be indicated by the undersigned below, the undersigned is an “accredited
investor,” as that term is defined in Regulation D under the Securities Act of 1933, as amended
(the “Securities Act”). The undersigned has checked the box below indicating the basis on
which he is representing his status as an “accredited investor”:

	§	 	a bank as defined in Section 3(a)(2) of the Securities Act, or any
savings and loan association or other institution as defined in
Section 3(a)(5)(A) of the Securities Act whether acting in its
individual or fiduciary capacity; a broker or dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934, as
amended; an insurance company as defined in Section 2(13) of the
Securities Act; an investment company registered under the Investment
Company Act of 1940 or a business development company as defined in
Section 2(a)(48) of that Act; a small business investment company
licensed by the U.S. Small Business Administration under Section
301(c) or (d) of the Small Business Investment Act of 1958; a plan
established and maintained by a state, its political subdivisions, or
any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees, and such plan has
total assets in excess of $5,000,000; an employee benefit plan within
the meaning of the Employee Retirement Income Security Act of 1974, if
the investment decision is made by a plan fiduciary, as defined in
Section 3(21) of such Act, which is either a bank, savings and loan
association, insurance company, or registered investment adviser, or
if the employee benefit plan has total assets in excess of $5,000,000
or, if a self-directed plan, with investment decisions made solely by
persons that are “accredited investors”;
	 
	§	 	a private business development company as defined in Section
202(a)(22) of the Investment Advisers Act of 1940;
	 
	§	 	an organization described in Section 501(c)(3) of the Internal Revenue
Code, corporation, Massachusetts or similar business trust, or
partnership, not formed for the specific purpose of acquiring the
securities offered, with total assets in excess of $5,000,000;
	 
	§	 	a natural person whose individual net worth, or joint net worth with
the undersigned’s spouse, at the time of this purchase exceeds
$1,000,000;
	 
	§	 	a natural person who had an individual income in excess of $200,000 in
each of the two most recent years or joint income with the
undersigned’s spouse in excess of $300,000 in each of those years and
has a reasonable expectation of reaching the same income level in the
current year;
	 
	§	 	a trust with total assets in excess of $5,000,000, not formed for the
specific purpose of acquiring the securities offered, whose purchase
is directed by a person who has such

 

 

	 	 	knowledge and experience in financial and business matters that he is capable of evaluating
the merits and risks of the prospective investment;

	§	 	an entity in which all of the equity holders are “accredited investors” by virtue of their meeting one or more of the above
standards; or
	 
	§	 	an individual who is a director or executive officer of                                         .

     IN WITNESS WHEREOF, the undersigned has executed this Certificate of Accredited Investor
Status effective as of the                      day of                                                              , 200                    .

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name of Subscriber	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

2

 

Exhibit C

PLAN OF DISTRIBUTION

     As of the date of this prospectus, we have not been advised by the selling stockholders as to
any plan of distribution. Distributions of the shares by the selling stockholders, or by their
partners, pledgees, donees (including charitable organizations), transferees or other successors in
interest, may from time to time be offered for sale either directly by such individual, or through
underwriters, dealers or agents or on any exchange on which the shares may from time to time be
traded, in the over-the-counter market, or in independently negotiated transactions or otherwise.
The methods by which the shares may be sold include:

	 	•	 	a block trade (which may involve crosses) in which the broker or dealer so engaged
will attempt to sell the securities as agent but may position and resell a portion of
the block as principal to facilitate the transaction;
	 
	 	•	 	purchases by a broker or dealer as principal and resale by such broker or dealer for
its own account pursuant to this prospectus;
	 
	 	•	 	exchange distributions and/or secondary distributions;
	 
	 	•	 	sales in the over-the-counter market;
	 
	 	•	 	underwritten transactions;
	 
	 	•	 	ordinary brokerage transactions and transactions in which the broker solicits
purchasers; and
	 
	 	•	 	privately negotiated transactions.

     Such transactions may be effected by the selling stockholders at market prices prevailing at
the time of sale or at negotiated prices. The selling stockholders may effect such transactions by
selling the common stock to underwriters or to or through broker-dealers, and such underwriters or
broker-dealers may receive compensations in the form of discounts or commissions from the selling
stockholders and may receive commissions from the purchasers of the common stock for whom they may
act as agent. The selling stockholders may agree to indemnify any underwriter, broker-dealer or
agent that participates in transactions involving sales of the shares against certain liabilities,
including liabilities arising under the Securities Act. We have agreed to register the shares for
sale under the Securities Act and to indemnify the selling stockholders and each person who
participates as an underwriter in the offering of the shares against certain civil liabilities,
including certain liabilities under the Securities Act.

     In connection with sales of the common stock under this prospectus, the selling stockholders
may enter into hedging transactions with broker-dealers, who may in turn engage in short sales of
the common stock in the course of hedging the positions they assume. The selling stockholders also
may sell shares of common stock short and deliver them to close out the short positions, or loan or
pledge the shares of common stock to broker-dealers that in turn may sell them.

 

 

     The selling stockholders and any underwriters, dealers or agents that participate in
distribution of the shares may be deemed to be underwriters, and any profit on sale of the shares
by them and any discounts, commissions or concessions received by any underwriter, dealer or agent
may be deemed to be underwriting discounts and commissions under the Securities Act.

     There can be no assurances that the selling stockholders will sell any or all of the shares
offered under this prospectus.

2exv10w4

 

Exhibit 10.4

 

AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

AMONG

HORIZON OFFSHORE, INC.

AND

THE INITIAL HOLDERS LISTED ON

THE SIGNATURE PAGES HEREOF

Dated as of December 19, 2005

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 1.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 2.

	 	Registration of Securities by the Company
	 	 	5	 
	 
	 	 	 	 	 	 
	SECTION 3.

	 	Registration Expenses
	 	 	13	 
	 
	 	 	 	 	 	 
	SECTION 4.

	 	Conditions to Registration
	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 5.

	 	Indemnification
	 	 	15	 
	 
	 	 	 	 	 	 
	SECTION 6.

	 	Exchange Act Registration; Rule 144 Reporting
	 	 	18	 
	 
	 	 	 	 	 	 
	SECTION 7.

	 	Limitation on Registration Rights of Others
	 	 	19	 
	 
	 	 	 	 	 	 
	SECTION 8.

	 	Mergers, etc.
	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 9.

	 	Notices, etc.
	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 10.

	 	Entire Agreement
	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 11.

	 	Amendments; Waivers and Further Agreements
	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 12.

	 	Assignment; Successors and Assigns
	 	 	22	 
	 
	 	 	 	 	 	 
	SECTION 13.

	 	Severability
	 	 	22	 
	 
	 	 	 	 	 	 
	SECTION 14.

	 	Counterparts
	 	 	22	 
	 
	 	 	 	 	 	 
	SECTION 15.

	 	Gender; Usage
	 	 	22	 
	 
	 	 	 	 	 	 
	SECTION 16.

	 	Governing Law
	 	 	22	 
	 
	 	 	 	 	 	 
	SECTION 17.

	 	Survival
	 	 	22	 
	 
	 	 	 	 	 	 
	SECTION 18.

	 	Expenses
	 	 	23	 
	 
	 	 	 	 	 	 
	SECTION 19.

	 	Specific Performance
	 	 	23	 

 

 

REGISTRATION RIGHTS AGREEMENT

     THIS AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and
effective as of December 19, 2005, by and among HORIZON OFFSHORE, INC., a Delaware corporation (the
“Company”), and the initial holders listed on the signature pages hereof (collectively, the
“Initial Holders”).

W I T N E S S E T H:

RECITALS.

     A. On March 31, 2005, the Company and the Initial Holders entered that certain
recapitalization letter agreement (the “Recap Letter Agreement”) pursuant to which the
Company agreed to issue to the Holders 60 million shares of Common Stock and one million shares of
Series B Preferred Stock in exchange for $84,972,823 aggregate principal amount of the Company’s
16% and 18% Subordinated Secured Notes due March 31, 2007 and all of the outstanding shares of the
Company’s Series A Redeemable Participating Preferred Stock, par value $1.00 per share, and other
additional consideration as provided in the Recap Letter Agreement (the “Exchange
Transaction”);

     B. As a condition precedent to the consummation of the Exchange Transaction, the Company and
the Initial Holders have entered into that certain Registration Rights Agreement (the “Initial
Agreement”), dated April 30, 2005, and effective as of the date of the date of the consummation
of the Exchange Transaction (the “Effective Date”);

     C. The Company has agreed to exchange up to $13.2 million aggregate principal amount of its
outstanding 8% Subordinated Secured Notes due March 31, 2010 (“Subordinated Notes”) for
Subordinated Convertible Notes due March 31, 2010 (“Subordinated Convertible Notes”) and
Common Stock;

     D. Concurrently, the Company is selling shares of its Common Stock as described herein in a
private placement with proceeds to the Company of approximately $20 million (the “Private
Placement”).

     E. In order to induce the holders of the Subordinated Notes to exchange their Subordinated
Notes for Subordinated Convertible Notes, the Company desires to amend and restate the Initial
Agreement to provide for the registration of the Subordinated Note Conversion Shares (as defined
below) issuable upon conversion of the Subordinated Convertible Notes.

     NOW, THEREFORE, in consideration of the recitals, and the mutual covenants hereinafter set
forth, the parties, intending to be legally bound, hereby agree as follows:

                         SECTION 1. Definitions.

          (a) Defined Terms. The following terms (whether or not underscored) when used in this
Agreement, including its preamble and recitals, shall, except where the context

 

 

otherwise requires, have the following meanings (such meanings to be equally applicable to the
singular and plural forms thereof):

     “Agreement” means this Registration Rights Agreement as in effect on the date hereof
and as hereafter amended, supplemented, restated or otherwise modified.

     “Available Securities” is defined in Section 2(b).

     “Business Day” means any day which is neither a Saturday, a Sunday nor a legal holiday
on which banks are authorized or required to be closed in New York, New York.

     “Common Stock” means the Common Stock, par value $.00001 per share, of the Company.

     “Company” is defined in the preamble to this Agreement.

     “Conversion Share Registration Period” is defined in Section 2(a).

     “Conversion Share Shelf Registration” is defined in Section 2(a).

     “Conversion Shares” means the shares of Common Stock or any other securities which a
Holder may acquire upon conversion of Series B Preferred Shares, together with any other securities
which a Holder may acquire on account of any Conversion Shares whether upon the making or paying of
any dividend or other distribution on Conversion Shares, upon any split up of Conversion Shares,
upon a recapitalization, merger, consolidation, share exchange, reorganization or other transaction
or series of related transactions in which Conversion Shares are changed into or exchanged for
securities of another corporation, upon exercise of any preemptive right (or the exercise or
conversion of any security which such Holder may acquire in connection with the exercise of any
preemptive right) with respect to any Conversion Shares or otherwise.

     “Effective Date” is defined in the Recitals.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time.

     “Exchange Transaction” is defined in the Recitals.

     “Holders” means, collectively, the registered holders (including, initially, the
Initial Holders), from time to time, of Securities. Whenever the phrase “Holder of Registrable
Securities” or any similar phrase is used herein, it shall also include any holders of the Series B
Preferred Shares and the Subordinated Convertible Notes.

     “Indemnified Person” is defined in Section 5(a).

     “Indemnifying Person” is defined in Section 5(c).

     “Initial Agreement” is defined in the Recitals.

2

 

     “Initial Holders” is defined in the preamble to this Agreement.

     “Initial Registration Period” is defined in Section 2(a).

     “Initial Request” is defined in Section 2(a).

     “Initial Requesting Holders” is defined in Section 2(a).

     “Initial Shares” means the 60,000,000 shares of Common Stock issued to the Initial
Holders in the Exchange Transaction, together with any other securities which a Holder may acquire
on account of any Initial Shares whether upon the making or paying of any dividend or other
distribution on Initial Shares, upon any split up of Initial Shares, upon a recapitalization,
merger, consolidation, share exchange, reorganization or other transaction or series of related
transactions in which Initial Shares are changed into or exchanged for securities of another
corporation, upon exercise of any preemptive right (or the exercise or conversion of any security
which such Holder may acquire in connection with the exercise of any preemptive right) with respect
to any Initial Shares or otherwise.

     “Initial Shelf Registration” is defined in Section 2(a).

     “NASD” means the National Association of Securities Dealers, Inc.

     “Person” means any natural person, corporation, partnership, limited liability
company, firm, association, government, governmental agency or any other entity, whether acting in
an individual, fiduciary or other capacity.

     “Private Placement Shares” shall mean the shares of Common Stock sold in the Private
Placement.

     “Prospectus” means each prospectus included as part of any Registration Statement, as
amended or supplemented, including each preliminary prospectus and all material incorporated by
reference in such prospectus.

     “Recap Letter Agreement” is defined in the Recitals.

     “Registrable Securities” means the Shares, but excluding (i) Shares that have been
disposed of under a Registration Statement or any other effective registration statement, including
in a transaction contemplated by Section 8, and (ii) Shares sold pursuant to Rule 144 under the
Securities Act. A Person is deemed to be a holder of Registrable Securities whenever such Person
owns Registrable Securities or has the right to acquire such Registrable Securities whether or not
such acquisition has actually been effected and disregarding any legal or contractual restrictions
upon the exercise of such right.

     “Registration Expenses” is defined in Section 3(c).

     “Registration Period” means the Conversion Share Registration Period or the Initial
Registration Period.

3

 

     “Registration Request” is defined in Section 2(b).

     “Registration Statement” means any registration statement of the Company which covers
Registrable Securities pursuant to Section 2 of this Agreement, including the Prospectus,
amendments (including post-effective amendments) and supplements to such registration statement and
Prospectus and all exhibits and all material incorporated by reference in such registration
statement.

     “Required Holders” means the Holders of Registrable Securities representing (or Series
B Preferred Shares and Subordinated Convertible Notes which when fully converted would represent)
at least two-thirds of the voting power of all Shares (assuming all Series B Preferred Shares and
Subordinated Convertible Notes had been fully converted into Conversion Shares and Subordinated
Note Conversion Shares, respectively).

     “SEC” means the United States Securities and Exchange Commission.

     “Secondary Request” is defined in Section 2(a).

     “Securities” means, collectively, the Series B Preferred Shares, the Subordinated
Convertible Notes, and the Registrable Securities.

     “Securities Act” means the Securities Act of 1933, as amended from time to time.

     “Series B Preferred Shares” means the 1,000,000 shares of Series B Preferred Stock
issued to the Initial Holders in the Exchange Transaction, together with any other securities which
a Holder may acquire on account of any Series B Preferred Shares whether upon the making or paying
of any dividend or other distribution on Series B Preferred Shares, upon any split up of Series B
Preferred Shares, upon a recapitalization, merger, consolidation, share exchange, reorganization or
other transaction or series of related transactions in which Series B Preferred Shares are changed
into or exchanged for securities of another corporation, upon exercise of any preemptive right (or
the exercise or conversion of any security which such Holder may acquire in connection with the
exercise of any preemptive right) with respect to any Series B Preferred Shares or otherwise.

     “Series B Preferred Stock” means the Series B Mandatorily Convertible Redeemable
Preferred Stock, par value $1.00 per share, of the Company.

     “Shares” means the Initial Shares, the Conversion Shares, the Private Placement Shares
and the Subordinated Note Conversion Shares.

     “Shelf Registration” is defined in Section 2(a).

     “Specified Registrable Securities” is defined in Section 2(a).

     “Stock” means any capital stock of the Company.

     “Subordinated Convertible Notes” is defined in the Recitals.

4

 

     “Subordinated Note Conversion Shares” means the shares of Common Stock or any other
securities which a Holder may acquire upon exchange of Subordinated Notes or conversion of
Subordinated Convertible Notes, together with any other securities which a Holder may acquire on
account of any Subordinated Note Conversion Shares whether upon the making or paying of any
dividend or other distribution on Subordinated Note Conversion Shares, upon any split up of
Subordinated Note Conversion Shares, upon a recapitalization, merger, consolidation, share
exchange, reorganization or other transaction or series of related transactions in which
Subordinated Note Conversion Shares are changed into or exchanged for securities of another
corporation, upon exercise of any preemptive right (or the exercise or conversion of any security
which such Holder may acquire in connection with the exercise of any preemptive right) with respect
to any Subordinated Note Conversion Shares or otherwise.

     “Subordinated Notes” is defined in the Recitals.

     “Subsequent Registration Period” is defined in Section 2(c)(iv).

     “Subsequent Shelf Registration” is defined in Section 2(c)(iv).

          (b) Cross-References; Headings. Unless otherwise specified, references in this
Agreement to any Article or Section are references to such Article or Section of this Agreement,
and unless otherwise specified, references in any Article, Section or definition to any clause are
references to such clause of such Section, Article or definition. The headings contained in this
Agreement are for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement. The term “or” shall have the inclusive meaning of the term
“and/or.”

                         SECTION 2. Registration of Securities by the Company.

          (a) Shelf Registration. As expeditiously as practicable after the Effective Date, but
in no event later than 60 days thereafter, the Company will file a “shelf” registration statement
on Form S-1 or S-3 (or on any other form for general registration of securities) unless the use of
a different form has been agreed upon in writing by the Company and the Required Holders for an
offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act (or any
similar rule that may be adopted by the SEC) covering the Registrable Securities that are Initial
Shares (the “Initial Shelf Registration”).

     The Company shall use its best efforts to have the Initial Shelf Registration declared
effective no later than 120 days after the Initial Shelf Registration is filed with the SEC and to
keep the Initial Shelf Registration continuously effective until such date that all Initial Shares
have been sold pursuant to the Initial Shelf Registration (such period hereinafter referred to as
the “Initial Registration Period”).

     As expeditiously as practicable after the conversion of the Series B Preferred Stock into the
Conversion Shares, but in no event later than 30 days thereafter, the Company will file a “shelf”
registration statement on Form S-1 or S-3 (or on any other form for the general registration of
securities) unless the use of a different form has been agreed upon in writing by the Company and
the Required Holders for an offering to be made on a continuous basis pursuant to Rule 415 under
the Securities Act (or any similar rule that may be adopted by the

5

 

SEC) covering all Registrable Securities that are Conversion Shares, Subordinated Note
Conversion Shares and Private Placement Shares (a “Conversion Share Shelf Registration” and
the Conversion Share Shelf Registration and the Initial Shelf Registration are hereinafter referred
to as a “Shelf Registration”). The Company shall use its best efforts to have the
Conversion Share Shelf Registration declared effective no later than 120 days after such Conversion
Share Shelf Registration is filed with the SEC and to keep it continuously effective until such
date that all Conversion Shares, Subordinated Note Conversion Shares and Private Placement Shares
have been sold pursuant to the Conversion Share Shelf Registration (such period hereinafter
referred to as a “Conversion Share Registration Period”). The Company shall not include or
permit any other party to include any securities other than Registrable Securities in any Shelf
Registration without the written consent of the Required Holders.

     If any Registrable Securities are to be sold in a firm commitment underwritten offering and if
the managing underwriter or underwriters shall advise the Company and the holders of such
Registrable Securities in writing that in their opinion the amount of Registrable Securities
requested to be included in such registration exceeds the amount of securities which can be
included in such offering without materially adversely affecting the success of such offering,
there shall be included in such firm commitment underwritten offering the amount of Registrable
Securities which in the opinion of such underwriter or underwriters can be sold, and such
Registrable Securities shall be allocated pro rata among the holders of such
Registrable Securities on the basis of the amount of Registrable Securities requested to be
included in such registration statement by such holders and the amount of Registrable Securities
which in the opinion of such underwriter or underwriters can be sold. If any Registrable
Securities covered by a Shelf Registration are to be sold in an underwritten offering, the
investment banker or investment bankers and manager or managers that will administer the offering
will be selected by the Company and shall be reasonably acceptable to holders of a majority of such
Registrable Securities included in such offering.

     The Company agrees to supplement or make amendments to each Shelf Registration, if required by
the registration form utilized by the Company for such Shelf Registration or by the instructions
applicable to such registration form or by the Securities Act or the rules and regulations
thereunder or if reasonably requested by the holders of (or any underwriter for) a majority in
aggregate amount of Registrable Securities to which such Shelf Registration relates, and the
Company agrees to furnish to such holders copies of any such supplement or amendment prior to its
being used or filed with the SEC.

     If the Company has filed a “shelf” Registration Statement on Form S-1 (or on any other form
for the general registration of securities) pursuant to this Section 2(a) because Form S-3 was not
available for use by the Company at the time of such filing, the Company shall undertake to cause
the Registration Statement for the Shelf Registration to be on Form S-3 as soon as such form is
available for use by the Company to register the Registrable Securities for an offering to be made
on a continuous basis pursuant to Rule 415 under the Securities Act (including by filing a
post-effective amendment on Form S-3 to the then existing Shelf Registration), and, to the extent
the Company seeks to cause the Registration Statement for the Shelf Registration to be on Form S-3
by filing a new Shelf Registration, the Company shall maintain the effectiveness of the Shelf
Registration then in effect until such time as such Shelf Registration on Form S-3 has been
declared effective by the SEC.

6

 

          (b) Piggyback Registration. If at any time or from time to time the Company shall
propose to file on its behalf or on behalf of any of its security holders a registration statement
under the Securities Act on Form S-1 or S-3 (or on any other form for the general registration of
securities) with respect to any shares of Common Stock (other than pursuant to Section 2(a)), the
Company shall in each case:

               (i) promptly give written notice to each Holder at least thirty (30) days before the
anticipated filing date, indicating the proposed offering price and describing the plan of
distribution;

               (ii) include in such registration (and any related qualification under blue sky or
other state securities laws or other compliance) and, at the request of any Holder, in any
underwriting involved therein, all the Registrable Securities specified by any Holder or
Holders of Registrable Securities (the “Specified Registrable Securities”) in a
written request (the “Registration Request”) delivered to the Company within twenty
(20) days after receipt of such written notice from the Company; and

               (iii) if such offering is proposed to be underwritten, use its best efforts to cause
the managing underwriter(s) of such proposed underwritten offering to permit the Specified
Registrable Securities to be included in the Registration Statement for such offering on the
same terms and conditions as any similar securities of the Company included therein.

Notwithstanding the foregoing, if the managing underwriter(s) of such an underwritten offering
advise(s) the Holders of Specified Registrable Securities in writing that marketing considerations
require a limitation on the securities, other than the securities the Company intends to sell, to
be included in any Registration Statement filed under this Section 2(b) to a certain number of
shares (the “Available Securities”), then the Company shall in such case be obligated to
such Holders only with respect to such number of Available Securities. The limitation on the
number of Specified Registrable Securities will be imposed pro rata (based upon the ratio of the
number of shares of Specified Registrable Securities which the managing underwriter(s) propose(s)
to include at the anticipated offering price to the number of Specified Registrable Securities
requested to be included in such registration by each Holder) among all Holders of Specified
Registrable Securities.

     Each Registration Request shall set forth the number or amount of Specified Registrable
Securities. Except as provided by Section 2(a), notwithstanding any other provision of this
Agreement to the contrary, neither the delivery of any notice by the Company pursuant to this
Section 2(b)(i) nor of any Registration Request by any Holder pursuant to this Section 2(b)(ii)
shall in any way obligate the Company to file a Registration Statement and, notwithstanding such
filing, the Company may, at any time prior to the effective date thereof, in its sole discretion,
determine not to offer the securities to which the Registration Statement relates without liability
to any of the Holders. No registration of Registrable Securities effected under this Section 2(b)
shall relieve the Company of its obligation to effect the registration of Registrable Securities
pursuant to Section 2(a).

7

 

          (c) Registration Procedures. If and when the Company shall be required by the
provisions of this Section 2 to effect the registration of Registrable Securities under the
Securities Act, the Company will use its best efforts to effect such registration to permit the
sale of such Registrable Securities in accordance with the intended method or methods of
disposition thereof and in accordance with Section 2(a) or 2(b), as applicable, and pursuant
thereto the Company will, as expeditiously as possible:

               (i) before filing with the SEC a Registration Statement or Prospectus or any amendments
or supplements thereto, furnish to the Holders of the Registrable Securities covered by such
Registration Statement and the underwriter(s), if any, copies of all such documents proposed
to be filed, which documents will be made available, on a timely basis, for review by such
Holders and underwriters;

               (ii) prepare and, as expeditiously as possible but in any event within the applicable
periods specified in Section 2(a), file with the SEC a Registration Statement and Prospectus
covering such Registrable Securities; prepare and file such amendments and post-effective
amendments to any Registration Statement, and such supplements to the Prospectus, as may be
reasonably requested by any Holder of Registrable Securities or the managing underwriter(s),
if any, or as may be required by the Securities Act, the Exchange Act or by the rules,
regulations or instructions applicable to the registration form utilized by the Company or
as may otherwise be necessary to cause such Registration Statement to become effective or to
keep such Registration Statement effective until such time as all of the Registrable
Securities covered by such Registration Statement have been disposed of in accordance with
the intended method or methods of disposition set forth in such Registration Statement or
Prospectus; and cause the Prospectus as so supplemented to be filed pursuant to Rule 424 (or
any successor rule) under the Securities Act; and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
Registration Statement during the applicable period in accordance with the intended method
or methods of disposition by the Holders thereof set forth in such Registration Statement or
Prospectus;

               (iii) promptly notify the selling Holders of Registrable Securities and the managing
underwriter(s), if any, and if requested by any such Person, confirm such advice in writing:

             (a) of the filing of the Prospectus or any supplement to the Prospectus
and of the effectiveness of any Registration Statement and/or any
post-effective amendment,

             (b) of any request by the SEC for amendments or supplements to such
Registration Statement or the Prospectus or for additional information,

             (c) of the issuance by the SEC of any stop order suspending the
effectiveness of such Registration Statement or the initiation of any
proceedings for that purpose,

8

 

             (d) of the Company’s becoming aware at any time that the
representations and warranties of the Company contemplated by Section
2(c)(xiv)(a) have ceased to be true and correct,

             (e) of the receipt by the Company of any notification with respect to
the suspension of the qualification of the Registrable Securities for sale
in any jurisdiction or the initiation or threat of any proceeding for such
purpose, and

             (f) of the existence of any fact which, to the knowledge of the
Company, results in the Registration Statement, the Prospectus or any
document incorporated therein by reference containing an untrue statement of
material fact or omitting to state a material fact required to be stated
therein or necessary to make the statements therein not misleading,

               (iv) make every reasonable effort to obtain the withdrawal of any order suspending the
effectiveness of any Registration Statement, and if such withdrawal is not obtained within
30 days of the suspension of the effectiveness of such Registration Statement, the Company
shall (A) as expeditiously as practicable cause to be filed an additional “shelf”
registration statement pursuant to Rule 415 under the Securities Act (and/or any similar
rule that may be adopted by the SEC) with respect to the Registrable Securities registered
under such Registration Statement (the “Subsequent Shelf Registration”), and (B) use
its best efforts to have the Subsequent Shelf Registration declared effective as soon as
practicable after such filing and to keep the Subsequent Shelf Registration continuously
effective until such date that all Registrable Securities registered thereunder have been
sold pursuant to the Subsequent Shelf Registration (as used herein the term
“Registration Statement” and “Shelf Registration” includes any Subsequent
Shelf Registrations);

               (v) make every reasonable effort to obtain any qualification referred to in Section
2(c)(iii)(e) at the earliest possible moment;

               (vi) if reasonably requested by the managing underwriter(s) or the Required Holders of
the Registrable Securities being sold in connection with an underwritten offering,
immediately incorporate in a supplement to the Prospectus or post-effective amendment to the
Registration Statement such information as the managing underwriter(s) or the Required
Holders of the Registrable Securities being sold reasonably request to have included therein
relating to the plan of distribution with respect to such Registrable Securities, including,
without limitation, information with respect to the amount of Registrable Securities being
sold to such underwriters, the purchase price being paid therefor by such underwriters and
any other terms of the underwritten offering of the Registrable Securities to be sold in
such offering; and make all required filings of such supplement to the Prospectus or post
effective amendment to the Registration Statement as soon as notified of the matters to be
incorporated in such supplement to the Prospectus or post-effective amendment to the
Registration Statement;

9

 

               (vii) at the request of any selling Holder of Registrable Securities, furnish to such
selling Holder of Registrable Securities and the managing underwriter(s), if any, without
charge, at least one signed copy of the Registration Statement and any post-effective
amendment thereto, including financial statements and schedules, all documents incorporated
therein by reference and all exhibits thereto (including those incorporated by reference);

               (viii) deliver to each selling Holder of Registrable Securities and the managing
underwriter(s), if any, without charge, as many copies of the Registration Statement, each
Prospectus (including each preliminary prospectus) and any amendment or supplement thereto
(in each case including all exhibits), as such Persons may reasonably request, together with
all documents incorporated by reference in such Registration Statement or Prospectus, and
such other documents as such selling Holder may reasonably request in order to facilitate
the disposition of its Registrable Securities covered by such Registration Statement; the
Company consents to the use of each Prospectus and any supplement thereto by each of the
selling Holders of Registrable Securities and the managing underwriter(s), if any, in
connection with the offering and sale of the Registrable Securities covered by each
Prospectus or any amendment or supplement thereto;

               (ix) prior to any public offering of Registrable Securities, register or qualify or
reasonably cooperate with the selling Holders of Registrable Securities, the managing
underwriter(s), if any, and their respective counsel in connection with the registration or
qualification of such Registrable Securities for offer and sale under the securities or
blue sky laws of such jurisdictions as any selling Holder or managing underwriter(s)
reasonably request(s), to keep such registration or qualification in effect for so long as
such registration remains in effect, and do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of the Registrable Securities
covered by the Registration Statement, except that the Company shall not be required to
register or qualify such Registrable Securities under such other securities or blue sky laws
if it is required to (A) qualify generally to do business as a foreign corporation in any
jurisdiction wherein it would not otherwise be required to qualify but for the requirements
of this paragraph (viii), (B) subject itself to taxation in any such jurisdiction or (C)
consent to general service of process in any such jurisdiction;

               (x) cooperate with the selling Holders of Registrable Securities and the managing
underwriter(s), if any, to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any legends restricting the
transfer thereof; and enable such Registrable Securities to be in such denominations and
registered in such names as the managing underwriters may request at least two Business Days
prior to any sale of Registrable Securities to the underwriters;

               (xi) use its best efforts to cause the Registrable Securities covered by the applicable
Registration Statement to be registered with or approved by such United States, state and
local governmental agencies or authorities as may be necessary to enable the seller or
sellers thereof or the underwriters, if any, to consummate the disposition of such
Registrable Securities;

10

 

               (xii) if any fact contemplated by Section 2(c)(iii)(b) or Section 2(c)(iii)(f) above
shall exist, promptly notify each Holder on whose behalf Registrable Securities have been
registered and promptly prepare and furnish to such Holders a supplement or post-effective
amendment to the Registration Statement or the related Prospectus or any document
incorporated therein by reference and promptly file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Securities, neither the
Registration Statement nor the Prospectus will 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; provided; however, that if the Company shall
furnish to the Requesting Holders a certificate signed by the Company’s Chairman of the
Board stating that in his good faith judgment such actions would be detrimental or otherwise
disadvantageous to the Company or its stockholders, the Company may delay such actions for
as short a period as reasonably necessary to remove such detrimental condition, not to
exceed 30 days in any instance.

               (xiii) cause all Registrable Securities covered by the Registration Statement to be (A)
listed on each securities exchange on which securities of the same class are then listed or
(B) admitted for trading in any inter-dealer quotation system on which securities of the
same class are then traded;

               (xiv) not later than the effective date of the applicable Registration Statement,
provide a CUSIP number for all Registrable Securities covered by the Registration Statement
and provide the applicable transfer agent with printed certificates for such Registrable
Securities which are in a form eligible for deposit with The Depository Trust Company;

               (xv) enter into customary agreements (including underwriting agreements) and take all
other reasonable actions in order to expedite or facilitate the disposition of such
Registrable Securities; and in such connection, except as otherwise provided:

             (a) in an underwritten offering, make such representations and
warranties to the Holders selling such Registrable Securities and the
underwriters, in form, substance and scope as are customarily made by
issuers to selling securityholders and underwriters in similar underwritten
offerings;

             (b) obtain opinions of counsel to the Company and updates thereof
addressed to each selling Holder and the underwriters, if any, covering the
matters customarily covered in opinions requested in similar underwritten
offerings and such other matters as may be reasonably requested by such
Holders and underwriters, which counsel and opinions shall be reasonably
satisfactory (in form, scope and substance) to the managing underwriters, if
any, and the Required Holders of the Registrable Securities being sold;

11

 

             (c) in connection with any underwritten offering, obtain so called
“cold comfort” letters and updates thereof from the Company’s independent
certified public accountants addressed to the selling Holders of Registrable
Securities and the underwriters, such letters to be in customary form and
covering matters of the type customarily covered in “cold comfort” letters
to underwriters in connection with similar underwritten offerings;

             (d) if an underwriting agreement is entered into, cause the same to
include indemnification and contribution provisions and procedures
substantially similar to those set forth in Section 5, subject to revisions
the underwriters shall reasonably request, with respect to all parties to be
indemnified pursuant to said Section 5; and

             (e) deliver such documents and certificates as may reasonably be
requested by the Required Holders of the Registrable Securities being sold,
or the managing underwriter(s), if any, to evidence compliance with this
paragraph (xiv) and with any customary conditions contained in the
underwriting agreement or other agreement entered into by the Company;

the foregoing to be done upon each closing under any underwriting or similar agreement as
and to the extent required thereunder and from time to time as may reasonably be requested
by any selling Holder of Registrable Securities in connection with the disposition of
Registrable Securities pursuant to such Registration Statement, all in a manner consistent
with customary industry practice;

               (xvi) upon execution and delivery of such confidentiality agreements as the Company may
reasonably request, make available to the Holders of the Registrable Securities being sold,
any underwriter participating in any disposition pursuant to such Registration Statement,
and any attorney or accountant retained by such Holders or underwriter, all financial and
other records, pertinent corporate documents and properties of the Company, and cause the
Company’s officers, directors and employees to supply all information reasonably requested
by any such Holder, underwriter, attorney or accountant in connection with the registration,
at such time or times as the Person requesting such information shall reasonably determine;

               (xvii) otherwise use its best efforts to comply with the Securities Act, the Exchange
Act, all applicable rules and regulations of the SEC and all applicable state blue sky and
other securities laws, rules and regulations, and make generally available to its security
holders an earnings statement satisfying the provisions of Section 11(a) of the Securities
Act, as soon as practicable, but in no event later than thirty (30) days after the end of
the 12 calendar month period commencing after the effective date of the Registration
Statement;

               (xviii) cooperate and assist in any filings required to be made with the NASD and in
the performance of any due diligence investigation by any underwriter; and

12

 

               (xix) prior to the filing of any document which is being prepared for incorporation by
reference into the Registration Statement or the Prospectus (other than a Registration
Statement or Prospectus relating to a “shelf” offering) , upon receipt of such
confidentiality agreements as the Company may reasonably request, provide copies of such
document to counsel to the selling Holders of Registrable Securities, and to the managing
underwriter(s), if any, and make the Company’s representatives available for discussion of
such document.

          (d) Restrictions on Public Sale by Holder of Registrable Securities. If any of the
Registrable Securities registered pursuant to a Shelf Registration are to be sold in a firm
commitment underwritten offering, each holder of Registrable Securities whose Registrable
Securities are covered by the Shelf Registration filed pursuant to Section 2(a) and who has been
given the opportunity (subject to the fifth paragraph of Section 2(a)) to participate in such
offering at least 10 Business Days in advance of the commencement of such offering agrees, if
requested by the managing underwriter or underwriters in such underwritten offering, not to effect
any public sale or distribution of any of the Company’s securities, including a sale pursuant to
Rule 144 under the Securities Act (except as part of such offering) during the 10-day period prior
to, and during the 60-day period beginning on, the closing date of such offering made pursuant to
such Shelf Registration, to the extent timely notified in writing by the Company or the managing
underwriter or underwriters. In addition, if any registration of Common Stock to be sold on the
behalf of the Company shall be in connection with an underwritten public offering and is subject to
Section 2(b) (and the Company has complied with Section 2(b) in respect thereof) and such
registration is approved by the Required Holders, any Holder of Registrable Securities representing
more than 5% of the outstanding Common Stock shall (i) not effect any public sale or distribution
of any of the Company’s securities, including a sale pursuant to Rule 144 under the Securities Act
(except as part of such offering) during the 10-day period prior to, and during the 90-day period
beginning on, the closing date of the sale of the Common Stock pursuant to an effective
registration statement, to the extent timely notified in writing by the Company or the managing
underwriter or underwriters of such underwritten public offering, and (ii) execute a “lock-up”
letter with any of such underwriters agreeing to not effect any such public sale or distribution.

          (e) Restrictions on Registration by the Company and Others. If any of the Registrable
Securities registered pursuant to a Shelf Registration are to be sold in a firm commitment
underwritten offering, during the 10-day period prior to, and during the 90-day period beginning
on, the closing date of such offering, the Company will not effect any other registration of its
Common Stock (or any securities convertible into or exchangeable or exercisable for its Common
Stock), whether for its own account or that of any other security holder.

                         SECTION 3. Registration Expenses.

          (a) All expenses incident to the Company’s performance of or compliance with its obligations
under this Agreement (excluding underwriting discounts, selling commissions and brokerage fees,
which will be paid by the selling Holders) will be paid by the Company, regardless of whether
Registrable Securities are sold pursuant to any Registration Statement, including, without
limitation:

13

 

               (i) all registration, filing and listing fees;

               (ii) fees and expenses of compliance with securities or blue sky laws (including,
without limitation, the fees and disbursements of counsel for the underwriters, if any, or
selling Holders in connection with blue sky and state securities qualifications of
Registrable Securities and determination of their eligibility for investment under the laws
of such jurisdictions as the managing underwriter(s), if any, or the Required Holders of the
Registrable Securities covered by such Registration Statement may reasonably designate);

               (iii) printing (including, without limitation, expenses of printing or engraving
certificates for the Registrable Securities in a form eligible for deposit with The
Depository Trust Company and of printing prospectuses), word processing, duplicating,
messenger, telephone and delivery expenses;

               (iv) fees and disbursements of counsel for the Company and, subject to Section
3(b), counsel for the selling Holders of the Registrable Securities;

               (v) fees and disbursements of all independent certified public accountants of the
Company or any other Persons for which financial statements are required or otherwise
included in such Registration Statement (including, without limitation, the expenses of any
special audit and, in connection with any underwritten offering, “cold comfort” letters
required by or incident to such performance);

               (vi) fees and expenses of other Persons (including special experts) retained by the
Company; and

               (vii) fees and expenses associated with any NASD filing required to be made in
connection with any Registration Statement.

     The Company will, in any event, pay its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or accounting duties), the
expense of any annual audit, the fees and expenses incurred in connection with the listing of the
securities to be registered on each securities exchange on which securities of the same class are
then listed or the admission for trading of the securities to be registered in each inter-dealer
quotation system on which securities of the same class are then traded, and rating agency fees.

          (b) In connection with each Registration Statement required hereunder, the Company will
reimburse the Holders of Registrable Securities being registered pursuant to such Registration
Statement for the reasonable fees and disbursements of not more than one counsel at any one time
(or more than one counsel if a conflict exists among such Holders in the exercise of the reasonable
judgment of counsel for such Holders and the Company) chosen by the Required Holders of the
Registrable Securities being sold; the expense of any additional counsel for the Holders shall be
paid by the Holders.

          (c) The term “Registration Expenses” shall mean the expenses payable by the Company
pursuant to the provisions of this Section 3.

14

 

                         SECTION 4. Conditions to Registration.

     Each Holder’s right to have Registrable Securities included in any Registration Statement
filed by the Company in accordance with the provisions of Section 2 shall be subject to the
following conditions:

          (a) The Holders on whose behalf such Registrable Securities are to be included shall be
required to furnish the Company in a timely manner with all information and undertakings required
by the applicable rules and regulations of the SEC or applicable state blue sky and other
securities laws, rules or regulations concerning the proposed method or methods of disposition of
such securities, the identity of and compensation to be paid to any proposed underwriters to be
employed in connection therewith, and such other information or undertakings as may be reasonably
required by the Company properly to prepare and file such Registration Statement in accordance with
applicable provisions of the Securities Act and to register and qualify such Registrable Securities
for offer and sale under all applicable state blue sky and other securities laws, rules or
regulations;

          (b) If any such Holder desires to sell and distribute Registrable Securities over a period of
time, or from time to time, at then prevailing market prices, then any such Holder shall execute
and deliver to the Company such written undertakings as the Company and its counsel may reasonably
require in order to assure full compliance with relevant provisions of the Securities Act and the
Exchange Act and all applicable state blue sky and other securities laws, rules or regulations;

          (c) In the case of any registration requested pursuant to the provisions of Section 2(b), the
offering price for any Registrable Securities to be so registered shall be no less than for any
securities of the same class then to be registered for sale for the account of the Company or other
security holders, unless such Registrable Securities are to be offered from time to time based on
the prevailing market price; and

          (d) In the case of any underwritten offering on behalf of the Holders of Registrable
Securities, such Holders will enter into such agreements (including underwriting agreements and
lock-up agreements) as the managing underwriters shall reasonably request and as are customary in
similar circumstances, provided, however, that no such agreements shall require any Holder
to make any representations or warranties to, or agreements with, the Company or the underwriters
other than representations, warranties or agreements regarding such Holder, the ownership of such
Holder’s Registrable Securities and such Holder’s intended method of distribution.

                         SECTION 5. Indemnification.

          (a) Indemnification by the Company. In the event of the registration of any
Registrable Securities under the Securities Act pursuant to the provisions hereof, the Company will
indemnify and hold harmless each seller of such Registrable Securities, its partners, directors,
officers, employees and agents, each underwriter, broker and dealer, if any, who participates in
the offering or sale of such securities, and each other Person, if any, who controls such seller or
any such underwriter, broker or dealer within the meaning of either Section 15 of

15

 

the Securities Act or Section 20 of the Exchange Act (each such Person being hereinafter
sometimes referred to as an “Indemnified Person,” provided, however, that for
purposes of clauses (b), (c) and (d) of this Section 5, “Indemnified Person” shall also
include the Company, its partners, directors, officers, employees and agents, and each other
Person, if any, who controls the Company within the meaning of either Section 15 of the Securities
Act or Section 20 of the Exchange Act) from and against any losses, claims, damages, liabilities or
expenses, joint or several, to which such Indemnified Person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities
or expenses (or actions in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact contained or incorporated by reference in any
Registration Statement or Prospectus or any amendment or supplement thereto or any document
incorporated by reference therein, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse each such Indemnified Person for any legal or
other expenses reasonably incurred by such Indemnified Person in connection with investigating or
defending any such loss, claim, damage, liability, expense or action; provided,
however, that the Company will not be liable in any such case to the extent that any such
loss, claim, damage, liability, expense or action (i) arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made or incorporated by
reference in the Registration Statement or Prospectus or any amendment or supplement thereto, in
reliance upon and in conformity with written information furnished to the Company by such
Indemnified Person specifically stating it is for use in preparation thereof or (ii) arises out of
the use of any Prospectus by an Indemnified Party after the Company has provided such Indemnified
Party with the notice and supplement referred to in Section 2(c)(xi) if such Prospectus is the
subject of such notice. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such Indemnified Person and shall survive the transfer of
such Registrable Securities by such seller.

          (b) Indemnification by Holders of Registrable Securities. In the event of the
registration of any Registrable Securities under the Securities Act pursuant to the provisions
hereof, each Holder on whose behalf such Registrable Securities shall have been registered will
indemnify and hold harmless each and every Indemnified Person against any losses, claims, damages,
liabilities or expenses, joint or several, to which such Indemnified Person may become subject
under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained or incorporated by reference in
any Registration Statement or Prospectus or any amendment or supplement thereto or any document
incorporated by reference therein, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, which untrue statement or alleged untrue statement or omission
or alleged omission has been made or incorporated therein in reliance upon and in conformity with
written information furnished to the Company by such Holder specifically stating that it is for use
in preparation thereof, and will reimburse each such Indemnified Person for any legal or other
expenses reasonably incurred by such Indemnified Person in connection with investigating or
defending any such loss, claim, damage, liability, expense or action; provided,
however, that the liability of each Holder hereunder shall be limited

16

 

to the proceeds received by such Holder from the sale of Registrable Securities covered by
such Registration Statement.

          (c) Procedure. Promptly after receipt by an Indemnified Person of notice of the
commencement of any action (including any governmental investigation or inquiry), such Indemnified
Person will, if such Indemnified Person intends to make a claim in respect thereof against the
party agreeing to indemnify such Indemnified Person pursuant to paragraph (a) or (b) hereof (each
such Person being hereinafter referred to as an “Indemnifying Person”), give written notice
to such Indemnifying Person of the commencement thereof, but the omission so to notify the
Indemnifying Person shall not relieve the Indemnifying Person from any of its obligations pursuant
to the provisions of this Section 5 except to the extent that the Indemnifying Person is actually
prejudiced by such failure to give notice. In case any such action is brought against any
Indemnified Person and it notifies an Indemnifying Person of the commencement thereof, the
Indemnifying Person shall be entitled to participate in, and to the extent that it may wish,
jointly with any other Indemnifying Person similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnified Person, and after notice from the Indemnifying
Person to such Indemnified Person, the Indemnifying Person shall not, except as hereinafter
provided, be responsible for any legal or other expenses subsequently incurred by such Indemnified
Person in connection with the defense thereof. No Indemnifying Person will consent to entry of any
judgment or enter into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Person of a release from all liability in
respect of such claim or litigation.

     Such Indemnified Person shall have the right to employ separate counsel in any such action and
to participate in the defense thereof, but the fees and expenses of such counsel shall be the
expense of such Indemnified Person unless (i) the Indemnifying Person has agreed to pay such fees
and expenses or (ii) the Indemnifying Person shall have failed to assume the defense of such action
or proceeding or has failed to employ counsel reasonably satisfactory to such Indemnified Person in
any such action or proceeding or (iii) the named parties to any such action or proceeding
(including any impleaded parties) include both such Indemnified Person and the Indemnifying Person
and such Indemnified Person shall have been advised by counsel that representation of both parties
by the same counsel would be inappropriate due to actual or potential material differing interests
between them (in which case, if such Indemnified Person notifies the Indemnifying Person in writing
that it elects to employ separate counsel at the expense of the Indemnifying Person, the
Indemnifying Person shall not have the right to assume the defense of such action or proceeding on
behalf of such Indemnified Person). The Indemnifying Person shall not be liable for any settlement
of any such action or proceeding effected without its written consent, which consent shall not
unreasonably be withheld, delayed or conditioned, but if settled with its written consent, or if
there is a final judgment for the plaintiff in any such action or proceeding, the Indemnifying
Person agrees to indemnify and hold harmless such Indemnified Persons from and against any loss or
liability by reason of such settlement or judgment.

          (d) Contribution. To the extent that the indemnification provided for in this Section
5 is unavailable to a party that would have been an Indemnified Person under this Section 5 in
respect of any losses, claims, damages, liabilities or expenses (or actions in respect thereof)
referred to herein, then each party that would have been an Indemnifying Person

17

 

thereunder shall, in lieu of indemnifying such Indemnified Person, contribute to the amount
paid or payable by such Indemnified Person as a result of such losses, claims, damages, liabilities
or expenses (or actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Person on the one hand and the Indemnified Person on the other
in connection with the statement or omission which resulted in such losses, claims, damages,
liabilities or expenses (or actions in respect thereof), as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission of a material fact relates to information supplied by the Indemnifying Person or the
Indemnified Person and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid or payable by a
party as a result of the losses, claims, damages, liabilities and expenses referred to above shall
be deemed to include, subject to the limitations set forth in Section 5(c), any legal or other fees
or expenses reasonably incurred by such party in connection with the investigation or defense of
any action or claim. The Company and each Holder of Registrable Securities agrees that it would
not be just and equitable if contribution pursuant to this Section 5 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 this Section 5. Notwithstanding the provisions of this Section 5(d),
no Holder of Registrable Securities shall be required to contribute any amount in excess of the
amount by which the total price at which the Registrable Securities sold by it exceeds the amount
of any damages which such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

     Indemnification or, if appropriate, contribution, similar to that specified in the preceding
provisions of this Section 5 (with appropriate modifications) shall be given by the Company and
each seller of Registrable Securities with respect to any required registration or other
qualification of such securities under any federal or state law or regulation or governmental
authority other than the Securities Act.

     In the event of any underwritten offering of Registrable Securities under the Securities Act
pursuant to the provisions of Section 2, the Company and each Holder on whose behalf such
Registrable Securities shall have been registered agree to enter into an underwriting agreement, in
customary form, with the underwriters, which underwriting agreement may contain additional
provisions with respect to indemnification and contribution in lieu thereof.

                         SECTION 6. Exchange Act Registration; Rule 144 Reporting.

     The Company covenants and agrees that until such time as the Holders no longer hold any
Registrable Securities it will:

          (a) if required by law, maintain an effective registration statement (containing such
information and documents as the SEC shall specify) with respect to the Common Stock of the Company
under Section 12(g) of the Exchange Act;

18

 

          (b) make and keep public information available, as those terms are understood and defined in
Rule 144 under the Securities Act, even if the Company subsequently ceases to be subject to the
reporting requirements of the Exchange Act;

          (c) file with the SEC in a timely manner all reports and documents required of the Company
under the Securities Act and the Exchange Act;

          (d) furnish to any Holder promptly upon request (i) a written statement by the Company as to
its compliance with the reporting requirements of Rule 144 (and any similar or successor rules) and
of the Securities Act and the Exchange Act, (ii) a copy of the most recent annual or quarterly
report of the Company and (iii) such other reports and documents of the Company and other
information in the possession of or reasonably obtainable by the Company as such Holder may
reasonably request in availing itself of any rule or regulation of the SEC allowing such Holder to
sell any such securities without registration; and

          (e) take such further action as any Holder of Registrable Securities may from time to time
reasonably request to enable such Holder to sell Registrable Securities without registration under
the Securities Act within the limitation of the exemptions provided by (i) Rule 144 under the
Securities Act, as such rule may be amended from time to time, or (ii) any similar rule or
regulation hereafter adopted by the SEC.

     The Company represents and warrants that such registration statement or any information,
document or report filed with the SEC in connection therewith or any information so made public
shall not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements contained therein not misleading.
The Company agrees to indemnify and hold harmless (or to the extent the same is not enforceable,
make contribution to) the Holders, their partners, officers, directors, employees and agents, each
broker, dealer or underwriter (within the meaning of the Securities Act) acting for any Holder in
connection with any offering or sale by such Holder of Registrable Securities or any Person
controlling (within the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act) such Holder and any such broker, dealer or underwriter from and against any and all
losses, claims, damages, liabilities or expenses (or actions in respect thereof) arising out of or
resulting from any breach of the foregoing representation or warranty, all on terms and conditions
comparable to those set forth in Section 5.

                         SECTION 7. Limitation on Registration Rights of Others.

     The Company represents and warrants that it has not granted to any Person the right to request
or require the Company to register any securities issued by the Company. The Company covenants and
agrees that after the date hereof, so long as any Holder holds any Securities, the Company will
not, directly or indirectly, grant to any Person or agree to or otherwise become obligated in
respect of (a) any registration rights of securities of the Company upon the demand of any Person
(including any shelf registration) without the prior written consent of the Required Holders; or
(b) rights of registration in the nature or substantially in the nature of those set forth in
Section 2 unless such rights are expressly subject and subordinated to the rights of registration
of the Holders pursuant to Section 2 hereof on terms reasonably satisfactory to the Required
Holders.

19

 

                         SECTION 8. Mergers, etc.

     In addition to any other restrictions on mergers, consolidations and reorganizations contained
in the certificate of incorporation, bylaws or agreements of the Company, the Company covenants and
agrees that it shall not, directly or indirectly, enter into any merger, consolidation or
reorganization in which the Company shall not be the surviving corporation and in which the Holders
shall not have had the right to receive cash for all their Registrable Securities, unless the
surviving corporation shall, prior to such merger, consolidation or reorganization, agree in a
writing satisfactory in form, scope and substance to the Required Holders to assume the obligations
of the Company under this Agreement, and for such purpose references hereunder to “Registrable
Securities” shall be deemed to include the securities which such Holders would be entitled to
receive in exchange for Registrable Securities pursuant to any such merger, consolidation or
reorganization.

     If, and as often as, there are any changes in the Securities by way of stock split, stock
dividend, combination or classification, or through merger, consolidation, reorganization or
recapitalization, or by any other means, appropriate adjustments shall be made in the provisions
hereof as may be required, so that the rights and privileges granted hereby shall continue with
respect to the Securities as so changed.

                         SECTION 9. Notices, etc.

     All notices, consents, approvals, agreements and other communications provided hereunder shall
be in writing or by telex or telecopy and shall be sufficiently given to the Initial Holders, the
Holders or the Company if addressed or delivered to them:

	 	 	 
	If to the Initial Holders:

	 	To the address listed underneath such Initial Holder’s name in the signature pages hereof.
	 
	 	 
	with copies to:

	 	Akin Gump Strauss Hauer & Feld LLP

1111 Louisiana Street, 44th Floor

Houston, TX 77002

Attention: James L. Rice III, Esq.

Telecopier No.: (713) 236-0822
	 
	 	 
	If to any other Holder:

	 	At its last known address appearing on the books of the Company maintained for such purpose.
	 
	 	 
	If to the Company:

	 	Horizon Offshore, Inc.

2500 CityWest Boulevard, Suite 2200

Houston, Texas 77042

Attention: Executive Vice President and Chief Financial Officer

Telecopier No.: (713) 361-2677

20

 

	 	 	 
	with copies to: 

	 	Jones, Walker, Waechter, Poitevent, Carrere & Denegre, L.L.P.
	 

	 	201 St. Charles Avenue, Suite 5100

New Orleans, Louisiana 70170

Attention: William B. Masters, Esq.

Telecopier No.: (504) 582-8012

or at such other address as any party may designate to any other party by written notice. All such
notices and communications shall be deemed to have been duly given: (i) at the time delivered by
hand, if personally delivered, (ii) when received, if deposited in the mail, postage prepaid, (iii)
when transmission is verified, if telecopied, and (iv) on the next Business Day, if timely
delivered to an air courier guaranteeing overnight delivery.

                         SECTION 10. Entire Agreement.

     The parties hereto agree that this Agreement constitutes the entire agreement among the
parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings between them as to such subject matter; and there are no restrictions, agreements,
arrangements, oral or written, between any or all of the parties relating to the subject matter
hereof which are not fully expressed or referred to herein or therein.

                         SECTION 11. Amendments; Waivers and Further Agreements.

     This Agreement may not be amended nor shall any waiver, change, modification, consent or
discharge be effected except by an instrument in writing executed by or on behalf of the party or
parties against whom enforcement of any amendment, waiver, change, modification, consent or
discharge is sought; provided, however, that any waiver sought from the Holders of
any provision of this Agreement which affects the Holders generally, and any action required to be
taken by the Holders as a group pursuant to this Agreement, shall be given or taken by the Required
Holders, and any such waiver or action so given or taken shall be binding on all Holders. No
failure or delay by any party in exercising any right or remedy hereunder shall operate as a waiver
thereof, and a waiver of a particular right or remedy on one occasion shall not be deemed a waiver
of any other right or remedy or a waiver of the same right or remedy on any subsequent occasion.

     Any waiver of any terms or conditions of this Agreement shall not operate as a waiver of any
other breach of such terms or conditions or any other term or condition, nor shall any failure to
enforce any provision hereof operate as a waiver of such provision or of any other provision
hereof; provided, however, that no such written waiver, unless it by its own terms
explicitly provides to the contrary, shall be construed to effect a continuing waiver of the
provision being waived and no such waiver in any instance shall constitute a waiver in any other
instance or for any other purpose or impair the right of the party against whom such waiver is
claimed in all other instances or for all other purposes to require full compliance with such
provision. Each of the parties hereto agrees to execute all such further instruments and documents
and to take all such further action as the other parties may reasonably require in order to
effectuate the terms and purposes of this Agreement.

21

 

                         SECTION 12. Assignment; Successors and Assigns.

     This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective heirs, executors, legal representatives, successors and permitted assigns,
including, without limitation, any Holders from time to time of the Registrable Securities.
Anything in this Agreement to the contrary notwithstanding, the term “Holders” as used in this
Agreement shall be deemed to include the registered Holders from time to time of the Series B
Preferred Shares.

                         SECTION 13. Severability.

     If any provision of this Agreement shall be held or deemed to be, or shall in fact be,
invalid, inoperative or unenforceable as applied to any particular case in any jurisdiction or
jurisdictions, or in all jurisdictions or in all cases, because any provision conflicts with any
constitution, statute, rule or public policy, or for any other reason, such circumstance shall not
have the effect of rendering the provision or provisions in question invalid, inoperative or
unenforceable in any other jurisdiction or in any other case or circumstance or of rendering any
other provision or provisions herein contained invalid, inoperative or unenforceable to the extent
that such other provisions are not themselves actually in conflict with such constitution, statute,
rule or public policy, but this Agreement shall be reformed and construed in any such jurisdiction
or case as if such invalid, inoperative or unenforceable provision had never been contained herein
and such provision reformed so that it would be valid, operative and enforceable to the maximum
extent permitted in such jurisdiction or in such case.

                         SECTION 14. Counterparts.

     This Agreement may be executed in two or more counterparts (each of which need not be executed
by each of the parties), each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument, and in pleading or proving any provision of this Agreement,
it shall not be necessary to produce more than one such counterpart.

                         SECTION 15. Gender; Usage.

     Whenever used herein the singular number shall include the plural, the plural shall include
the singular, and the use of any gender shall include all genders. The words “hereof,” “herein”
and “hereunder,” and words of similar import, when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement.

                         SECTION 16. Governing Law.

     THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK OTHER THAN THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

                         SECTION 17. Survival.

     The indemnification and contribution provisions of Section 5 shall survive, notwithstanding
the fact that any Shares shall cease to be Registrable Securities.

22

 

                         SECTION 18. Expenses.

     Supplementing the provisions of Section 5, the Company shall be obligated to pay to the
Holders, on demand, all costs and expenses (including, without limitation, court costs and
attorneys’ fees and expenses and interest to the extent permitted by applicable law on overdue
amounts) paid or incurred in collecting any sums due from, or enforcing any other obligations of,
the Company.

                         SECTION 19. Specific Performance.

     The Company recognizes that the rights of the Holders under this Agreement are unique and,
accordingly, the Holders shall, in addition to such other remedies as may be available to any of
them at law or in equity, have the right to enforce their rights hereunder by actions for
injunctive relief and specific performance to the extent permitted by law. The Company agrees that
monetary damages would not be adequate compensation for any loss incurred by reason of a breach by
it of the provisions of this Agreement and hereby agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate. This Agreement is not intended to
limit or abridge any rights of the Holders which may exist apart from this Agreement.

23

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized as of the day and year first above written.

	 	 	 	 	 
	 	 	HORIZON OFFSHORE, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

     Title:
	 
	 	 	 	 
	 	 	INITIAL HOLDERS:
	 
	 	 	 	 
	 	 	ELLIOTT ASSOCIATES, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Elliott Capital Advisors, L.P.,
as General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Braxton Associates, Inc.,
as General Partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:

	 	 	 	 	 
	 

	 	Address:
	 	712 Fifth Avenue

36th Floor

New York, New York 10019

	 	 	 	 	 
	 	 	ELLIOTT INTERNATIONAL, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Elliott International Capital Advisors Inc.,
as Attorney-in-Fact
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:

	 	 	 	 	 
	 

	 	Address:
	 	712 Fifth Avenue

36th Floor

New York, New York 10019

24

 

	 	 	 	 	 
	 	 	FALCON MEZZANINE PARTNERS, LP
	 
	 	 	 	 
	 

	 	By:
	 	Falcon Mezzanine Investments, LLC, its

General Partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:

	 	 	 	 	 
	 

	 	Address:

Telecopier No.:
	 	60 Kendrick Street

Needham, Massachusetts 02494

(781) 247-7299

25

 

	 	 	 	 	 
	 	 	D. E. SHAW LAMINAR PORTFOLIOS, L.L.C.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	     Name:

     Title:

	 	 	 	 	 
	 

	 	Address:
	 	120 West 45th St.

New York, New York 10036

26

 

	 	 	 	 	 
	 	 	 
	 	 	 Name: Kevin G. Douglas,

      in his individual capacity

	 	 	 	 	 
	 

	 	Address:
	 	1101 5th Ave., Suite 360

San Rafael, CA 94901

27

 

	 	 	 	 	 
	 	 	 
	 

	 	Name:
	 	Michelle M. Douglas,
	 

	 	 	 	     in her individual capacity
	 
	 	 	 	 
	 

	 	Address:
	 	1101 5th Ave., Suite 360
	 

	 	 	 	San Rafael, CA 94901

28

 

	 	 	 	 	 
	 	 	 
	 

	 	Name:
	 	Lloyd I. Miller,
	 

	 	 	 	      in his individual capacity
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

29

 

	 	 	 	 	 
	 	 	SACC PARTNERS, LP
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	     Name: Tom Kelleher

     Title: General Partner
	 
	 	 	 	 
	 

	 	Address:
	 	11150 Santa Monica Blvd., Suite 750
	 

	 	 	 	Los Angeles, CA 90025

30

 

	 	 	 	 	 
	 	 	KEVIN G. DOUGLAS AND MICHELLE M. DOUGLAS, JTWROS
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	      Name: Kevin Douglas

      in his capacity as joint tenant with right
of survivorship
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	      Name: Michelle Douglas

     in her capacity as joint tenant with right
of survivorship
	 
	 	 	 	 
	 

	 	Address:
	 	1101 5th Ave., Suite 360
	 

	 	 	 	San Rafael, CA 94901

31

 

	 	 	 	 	 
	 	 	DOUGLAS FAMILY TRUST
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	     Name: James E. Douglas Jr.

     Title: Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	     Name: Jean A. Douglas

     Title: Trustee
	 
	 	 	 	 
	 

	 	Address:
	 	1101 5th Ave., Suite 360
	 

	 	 	 	San Rafael, CA 94901

32

 

	 	 	 	 	 
	 	 	JAMES DOUGLAS AND JEAN DOUGLAS IRREVOCABLE

DESCENDANT’S TRUST
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	      Name: Kevin Douglas

     Title: Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	      Name: Michelle Douglas

      Title: Trustee
	 
	 	 	 	 
	 

	 	Address:
	 	1101 5th Ave., Suite 360
	 

	 	 	 	San Rafael, CA 94901

33

 

	 	 	 	 	 
	 	 	B. RILEY & CO. RETIREMENT TRUST
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	      Name: Bryant Riley

      Title: Trustee
	 
	 	 	 	 
	 

	 	Address:
	 	11150 Santa Monica Blvd., Suite 750
	 

	 	 	 	Los Angeles, CA 90025

34

 

	 	 	 	 	 
	 	 	B. RILEY & CO., INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name: Bryant Riley

      Title: Chairman
	 
	 	 	 	 
	 

	 	Address:
	 	11150 Santa Monica Blvd., Suite 750
	 

	 	 	 	Los Angeles, CA 90025

35

 

	 	 	 	 	 
	 	 	L. MILLER III GST dtd 12/31/91
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name: Lloyd I. Miller

     Title: Trustee
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

36

 

	 	 	 	 	 
	 	 	MILFAM, LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name: Lloyd I. Miller

      Title: General Partner
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

37

 

	 	 	 	 	 
	 	 	CATHERINE C. MILLER IRREV TR DTD 3/26/91
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	     Name: Lloyd I. Miller

      Title: Trustee
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

38

 

	 	 	 	 	 
	 	 	ALEXANDRA B. MILLER
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name: Lloyd I. Miller

     Title: Custodian FL/UTMA
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

39

 

	 	 	 	 	 
	 	 	LLOYD I. MILLER
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name: Lloyd I. Miller

      in his individual capacity
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

40

 

	 	 	 	 	 
	 	 	LLOYD I. MILLER TRUST A-4
	 
	 	 	 	 
	 	 	By: PNC Bank
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name: Alan Goldman

      Title: Trustee
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

41

 

	 	 	 	 	 
	 	 	MILGRAT II — STAR
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

42

 

	 	 	 	 	 
	 	 	MARLI B. MILLER
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

43

 

	 	 	 	 	 
	 	 	MILFAM I, L.P.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name: Lloyd I. Miller

      Title: Limited Partner
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

44

 

	 	 	 	 	 
	 	 	MILFAM II, L.P.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name: Lloyd I. Miller

      Title: Limited Partner
	 
	 	 	 	 
	 

	 	Address:
	 	4550 Gordon Drive
	 

	 	 	 	Naples, FL 34102

45

 

	 	 	 	 	 
	 	 	HIGHLAND CRUSADER OFFSHORE PARTNERS
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	     Name:Kurt Plummer

      Title: General Partner
	 
	 	 	 	 
	 

	 	Address:
	 	13455 Noel Road, Suite 1300

Dallas, TX 75240

46

 

	 	 	 	 	 
	 	 	HEDGEHOG CAPITAL
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:
	 
	 	 	 	 
	 

	 	Address:
	 	1117 East Putnam Avenue, Suite 320
Riverside, CT 06878

47

 

	 	 	 	 	 
	 	 	THE CONUS FUND, L.P.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

     Title:
	 
	 	 	 	 
	 

	 	Address:
	 	1 Rockefeller Plaza, 18th Floor

New York, New York 10020

48

 

	 	 	 	 	 
	 	 	THE CONUS FUND (QP), L.P.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:
	 
	 	 	 	 
	 

	 	Address:
	 	1 Rockefeller Plaza, 18th Floor

New York, New York 10020

49

 

	 	 	 	 	 
	 	 	EAST HUDSON INC. (BVI)
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:
	 
	 	 	 	 
	 

	 	Address:
	 	1 Rockefeller Plaza, 18th Floor

New York, New York 10020

50

 

	 	 	 	 	 
	 	 	THE CONUS FUND OFFSHORE LIMITED
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:
	 
	 	 	 	 
	 

	 	Address:
	 	1 Rockefeller Plaza, 18th Floor

New York, New York 10020

51

 

	 	 	 	 	 
	 	 	RICHARD RILEY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:

      Title:
	 
	 	 	 	 
	 

	 	Address:
	 	133 Shoreclifff Road,

Corona del Mar, CA 92625

52

 

	 	 	 	 	 
	 	 	LANGLEY PARTNERS, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Langley Capital, LLC, as General Partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	     Name:
	 

	 	 	 	     Title:
	 
	 	 	 	 
	 

	 	Address:
	 	535 Madison Avenue, 7th Floor

New York, NY 10022

53

 

	 	 	 	 	 
	 	 	BRYANT AND CARLEEN RILEY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Bryant Riley

in his capacity as joint tenant with right of
survivorship
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Carleen Riley

in her capacity as joint tenant with right of
survivorship
	 
	 	 	 	 
	 

	 	Address:
	 	12710 Marlboro Street

Brentwood, CA 90049

54

 

	 	 	 	 	 
	 	 	MANCHESTER SECURITIES CORP.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	     Name:
	 

	 	 	 	      Title:
	 
	 	 	 	 
	 

	 	Address:
	 	712 Fifth Avenue

36th Floor

New York, NY 10019

55

 

	 	 	 	 	 
	 	 	RIMROCK HIGH INCOME PLUS (MASTER) FUND
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	Address:	 	 

56

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00095-of-00352.parquet"}]]