Document:

exv10w1

 

EXHIBIT 10.1

EXECUTION COPY

$350,000,000

SESI, L.L.C.

1.5% Senior Exchangeable Notes due 2026

unconditionally guaranteed as to the

payment of principal, premium, if any, and interest by

Superior Energy Services, Inc.

1105 Peters Road, L.L.C.

Blowout Tools, Inc.

Concentric Pipe and Tool Rentals, L.L.C.

Connection Technology, L.L.C.

CSI Technologies, LLC

Drilling Logistics, L.L.C.

F. & F. Wireline Service, L.L.C.

Fastorq, L.L.C.

H.B. Rentals, L.C.

International Snubbing Services, L.L.C.

J.R.B. Consultants, Inc.

Non-Magnetic Rental Tools, L.L.C.

ProActive Compliance, L.L.C.

Production Management Industries, L.L.C.

SE Finance LP

SEGEN LLC

SELIM LLC

SEMO, L.L.C.

SEMSE, L.L.C.

SPN Resources, LLC

Stabil Drill Specialties, L.L.C.

Sub-Surface Tools, L.L.C.

Superior Canada Holding, Inc.

Superior Energy Services, L.L.C.

Superior Inspection Services, Inc.

Universal Fishing and Rental Tools, Inc.

Wild Well Control, Inc.

Workstrings, L.L.C.

 

 

Purchase Agreement

December 7, 2006

BEAR, STEARNS & CO. INC.

LEHMAN BROTHERS INC.

J.P. MORGAN SECURITIES INC.

c/o Bear, Stearns & Co. Inc.

383 Madison Avenue

New York, NY 10179

Ladies and Gentlemen:

     SESI, L.L.C., a Delaware limited liability company (the “Company”), proposes to issue and sell
to the initial purchasers listed on Schedule I hereto (the “Initial Purchasers”) for whom you are
acting as representatives, $350,000,000 principal amount of its 1.5% Senior Exchangeable Notes due
2026 (the “Firm Securities”) to be issued pursuant to the provisions of an Indenture dated as of
December 12, 2006 (the “Indenture”) between the Company, Superior Energy Services, Inc. a Delaware
corporation and the parent of the Company (“Superior Energy”), each of the subsidiaries of SESI
that are parties to the Indenture (collectively, the “Guarantors”) and The Bank of New York Trust
Company, N.A., as Trustee (the “Trustee”). The Company also proposes to issue and sell to the
Initial Purchasers not more than an additional $50,000,000 principal amount of its 1.5% Senior
Exchangeable Notes due 2026 (the “Additional Securities”, and together with the Firm Securities and
the Guarantees (defined below), the “Securities”) if and to the extent that the Initial Purchasers
shall have determined to exercise the right to purchase such Additional Securities granted to the
Initial Purchasers in Section 1 hereof. The Securities will be fully and unconditionally
guaranteed (the “Guarantees”) as to payment of principal, premium, if any, and interest, if any, on
an unsecured senior basis, jointly and severally, by Superior Energy and the Guarantors. The
Securities will be in certain circumstances exchangeable for shares (the “Underlying Securities”)
of common stock of Superior Energy, par value $0.001 per share (the “Common Stock”). In connection
with the offering of the Securities, (i) the Company is entering into Common Stock call option
transactions with Bear, Stearns International Limited and Lehman Brothers OTC Derivatives Inc.
pursuant to the confirmation letters dated December 7, 2006 (the “Hedge Transaction”) and (ii)
Superior Energy is entering into warrant transactions with Bear, Stearns International Limited and
Lehman Brothers OTC Derivatives Inc. pursuant to the confirmation letters dated December 7, 2006
(the “Warrant Transaction” and together with the Hedge Transaction, the “Hedge and Warrant
Transaction Documentation”).

     The Securities and the Underlying Securities will be offered without being registered under
the Securities Act of 1933, as amended (together with the rules and regulations promulgated there
under, the “Securities Act”), only to “qualified institutional buyers” (as
defined in the Securities Act) in compliance with the exemption from registration provided by
Rule 144A under the Securities Act.

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     Each Initial Purchaser and its direct and indirect transferees will be entitled to the
benefits of a Registration Rights Agreement dated as of the Closing Date (as defined below) among
the Company, Superior Energy, the Guarantors and the Initial Purchasers (the “Registration Rights
Agreement”).

     In connection with the sale of the Securities, the Company and Superior Energy have prepared a
preliminary offering memorandum (including the documents incorporated by reference therein, the
“Preliminary Memorandum”) and will prepare a final offering memorandum (including the documents
incorporated by reference therein, the “Final Memorandum” and, together with the Preliminary
Memorandum, the “Offering Memorandum”) for the information of the Initial Purchasers and for
delivery to prospective purchasers of the Securities. The time when sales of Securities are first
made or confirmed by the Initial Purchasers to qualified institutional buyers is referred to as the
“Time of Sale,” and the Preliminary Memorandum, together with the other information referenced on
Schedule II hereto, is referred to as the “Time of Sale Information.”

     The Company, Superior Energy, and each of the Guarantors, jointly and severally hereby agree
with the Initial Purchasers as follows:

     1. Agreements to Sell and Purchase. The Company agrees to issue and sell the Firm Securities
to the several Initial Purchasers as hereinafter provided, and each Initial Purchaser, upon the
basis of the representations and warranties herein contained, but subject to the conditions
hereinafter stated, agrees to purchase severally and not jointly, from the Company the Firm
Securities at a purchase price of 97.5% of the principal amount thereof (the “Purchase Price”), in
the respective principal amount of Securities set forth opposite such Initial Purchaser’s name in
Schedule I hereto plus accrued interest, if any, from December 12, 2006, to the date of payment and
delivery.

     On the basis of the representations and warranties contained in this Agreement, and subject to
its terms and conditions, the Company agrees to sell to the Initial Purchasers the Additional
Securities, and the Initial Purchasers shall have the right to purchase in whole, or from time to
time in part, up to $50,000,000 principal amount of Additional Securities at the Purchase Price
plus accrued interest, if any, from the Closing Date to the date of payment and delivery. If you
on behalf of the Initial Purchasers exercise such option, you shall so notify the Company in
writing not later than 30 days after the date of this Agreement, which notice shall specify the
principal amount of Additional Securities to be purchased by the Initial Purchasers and the date on
which such Additional Securities are to be purchased; provided, however, that the Initial
Purchasers may not exercise their option to purchase Additional Securities in whole or in part such
that the delivery of any Additional Securities occurs more than 12 calendar days after the delivery
of the Firm Securities, unless: (i) neither the Firm Securities nor the Additional Securities are
treated as having been issued with more than a de minimis amount of original issue discount for
U.S. federal income tax purposes (as defined in Section 1273 of the Code and the Treasury
regulations promulgated thereunder), or (ii) the Firm Securities are publicly traded (within the
meaning of Treasury Regulation Section 1.1273-2(f)) and either (a) the Additional

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Securities are treated as having been issued with no more than a de minimis amount of original
issue discount for U.S. federal income tax purposes (determined without the application of Treasury
Regulation Section 1.1275-2(k)) or (b) on the Pricing Date (as defined below), the yield of the
Firm Securities (based on their then fair market value) is not more than 110% of the yield of such
Firm Securities on their issue date as defined in Treasury Regulation Section 1.1273-2(a)(2) (or
110% of the coupon rate, if the Firm Securities are treated as having been issued with no more than
a de minimis amount of original issue discount for U.S. federal income tax purposes). The “Pricing
Date” shall mean the earlier of (i) the date on which the price of the Additional Securities is
established and (ii) the later of (A) seven calendar days before the date on which the price of the
Additional Securities is established and (B) the date on which the Company’s intention to issue the
Additional Securities is publicly announced through one or more media. Such date may be the same
as the Closing Date but not earlier than the Closing Date nor later than ten business days after
the date of such notice.

     The Company, Superior Energy and the Guarantors acknowledge and agree that the Initial
Purchasers are acting solely in the capacity of an arm’s length contractual counterparty to the
Company, Superior Energy and the Guarantors with respect to the offering of Securities and the
Underlying Securities contemplated hereby (including in connection with determining the terms of
the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company,
Superior Energy and the Guarantors or any other person. Additionally, no Initial Purchaser is
advising the Company, Superior Energy or any other person as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction. The Company, Superior Energy and the
Guarantors shall consult with their own advisors concerning such matters and shall be responsible
for making their own independent investigation and appraisal of the transactions contemplated
hereby, and the Initial Purchasers shall have no responsibility or liability to the Company,
Superior Energy or the Guarantors with respect thereto. Any review by the Initial Purchasers of
the Company, Superior Energy, the Guarantors, the transactions contemplated hereby or other matters
relating to such transactions will be performed solely for the benefit of the Initial Purchasers
and shall not be on behalf of the Company, Superior Energy or the Guarantors. Each of the Company,
Superior Energy and the Guarantors hereby waives and releases, to the fullest extent permitted by
law, any claims that it may have against the Initial Purchasers with respect to any breach or
alleged breach of any fiduciary or similar duty in connection with the transactions contemplated by
this Agreement or any matters leading up to such transactions.

     2. Terms of the Offering. The Company, Superior Energy and the Guarantors understand that the
Initial Purchasers intend (i) to offer privately pursuant to Rule 144A under the Securities Act
their respective portions of the Securities as soon after this Agreement has become effective as in
the judgment of the Initial Purchasers is advisable and (ii) initially to offer the Securities upon
the terms set forth in the Final Memorandum.

     The Company, Superior Energy and the Guarantors confirm that they have authorized the Initial
Purchasers, subject to the restrictions set forth below, to distribute copies of the Offering
Memorandum in connection with the offering of the Securities. Each Initial Purchaser hereby
severally makes to the Company, Superior Energy and the Guarantors the following representations
and agreements:

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       (i) it is a “qualified institutional buyer” within the meaning of Rule 144A
under the Securities Act;

       (ii) offers and sales of the Securities will be made only by it or its
affiliates thereof qualified to do so in the jurisdictions in which such offers or
sales are made; and

       (iii) (A) it has not solicited offers for, or offered or sold, and will not
solicit offers for, or offer to sell, the Securities by means of any form of general
solicitation or general advertising (as those terms are used in Regulation D under
the Securities Act (“Regulation D”)) or in any manner involving a public offering
within the meaning of Section 4(2) of the Securities Act and (B) it has solicited
and will solicit offers for the Securities only from, and has offered or sold and
will offer, sell or deliver the Securities only to persons who it reasonably
believes to be “qualified institutional buyers” within the meaning of Rule 144A
under the Securities Act that in purchasing the Securities are deemed to have
represented and agreed as provided in the Offering Memorandum.

With respect to offers and sales of the Securities to “qualified institutional buyers” within the
meaning of Rule 144A, as described in clause (iii)(B) above, each Initial Purchaser hereby
represents and agrees with the Company, Superior Energy and the Guarantors that prior to or
contemporaneously with the purchase of the Securities, the Initial Purchaser will take reasonable
steps to inform, and cause each of its affiliates to take responsible steps to inform, persons
acquiring Securities from such Initial Purchaser or affiliate, as the case may be, that the
Securities (A) are being sold to them in reliance on Rule 144A under the Securities Act, (B) have
not been and, except as described in the Offering Memorandum, will not be registered under the
Securities Act, and (C) may not be offered, sold or otherwise transferred except as described in
the Offering Memorandum.

     3. Payment for Securities. Payment for the Firm Securities shall be made to the Company in
Federal or other funds immediately available in New York City against delivery of such Firm
Securities for the account of the several Initial Purchasers at 10:00 a.m., New York City time, on
December 12, 2006 or at such other time on the same or such other date, not later than December 12,
2006, as shall be designated in writing by you. The time and date of such payment are hereinafter
referred to as the “Closing Date.”

     Payment for any Additional Securities shall be made to the Company in Federal or other funds
immediately available in New York City against delivery of such Additional Securities for the
account of the several Initial Purchasers at 10:00 a.m., New York City time, on the date specified
in the notice described in Section 1 or at such other time on the same or on such other date, not
later than December 12, 2006, as shall be designated in writing by you. The time and date of such
payment are hereinafter referred to as the “Option Closing Date.”

     The Firm Securities and Additional Securities, as the case may be, to be purchased by each
Initial Purchaser hereunder will be represented by one or more definitive global certificates in
book-entry form which will be deposited by or on behalf of the Company with The Depository Trust
Company (“DTC”) or its designated custodian. The Company will deliver the Firm

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Securities or the Additional Securities on the Closing Date or the Option Closing Date, as the
case may be, to Bear, Stearns & Co. Inc., for the account of each Initial Purchaser, against
payment by or on behalf of such Initial Purchaser of the purchase price therefor by wire transfer
to the account of the Company of same day funds, by causing DTC to credit the Firm Securities or
the Additional Securities, as the case may be, to the account of Bear, Stearns & Co. Inc. at DTC.

     4. Representations and Warranties. The Company, Superior Energy and each of the Guarantors,
jointly and severally, represent and warrant to the Initial Purchasers that:

     (a) the Preliminary Memorandum did not, as of its date, the Time of Sale Information,
did not, as of the Time of Sale and, will not, as of the Closing Date, and the Final
Memorandum did not, as of its date, and will not, as of the Closing Date, contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that this representation and warranty shall not apply to any
statements or omissions made in reliance upon and in conformity with information relating to
any Initial Purchaser furnished to the Company or Superior Energy in writing by such Initial
Purchaser through you expressly for use therein;

     (b) the documents incorporated by reference in the Time of Sale Information and the
Final Memorandum, when they were filed with the Securities and Exchange Commission (the
“Commission”), conformed in all material respects to the requirements of the Securities
Exchange Act of 1934, as amended and the applicable rules and regulations of the Commission
thereunder (collectively the “Exchange Act”), and none of such documents contained an untrue
statement of a material fact or omitted to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; and any further documents so filed and incorporated by reference in the Final
Memorandum, when such documents are filed with the Commission, will conform in all material
respects to the requirements of the Exchange Act, and will not contain an untrue statement
of a material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading;

     (c) the financial statements, and the related notes thereto, of Superior Energy and its
consolidated subsidiaries and of Warrior Energy Services, Inc. (“Warrior”) and included or
incorporated by reference in the Time of Sale Information and the Final Memorandum present
fairly, in all material respects, the consolidated financial position of Superior Energy and
its consolidated subsidiaries and Warrior as of the dates indicated and the results of their
operations and the changes in their consolidated cash flows for the periods specified; and
said financial statements have been prepared in conformity with United States generally
accepted accounting principles and practices applied on a consistent basis, except as
described in the notes to such financial statements; and the other financial and statistical
information and any other financial data set forth in the Time of Sale Information and the
Final Memorandum present fairly, in all material respects, the information purported to be
shown thereby at the respective dates or for the respective periods to which they apply and,
to the extent that such information is set forth

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in or has been derived from the financial statements and accounting books and records
of Superior Energy and its consolidated subsidiaries and Warrior, have been prepared on a
basis consistent with such financial statements and the books and records of Superior Energy
and its consolidated subsidiaries and Warrior;

     (d) none of Superior Energy or any of its subsidiaries has sustained since the date of
the latest audited financial statements included in the Time of Sale Information any
material loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor dispute or court or
governmental action, order or decree, otherwise than as set forth or contemplated in the
Time of Sale Information; and, since the respective dates as of which information is given
in the Time of Sale Information, there has not been any material change in the capital
stock, material increase in long-term debt or any material decreases in consolidated net
current assets or stockholders’ equity of Superior Energy and its subsidiaries or any
material adverse change, or any development involving a prospective material adverse change,
in or affecting the general affairs, management, current or future consolidated financial
position, stockholders’ equity or results of operations of Superior Energy and its
subsidiaries taken as a whole (a “Material Adverse Effect”);

     (e) Superior Energy and each of its subsidiaries has been duly organized and is validly
existing as a corporation, limited liability company or partnership in good standing under
the laws of its jurisdiction of organization with all the requisite power and authority to
own its properties and conduct its business as described in the Time of Sale Information and
the Final Memorandum, and has been duly qualified as a foreign corporation, limited
liability company or partnership for the transaction of business and is in good standing
under the laws of each other jurisdiction in which it owns or leases properties or conducts
any business so as to require such qualification, except where the failure to be so
qualified or in good standing in any such jurisdiction would not have a material adverse
effect on the ability of Superior Energy and its subsidiaries taken as a whole to own or
lease their properties or conduct their businesses as described in the Time of Sale
Information and the Final Memorandum;

     (f) this Agreement has been duly authorized, executed and delivered by the Company,
Superior Energy and the Guarantors;

     (g) Superior Energy had, at the date indicated in the Time of Sale Information and the
Final Memorandum, a duly authorized, issued and outstanding capitalization as set forth in
the Time of Sale Information and the Final Memorandum; all of the issued shares of capital
stock of Superior Energy have been duly and validly authorized and issued and are fully paid
and non-assessable; such authorized capital stock of Superior Energy conforms as to legal
matters in all material respects to the description thereof contained in the Time of Sale
Information and the Final Memorandum; there are no outstanding options to purchase, or any
rights or warrants to subscribe for, or any securities or obligations convertible into, or
any contracts or commitments to issue or sell, any shares of Common Stock, any shares of
capital stock of any subsidiary, or any such warrants, convertible securities or
obligations, except as set forth in the Time of Sale Information and the Final Memorandum
and except for options, restricted stock and

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restricted stock units granted or issued under, or contracts or commitments pursuant
to, Superior Energy’s previous or currently existing stock incentive and other similar
officer, director or employee benefit plans;

     (h) none of the transactions contemplated by this Agreement (including, without
limitation, the use of the proceeds from the sale of the Securities) will violate or result
in a violation of Section 7 of the Exchange Act, or any regulation promulgated thereunder,
including, without limitation, Regulations T, U, and X of the Board of Governors of the
Federal Reserve System;

     (i) prior to the date hereof, neither Superior Energy nor any of its affiliates has
taken any action which is designed to or which has constituted or which might have been
expected to cause or result in stabilization or manipulation of the price of any security of
Superior Energy in connection with the offering of the Securities;

     (j) the Securities have been duly authorized by the Company and the Guarantors, and,
when issued and delivered as provided in this Agreement and duly authenticated pursuant to
the Indenture will be duly executed, authenticated, issued and delivered and will constitute
valid and legally binding obligations of the Company and the Guarantors entitled to the
benefits provided by the Indenture; and the Securities will conform, in all material
respects, to the descriptions thereof in the Time of Sale Information and the Final
Memorandum;

     (k) the Indenture has been duly authorized and, when executed and delivered by the
Company, Superior Energy and the Guarantors, and (assuming the authorization, execution and
delivery by the Trustee), shall constitute a valid and legally binding instrument of the
Company, Superior Energy and the Guarantors, enforceable against the Company, Superior
Energy and the Guarantors in accordance with its terms, subject as to enforcement, to
bankruptcy, insolvency, fraudulent transfer, fraudulent conveyance, moratorium,
reorganization and laws of general applicability relating to or affecting creditors’ rights
and general equity principles (regardless of whether enforceability is considered in a
proceeding in equity or at law); and the Indenture conforms, in all material respects, to
the description thereof in the Time of Sale Information and the Final Memorandum;

     (l) upon issuance and delivery of the Securities in accordance with this Agreement and
the Indenture, the Securities (except the Guarantees) will be exchangeable at the option of
the holder thereof into shares of the Underlying Securities in accordance with the terms of
the Securities (except the Guarantees); the Underlying Securities reserved for issuance upon
exchange of the Securities (except the Guarantees) have been duly authorized and reserved
and, when issued upon exchange of the Securities (except the Guarantees) in accordance with
the terms of the Securities (except the Guarantees), will be validly issued, fully paid and
non assessable, and the issuance of the Underlying Securities will not be subject to any
preemptive or similar rights;

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     (m) the Registration Rights Agreement has been duly authorized by the Company, Superior
Energy and the Guarantors and, when duly executed and delivered by
the Company, Superior Energy and the Guarantors, shall constitute the valid and legally
binding obligation of the Company, Superior Energy and the Guarantors, enforceable against
the Company, Superior Energy and the Guarantors in accordance with its terms, subject as to
enforcement, to bankruptcy, insolvency, fraudulent transfer, fraudulent conveyance,
moratorium, reorganization and laws of general applicability relating to or affecting
creditors’ rights and general equity principles (regardless of whether enforceability is
considered in a proceeding in equity or at law); and except that rights to indemnification
thereunder may be limited by federal or state securities laws or public policy relating
thereto; and the Registration Rights Agreement will conform, in all material respects, to
the description thereof in the Time of Sale Information and the Final Memorandum;

     (n) the Hedge and Warrant Transaction Documentation has been duly authorized, executed
and delivered by the Company and Superior Energy and constitute valid and legally binding
instruments of the Company and Superior Energy, as applicable, enforceable against them in
accordance with their terms, subject as to enforcement, to bankruptcy, insolvency,
fraudulent transfer, fraudulent conveyance, moratorium, reorganization and laws of general
applicability relating to or affecting creditors’ rights and general equity principles
(regardless of whether enforceability is considered in a proceeding in equity or at law);
and the Hedge and Warrant Transaction Documentation conforms, in all material respects, to
the description thereof in the Time of Sale Information and the Final Memorandum;

     (o) none of Superior Energy or any of its subsidiaries is in violation of its
certificate or articles of incorporation or organization or certificate of formation, or its
bylaws, limited liability company agreement or partnership agreement (or other
organizational documents), or in default in the performance or observance of any material
obligation, covenant or condition contained in any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which it is a party or by which it or
any of its properties may be bound, other than such defaults that individually or in the
aggregate would not have a Material Adverse Effect

     (p) the statements set forth in the Time of Sale Information and the Final Memorandum
under the captions “Description of Notes,” “Description of Our Capital Stock”, “Registration
Rights,” and “Certain United States Federal Income Tax Considerations,” insofar as they
constitute summaries of the legal matters, documents or proceedings referred to therein,
fairly present, in all material respects, the information called for with respect to such
legal matters, documents or proceedings;

     (q) other than as set forth in the Time of Sale Information and the Final Memorandum,
there are no legal or governmental proceedings pending to which Superior Energy or any of
its subsidiaries is a party or of which any property of Superior Energy or any of its
subsidiaries is the subject which, if determined adversely to Superior Energy or any of its
subsidiaries, would individually or in the aggregate have a Material Adverse Effect; and, to
the best of Superior Energy’s knowledge, no such proceedings have been threatened by
governmental authorities or others;

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     (r) none of the Company, Superior Energy, the Guarantors, nor any affiliate (as defined
in Rule 501(b) of Regulation D) of the Company, Superior Energy or any Guarantor has
directly, or through any agent, sold, offered for sale, solicited offers to buy or otherwise
negotiated in respect of, any security (as defined in the Securities Act) which is or will
be integrated with the sale of the Securities in a manner that would require the
registration under the Securities Act of the offering contemplated by the Time of Sale
Information and the Final Memorandum;

     (s) none of the Company, Superior Energy, the Guarantors, any affiliate of the Company,
Superior Energy or any Guarantor or any person acting on its or their behalf (other than the
Initial Purchasers for whom the Company, Superior Energy and the Guarantors make no
representation) has offered or sold the Securities by means of any general solicitation or
general advertising within the meaning of Rule 502(c) under the Securities Act;

     (t) the Securities satisfy the requirements set forth in Rule 144A(d)(3) under the
Securities Act;

     (u) the issue and sale of the Securities, the issuance by Superior Energy of the
Underlying Securities upon exchange of the Securities and the compliance by the Company,
Superior Energy and the Guarantors with all of the provisions of the Securities, the
Indenture, the Registration Rights Agreement, the Hedge and Warrant Transaction
Documentation and this Agreement and the consummation of the transactions herein and therein
contemplated (A) will not conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which Superior Energy or any of
its subsidiaries is a party or by which Superior Energy or any of its subsidiaries is bound
or to which any of the property or assets of Superior Energy or any of its subsidiaries is
subject, except such conflict, breach or violation as would not have a Material Adverse
Effect, (B) will not result in any violation of the provisions of the certificate of
incorporation or articles, bylaws, articles of organization, limited liability company
agreement, partnership agreement or other organizational documents of the Company, Superior
Energy or any Guarantor, and (C) will not result in the violation of any statute or any
order, rule or regulation of any court or governmental agency or body having jurisdiction
over Superior Energy or any of its subsidiaries or any of their properties, except such
violations as would not have a Material Adverse Effect; and except as disclosed in the Time
of Sale Information and the Final Memorandum, no consent, approval, authorization, order,
registration or qualification of or with any such court or governmental agency or body is
required for the issue and sale of the Securities or Underlying Securities or the
consummation by the Company, Superior Energy or any Guarantor of the transactions
contemplated by this Agreement or the Indenture, except for the filing and effectiveness of
a registration statement by the Company, Superior Energy and the Guarantors with the
Commission pursuant to the Securities Act and the Registration Rights Agreement, the
qualification of the Indenture under the Trust Indenture Act of 1939 (“Trust Indenture Act”)
in relation to the Securities and Underlying Securities and such consents, approvals,
authorizations, registrations or qualifications as may be required under state securities or
Blue Sky laws in connection

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with the purchase and distribution of the Securities by the Initial Purchasers in the
manner contemplated by this Agreement, the Time of Sale Information and the Final Memorandum
and except for such consents the failure to obtain would not have a Material Adverse Effect;

     (v) each of the Company and Superior Energy is not and, after giving effect to the
offering and sale of the Securities and the application of the proceeds thereof as described
in the Time of Sale Information and the Final Memorandum, will not be required to register
as an “investment company” as such term is defined in the Investment Company Act of 1940, as
amended (the “Investment Company Act”);

     (w) KPMG LLP (“KPMG”), who have certified the audited consolidated financial statements
of Superior Energy and its subsidiaries, are independent public accountants as required
under the Securities Act and the rules and regulations of the Commission thereunder;

     (x) when the Securities are issued and delivered pursuant to this Agreement, no
Securities will be of the same class (within the meaning of Rule 144A under the Securities
Act) as securities which are listed on a national securities exchange registered under
Section 6 of the Exchange Act, or quoted in a U.S. automated inter-dealer quotation system;

     (y) Superior Energy is subject to Section 13 or 15(d) of the Exchange Act;

     (z) Superior Energy and its subsidiaries own or possess adequate licenses or other
rights to use all trademarks, service marks, trade names and know-how necessary to conduct
the businesses now or proposed to be operated by them as described in the Time of Sale
Information and the Final Memorandum, and neither Superior Energy nor any of its
subsidiaries has received any notice of conflict with (or knows of any such conflict with)
asserted rights of others with respect to any trademarks, service marks, trade names or
know-how which, if such assertion of conflict were sustained, would individually or in the
aggregate have a Material Adverse Effect;

     (aa) Superior Energy and its subsidiaries possess all licenses, permits, certificates,
consents, orders, approvals and other authorizations from, and have made all declarations
and filings with, all federal, state, local and other governmental authorities and all
courts and other tribunals, including without limitation under any applicable Environmental
Laws (as defined below), currently required or necessary to own or lease, as the case may
be, and to operate their properties and to carry on their business as now and proposed to be
conducted as set forth in the Time of Sale Information and the Final Memorandum (“Permits”),
except where the failure to obtain such Permits would not individually or in the aggregate
have a Material Adverse Effect; Superior Energy and its subsidiaries have fulfilled and
performed all of their obligations with respect to such Permits and no event has occurred
which allows, or after notice or lapse of time would allow, revocation or termination
thereof or results in any other material impairment of the rights of the holder of any such
Permit, except where the failure to perform such obligations or the occurrence of such event
would not have a Material Adverse Effect;

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and neither Superior Energy nor any of its subsidiaries has received any notice of any
proceeding relating to revocation or modification of any such Permit, except as described in
the Time of Sale Information and the Final Memorandum and except where such revocation or
modification would not individually or in the aggregate have a Material Adverse Effect;

     (bb) Superior Energy and its subsidiaries have filed all necessary federal, state and
foreign income and franchise tax returns or have timely requested extensions thereof and
have paid all taxes shown as due thereon or made adequate reserve or provision therefor; and
other than tax deficiencies which Superior Energy or any subsidiary is contesting in good
faith and for which Superior Energy or such subsidiary has provided adequate reserves, there
is no tax deficiency that has been asserted against Superior Energy or any subsidiary that
would individually or in the aggregate have a Material Adverse Effect;

     (cc) except as described in the Time of Sale Information and the Final Memorandum or as
would not individually or in the aggregate have a Material Adverse Effect (A) Superior
Energy and its subsidiaries are in compliance with and not subject to any known liability
under applicable Environmental Laws (as defined below), (B) Superior Energy and its
subsidiaries have made all filings and provided all notices required under any applicable
Environmental Laws, and have, and are in compliance with, all Permits required under any
applicable Environmental Laws and each of them is in full force and effect, (C) there is no
civil, criminal or administrative action, suit, demand, claim, hearing, notice of violation,
investigation, proceeding, notice or demand letter or request for information pending or, to
the best of Superior Energy’s knowledge, threatened against Superior Energy or its
subsidiaries under any Environmental Law, (D) no lien, charge, encumbrance or restriction
has been recorded under any Environmental Law with respect to any assets, facility or
property owned, operated, leased or controlled by Superior Energy or any of its
subsidiaries, (E) neither Superior Energy nor any of its subsidiaries has received notice
that it has been identified as a potentially responsible party under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), or
any comparable state law, and (F) no property or facility of Superior Energy or any of its
subsidiaries is (i) listed or, to the best of Superior Energy’s knowledge, proposed for
listing on the National Priorities List under CERCLA or (ii) listed in the Comprehensive
Environmental Response, Compensation, Liability Information System List promulgated pursuant
to CERCLA, or on any comparable list maintained by any state or local governmental
authority;

     For purposes of this Agreement, “Environmental Laws” means the common law, all federal
treaties and all applicable federal, state and local laws or regulations, codes, orders, decrees,
judgments or injunctions issued, promulgated, approved or entered thereunder, relating to pollution
or protection of public or employee health and safety or the environment, including, without
limitation, laws relating to (i) emissions, discharges, releases or threatened releases of
hazardous materials into the environment (including, without limitation, ambient air, surface
water, ground water, sea water, land surface or subsurface strata), (ii) the manufacture,
processing, distribution, use, generation, treatment, storage, disposal, transport or handling of
hazardous materials, and (iii) underground and above ground storage tanks and related piping,
and emissions, discharges, releases or threatened releases therefrom;

-12-

 

     (dd) there is no strike, labor dispute, slowdown or work stoppage with the employees of
Superior Energy or any of its subsidiaries which is pending or, to the best of Superior
Energy’s knowledge, threatened; neither Superior Energy nor any of its subsidiaries is a
party to or has any obligation under any collective bargaining agreement or other labor
union contract, white paper or side agreement with any labor union or organization; except
as described in the Time of Sale Information and the Final Memorandum, to the best of
Superior Energy’s knowledge, no collective bargaining organizing activities are taking place
with respect to Superior Energy or any of its subsidiaries;

     (ee) Superior Energy and its subsidiaries carry insurance in such amounts and covering
such risks as in their determination is adequate for the conduct of their business or the
value of their properties;

     (ff) neither Superior Energy nor any of its subsidiaries has any liability for any
prohibited transaction or funding deficiency or any complete or partial withdrawal liability
with respect to any pension, profit sharing, 401(k) plan or other plan which is subject to
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), to which Superior
Energy or any of its subsidiaries makes or ever has made a contribution and in which any
employee of Superior Energy or any of its subsidiaries is or has ever been a participant,
except for such liabilities which would not individually or in the aggregate have a Material
Adverse Effect; and with respect to such plans, the Company and each of its subsidiaries are
in compliance in all material respects with all applicable provisions of ERISA;

     (gg) Superior Energy and each of its subsidiaries owns or leases all such properties as
are necessary to the conduct of its business as presently operated and as proposed to be
operated as described in the Final Memorandum. Superior Energy and each of its subsidiaries
have (i) good title to all real property and good title to all personal property owned by
them, in each case free and clear of any and all liens, encumbrances and defects except such
as are described in the Final Memorandum or such as do not (individually or in the
aggregate) materially affect the value of such property or materially interfere with the use
made or proposed to be made of such property by Superior Energy and each of its
subsidiaries, and (ii) peaceful and undisturbed possession of any real property and
buildings held under lease or sublease by Superior Energy and each of its subsidiaries and
such leased or subleased real property and buildings are held by them under valid,
subsisting and enforceable leases and no default exists thereunder, (including, to Superior
Energy’s knowledge, defaults by the landlord) with such exceptions as are not material to,
and do not interfere with, the use made and proposed to be made of such property and
buildings by Superior Energy and each of its subsidiaries except (in the case of clause (i)
above) where the failure to have such title or possession could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect;

-13-

 

     (hh) Superior Energy maintains a system of internal control over financial reporting
(as such term is defined in Rule 13a-15(f) under the Exchange Act) that complies with the
requirements of the Exchange Act and has been designed by Superior Energy’s principal
executive officer and principal financial officer, or under their supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with United States generally
accepted accounting principles; Superior Energy’s internal control over financial reporting
is effective, and Superior Energy is not aware of any material weaknesses in its internal
control over financial reporting;

     (ii) since the date of the latest audited financial statements included in the Time of
Sale Information, there has been no change in Superior Energy’s internal control over
financial reporting that has materially affected, or is reasonably likely to materially
affect, Superior Energy’s internal control over financial reporting;

     (jj) Superior Energy maintains disclosure controls and procedures (as such term is
defined in Rule 13a-15(e) under the Exchange Act) that comply with the requirements of the
Exchange Act; such disclosure controls and procedures have been designed to ensure that
material information relating to Superior Energy and its subsidiaries is made known to
Superior Energy’s principal executive officer and principal financial officer by others
within those entities; and such disclosure controls and procedures are effective;

     (kk) the information provided by Superior Energy to DeGolyer and MacNaughton (“D&M”) in
connection with D&M’s creation of the “Appraisal Report as of December 31, 2005 on Certain
Properties owned by SPN Resources, LLC” (the “Report”) was prepared in good faith by or on
behalf of Superior Energy and was complete and correct in all material respects on the date
that such information was supplied; and nothing has come to the attention of the Company or
Superior Energy that causes either to believe that the factual information provided by
Superior Energy to D&M in connection with the Report was, as of the date of the Report,
inaccurate in any material respect;

     (ll) the statistical, industry-related and market-related data included in the Final
Memorandum are based on or derived from sources which the Company and Superior Energy
reasonably and in good faith believe are reliable and accurate;

     (mm) the pro forma financial information included or incorporated by reference in the
Time of Sale Information and the Final Memorandum has been prepared on a basis consistent
with the financial statements from which it has been derived, includes all material
adjustments to the financial information required by Rule 11-02 of Regulation S-X under
the Exchange Act to reflect the transactions described in the Time of Sale Information and
the Final Memorandum, gives effect to assumptions made on a reasonable basis and fairly
presents the transactions described in Time of Sale Information and the Final Memorandum;

-14-

 

     (nn) Superior Energy has made available to the Initial Purchasers the Agreement and
Plan of Merger, dated as of September 22, 2006, by and among Superior Energy, SPN
Acquisition Sub, Inc. (“SPN Sub”) and Warrior (the “Warrior Purchase Agreement”). The
Warrior Purchase Agreement is in full force and effect as of the date hereof in the form
heretofore provided to the Initial Purchasers. With respect to the acquisition contemplated
by the Warrior Purchase Agreement (the “Acquisition”), Superior Energy represents that:

     (i) Superior Energy is not currently aware of any events, circumstances or
facts that would cause the representations or warranties of Warrior in the Warrior
Purchase Agreement to be inaccurate other than inaccuracies which would not result
in a Material Adverse Effect; and

     (ii) Other than consents and approvals referenced in the Warrior Purchase
Agreement, Superior Energy is not currently aware of any events, circumstances or
facts that would prevent Superior Energy from consummating the Acquisition.

     5. Covenants of the Company, Superior Energy and the Guarantors. The Company, Superior Energy
and the Guarantors covenant and agree with each of the several Initial Purchasers as follows:

     (a) the Company, Superior Energy and the Guarantors will deliver to the Initial
Purchasers as many copies of the Final Memorandum (including all amendments and supplements
thereto) as the Initial Purchasers may reasonably request;

     (b) before distributing any amendment or supplement to the Time of Sale Information or
the Final Memorandum, the Company, Superior Energy and the Guarantors will furnish to the
Initial Purchasers a copy of the proposed amendment or supplement for review and not to
distribute any such proposed amendment or supplement to which the Initial Purchasers
reasonably disapprove after reasonable notice thereof;

     (c) if, at any time prior to the completion of the initial placement of the Securities
by the Initial Purchasers, any event shall occur as a result of which it is necessary in the
opinion of the Initial Purchasers to amend or supplement the Time of Sale Information or the
Final Memorandum in order that the Time of Sale Information or the Final Memorandum will not
include an untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances when the Time of
Sale Information or the Final Memorandum is delivered to a purchaser, not misleading, or if
it is necessary to amend or supplement the Time of Sale Information or the Final Memorandum
to comply with law, the Company, Superior Energy and the Guarantors will forthwith prepare
and furnish, at the expense of the Company, Superior Energy and the Guarantors, to the
Initial Purchasers and to the dealers (whose names and addresses the Initial Purchasers will
furnish to the Company) to which Securities may have been sold by the Initial Purchasers on
behalf of the Initial Purchasers and to any other dealers upon request, such amendments or
supplements to the Time of Sale Information or the Final Memorandum as may be necessary to
correct such
untrue statement or omission or so that the statements in the Time of Sale Information
or the Final Memorandum as so amended or supplemented will comply with applicable law;

-15-

 

     (d) the Company, Superior Energy and the Guarantors will endeavor to qualify the
Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as
the Initial Purchasers shall reasonably request and to continue such qualification in effect
so long as reasonably required for distribution of the Securities and to pay all fees and
expenses (including fees and disbursements of counsel to the Initial Purchasers) reasonably
incurred in connection with such qualification and in connection with the determination of
the eligibility of the Securities for investment under the laws of such jurisdictions as the
Initial Purchasers may designate; provided that neither the Company, Superior Energy nor any
Guarantor shall be required to file a general consent to service of process in any
jurisdiction or to qualify as a foreign corporation, limited liability company or
partnership in any jurisdiction in which it is not so qualified;

     (e) without the prior written consent of Bear, Stearns & Co. Inc. Superior Energy will
not, during the period ending 60 days after the date of the Final Memorandum (the “Lock-up
Period”), (i) offer, pledge, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to
purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of
Common Stock or any securities convertible into or exercisable or exchangeable for Common
Stock, (ii) enter into any swap or other arrangement that transfers to another, in whole or
in part, any of the economic consequences of ownership of the Common Stock or (iii) file
with the Commission a registration statement under the Securities Act relating to any
additional shares of Common Stock or securities convertible into, or exchangeable for, any
shares of Common Stock, or publicly disclose the intention to effect any transaction
described in clause (i), (ii) or (iii), whether any such transaction described in clause (i)
or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash
or otherwise; provided that the foregoing shall not apply to (A) the sale of the Securities
under this Agreement or the issuance of the Underlying Securities, (B) the issuance of
shares of Common Stock in connection with the Acquisition, (C) the grant by Superior Energy
of employee or director stock options, restricted stock awards or restricted stock unit
awards in the ordinary course of business, the issuance by Superior Energy of any shares of
Common Stock upon the exercise of an option or upon the sale by Superior Energy of shares of
Common Stock pursuant to Superior Energy’s or its subsidiaries’ employee stock purchase
plan, (D) any transfer of shares of Common Stock pursuant to any Superior Energy’s or its
subsidiaries’ 401(k) plan, (E) the filing by Superior Energy of any registration statement
with the Commission on Form S-8 relating to the offering of securities pursuant to the terms
of Superior Energy’s existing incentive plan or employee stock purchase plan, (F) the
conversion or exchange of a security outstanding on the date hereof, (G) the Hedge and
Warrant Transaction Documentation executed by the Company and Superior Energy concurrently
with the pricing of the Securities and (H) filing of any registration statement in respect
of the Securities and the Underlying Securities.

-16-

 

     (f) the Company will use the net proceeds received by the Company from the sale of the
Securities pursuant to this Agreement in the manner specified in the Time of Sale
Information and the Final Memorandum under the caption “Use of Proceeds”;

     (g) the Company, Superior Energy and the Guarantors will use their reasonable best
efforts to have the Underlying Securities listed on the New York Stock Exchange;

     (h) during the period from the Closing Date until two years after the Closing Date, or
the Option Closing Date, if applicable, without the prior written consent of the Initial
Purchasers, the Company, Superior Energy and the Guarantors will not, and will not permit
any of their “affiliates” (as defined in Rule 144 under the Securities Act) to, resell any
of the Securities or Underlying Securities which constitute “restricted securities” under
Rule 144 that have been reacquired by any of them;

     (i) whether or not the transactions contemplated in this Agreement are consummated or
this Agreement is terminated, the Company, Superior Energy and the Guarantors will pay or
cause to be paid all costs and expenses incident to the performance of its obligations
hereunder, including without limiting the generality of the foregoing, all fees, costs and
expenses (i) incident to the preparation, issuance, execution, authentication and delivery
of the Securities, including any expenses of the Trustee, (ii) incident to the preparation,
printing and distribution of the Preliminary Memorandum, Time of Sale Information and the
Final Memorandum (including in each case all exhibits, amendments and supplements thereto),
(iii) incurred in connection with the registration or qualification and determination of
eligibility for investment of the Securities under the laws of such jurisdictions as the
Initial Purchasers may designate (including fees of counsel for the Initial Purchasers and
their disbursements), (iv) in connection with the admission for trading of the Securities on
any securities exchange or inter-dealer quotation system (as well as in connection with the
admission of the Securities for trading in the Private Offerings, Resales and Trading
through Automatic Linkages (“PORTAL”) system of the National Association of Securities
Dealers, Inc. or any appropriate market system), (v) related to any filing with the National
Association of Securities Dealers, Inc., (vi) in connection with the printing (including
word processing and duplication costs) and delivery of this Agreement, the Indenture, the
Preliminary and Supplemental Blue Sky Memoranda and any Legal Investment Survey and the
furnishing to Initial Purchasers and dealers of copies of the Preliminary Memorandum and the
Final Memorandum, including mailing and shipping, as herein provided, (vii) payable to
rating agencies in connection with the rating of the Securities, (viii) in connection with
the listing of the Underlying Securities on the New York Stock Exchange, and (ix) any
expenses incurred by the Company in connection with a “road show” presentation to potential
investors (it being understood that, except as expressly set forth in this Section 5(i) and
elsewhere in this Agreement (including, but not limited to, Sections 7 and 10 hereof), the
Company shall have no obligation to pay any costs and expenses of the Initial Purchasers,
including legal fees incurred by the Initial Purchasers);

-17-

 

     (j) the Company, Superior Energy and each Guarantor shall not be or become, at any time
prior to the expiration of two years after the Closing Date, an open-
end investment company, unit investment trust, closed-end investment company or
face-amount certificate company that is or is required to be registered under Section 8 of
the Investment Company Act;

     (k) while the Securities remain outstanding and are “restricted securities” within the
meaning of Rule 144(a)(3) under the Securities Act, Superior Energy will, during any period
in which it is not subject to Section 13 or 15(d) under the Exchange Act, make available to
the purchasers and any holder of Securities in connection with any sale thereof and any
prospective purchaser of Securities and securities analysts, in each case upon request, the
information specified in, and meeting the requirements of, Rule 144A(d)(4) under the
Securities Act (or any successor thereto);

     (l) none of the Company, Superior Energy or any Guarantor will take any action
prohibited by Regulation M under the Exchange Act, in connection with the distribution of
the Securities contemplated hereby;

     (m) none of the Company, Superior Energy any of their respective affiliates (as defined
in Rule 501(b) under the Securities Act) or any person acting on behalf of the Company,
Superior Energy or such affiliate will solicit any offer to buy or offer or sell the
Securities or the Underlying Securities by means of any form of general solicitation or
general advertising within the meaning of Regulation D, including: (i) any advertisement,
article, notice or other communication published in any newspaper, magazine or similar
medium or broadcast over television or radio; and (ii) any seminar or meeting whose
attendees have been invited by any general solicitation or general advertising;

     (n) none of the Company, Superior Energy or any of their respective affiliates (as
defined in Rule 501(b) under the Securities Act) or any person acting on behalf of the
Company, Superior Energy or such affiliate will sell, offer for sale or solicit offers to
buy or otherwise negotiate in respect of any security (as defined in the Securities Act)
which will be integrated with the sale of the Securities or the Underlying Securities in a
manner which would require the registration under the Securities Act of the Securities or
Underlying Securities, and the Company and Superior Energy will take all action that is
appropriate or necessary to assure that its offerings of other securities will not be
integrated for purposes of the Securities Act with the offering contemplated hereby;

     (o) the Company, Superior Energy and the Guarantors will execute and deliver the
Registration Rights Agreement in the form previously agreed upon and will comply with all
provisions and obligations of the Registration Rights Agreement as required herein;

     (p) prior to any registration of the Securities pursuant to the Registration Rights
Agreement, or at such earlier time as may be so required, to qualify the Indenture under the
Trust Indenture Act, and to enter into any necessary supplemental indentures in connection
therewith;

-18-

 

     (q) the Company and Superior Energy will each use its reasonable best efforts to cause
the Securities to be eligible for trading on PORTAL;

     (r) Superior Energy will reserve and keep available at all times, free of pre-emptive
rights, shares of Common Stock for the purpose of enabling Superior Energy to satisfy all
obligations to issue the Underlying Securities upon any exchange of the Securities;

     (s) except for such documents that are publicly available on the Commission’s
Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”), Superior Energy shall
furnish to the holders of the Securities as soon as practicable after the end of each fiscal
year an annual report (including a balance sheet and statements of income, stockholders’
equity and cash flows of Superior Energy and its consolidated subsidiaries certified by
independent public accountants) and, as soon as practicable after the end of each of the
first three quarters of each fiscal year (beginning with the fiscal quarter ending after the
date of the Final Memorandum), to make available to its security holders consolidated
summary financial information of Superior Energy and its subsidiaries for such quarter in
reasonable detail;

     (t) during a period of five years from the date of the Final Memorandum, except for
such documents that are publicly available on EDGAR, Superior Energy shall furnish to you
copies of all reports or other written communications (financial or other) furnished to
stockholders of Superior Energy, and deliver to you as soon as they are available, copies of
any reports and financial statements furnished to or filed with the Commission or any
securities exchange on which the Securities, or any class of securities of the Company or
Superior Energy is listed; and (ii) such additional information concerning the business and
financial condition of the Company and Superior Energy as you may from time to time
reasonably request (such financial statements to be on a consolidated basis to the extent
the accounts of Superior Energy and its subsidiaries are consolidated in reports furnished
to its stockholders generally or to the Commission);

     (u) the Company, Superior Energy and the Guarantors shall comply with all agreements
set forth in the representation letter of the Company to DTC relating to the approval of the
Securities by DTC for “book-entry” transfer; and

     (v) the Company, Superior Energy and the Guarantors shall advise the Initial Purchasers
promptly, and, if requested by the Initial Purchasers, confirm such advice in writing, of
the issuance by any state securities commission of any stop order suspending the
qualification or exemption of any of the Securities for offering or sale in any
jurisdiction, or the initiation of any proceeding for such purpose by any state securities
commission or other regulatory authority, and shall use their reasonable best efforts to
prevent the issuance of any stop order or order suspending the qualification or exemption of
any of the Securities under any state securities or Blue Sky laws, and if, at any time, any
state securities commission or other regulatory authority shall issue an order suspending
the qualification or exemption of any of the Securities under any state securities or Blue
Sky laws, the Company, Superior Energy and the Guarantors shall use
their reasonable best efforts to obtain the withdrawal or lifting of such order at the
earliest possible time.

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     6. Conditions to the Initial Purchasers’ Obligations. The several obligations of the Initial
Purchasers hereunder to purchase the Firm Securities on the Closing Date are subject to the
performance by the Company, Superior Energy and the Guarantors of their obligations hereunder and
to the following additional conditions:

     (a) the representations and warranties of the Company, Superior Energy and the
Guarantors contained herein are true and correct on and as of the Closing Date as if made on
and as of the Closing Date and the Company, Superior Energy and the Guarantors shall have
complied with all agreements and all conditions on their part to be performed or satisfied
hereunder at or prior to the Closing Date (for the avoidance of doubt, the description of
the proportional increase of the exchangeable note hedge and warrant transactions upon the
exercise of the overallotment option by the initial purchasers outlined in the Preliminary
Offering Memorandum shall not have changed in the Time of Sale Information or the Final
Memorandum);

     (b) on or after the date hereof no downgrading shall have occurred in the rating
accorded the Company’s debt securities by any “nationally recognized statistical rating
organization”, as that term is defined by the Commission for purposes of Rule 436(g)(2)
under the Securities Act;

     (c) (i) none of the Company, Superior Energy, the Guarantors, nor any of their
subsidiaries shall have sustained since the date of the latest audited financial statements
included in the Time of Sale Information any loss or interference with its business from
fire, explosion, flood or other calamity, whether or not covered by insurance, or from any
labor dispute or court or governmental action, order or decree, otherwise than as set forth
or contemplated in the Time of Sale Information, and (ii) since the respective dates as of
which information is given in the Time of Sale Information (excluding any amendment or
supplement thereto after the date hereof), there shall not have been (A) any change in the
capital stock or long-term debt of the Company, Superior Energy, the Guarantors or any of
their respective subsidiaries or any change, or any development involving a prospective
change, in or affecting the general affairs, management, financial position, stockholders’
equity or results of operations of the Company, Superior Energy, the Guarantors and their
respective subsidiaries, taken as a whole, otherwise than as set forth or contemplated in
the Time of Sale Information, or (B) the suspension or material limitation of trading in the
capital stock of Superior Energy on the New York Stock Exchange, the effect of which , in
any case described in clause (i) or (ii), in the judgment of the Initial Purchasers makes it
impracticable or inadvisable to proceed with the offering or the delivery of the Securities
on the Closing Date on the terms and in the manner contemplated in the Time of Sale
Information and the Final Memorandum;

     (d) the Initial Purchasers shall have received on and as of the Closing Date a
certificate of an executive officer of Superior Energy, with specific knowledge about
Superior Energy’s, the Company’s and the Guarantors’ financial matters, satisfactory to

-20-

 

the Initial Purchasers to the effect set forth in Sections 6(a), 6(b) and 6(c) and to
the further effect that there has not occurred any material adverse change, or any
development involving a prospective material adverse change, in or affecting the business,
financial position, stockholders’ equity or results of operations of Superior Energy and its
subsidiaries, taken as a whole, from that set forth in the Time of Sale Information and the
Final Memorandum;

     (e) Jones, Walker, Waechter, Poitevent, Carrère & Denègre, L.L.P., outside counsel for
the Company, Superior Energy and the Guarantors, shall have furnished to the Initial
Purchasers its written opinion, dated the Closing Date, in form and substance satisfactory
to the Initial Purchasers, to the effect that:

     (i) each of the Company, Superior Energy and the Guarantors has been duly
incorporated as a corporation or formed as a limited liability company or
partnership and is validly existing as a corporation, limited liability company or
partnership in good standing under the laws of the jurisdiction of its organization,
with corporate, limited liability company or partnership power and authority to own
its properties and conduct its business as described in the Time of Sale
Information;

     (ii) Superior Energy has an authorized capitalization as set forth in the Time
of Sale Information, and all of the issued shares of capital stock of Superior
Energy have been duly authorized and validly issued and are fully paid and
non-assessable;

     (iii) each of the Company, Superior Energy and the Guarantors has been duly
qualified as a foreign corporation, limited liability company or partnership for the
transaction of business and is in good standing under the laws of each other
jurisdiction in which it owns or leases properties or conducts any business so as to
require such qualification, except where the failure to be so qualified or in good
standing in any such jurisdiction would not have a Material Adverse Effect on
Superior Energy;

     (iv) all of the issued and outstanding capital stock, membership interests or
other equity interests of the Company and the Guarantors have been duly authorized
and validly issued, are fully paid and non-assessable, and are owned directly or
indirectly by Superior Energy, free and clear of all liens, encumbrances and
defects, except to the extent as will not have a Material Adverse Effect on Superior
Energy;

     (v) to such counsel’s knowledge and other than as set forth in the Time of Sale
Information, there are no legal or governmental proceedings pending to which the
Company, Superior Energy, the Guarantors, or any of their respective subsidiaries is
a party or of which any property of the Company or Superior Energy or any of its
subsidiaries is the subject which, if determined adversely to the Company or
Superior Energy or any of its subsidiaries, would individually or in the aggregate
have a Material Adverse Effect on Superior Energy;’

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     (vi) this Agreement has been duly authorized, executed and delivered by each of
the Company, Superior Energy and the Guarantors;

     (vii) the Registration Rights Agreement has been duly authorized, executed and
delivered by the Company, Superior Energy and the Guarantors and, assuming the due
authorization, execution and delivery of the other parties thereto, constitutes a
valid and legally binding obligation of the Company, Superior Energy and the
Guarantors, enforceable against the Company, Superior Energy and the Guarantors, in
accordance with its terms, except as limited by bankruptcy, insolvency, fraudulent
conveyance, fraudulent transfer, moratorium, reorganization and other similar laws
of general application affecting the rights and remedies of creditors and by general
principles of equity (regardless of whether enforceability is considered in a
proceeding in equity or at law), an implied covenant of good faith and fair dealing
and reasonableness, standards of materiality and, as to rights of indemnification,
to principles of public policy or federal or state securities laws relating thereto;

     (viii) the Securities have been duly authorized, executed, issued and delivered
by each of the Company, Superior Energy and the Guarantors and constitute valid and
legally binding obligations of the Company, Superior Energy and the Guarantors
entitled to the benefits provided by the Indenture, enforceable against the Company,
Superior Energy and the Guarantors in accordance with their terms, except as limited
by bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, moratorium,
reorganization and other similar laws of general application affecting the rights
and remedies of creditors and by general principles of equity (regardless of whether
enforceability is considered in a proceeding in equity or at law), an implied
covenant of good faith and fair dealing and reasonableness and standards of
materiality;

     (ix) the Underlying Securities reserved for issuance upon exchange of the
Securities have been duly authorized and reserved and, when issued upon exchange of
the Securities in accordance with the terms of the Securities, will be validly
issued, fully paid and non-assessable and the issuance of the Underlying Securities
will not be subject to any preemptive or similar rights under Superior Energy’s
Certificate of Incorporation or Bylaws or under the Delaware General Corporation
Law; and the Underlying Securities conform in all material respects to the
descriptions thereof in the Time of Sale Information and the Final Memorandum;

     (x) the Indenture has been duly authorized, executed and delivered by the
Company, Superior Energy and the Guarantors, and constitutes a valid and legally
binding instrument of the Company, Superior Energy and the Guarantors, enforceable
against the Company, Superior Energy and the Guarantors in accordance with its
terms, except as limited by bankruptcy, insolvency, fraudulent conveyance,
fraudulent transfer, moratorium, reorganization and other similar laws of general
application affecting the rights and remedies of creditors and by general principles
of equity (regardless of whether enforceability is considered in

-22-

 

a proceeding in equity or at law), an implied covenant of good faith and fair
dealing and reasonableness, standards of materiality and, as to rights of
indemnification, to principles of public policy or federal or state securities laws
relating thereto;

     (xi) no consent, approval, authorization, order, registration or qualification
of or with any such court or governmental agency or body is required for the issue
and sale of the Securities, the issuance by Superior Energy of the Underlying
Securities upon exchange of the Securities or the consummation by the Company,
Superior Energy and the Guarantors of the transactions contemplated by this
Agreement, the Indenture, the Hedge and Warrant Transaction Documentation or the
Registration Rights Agreement, except (A) if applicable, the shelf registration
statement required to become effective with the Commission be filed under the
Registration Rights Agreement and (B) such as have been obtained and such consents,
approvals, authorizations, registrations or qualifications as may be required under
state securities or Blue Sky laws in connection with the purchase and distribution
of the Securities by the Initial Purchasers and except where failure to obtain such
consent, approval, authorization, order, registration or qualification would not
have a Material Adverse Effect;

     (xii) no registration of the Securities or the Underlying Securities under the
Securities Act, and no qualification of an indenture under the Trust Indenture Act
with respect thereto, is required for the offer, sale and initial resale of the
Securities by the Initial Purchasers in the manner contemplated by this Agreement
and the Time of Sale Information;

     (xiii) none of the Company, Superior Energy, the Guarantors or any of their
respective subsidiaries is and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the Time of
Sale Information, will be required to register as an “investment company” as defined
in the Investment Company Act;

     (xiv) when the Securities are issued and delivered pursuant to this Agreement,
none of the Securities will be of the same class (within the meaning of Rule 144A
under the Securities Act) as securities of the Company, Superior Energy or any
Guarantor that are listed on a national securities exchange registered under Section
6 of the Exchange Act or that are quoted in a United States automated inter-dealer
quotation system;

     (xv) the statements set forth in the Time of Sale Information and the Final
Memorandum under the captions “Description of Our Other Indebtedness”, “Description
of Our Capital Stock” and “Certain United States Federal Income Tax Considerations,”
insofar as they constitute summaries of the legal matters, documents or proceedings
referred to therein, fairly present, in all material respects, the information
called for with respect to such legal matters, documents or proceedings;

-23-

 

     (xvi) the issue and sale of the Securities, the issuance by Superior Energy of
the Underlying Securities upon exchange of the Securities and the compliance by the
Company, Superior Energy and the Guarantors with all of the provisions of the
Securities, the Indenture, the Registration Rights Agreement and this Agreement with
respect to the Securities and the consummation of the transactions contemplated
herein and therein will not (a) conflict with or result in a breach or violation of
any of the terms or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument which is
attached or incorporated by reference as an exhibit to Superior Energy’s annual
report on Form 10-K for the year ended December 31, 2005 (the “Annual Report”), any
subsequent quarterly report on Form 10-Q, or any Item 1.01 of any Form 8-K filed
subsequent to the Annual Report, (b) result in any violation of the provisions of
the Certificate of Incorporation or Bylaws of Superior Energy or the organizational
documents of the Company or of any Guarantor, or (c) result in a violation of, to
the knowledge of such counsel, any order of any court or governmental agency or body
having jurisdiction over the Company, Superior Energy, the Guarantors or any of
their respective subsidiaries or any of their respective properties (except that
such counsel need express no opinion with respect to compliance with the anti-fraud
or similar provisions of any law, rule or regulation), except in the case of clauses
(a) and (c) for such breaches or violations that could not reasonably be expected to
have a Material Adverse Effect or that could violate public policy relating thereto;
and

     (xvii) each document incorporated by reference in the Time of Sale Information
and the Final Memorandum (other than the financial statements, including the notes
thereto, and financial statement schedules and other financial and accounting
information included therein, as to which such counsel need express no opinion),
when they became effective or were filed with the Commission, as the case may be,
appear on their face to be appropriately responsive in all material respects to the
requirements of the Exchange Act.

     In addition, such counsel’s opinion shall include a statement (but not an opinion) as to the
following: no facts have come to such counsel’s attention that have led such counsel to believe
that (except for (i) the financial statements and related schedules and the financial data derived
therefrom, including the notes and schedules thereto and the auditor’s report thereon or any other
financial or accounting data and (ii) any estimated proved oil and natural gas reserves, productive
well summaries, acreage or drilling activity included in, or excluded from, the Time of Sale
Information or the Final Memorandum as to which such counsel need express no belief) (x) the Time
of Sale Information, as of the Time of Sale or as of the Closing Date, contained an untrue
statement of a material fact or omitted to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, or (y) the
Final Memorandum, as of its date or as of the Closing Date, contained or contains an untrue
statement of a material fact or omitted or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
provided, however, that such counsel does not assume any responsibility for the accuracy,
completeness or fairness of the statements contained in the Time of Sale Information and Final
Memorandum (except for the applicable descriptions referenced in

-24-

 

paragraph (xv)), and such counsel does not express any belief with respect to (a) the
financial statements or other financial or accounting data and (b) the estimated proved oil and
natural gas reserves, productive well summaries, acreage or drilling activity contained in the Time
of Sale Information and Final Memorandum.

     (f) Latham and Watkins LLP, outside counsel for the Company, Superior Energy and the
Guarantors, shall have furnished to the Initial Purchasers their written opinion, dated the
Closing Date, in form and substance satisfactory to the Initial Purchasers, to the effect
that the statements set forth in the Time of Sale Information and the Final Memorandum under
the captions “Description of Notes” and “Registration Rights Agreement,” insofar as they
constitute summaries of the legal matters, documents or proceedings referred to therein,
fairly present, in all material respects, the information called for with respect to such
legal matters, documents or proceedings.

     (g) on the date hereof and also on the Closing Date, KPMG and Grant Thornton LLP shall
have furnished to the Initial Purchasers letters, dated the respective dates of delivery
thereof, in form and substance reasonably satisfactory to the Initial Purchasers, containing
statements and information of the type customarily included in accountants “comfort letters”
to underwriters with respect to the financial statements and certain financial information
contained in the Offering Memorandum;

     (h) Vinson & Elkins L.L.P., counsel to the Initial Purchasers, shall have furnished to
the Initial Purchasers their written opinion, dated the Closing Date, in form and substance
satisfactory to the Initial Purchasers;

     (i) the “lock-up” agreements, each substantially in the form of Exhibit A hereto,
between you and the officers and directors of Superior Energy identified on Exhibit A-1
relating to sales and certain other dispositions of shares of Common Stock or certain other
securities of Superior Energy, shall have been delivered to you on or before the date
hereof, shall be in full force and effect on the Closing Date;

     (j) the Securities shall have been approved for trading on PORTAL, subject only to
notice of issuance at or prior to the time of purchase;

     (k) the Initial Purchasers shall have received a counterpart of the Registration Rights
Agreement that shall have been executed and delivered by a duly authorized officer of the
Company, Superior Energy and each of the Guarantors;

     (l) on or prior to the Closing Date the Company and Superior Energy shall have
furnished to the Initial Purchasers such further certificates and documents as the Initial
Purchasers or their counsel shall reasonably request;

     (m) D&M shall have delivered to the Initial Purchasers a letter addressed to the
Initial Purchasers, in form and substance satisfactory to the Initial Purchasers, certifying
the accuracy of the estimates of the oil and gas reserves of Superior Energy or any of its
subsidiaries set forth in the Report and contained or incorporated by reference in the
Offering Memorandum; and

-25-

 

     (n) on or after the date hereof there shall not have occurred any of the following: (i)
trading generally shall have been suspended or materially limited on or by the New York
Stock Exchange, (ii) trading of any securities of or guaranteed by Superior Energy shall
have been suspended on any exchange or in any over the counter market, (iii) a general
moratorium on commercial banking activities shall have been declared by either Federal or
New York, Louisiana or Texas State authorities, (iv) the outbreak or escalation of
hostilities involving the United States or the declaration by the United States of a
national emergency or war or (v) the occurrence of any other calamity or crisis or any
change in financial, political or economic conditions in the United States or elsewhere, if
the effect of any such event specified in clause (iv) or (v) in the judgment of the Initial
Purchasers makes it impracticable or inadvisable to proceed with the offering or the
delivery of the Securities being issued at such Closing Date on the terms and in the manner
contemplated in the Time of Sale Information or to enforce contracts for the sale of the
Securities.

     The obligations of the Initial Purchasers to purchase Additional Securities hereunder are
subject to the delivery to you on the Option Closing Date of such documents as you may reasonably
request, including the due authorization, execution, authentication and issuance of the Additional
Securities and other matters related to the execution, authentication and issuance of the
Additional Securities.

     7. Indemnification and Contribution.

     (a) The Company, Superior Energy and each of the Guarantors jointly and severally agree
to indemnify and hold harmless the Initial Purchasers, and each person, if any, who controls
any Initial Purchaser within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act and each affiliate of any Initial Purchaser within the meaning of Rule
405 under the Securities Act, against any losses, claims, damages or liabilities of any kind
to which the Initial Purchasers or such controlling person may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon:

     (i) any untrue statement or alleged untrue statement of any material fact
contained in the Time of Sale Information, or the Final Memorandum (in each case,
including the documents incorporated by reference therein), or any amendment or
supplement thereto or in any other materials or information provided to investors
by, or with the written approval of, the Company or Superior Energy in connection
with the Offering, including any road show or investor presentations made to
investors by the Company or Superior Energy (whether in person or electronically)
(“Marketing Materials”); or

     (ii) the omission or alleged omission to state, in the Time of Sale Information
or the Final Memorandum (in each case, including the documents incorporated by
reference therein) or any amendment or supplement thereto, or in any Marketing
Materials, a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;

-26-

 

and, subject to the provisions hereof, will reimburse, as incurred, the Initial Purchaser
and each such affiliate and controlling person for any legal or other expenses reasonably
incurred by the Initial Purchasers, affiliates or such controlling person in connection with
investigating, defending against or appearing as a third-party witness in connection with
any such loss, claim, damage, liability or action in respect thereof; provided, however, the
Company, Superior Energy and the Guarantors will not be liable in any such case to the
extent (but only to the extent) that any such loss, claim, damage or liability resulted
solely from any untrue statement or alleged untrue statement or omission or alleged omission
made in the Time of Sale Information or the Final Memorandum or any amendment or supplement
thereto, or in any Marketing Materials, in reliance upon and in conformity with written
information concerning any Initial Purchaser furnished to the Company or Superior Energy by
or on behalf of such Initial Purchaser specifically for use therein. This indemnity
agreement will be in addition to any liability that the Company, Superior Energy and the
Guarantors may otherwise have to the indemnified parties. The Company, Superior Energy and
the Guarantors shall not be liable under this Section 7 for any settlement of any claim or
action effected without their prior written consent, which shall not be unreasonably
withheld.

     (b) Each Initial Purchaser agrees to indemnify and hold harmless each of the Company,
Superior Energy, each of the Guarantors and their respective directors, officers and each
person, if any, who controls Superior Energy within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act against any losses, claims, damages or
liabilities to which the Company, Superior Energy, any Guarantor or any such director,
officer or controlling person may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) are finally judicially determined by a court of competent jurisdiction in a final,
unappealable judgment, to have resulted solely from (i) any untrue statement or alleged
untrue statement of any material fact contained in the Time of Sale Information or the Final
Memorandum or any amendment or supplement thereto, or in any Marketing Materials, or (ii)
the omission or the alleged omission to state, in the Time of Sale Information or the Final
Memorandum or any amendment or supplement thereto, or in any Marketing Materials, a material
fact or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading, in each case to the extent (but only to the extent)
that such untrue statement or alleged untrue statement or omission or alleged omission was
made in reliance upon and in conformity with written information concerning such Initial
Purchaser, furnished to the Company, Superior Energy or their agents by the Initial
Purchaser specifically for use therein; and, subject to the limitation set forth immediately
preceding this clause, will reimburse, as incurred, any legal or other expenses incurred by
the Company, Superior Energy, each of the Guarantors or any such director, officer or
controlling person in connection with any such loss, claim, damage, liability or action in
respect thereof. This indemnity agreement will be in addition to any liability that each
Initial Purchaser may otherwise have to the indemnified parties.

     (c) As promptly as reasonably practicable after receipt by an indemnified party under
this Section 7 of notice of the commencement of any action for which such indemnified party
is entitled to indemnification under this Section 7, such indemnified

-27-

 

party will, if a claim in respect thereof is to be made against the indemnifying party
under this Section 7, notify the indemnifying party of the commencement thereof in writing;
but the omission to so notify the indemnifying party (i) will not relieve such indemnifying
party from any liability under paragraph (a) or (b) above unless and only to the extent it
is materially prejudiced as a result thereof and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraphs (a) and (b) above. In case any such
action is brought against any indemnified party, and it notifies the indemnifying party of
the commencement thereof, the indemnifying party will be entitled to participate therein
and, to the extent that it may determine, jointly with any other indemnifying party
similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified party; provided, however, that if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel with a
conflict of interest, (ii) the defendants in any such action include both the indemnified
party and the indemnifying party, and the indemnified party shall have been advised by
counsel in writing that there may be one or more legal defenses available to it and/or other
indemnified parties that are different from or additional to those available to the
indemnifying party, or (iii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after receipt by the indemnifying party of notice of the institution of such
action, then, in each such case, the indemnifying party shall not have the right to direct
the defense of such action on behalf of such indemnified party or parties and such
indemnified party or parties shall have the right to select separate counsel to defend such
action on behalf of such indemnified party or parties at the expense of the indemnifying
party. After notice from the indemnifying party to such indemnified party of its election
so to assume the defense thereof and approval by such indemnified party of counsel appointed
to defend such action, such approval not to be unreasonably withheld or delayed, the
indemnifying party will not be liable to such indemnified party under this Section 7 for any
legal or other expenses, other than reasonable costs of investigation, subsequently incurred
by such indemnified party in connection with the defense thereof, unless (i) the indemnified
party shall have employed separate counsel in accordance with the proviso to the immediately
preceding sentence (it being understood, however, that in connection with such action the
indemnifying party shall not be liable for the expenses of more than one separate counsel
(in addition to local counsel) in any one action or separate but substantially similar
actions in the same jurisdiction arising out of the same general allegations or
circumstances, designated by the Initial Purchasers in the case of paragraph (a) of this
Section 7 or the Company or Superior Energy in the case of paragraph (b) of this Section 7,
representing the indemnified parties under such paragraph (a) or paragraph (b), as the case
may be, who are parties to such action or actions) or (ii) the indemnifying party has
authorized in writing the employment of counsel for the indemnified party at the expense of
the indemnifying party. After such notice from the indemnifying party to such indemnified
party, the indemnifying party will not be liable for the costs and expenses of any
settlement of such action effected by such indemnified party without the prior written
consent of the indemnifying party (which consent shall not be unreasonably withheld), unless
such indemnified party waived in writing its rights
under this Section 7, in which case the indemnified party may effect such a settlement
without such consent.

-28-

 

     (d) No indemnifying party shall be liable under this Section 7 for any settlement of
any claim or action (or threatened claim or action) effected without its written consent,
which shall not be unreasonably withheld, but if a claim or action settled with its written
consent, or if there be a final judgment for the plaintiff with respect to any such claim or
action, each indemnifying party jointly and severally agrees, subject to the exceptions and
limitations set forth above, to indemnify and hold harmless each indemnified party from and
against any and all losses, claims, damages or liabilities (and legal and other expenses as
set forth above) incurred by reason of such settlement or judgment. No indemnifying party
shall, without the prior written consent of the indemnified party (which consent shall not
be unreasonably withheld), effect any settlement or compromise of any pending or threatened
proceeding in respect of which the indemnified party is or could have been a party, or
indemnity could have been sought hereunder by the indemnified party, unless such settlement
(A) includes an unconditional written release of the indemnified party, in form and
substance satisfactory to the indemnified party, from all liability on claims that are the
subject matter of such proceeding and (B) does not include any statement as to an admission
of fault, culpability or failure to act by or on behalf of the indemnified party.

     (e) In circumstances in which the indemnity agreement provided for in the preceding
paragraphs of this Section 7 is unavailable to, or insufficient to hold harmless, an
indemnified party in respect of any losses, claims, damages or liabilities (or actions in
respect thereof), each indemnifying party, in order to provide for just and equitable
contributions, shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages or liabilities (or actions in respect thereof) in
such proportion as is appropriate to reflect (i) the relative benefits received by the
indemnifying party or parties, on the one hand, and the indemnified party, on the other,
from the offering or (ii) if the allocation provided by the foregoing clause (i) is not
permitted by applicable law, not only such relative benefits but also the relative fault of
the indemnifying party or parties, on the one hand, and the indemnified party, on the other,
in connection with the statements or omissions or alleged statements or omissions that
resulted in such losses, claims, damages or liabilities (or actions in respect thereof).
The relative benefits received by the Company and Superior Energy, on the one hand, and the
Initial Purchasers, on the other, shall be deemed to be in the same proportion as the total
proceeds from the offering (before deducting expenses) received by the Company and Superior
Energy bears to the total discounts and commissions received by the Initial Purchasers. The
relative fault of the parties 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 to state a material fact relates to information supplied by the Company or Superior
Energy, on the one hand, or the Initial Purchasers, on the other, the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission or alleged statement or omissions, and any other equitable
considerations appropriate in the circumstances.

-29-

 

     (f) The Company, Superior Energy, the Guarantors and the Initial Purchasers agree that
it would not be equitable if the amount of such contribution determined pursuant to the
immediately preceding paragraph (e) were determined by pro rata or per capita allocation or
by any other method of allocation that does not take into account the equitable
considerations referred to in the first sentence of the immediately preceding paragraph (e).
Notwithstanding any other provision of this Section 7, the Initial Purchasers shall not be
obligated to make contributions hereunder that in the aggregate exceed the total discounts,
commissions and other compensation received by such Initial Purchasers under this Agreement,
less the aggregate amount of any damages that such Initial Purchasers have otherwise been
required to pay by reason of the untrue or alleged untrue statements or the omissions or
alleged omissions to state a material fact. 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. For purposes of the immediately preceding paragraph (e), each person, if
any, who controls an Initial Purchaser within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act and each affiliate of any Initial Purchaser within the
meaning of Rule 405 under the Securities Act shall have the same rights to contribution as
the Initial Purchaser, and each director of the Company, Superior Energy and the Guarantors,
each officer of the Company, Superior Energy and the Guarantors and each person, if any, who
controls the Company, Superior Energy or the Guarantors within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act, shall have the same rights to
contribution as the Company, Superior Energy and the Guarantors.

     8. Effectiveness; Defaulting Initial Purchasers. This Agreement shall become effective upon
the execution and delivery hereof by the parties hereto.

     If, on the Closing Date any one or more of the Initial Purchasers shall fail or refuse to
purchase Securities which it or they have agreed to purchase hereunder on such date, and the
aggregate principal amount of Securities which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase is not more than one tenth of the aggregate
principal amount of the Securities to be purchased on such date, the other Initial Purchasers shall
be obligated severally in the proportions that the principal amount of Securities set forth
opposite their respective names in Schedule I (in the column titled “Total”) bears to the aggregate
principal amount of Securities set forth opposite the names of all such non defaulting Initial
Purchasers (in the column titled “Total”), or in such other proportions as the Initial Purchasers
may specify, to purchase the Securities which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase on such date; provided that in no event shall
the principal amount of Securities that any Initial Purchaser has agreed to purchase pursuant to
Section 1 be increased pursuant to this Section 8 by an amount in excess of one tenth of such
principal amount of Securities without the written consent of such Initial Purchaser. If, on the
Closing Date any Initial Purchaser or Initial Purchasers shall fail or refuse to purchase
Securities which it or they have agreed to purchase hereunder on such date, and the aggregate
principal amount of Securities with respect to which such default occurs is more than one tenth of
the aggregate principal amount of Securities to be purchased on such date, and arrangements
satisfactory to the Initial Purchasers, the Company and Superior Energy for the purchase of such
Securities are not made within 36 hours after such default, this Agreement shall terminate

-30-

 

without liability on the part of any non defaulting Initial Purchaser or the Company, Superior
Energy and any Guarantor. In any such case either the Initial Purchasers or the Company shall have
the right to postpone the Closing Date, but in no event for longer than seven days, in order that
the required changes, if any, in the Final Memorandum or in any other documents or arrangements may
be effected. Any action taken under this paragraph shall not relieve any defaulting Initial
Purchaser from liability in respect of any default of such Initial Purchaser under this Agreement.

     9. Reimbursement. If the transactions contemplated by this Agreement shall fail to close
because of a condition not being met because of any failure or refusal on the part of the Company,
Superior Energy or any Guarantor to comply with the terms or to fulfill any of the conditions of
this Agreement or if for any reason the Company, Superior Energy or any Guarantor shall be unable
to perform its obligations under this Agreement or any condition of the Initial Purchasers’
obligations (other than those conditions set forth in Sections 6(o)(i) or (iii) through (v)) cannot
be fulfilled, the Company and Superior Energy, jointly and severally, agree to reimburse the
Initial Purchasers or such Initial Purchasers as have so terminated this Agreement with respect to
themselves, severally, for all out of pocket expenses (including the reasonable fees and expenses
of their counsel) incurred by such Initial Purchasers in connection with this Agreement or the
offering contemplated hereunder.

     10. Parties. This Agreement shall inure to the benefit of and be binding upon the Company,
Superior Energy, the Guarantors, the Initial Purchasers, any controlling persons referred to herein
and their respective successors and assigns. Nothing expressed or mentioned in this Agreement is
intended or shall be construed to give any other person, firm or corporation any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision herein contained. No
purchaser of Securities from an Initial Purchaser shall be deemed to be a successor by reason
merely of such purchase.

     11. Notices. Any action by the Initial Purchasers hereunder may be taken by the
Representative on behalf of the Initial Purchasers, and any such action taken by the Representative
shall be binding upon the Initial Purchasers. All notices and other communications hereunder shall
be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard
form of telecommunication. Notices to the Initial Purchasers shall be given to the Initial
Purchasers c/o Bear, Stearns & Co. Inc. 383 Madison, New York, New York 10179. Notices to the
Company or Superior Energy shall be given to them at Superior Energy Services, Inc., Attention
Robert S. Taylor, 1105 Peters Road, Harvey, Louisiana, 77058 (Fax (504) 365-9624).

     12. Survival of Representations and Indemnities. The representations and warranties,
covenants, indemnities and contribution and expense reimbursement provisions and other agreements,
representations and warranties of the Company, Superior Energy and the Guarantors set forth in or
made pursuant to this Agreement shall remain operative and in full force and effect, and will
survive, regardless of (i) any investigation, or statement as to the results thereof, made by or on
behalf of the Initial Purchasers and (ii) acceptance of the Securities, and payment for them
hereunder.

-31-

 

     13. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

     14. Counterparts. This Agreement may be signed in counterparts, each of which shall be an
original and all of which together shall constitute one and the same instrument.

-32-

 

     If the foregoing is in accordance with your understanding, please sign and return seven
counterparts hereof.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	SESI, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	SUPERIOR ENERGY SERVICES, INC.,	 	 
	 

	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 	 
	 

	 	 	 	 

Name: Robert S. Taylor
	 	 
	 

	 	 	 	Title: Executive Vice President and

          Chief Financial Office	 	 
	 
	 	 	 	 	 	 
	 	 	SUPERIOR ENERGY SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 	 
	 

	 	 	 	 

Name: Robert S. Taylor
	 	 
	 

	 	 	 	Title: Executive Vice President and

          Chief Financial Office	 	 

 

 

	 	 	 	 	 	 	 
	 	 	1105 PETERS ROAD, L.L.C.	 	 
	 	 	BLOWOUT TOOLS, INC.	 	 
	 	 	CONCENTRIC PIPE AND TOOL RENTALS, L.L.C.	 	 
	 	 	CONNECTION TECHNOLOGY, L.L.C.	 	 
	 	 	CSI TECHNOLOGIES, LLC	 	 
	 	 	DRILLING LOGISTICS, L.L.C.	 	 
	 	 	F. & F. WIRELINE SERVICE, L.L.C.	 	 
	 	 	FASTORQ, L.L.C.	 	 
	 	 	H.B. RENTALS, L.C.	 	 
	 	 	INTERNATIONAL SNUBBING SERVICES, L.L.C.	 	 
	 	 	J.R.B. CONSULTANTS, INC.	 	 
	 	 	NON-MAGNETIC RENTAL TOOLS, L.L.C.	 	 
	 	 	PROACTIVE COMPLIANCE, L.L.C.	 	 
	 	 	PRODUCTION MANAGEMENT INDUSTRIES, L.L.C.	 	 
	 	 	SEGEN LLC	 	 
	 	 	SELIM LLC	 	 
	 	 	SEMO, L.L.C.	 	 
	 	 	SEMSE, L.L.C.	 	 
	 	 	SPN RESOURCES, LLC	 	 
	 	 	STABIL DRILL SPECIALTIES, L.L.C.	 	 
	 	 	SUB-SURFACE TOOLS, L.L.C.	 	 
	 	 	SUPERIOR CANADA HOLDING, INC.	 	 
	 	 	SUPERIOR ENERGY SERVICES, L.L.C.	 	 
	 	 	SUPERIOR INSPECTION SERVICES, INC.	 	 
	 	 	UNIVERSAL FISHING AND RENTAL TOOLS, INC.	 	 
	 	 	WILD WELL CONTROL, INC.	 	 
	 	 	WORKSTRINGS, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Talyor	 	 
	 

	 	 	 	 

Name: Robert S. Taylor
	 	 
	 

	 	 	 	Title: Authorized Representative	 	 
	 
	 	 	 	 	 	 
	 	 	SE FINANCE LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	SEGEN, LLC,

Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert S. Taylor	 	 
	 

	 	 	 	Title: Authorized Representative	 	 

 

 

The foregoing Purchase Agreement

is hereby confirmed and accepted

as of the date first above written.

BEAR, STEARNS & CO. INC.,

LEHMAN BROTHERS INC., and

J.P. MORGAN SECURITIES INC.

	 	 	 	 	 	 	 
	By:	 	BEAR, STEARNS & CO. INC.	 	 
	 
	 	 	 	 	 	 
	 	 	Acting on behalf of themselves	 	 
	 	 	and as Representative	 	 
	 	 	of the Initial Purchasers	 	 
	 
	 	 	 	 	 	 
	By:
	 	/s/ Michael A. Lloyd
	 	 	 	 	 
	 

	 	Name:	 	Michael A. Lloyd 
	 	 
	 

	 	Title:	 	Senior Managing Directorexv10w2

 

EXHIBIT 10.2

$400,000,000

SESI, L.L.C.

1.50% Senior Exchangeable Notes due 2026

Registration Rights Agreement

December 12, 2006

BEAR, STEARNS & CO. INC.

LEHMAN BROTHERS INC.

J.P. MORGAN SECURITIES INC.

c/o Bear, Stearns & Co. Inc.

383 Madison Avenue

New York, NY 10179

Ladies and Gentlemen:

     This Registration Rights Agreement (the “Agreement”) is made and entered into as of December
12, 2006, by and among SESI, L.L.C., a Delaware limited liability company (“SESI”), and Superior
Energy Services, Inc., a Delaware corporation (“Superior Energy” and along with SESI referred to as
the “Issuers”), the guarantors named on the signature pages hereof (the “Guarantors”), and Bear,
Stearns & Co. Inc. acting on behalf of the several parties (the “Initial Purchasers”) named in
Schedule I to that certain Purchase Agreement, dated as of December 7, 2006 (the “Purchase
Agreement”) among the Issuers, the Guarantors and you, as the Initial Purchasers.

     As an inducement to the Initial Purchasers to enter into the Purchase Agreement and in
satisfaction of a condition to the obligations of the Initial Purchasers thereunder, the Issuers
and the Guarantors agree with the Initial Purchasers, for the benefit of the holders (including the
Initial Purchasers) of the Notes and the Shares (as defined below) (collectively, the “Holders”),
as follows:

     1. Certain Definitions.

     For purposes of this Agreement, the following terms shall have the following meanings:

     (a) “Additional Interest” has the meaning assigned thereto in Section 2(d).

     (b) “Additional Interest Payment Date” has the meaning assigned thereto in
Section 2(d).

 

 

     (c) “Agreement” means this Registration Rights Agreement, as the same may be
amended from time to time pursuant to the terms hereof.

     (d) “Closing Date” means the earliest date on which any Notes are initially
issued.

     (e) “Commission” means the Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities Act,
whichever is the relevant statute for the particular purpose.

     (f) “Dealer” shall have the meaning assigned thereto in Section 2(a).

     (g) “Deferral Notice” has the meaning assigned thereto in Section 3(b).

     (h) “Deferral Period” has the meaning assigned thereto in Section 3(b).

     (i) “Effective Period” has the meaning assigned thereto in Section 2(a).

     (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

     (k) “Holder” means each holder, from time to time, of Registrable Securities
(including the Initial Purchasers).

     (l) “Indenture” means the Indenture dated as of the date hereof among the
Issuers , the Guarantors and The Bank of New York Trust Company, N.A., as
Trustee, pursuant to which the Notes are being issued.

     (m) “Initial Purchasers” has the meaning specified in the first paragraph of
this Agreement.

     (n) “Issuers” has the meaning specified in the first paragraph of this
Agreement.

     (o) “Material Event” has the meaning assigned thereto in Section 3(a)(iii).

     (p) “Majority Holders” shall mean, on any date, holders of the majority of
the Shares constituting Registrable Securities; for the purposes of this
definition, Holders of Notes

2

 

constituting Registrable Securities shall be deemed to be the Holders of the
number of Shares into which such Notes are or would be convertible as of such
date.

     (q) “NASD” shall mean the National Association of Securities Dealers, Inc.

     (r) “NASD Rules” shall mean the Conduct Rules and the By-Laws of the NASD.

     (s) “Notes” mean the 1.50% Senior Exchangeable Notes due 2026 of SESI,
issued on the date hereof under the Indenture and sold by SESI to the Initial
Purchasers.

     (t) “Notice and Questionnaire” means a written notice delivered to the
Issuers containing substantially the information called for by the Form of
Selling Securityholder Notice and Questionnaire attached as Annex A to the
Offering Memorandum.

     (u) “Notice Holder” means, on any date, any Holder that has delivered a
Notice and Questionnaire to the Issuers on or prior to such date.

     (v) “Offering Memorandum” means the Offering Memorandum dated December 7,
2006 relating to the offer and sale of the Notes.

     (w) “Person” means a corporation, association, partnership, organization,
business, individual, government or political subdivision thereof or governmental
agency.

     (x) “Prospectus” means the prospectus included in any Shelf Registration
Statement, as amended or supplemented by any amendment or prospectus supplement,
including post-effective amendments, and all materials incorporated by reference
or explicitly deemed to be incorporated by reference in such Prospectus.

     (y) “Purchase Agreement” has the meaning specified in the first paragraph of
this Agreement.

     (z) “Registrable Securities” means:

     (i) the Notes, until the earliest of (i) with respect to any specific Note,
their resale in accordance with the Shelf Registration Statement, (ii) the
expiration of the holding period applicable to

3

 

such Notes under Rule 144(k) or any successor provision or similar
provisions then in effect, (iii) the date on which all such Notes are freely
transferable by persons who are not affiliates of the Issuers without
registration under the Securities Act, or (iv) the date on which all such notes
have been converted or otherwise cease to be outstanding; and

     (ii) the Shares, if any, issuable upon conversion of the Notes, until the
earliest of (i) with respect to any specific Share, their resale in accordance
with the Shelf Registration Statement, (ii) the expiration of the holding period
applicable to such Shares under Rule 144(k) or any successor provision or similar
provisions then in effect, (iii) the date on which all such Shares are freely
transferable by persons who are not affiliates of the Issuers without
registration under the Securities Act, or (iv) the date on which all such shares
of common stock cease to be outstanding.

     (aa) “Registration Default” has the meaning assigned thereto in Section
2(d).

     (bb) “Registration Expenses” has the meaning assigned thereto in Section 5.

     (cc) “Rule 144,” “Rule 405” and “Rule 415” mean, in each case, such rule as
promulgated under the Securities Act.

     (dd) “Securities” means, collectively, the Notes and the Shares.

     (ee) “Securities Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

     (ff) “Shares” means the shares of common stock of Superior Energy, par value
$0.001 per share, into which the Notes are exchangeable or that have been issued
upon any exchange of the Notes for common stock of Superior Energy.

     (gg) “Shelf Registration Statement” means the shelf registration statement
referred to in Section 2(a), as amended or supplemented by any amendment or
supplement, including post-effective amendments, and all materials incorporated
by reference or explicitly deemed to be incorporated by reference in such Shelf
Registration Statement.

     (hh) “Special Counsel” shall have the meaning assigned thereto in Section 5.

4

 

     (ii) “Trust Indenture Act” means the Trust Indenture Act of 1939, as
amended, or any successor thereto, and the rules, regulations and forms
promulgated thereunder, all as the same shall be amended from time to time.

     (jj) “Trustee” shall have the meaning assigned such term in the Indenture.

     Unless the context otherwise requires, any reference herein to a “Section” or
“clause” refers to a Section or clause, as the case may be, of this Agreement, and the
words “herein,” “hereof” and “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular Section or other subdivision. Unless the
context otherwise requires, any reference to a statute, rule or regulation refers to the
same (including any successor statute, rule or regulation thereto) as it may be amended
from time to time.

     2. Registration Under the Securities Act.

     (a) Each Issuer agrees to use reasonable best efforts to cause the Shelf
Registration Statement covering resales of the Registrable Securities pursuant to
Rule 415 or any similar rule that may be adopted by the Commission to become
effective under the Securities Act within 180 days after the Closing Date and to
keep such Shelf Registration Statement continuously effective until each of the
Registrable Securities covered by the Shelf Registration Statement ceases to be a
Registrable Security (the “Effective Period”). Except with respect to certain
registration rights granted to each of Bear, Stearns International Limited and
Lehman Brothers OTC Derivatives, Inc. (each a “Dealer” and together, the
“Dealers”) under letter agreements dated as of December 7, 2006 between each of
the Dealers and Superior Energy (the “Letter Agreements”), Superior Energy’s
securityholders (other than Holders of Registrable Securities) shall not have the
right to include any of the securities of Superior Energy in the Shelf
Registration Statement.

     (b) Each Issuer further agrees that it shall cause the Shelf Registration
Statement and the Prospectus and any amendment or supplement thereto, as of the
effective date of the Shelf Registration Statement or such amendment or
supplement, (i) to comply in all material respects with the applicable
requirements of the Securities Act and (ii) not to 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 case of the
Prospectus, in the light of the circumstances under which they were made) not
misleading, and

5

 

the Issuers agree to furnish to the Holders of the Registrable Securities
copies of any supplement or amendment upon the request of any such Holder prior
to its being used or promptly following its filing with the Commission; provided,
however, that the Issuers shall have no obligation to deliver to Holders of
Registrable Securities copies of any amendment consisting exclusively of an
Exchange Act report or other Exchange Act filing otherwise publicly available on
Superior Energy’s website. If the Shelf Registration Statement ceases to be
effective for any reason at any time during the Effective Period (other than
because all Registrable Securities registered thereunder shall have been sold
pursuant thereto or shall have otherwise ceased to be Registrable Securities),
each Issuer shall use reasonable best efforts to obtain the prompt withdrawal of
any order suspending the effectiveness thereof.

     (c) Each Holder of Registrable Securities agrees that if such Holder wishes
to sell Registrable Securities pursuant to the Shelf Registration Statement and
related Prospectus, it will do so only in accordance with this Section 2(c) and
Section 3(b). Not less than thirty (30) calendar days prior to the expected
effective time of the Shelf Registration Statement, the Issuers shall give notice
to each of the Holders of its intention to file the Shelf Registration Statement,
together with a Notice and Questionnaire, in the same manner as it would give
notice to the Holders under the Indenture. No Holder shall be entitled to be
named as a selling securityholder in the Shelf Registration Statement as of the
effective time, and no Holder shall be entitled to use the Prospectus for resales
of Registrable Securities at any time, unless such Holder has returned a
completed and signed Notice and Questionnaire to the Issuers by the deadline for
response set forth therein; provided, however, Holders shall have at least 28
calendar days from the date on which the Notice and Questionnaire is first given
to such Holders to return a completed and signed Notice and Questionnaire to the
Issuers. After the effective time, the Issuers shall, upon the request of any
Holder that is not then a Notice Holder, promptly send a Notice and Questionnaire
to such Holder. The Issuers shall not be required to take any action to name
such Holder as a selling securityholder in the Shelf Registration Statement or to
enable such Holder to use the Prospectus for resales of Registrable Securities
(i) until such Holder has returned a completed and signed Notice and
Questionnaire to the Issuers by the deadline for response set in compliance with
this Section 2(c) or (ii) the use of the Prospectus has been suspended pursuant
to Section 3(b). From and after the date the Shelf Registration Statement
becomes effective, the Issuers shall, as promptly as is

6

 

practicable after the date a Notice and Questionnaire is delivered, and in
any event within thirty (30) days after the date of receipt of such Notice and
Questionnaire, or if the use of the Prospectus has been suspended by the Issuers
under Section 3(b) hereof at the time of receipt of the Notice and Questionnaire,
within thirty (30) days after the expiration of the period during which the use
of the Prospectus is suspended:

     (i) if required by applicable law, file with the Commission a post-effective
amendment to the Shelf Registration Statement or prepare and, if required by
applicable law, file a supplement to the related Prospectus or file any other
required document so that the Holder delivering such Notice and Questionnaire is
named as a selling securityholder in the Shelf Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver such
Prospectus to purchasers of the Registrable Securities in accordance with
applicable law and, if the Issuers shall file a post-effective amendment to the
Shelf Registration Statement, use reasonable best efforts to cause such
post-effective amendment to become effective under the Securities Act as promptly
as is practicable. Notwithstanding the foregoing, the Issuers shall not be
required to file more than one post-effective amendment to the Shelf Registration
Statement or supplement to the related Prospectus during any calendar quarter;

     (ii) unless such copy is available on the Electronic Data Gathering Analysis
and Retrieval System (“EDGAR”), upon request provide such Holder copies of any
documents filed pursuant to Section 2(c)(i); and

     (iii) notify such Holder as promptly as practicable after the effectiveness
under the Securities Act of any post-effective amendment filed pursuant to
Section 2(c)(i).

     (d) If any of the following events (any such event a “Registration Default”)
shall occur, then additional interest (the “Additional Interest”) shall become
payable by the Issuers and the Guarantors, jointly and severally, to Holders in
respect of the Notes as follows:

     (i) if the Shelf Registration Statement does not become effective with the
Commission within 180 days following the Closing Date, then commencing on the
181st day after the Closing Date, Additional Interest shall accrue on the
principal amount of the outstanding Notes at a rate of 0.25% per annum for the
first 90 days following such 181st day and at a rate of 0.50% per annum
thereafter; or

7

 

     (ii) if the Shelf Registration Statement becomes effective but such Shelf
Registration Statement ceases to be effective at any time during the Effective
Period (other than pursuant to Section 3(b) hereof), then commencing on the day
such Shelf Registration Statement ceases to be effective, Additional Interest
shall accrue on the principal amount of the outstanding Notes that are
Registrable Securities at a rate of 0.25% per annum for the first 90 days
following such date on which the Shelf Registration Statement ceases to be
effective and at a rate of 0.50% per annum thereafter; or

     (iii) if the aggregate duration of Deferral Periods in any period exceeds
the number of days permitted in respect of such period pursuant to Section 3(b)
hereof, then commencing on the day the aggregate duration of Deferral Periods in
any period exceeds the number of days permitted in respect of such period (and
again on the first day of any subsequent Deferral Period during such period),
Additional Interest shall accrue on the principal amount of the outstanding Notes
that are Registrable Securities at a rate of 0.25% per annum for the first 90
days and at a rate of 0.50% per annum thereafter;

provided, however, that the Additional Interest rate on the Notes shall not exceed in the
aggregate 0.50% per annum and shall not be payable under more than one clause above for
any given period of time, except that if Additional Interest would be payable under more
than one clause above, but at a rate of 0.25% per annum under one clause and at a rate of
0.50% per annum under the other, then the Additional Interest rate shall be the higher
rate of 0.50% per annum; provided further, however, that (1) upon the effectiveness of the
Shelf Registration Statement (in the case of clause (i) above), (2) upon the effectiveness
of the Shelf Registration Statement which had ceased to remain effective (in the case of
clause (ii) above), (3) upon the termination of the Deferral Period that caused the limit
on the aggregate duration of Deferral Periods in a period set forth in Section 3(b) to be
exceeded (in the case of clause (iii) above), (4) upon the termination of certain transfer
restrictions on the Securities as a result of the application of Rule 144(k) or any
successor provision or (5) for any period after the second anniversary from the Closing
Date, Additional Interest on the Notes as a result of such clause, as the case may be,
shall cease to accrue.

Additional Interest on the Notes, if any, will be payable in cash on December 15 and
June 15 of each year (an “Additional Interest Payment Date”) to holders of record of
outstanding Notes at the close of business on December 1 or June 1, as the case may be,
immediately preceding the relevant Additional Interest Payment Date, in the same manner
and subject

8

 

to the same terms as other interest is payable on the Notes pursuant to the
Indenture. Following the cure of all Registration Defaults requiring the payment of
Additional Interest to the Holders of Securities pursuant to this Section, the accrual of
such Additional Interest will cease (without in any way limiting the effect of any
subsequent Registration Default requiring the payment of Additional Interest).

The Issuers shall notify the Trustee immediately upon the happening of each and every
Registration Default. The Trustee shall be entitled, on behalf of Holders of Securities,
to seek any available remedy for the enforcement of this Agreement, including for the
payment of any Additional Interest. Notwithstanding the foregoing, the parties agree that
no Additional Interest or other additional amounts shall be payable in respect of any
Shares that are Registrable Securities that bear the legend set forth in the section
entitled “Transfer Restrictions” in the Offering Memorandum and, except as set forth in
the following sentence, the sole remedy for a violation of the terms of this Agreement
with respect to which additional monetary amounts are expressly provided shall be as set
forth in this Section 2(d). Nothing shall preclude a Notice Holder or Holder of
Registrable Securities from pursuing or obtaining specific performance or other equitable
relief with respect to this Agreement.

     3. Registration Procedures.

     The following provisions shall apply to the Shelf Registration Statement to be made
effective pursuant to Section 2:

     (a) The Issuers shall:

     (i) use reasonable best efforts to cause a registration statement with
respect to the shelf registration on Form S-3 to become effective in accordance
with Section 2(a) above;

     (ii) use reasonable best efforts to prepare and file with the Commission
such amendments and post-effective amendments to the Shelf Registration Statement
and file with the Commission any other required document as may be necessary to
keep such Shelf Registration Statement continuously effective until the
expiration of the Effective Period; use reasonable best efforts to cause the
related Prospectus to be supplemented by any required prospectus supplement, and
as so supplemented to be filed pursuant to Rule 424 (or any similar provisions
then in force) under the Securities Act; and use reasonable best efforts to
comply with the provisions of the Securities Act applicable to it with respect to
the disposition of all Securities covered by such Shelf Registration Statement
during the Effective Period in accordance with the intended methods of
disposition by the sellers thereof set

9

 

forth in such Shelf Registration Statement as so amended or such Prospectus
as so supplemented;

     (iii) promptly notify the Notice Holders of Registrable Securities that have
requested or received copies of the Prospectus included in the Shelf Registration
Statement (A) when such Shelf Registration Statement has become effective, (B) of
any request, following the effectiveness of the Shelf Registration Statement, by
the Commission or any other Federal or state governmental authority for
amendments or supplements to the Shelf Registration Statement or related
Prospectus, (C) of the issuance by the Commission of any stop order suspending
the effectiveness of such Shelf Registration Statement or the initiation or
written threat of any proceedings for that purpose, (D) of the receipt by the
Issuers of any notification with respect to the suspension of the qualification
of the Registrable Securities for sale in any jurisdiction or the initiation or
written threat of any proceeding for such purpose, (E) of the occurrence of (but
not the nature of or details concerning) any event or the existence of any fact
(a “Material Event”) as a result of which the Shelf Registration Statement shall
contain any 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, or any Prospectus shall contain any 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, in the light of the circumstances under
which they were made, not misleading (provided, however, that no notice by the
Issuers shall be required pursuant to this clause (E) in the event that the
Issuers either promptly file a prospectus supplement to update the Prospectus or
timely filed a Form 8-K or other appropriate Exchange Act report that is
incorporated by reference into the Shelf Registration Statement, which, in either
case, contains the requisite information with respect to such Material Event that
results in such Shelf Registration Statement no longer containing any untrue
statement of material fact or omitting to state a material fact necessary to make
the statements contained therein not misleading), (F) of the determination by the
Issuers that a post-effective amendment to the Shelf Registration Statement
(other than for the purpose of naming a Notice Holder as a selling securityholder
therein) will be filed with the Commission, which notice may, at the discretion
of the Issuers (or as required pursuant to Section 3(b)), state that it
constitutes a Deferral Notice, in which event the provisions of Section 3(b)
shall apply or (G) at any time when a Prospectus is required to be delivered
under the Securities Act, that the Shelf Registration Statement or Prospectus
does not conform in all

10

 

material respects to the applicable requirements of the Securities Act and
the Trust Indenture Act and the rules and regulations of the Commission
thereunder;

     (iv) prior to any public offering of the Registrable Securities pursuant to
the Shelf Registration Statement, use reasonable best efforts to register or
qualify, or cooperate with the Notice Holders of Securities included therein and
their respective counsel in connection with the registration or qualification of,
such Securities for offer and sale under the securities or blue sky laws of such
jurisdictions as any such Notice Holders reasonably requests in writing and do
any and all other acts or things reasonably necessary or advisable to enable the
offer and sale in such jurisdictions of the Securities covered by the Shelf
Registration Statement; prior to any public offering of the Registrable
Securities pursuant to the Shelf Registration Statement, use reasonable best
efforts to keep each such registration or qualification (or exemption therefrom)
effective during the Effective Period in connection with such Notice Holder’s
offer and sale of Registrable Securities pursuant to such registration or
qualification (or exemption therefrom) and do any and all other acts or things
reasonably necessary or advisable to enable the disposition in such jurisdictions
of such Registrable Securities in the manner set forth in the Shelf Registration
Statement and the related Prospectus; provided that the Issuers will not be
required to qualify generally to do business in any jurisdiction where it is not
then so qualified or to take any action which would subject it to general service
of process or to taxation in any such jurisdiction where it is not then so
subject;

     (v) use reasonable best efforts to prevent the issuance of, and if issued,
to obtain the withdrawal of any order suspending the effectiveness of the Shelf
Registration Statement or any post-effective amendment thereto, and to lift any
suspension of the qualification of any of the Registrable Securities for sale in
any jurisdiction in which they have been qualified for sale, in each case at the
earliest practicable date;

     (vi) upon reasonable notice, throughout the Effective Period, (i) during
normal business hours, make reasonably available upon appropriate agreement by
such parties to maintain confidentiality and appropriately use such information,
for inspection by a representative of, and Special Counsel acting for, Majority
Holders of the Securities being sold and any underwriter (and its counsel)
participating in any disposition of Securities pursuant to such Shelf
Registration Statement, all relevant

11

 

financial and other records, pertinent corporate documents and properties of
the Issuers and their subsidiaries and (ii) use reasonable best efforts to have
the officers, directors, employees, accountants and counsel of the Issuers supply
all relevant information reasonably requested by such representative, Special
Counsel or any such underwriter in connection with such Shelf Registration
Statement;

     (vii) if requested by Majority Holders of the Securities being sold in an
underwriting, its Special Counsel or the managing underwriters (if any) in
connection with such Shelf Registration Statement, use reasonable best efforts to
cause (a) its counsel to deliver an opinion relating to the Shelf Registration
Statement and the Securities in customary form, (b) the officers of each Issuer
to execute and deliver all customary documents and certificates requested by the
Majority Holders of the Securities being sold, their Special Counsel or the
managing underwriters (if any) and (c) the independent public accountants of the
Issuers to provide a comfort letter or letters in customary form, subject to
receipt of appropriate documentation as contemplated and only if permitted by
Statement of Auditing Standards No. 72, provided that the Registrable Securities
shall not be sold in any underwritten offering without the prior written consent
of the Issuers;

     (viii) if reasonably requested by the Initial Purchasers or any Notice
Holder, promptly incorporate in a prospectus supplement or post-effective
amendment to the Shelf Registration Statement such information as the Initial
Purchasers or such Notice Holder shall, on the basis of a written opinion of
nationally-recognized counsel experienced in such matters, determine to be
required to be included therein by applicable law and make any required filings
of such prospectus supplement or such post-effective amendment; provided, that
the Issuers shall not be required to take any actions under this Section
3(a)(viii) that are not, in the reasonable opinion of counsel for the Issuers, in
compliance with applicable law;

     (ix) promptly furnish to each Notice Holder and the Initial Purchasers, upon
their request and without charge, at least one (1) conformed copy of the Shelf
Registration Statement and any amendments thereto, including financial statements
but excluding schedules, all documents incorporated or deemed to be incorporated
therein by reference and all exhibits; provided, however, that the Issuers shall
have no obligation to deliver to Notice Holders or the Initial Purchasers a copy
of any amendment

12

 

consisting exclusively of an Exchange Act report or other Exchange Act
filing otherwise publicly available on EDGAR;

     (x) during the Effective Period, deliver to each Notice Holder in connection
with any sale of Registrable Securities pursuant to the Shelf Registration
Statement, upon its request and without charge, as many copies of the Prospectus
relating to such Registrable Securities (including each preliminary prospectus)
and any amendment or supplement thereto as such Notice Holder may reasonably
request; and the Issuers hereby consent (except during such periods that a
Deferral Notice is outstanding and has not been revoked) to the use of such
Prospectus or each amendment or supplement thereto by each Notice Holder in
connection with any offering and sale of the Registrable Securities covered by
such Prospectus or any amendment or supplement thereto in the manner set forth
therein; and

     (xi) cooperate with the Notice Holders of Securities to facilitate the
timely preparation and delivery of global or definitive certificates representing
Securities to be sold pursuant to the Shelf Registration Statement free of any
restrictive legends and, in the case of definitive certificates, in such
denominations and registered in such names as the Holders thereof may request in
writing at least two business days prior to sales of Securities pursuant to such
Shelf Registration Statement.

     (b) Upon (A) the issuance by the Commission of a stop order suspending the
effectiveness of the Shelf Registration Statement or the initiation of
proceedings with respect to the Shelf Registration Statement under Section 8(d)
or 8(e) of the Securities Act, (B) the occurrence of any event or the existence
of any Material Event as a result of which the Shelf Registration Statement shall
contain any 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, or any Prospectus shall contain any 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, in the light of the circumstances under
which they were made, not misleading, or (C) the occurrence or existence of any
corporate development that, in the discretion of the Issuers, makes it
appropriate to suspend the availability of the Shelf Registration Statement and
the related Prospectus, the Issuers will (i) in the case of clause (B) above,
subject to the third sentence of this provision, as promptly as practicable
prepare and file a post-effective amendment to the Shelf Registration Statement
or a supplement to the related

13

 

Prospectus or any document incorporated therein by reference or file any
other required document that would be incorporated by reference into such Shelf
Registration Statement and Prospectus so that such Shelf Registration Statement
does not contain any 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, and such Prospectus does not contain any 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, in the light of the
circumstances under which they were made, not misleading, as thereafter delivered
to the purchasers of the Registrable Securities being sold thereunder, and, in
the case of a post-effective amendment to the Shelf Registration Statement,
subject to the third sentence of this provision, use reasonable best efforts to
cause it to become effective as promptly as is practicable, and (ii) give notice
to the Notice Holders that the availability of the Shelf Registration Statement
is suspended (a “Deferral Notice”). Upon receipt of any Deferral Notice, each
Notice Holder agrees not to sell any Registrable Securities pursuant to the Shelf
Registration Statement until such Notice Holder’s receipt of copies of the
supplemented or amended Prospectus provided for in clause (i) above, or until it
is advised in writing by the Issuers that the 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. Each Issuer will use
reasonable best efforts to ensure that the use of the Prospectus may be resumed
(x) in the case of clause (A) above, as promptly as practicable, (y) in the case
of clause (B) above, as soon as, in the sole judgment of the Issuers, public
disclosure of such Material Event would not be prejudicial to or contrary to the
interests of the Issuers or, if necessary to avoid unreasonable burden or
expense, as soon as practicable thereafter and (z) in the case of clause (C)
above, as soon as, in the discretion of the Issuers, such suspension is no longer
appropriate; provided that the period during which the availability of the Shelf
Registration Statement and any Prospectus is suspended (the “Deferral Period”),
without the Issuers incurring any obligation to pay Additional Interest pursuant
to Section 2(d), shall not exceed one hundred and twenty (120) days in the
aggregate in any twelve (12) month period.

     (c) Each Holder of Registrable Securities agrees that upon receipt of any
Deferral Notice from the Issuers, such Holder shall forthwith discontinue (and
cause any placement or sales agent or underwriters acting on its behalf to
discontinue) the disposition of Registrable Securities pursuant to the Shelf
Registration Statement until such Holder (i) shall have received copies of such

14

 

amended or supplemented Prospectus or (ii) shall have received notice from
the Issuers that the disposition of Registrable Securities pursuant to the Shelf
Registration may continue.

     (d) The Issuers may require each Holder of Registrable Securities as to
which any registration pursuant to Section 2(a) is being effected to furnish to
the Issuers such information, in addition to that elicited by the Notice and
Questionnaire, regarding such Holder and such Holder’s intended method of
distribution of such Registrable Securities as the Issuers may from time to time
reasonably request in writing, but only to the extent that such information is
required in order to comply with the Securities Act or other applicable law.
Each such Holder agrees to notify the Issuers as promptly as practicable of any
inaccuracy or change in information previously furnished by such Holder to the
Issuers or of the occurrence of any event in either case as a result of which any
Prospectus relating to such registration contains or would contain an untrue
statement of a material fact regarding such Holder or such Holder’s intended
method of disposition of such Registrable Securities or omits to state any
material fact regarding such Holder or such Holder’s intended method of
disposition of such Registrable Securities required to be stated therein or
necessary to make the statements therein not misleading, and promptly to furnish
to the Issuers any additional information required to correct and update any
previously furnished information or required so that such Prospectus shall not
contain, with respect to such Holder or the disposition of such Registrable
Securities, 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 therein
not misleading.

     (e) Superior Energy shall comply with all applicable rules and regulations
of the Commission and make generally available to its securityholders earning
statements (which need not be audited) satisfying the provisions of Section 11(a)
of the Securities Act and Rule 158 thereunder (or any similar rule promulgated
under the Securities Act) no later than (i) 40 days after the end of any 12-month
period (or 60 days after the end of any 12-month period if such period is a
fiscal year) if Superior Energy is at such time an “accelerated filer” and (ii)
45 days after the end of any 12-month period (or 90 days after the end of any
12-month period if such period is a fiscal year) if Superior Energy is not an
“accelerated filer” commencing on the first day of the first fiscal quarter of
such Issuer commencing after the effective date of the Shelf Registration
Statement, which statements shall cover said 12-month periods.

15

 

     (f) The Issuers shall provide a CUSIP number for all Registrable Securities
covered by the Shelf Registration Statement not later than the effective date of
such Shelf Registration Statement and provide the Trustee and the transfer agent
for the Shares with one or more certificates for the Registrable Securities that
are in a form eligible for deposit with The Depository Trust Company.

     (g) Until the expiration of the Effective Period, the Issuers will not, and
will not permit any of its “affiliates” (as defined in Rule 144) to, resell any
of the Securities that have been reacquired by any of them except pursuant to an
effective registration statement under the Securities Act.

     (h) The Issuers shall cause the Indenture to be qualified under the Trust
Indenture Act in a timely manner.

     (i) The Issuers shall enter into such customary agreements and take all such
other necessary and lawful actions in connection therewith (including those
requested by the Majority Holders of the Registrable Securities being sold) in
order to expedite or facilitate disposition of such Registrable Securities.

     4. Holder’s Obligations.

     Each Holder agrees, by acquisition of the Registrable Securities, that no Holder of
Registrable Securities shall be entitled to sell any of such Registrable Securities
pursuant to the Shelf Registration Statement or to receive a Prospectus relating thereto,
unless such Holder has furnished the Issuers with a Notice and Questionnaire pursuant to
Section 2(c) hereof (including the information required to be included in such Notice and
Questionnaire) and the additional information set forth in the next sentence. Each Notice
Holder agrees promptly to furnish to the Issuers all information required to be disclosed
in order to make the information previously furnished to the Issuers by such Notice Holder
not misleading and any other information regarding such Notice Holder and the distribution
of such Registrable Securities as may be required to be disclosed in the Shelf
Registration Statement under applicable law or pursuant to Commission comments. Each
Holder further agrees not to sell any Registrable Securities pursuant to the Shelf
Registration Statement without delivering, or causing to be delivered, a Prospectus to the
purchaser thereof and, following termination of the Effective Period, to notify the
Issuers, within 10 Business Days of a request by the Issuers, of the amount of Registrable
Securities sold pursuant to the Shelf Registration Statement and, in the absence of a
response, the Issuers may assume that all of the Holder’s Registrable Securities were so
sold.

16

 

     5. Registration Expenses.

     The Issuers and the Guarantors, jointly and severally, agree to bear and to pay or
cause to be paid promptly upon request being made therefor all expenses incident to the
Issuers’ performance of or compliance with this Agreement, including, but not limited to,
(a) all Commission and any NASD registration and filing fees and expenses, (b) all fees
and expenses in connection with the qualification of the Registrable Securities for
offering and sale under the state securities and Blue Sky laws referred to in Section
3(a)(iv) hereof, including reasonable fees and disbursements of one counsel for the
placement agent or underwriters, if any, in connection with such qualifications, (c) all
expenses relating to the preparation, printing, distribution and reproduction of the Shelf
Registration Statement, the related Prospectus, each amendment or supplement to each of
the foregoing, the certificates representing the Securities and all other documents
relating hereto, (d) fees and expenses of the Trustee and of the registrar and transfer
agent for the Shares, (e) fees, disbursements and expenses of counsel and independent
certified public accountants of the Issuers (including the expenses of any reports
required by the Securities Act or the rules and regulations thereunder to be included or
incorporated by reference in the Shelf Registration Statement or “cold comfort” letters
required by or incident to such performance and compliance) and (f) reasonable fees,
disbursements and expenses of one counsel for the Holders of Registrable Securities
retained in connection with the Shelf Registration Statement, as selected by the Issuers
(unless reasonably objected to by the Majority Holders of the Registrable Securities being
registered, in which case the Majority Holders shall select such counsel for the Holders)
(“Special Counsel”), and fees, expenses and disbursements of any other Persons, including
special experts, retained by the Issuers in connection with such registration
(collectively, the “Registration Expenses”). To the extent that any Registration Expenses
are incurred, assumed or paid by any Holder of Registrable Securities or any underwriter
or placement agent therefor, the Issuers shall reimburse such Person for the full amount
of the Registration Expenses so incurred, assumed or paid promptly after receipt of a
documented request therefor. Notwithstanding the foregoing, the Holders of the
Registrable Securities being registered shall pay all underwriting discounts and
commissions and placement agent fees and commissions attributable to the sale of such
Registrable Securities and the fees and disbursements of any counsel or other advisors or
experts retained by such Holders (severally or jointly), other than the counsel and
experts specifically referred to above.

     6. Indemnification.

     (a) The Issuers and the Guarantors, jointly and severally, agree to
indemnify and hold harmless each Holder

17

 

(including, without limitation, the Initial Purchasers), each of the
directors, officers, employees and affiliates of such Holder and each person who
controls such Holder within the meaning of either the Securities Act or the
Exchange Act against any and all losses, claims, damages or liabilities, joint or
several, to which they or any of them may become subject under the Securities
Act, the Exchange Act or other federal or state statutory law or regulation, at
common law or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the Shelf
Registration Statement or the Prospectus, 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, in the light of the
circumstances under which they were made, not misleading, and agrees to reimburse
each such indemnified party, as incurred, for any legal or other expenses
reasonably incurred by it in connection with investigating or defending any such
loss, claim, damage, liability or action; provided, however, that the Issuers
will not be liable in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon any such untrue statement or
alleged untrue statement or omission or alleged omission from any such document,
in reliance upon and in conformity with written information provided by a Holder.
This indemnity agreement will be in addition to any liability that the Issuers
may otherwise have.

     (b) Each Holder agrees to indemnify and hold harmless the Issuers, each of
its directors, each of its officers, and each person, if any, who controls the
Issuers within the meaning of either the Securities Act or the Exchange Act,
against any and all losses, claims, damages or liabilities, joint or several, to
which the Issuers may become subject under the Securities Act, the Exchange Act
or other federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in any such Shelf Registration
Statement or the Prospectus, 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, in the light of the circumstances
under which they were made, not misleading, but in each case only to the extent
that the untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with any information
furnished to the Issuers by such Holder, in its most

18

 

recent Notice and Questionnaire or such other written instrument, and agrees
to reimburse the Issuers, as incurred, for any legal or other expenses reasonably
incurred by it in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that no such Holder shall
be liable for any indemnity claims hereunder in excess of the amount of net
proceeds received by such Holder from the sale of Registrable Securities pursuant
to such Shelf Registration Statement. This indemnity agreement will be in
addition to any liability which any such Holder may otherwise have.

     (c) Promptly after receipt by an indemnified party under this Section 6 of
notice of the commencement of any action, such indemnified party will, if a claim
in respect thereof is to be made against the indemnifying party under this
Section 6, notify the indemnifying party in writing of the commencement thereof;
but the failure so to notify the indemnifying party (i) will not relieve it from
liability under paragraph (a) or (b) above unless and to the extent it has been
materially prejudiced through the forfeiture by the indemnifying party of
substantial rights and defenses and (ii) will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) or (b). If any action shall
be brought against an indemnified party and it shall have notified the
indemnifying party thereof, the indemnifying party shall be entitled to appoint
counsel (including local counsel) of the indemnifying party’s choice at the
indemnifying party’s expense to represent the indemnified party in any action for
which indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel,
other than local counsel if not appointed by the indemnifying party, retained by
the indemnified party or parties except as set forth below); provided, however,
that such counsel shall be reasonably satisfactory to the indemnified party.
Notwithstanding the indemnifying party’s election to appoint counsel (including
local counsel) to represent the indemnified party in an action, the indemnified
party shall have the right to employ separate counsel (including local counsel),
and the indemnifying party shall bear the reasonable fees, costs and expenses of
such separate counsel if: (i) the use of counsel chosen by the indemnifying
party to represent the indemnified party would present such counsel with a
conflict of interest; (ii) the actual or potential defendants in, or targets of,
any such action include both the indemnified party and the indemnifying party and
the indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties

19

 

that are different from or additional to those available to the indemnifying
party; (iii) the indemnifying party shall not have employed counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of the institution of such action; or (iv) the
indemnifying party shall authorize the indemnified party to employ separate
counsel at the expense of the indemnifying party. An indemnifying party will
not, without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any pending or
threatened claim, action, suit or proceeding in respect of which indemnification
or contribution may be sought hereunder (whether or not the indemnified parties
are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each indemnified party
from all liability arising out of such claim, action, suit or proceeding and does
not include an admission of fault, culpability or a failure to act, by or on
behalf of such indemnified party.

     (d) The provisions of this Section 6 and Section 7 shall remain in full
force and effect, regardless of any investigation made by or on behalf of any
Holder, the Issuers, or any of the indemnified Persons referred to in this
Section 6 and Section 7, and shall survive the sale by a Holder of Securities
covered by the Shelf Registration Statement.

     7. Contribution.

     If the indemnification provided for in Section 6 is unavailable or insufficient to
hold harmless an indemnified party under Section 6(a) or 6(b), then each indemnifying
party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid
or payable by such indemnified party as a result of such loss, claim, damage or liability,
or action in respect thereof, (i) in such proportion as shall be appropriate to reflect
the relative benefits received by the Issuers and the Guarantors from the offering and
sale of the Notes, on the one hand, and a Holder with respect to the sale by such Holder
of Securities, on the other, or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of the
Issuers and the Guarantors and such Holder on the other with respect to the statements or
omissions that resulted in such loss, claim, damage or liability, or action in respect
thereof, as well as any other relevant equitable considerations. The relative benefits
received by the Issuers and the Guarantors on the one hand and a Holder on the other with
respect to such offering and such sale shall be deemed to be in the same proportion

20

 

as the total net proceeds from the offering of the Notes (excluding discounts and
commissions, but before deducting expenses) received by or on behalf of the Issuers and
the Guarantors, on the one hand, and the total net proceeds (excluding discounts and
commissions, but before deducting expenses) received by such Holder upon a resale of the
Securities, on the other, bear to the total gross proceeds from the sale all Securities
pursuant to the Shelf Registration Statement in the offering of the Securities from which
the contribution claim arises. 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 to state a material fact relates to the Issuers or the
Guarantors or information supplied by the Issuers or the Guarantors on the one hand or to
any information contained in the relevant Notice and Questionnaire or such other written
instrument supplied by such Holder on the other, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission. The parties hereto agree that it would not be just and
equitable if contributions pursuant to this Section 7 were to be determined by pro rata
allocation or by any other method of allocation that does not take into account the
equitable considerations referred to herein. The amount paid or payable by an indemnified
party as a result of the loss, claim, damage or liability, or action in respect thereof,
referred to above in this Section 7 shall be deemed to include, for purposes of this
Section 7, any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending or preparing to defend any such action or
claim. Notwithstanding the provisions of this Section 7, an indemnifying party that is a
Holder of Securities shall not be required to contribute any amount in excess of the
amount by which the total price at which the Securities sold by such indemnifying party to
any purchaser exceeds the amount of any damages which such indemnifying party has
otherwise paid or become liable to pay by reason of any 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.

     8. Rule 144A and Rule 144.

     So long as any Registrable Securities remain outstanding, each Issuer shall use
reasonable best efforts to file the reports required to be filed by it under Rule
144A(d)(4) under the Securities Act and the Exchange Act in a timely manner and, if at any
time such Issuer is not required to file such reports, it will, upon the written request
of any Holder of Restricted Securities, make publicly available other information so long
as necessary to permit sales of such Holder’s securities pursuant to Rules 144 and 144A.
Each Issuer covenants that it will take such further action

21

 

as any Holder of Restricted Securities may reasonably request, all to the extent
required from time to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions provided by
Rules 144 and 144A (including, without limitation, the requirements of Rule 144A(d)(4)).
Upon the written request of any Holder of Registrable Securities, each Issuer shall
promptly deliver to such Holder a written statement as to whether it has complied with
such requirements. Notwithstanding the foregoing, nothing in this Section 8 shall be
deemed to require the Issuers to register any of its securities pursuant to the Exchange
Act.

     9. Miscellaneous.

     (a) Amendments and Waivers. The provisions of this Agreement may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the Issuers have obtained the
written consent of the Majority Holders. Notwithstanding the foregoing, a waiver
or consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders whose Securities are being sold
pursuant to the Shelf Registration Statement and that does not directly or
indirectly affect the rights of other Holders may be given by Holders of a
majority in aggregate amount of the Securities being sold by such Holders
pursuant to the Shelf Registration Statement.

     (b) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, first class mail,
telecopier or air courier guaranteeing next-day delivery:

     (i) If to the Issuers or the Guarantors, initially at the address set forth
in the Purchase Agreement;

     (ii) If to the Initial Purchasers, initially at the address of the
representative set forth in the Purchase Agreement; and

     (iii) If to a Holder, to the address of such Holder set forth in the
security register, the Notice and Questionnaire or other records of the Issuers;
provided, however, that so long as the Securities will be in global form, all
notices hereunder may be delivered through The Depository Trust Company, its
nominees and their respective successors and assigns, or such other depository
institution.

     All such notices and communications shall be deemed to have been duly given: when
delivered by hand, if personally delivered; one business

22

 

day after being delivered to a next day air courier; five business days after being
deposited in the mail; and when receipt is acknowledged by the recipient’s telecopier
machine, if sent by telecopier.

     (c) Successors and Assigns. This Agreement shall be binding upon
the Issuers, the Guarantors, and each of their successors and assigns.

     (d) Counterparts. This Agreement may be executed in any number of
counterparts (which may be delivered in original form or by telecopier) and by
the parties hereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one
and the same agreement.

     (e) Definition of Terms. For purposes of this Agreement, (a) the
term “business day” means any day on which the New York Stock Exchange, Inc. is
open for trading and (b) except where otherwise expressly provided, the term
“affiliate” has the meaning set forth in Rule 405 under the Securities Act.

     (f) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

     (g) Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

     (h) Remedies. In the event of a breach by the Issuers, the
Guarantors or by any Holder of any of their respective obligations under this
Agreement, each Holder or the Issuers, as the case may be, in addition to being
entitled to exercise all rights granted by law, including recovery of damages
(other than the recovery of damages for a breach by the Issuers and the
Guarantors of its obligations for which Additional Interest have been paid
pursuant to Section 2 hereof), will be entitled to specific performance of its
rights under this Agreement. The Issuers and each Holder agree that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of any of the provisions of this Agreement and hereby further agree
that, in the event of any action for specific performance in respect of such
breach, it shall waive the defense that a remedy at law would be adequate.

     (i) No Inconsistent Agreements. Each Issuer represents, warrants
and agrees that (i) it has not entered into, shall

23

 

not, on or after the date of this Agreement, enter into any agreement that
is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof, (ii) except with respect to
certain registration rights granted to each of the Dealers under the Letter
Agreements, there are no contracts, commitments, agreements, arrangements,
understandings or undertakings of any kind to which such Issuer is a party, or by
which it is bound, granting to any person the right to require either such Issuer
to file a registration statement under the Securities Act with respect to any
securities of such Issuer or requiring such Issuer to include such securities
with the Securities registered pursuant to any registration statement and (iii)
without limiting the generality of the foregoing, without the written consent of
the Majority Holders, it shall not grant to any Person the right to request such
Issuer to register any securities of such Issuer under the Securities Act unless
the rights so granted are not in conflict or inconsistent with the provisions of
this Agreement.

     (j) No Piggyback on Registrations. Except with respect to certain
registration rights granted to each of the Dealers under the Letter Agreements,
neither the Issuers nor any of their security holders (other than the Holders of
Restricted Securities in such capacity) shall have the right to include any
securities of the Issuers in any Shelf Registration Statement other than
Registrable Securities.

     (k) Severability. If any term, provision, covenant or restriction
of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants
and restrictions set forth herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated, and the parties hereto shall use
their reasonable best efforts to find and employ an alternative means to achieve
the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

     (l) Survival. The respective indemnities, agreements,
representations, warranties and each other provision set forth in this Agreement
or made pursuant hereto shall remain in full force and effect regardless of any
investigation (or statement as to the results thereof) made by or on behalf of
any Holder of Registrable

24

 

Securities, any director, officer or affiliate of such Holder, any agent or
underwriter or any director, officer or affiliate thereof, or any controlling
person of any of the foregoing, and shall survive delivery of and payment for the
Registrable Securities pursuant to the Purchase Agreement and the transfer and
registration of Registrable Securities by such Holder.

     (m) Securities Held by the Issuers, Etc. Whenever the consent or approval of
Holders of a specified percentage of Securities is required hereunder, Securities held by
the Issuers or their affiliates (other than subsequent Holders of Securities if such
subsequent Holders are deemed to be affiliates solely by reason of their holdings of such
Securities) shall not be counted in determining whether such consent or approval was given
by the Holders of such required percentage.

25

 

If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to us a counterpart hereof, whereupon this instrument will become a binding
agreement among the Issuers and the Initial Purchasers in accordance with its terms.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	SESI, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	SUPERIOR ENERGY SERVICES, INC.,	 	 
	 

	 	 	 	Its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert S. Taylor	 	 
	 

	 	 	 	Title: Executive Vice President and	 	 
	 

	 	 	 	          Chief Financial Office	 	 
	 
	 	 	 	 	 	 
	 	 	SUPERIOR ENERGY SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert S. Taylor	 	 
	 

	 	 	 	Title: Executive Vice President and	 	 
	 

	 	 	 	          Chief Financial Office	 	 

26

 

GUARANTORS:

1105 PETERS ROAD, L.L.C.

BLOWOUT TOOLS, INC.

CONCENTRIC PIPE AND TOOL RENTALS, L.L.C.

CONNECTION TECHNOLOGY, L.L.C.

CSI TECHNOLOGIES, LLC

DRILLING LOGISTICS, L.L.C.

F. & F. WIRELINE SERVICE, L.L.C.

FASTORQ, L.L.C.

H.B. RENTALS, L.C.

INTERNATIONAL SNUBBING SERVICES, L.L.C.

J.R.B. CONSULTANTS, INC.

NON-MAGNETIC RENTAL TOOLS, L.L.C.

PROACTIVE COMPLIANCE, L.L.C.

PRODUCTION MANAGEMENT INDUSTRIES, L.L.C.

SEGEN LLC

SELIM LLC

SEMO, L.L.C.

SEMSE, L.L.C.

SPN RESOURCES, LLC

STABIL DRILL SPECIALTIES, L.L.C.

SUB-SURFACE TOOLS, L.L.C.

SUPERIOR CANADA HOLDING, INC.

SUPERIOR ENERGY SERVICES, L.L.C.

SUPERIOR INSPECTION SERVICES, INC.

UNIVERSAL FISHING AND RENTAL TOOLS, INC.

WILD WELL CONTROL, INC.

WORKSTRINGS, L.L.C.

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert S. Taylor	 	 
	 

	 	 	 	Title: Authorized Representative	 	 
	 
	 	 	 	 	 	 
	 	 	SE FINANCE LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	SEGEN, LLC,	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert S. Taylor	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert S. Taylor	 	 
	 

	 	 	 	Title: Authorized Representative	 	 

27

 

     The foregoing Agreement is hereby confirmed and accepted as of the date first above written.

BEAR, STEARNS & CO. INC.

LEHMAN BROTHERS INC.

J.P. MORGAN SECURITIES INC.

	 	 	 	 	 
	By:

	 	BEAR, STEARNS & CO. INC.	 	 
	 

	 	Acting on behalf of themselves	 	 
	 

	 	and as Representative	 	 
	 

	 	of the Initial Purchasers	 	 
	 
	 	 	 	 
	By:
	 	/s/ Paul S. Rosica
	 

	 	 

Name: Paul S. Rosica	 	
	 

	 	Title:   Senior Managing Director	 	

28

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