<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [_]
Check the appropriate box:
[_] Preliminary Proxy Statement [_] Confidential, for Use of the
Commission Only (as permitted by
Rule 14a-6(e)(2))
[X] Definitive Proxy Statement
[_] Definitive Additional Materials
[_] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12
Superior Energy Services, Inc.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined):
-------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
-------------------------------------------------------------------------
(5) Total fee paid:
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[_] Fee paid previously with preliminary materials.
[_] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
-------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
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(3) Filing Party:
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(4) Date Filed:
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Notes:
<PAGE>
SUPERIOR ENERGY SERVICES, INC.
1503 ENGINEERS ROAD
BELLE CHASSE, LOUISIANA 70037
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To the Holders of Common Stock of Superior Energy Services, Inc.:
The annual meeting (the "Meeting") of stockholders of Superior Energy
Services, Inc. (the "Company") will be held at 201 St. Charles Avenue, 52nd
Floor, New Orleans, Louisiana 70170, on Tuesday, July 29, 1997, at 10:00 a.m.,
New Orleans time, to consider and vote on:
1. The election of directors.
2. A proposal to approve the Company's amended 1995 Stock Incentive Plan.
3. Such other business as may properly come before the meeting or any
adjournment thereof.
Only holders of record of the Company's Common Stock at the close of
business on June 4, 1997, are entitled to notice of and to vote at the annual
meeting.
Even if you now expect to attend the Meeting, you are requested to mark,
sign, date, and return the accompanying proxy in the enclosed addressed,
postage-paid envelope. If you attend the Meeting, you may vote in person,
whether or not you have sent in your proxy. A proxy may be revoked at any time
prior to the voting thereof.
By Order of the Board of Directors
Carolyn Plaisance
Secretary
Belle Chasse, Louisiana
June 25, 1997
<PAGE>
SUPERIOR ENERGY SERVICES, INC.
1503 Engineers Road
Belle Chasse, Louisiana 70037
PROXY STATEMENT
ANNUAL MEETING OF STOCKHOLDERS
July 29, 1997
This Proxy Statement is furnished to the stockholders of Superior Energy
Services, Inc. (the "Company") in connection with the solicitation on behalf of
the Board of Directors (the "Board") of proxies for use at the annual meeting of
stockholders to be held on July 29, 1997, at the time and place set forth in the
accompanying notice and any adjournment thereof (the "Meeting").
Only stockholders of record as of the close of business on June 4, 1997,
are entitled to notice of and to vote at the Meeting. On that date, 19,027,867
shares of common stock, $.001 par value per share (the "Common Stock"), were
outstanding, each of which is entitled to one vote.
A stockholder may revoke the enclosed proxy at any time prior to its
exercise by filing with the Secretary of the Company a written revocation or
duly executed proxy bearing a later date. A stockholder who votes in person at
the Meeting in a manner inconsistent with a proxy previously filed on the
stockholder's behalf will be deemed to have revoked such proxy as it relates to
the matter voted upon in person. Attendance at the Meeting will not in and of
itself constitute a revocation of a proxy. Unless otherwise marked, properly
executed proxies in the form of the accompanying proxy card will be voted for
the election of the two nominees to the Board listed below and for the approval
of the proposals outlined herein.
This Proxy Statement is first being mailed to stockholders on or about June
26, 1997, and the cost of soliciting proxies in the enclosed form will be borne
by the Company. In addition to the use of the mails, proxies may be solicited
by personal interview, telephone and telegraph. Banks, brokerage houses and
other nominees or fiduciaries will be requested to forward the soliciting
material to their principals and to obtain authorization for the execution of
proxies, and the Company will, upon request, reimburse them for their expenses
in so acting.
ELECTION OF DIRECTORS
VOTING PROCEDURE
The Company's Bylaws authorize the Board to fix the number of directors at
not less than three nor more than eleven. Pursuant thereto, the Board has fixed
the number of directors to be elected at the Meeting at seven, and proxies
cannot be voted for a greater number of persons. Unless authority is withheld,
the persons named in the enclosed proxy will vote the shares represented by
<PAGE>
the proxies received by them for the election of the seven incumbent directors
named below to serve until the next annual meeting and until their successors
are duly elected and qualified.
Unless authority to vote for the election of directors is withheld, the
proxies solicited hereby will be voted FOR the election of each individual named
under "Nominees" below. If any nominee should decline or be unable to serve
for any reason, votes will instead be cast for a substitute nominee designated
by the Board. The Board has no reason to believe that any nominee will decline
to be a candidate or, if elected, will be unable or unwilling to serve. Under
the Company's Bylaws, directors are elected by a plurality vote.
INFORMATION ABOUT DIRECTORS AND EXECUTIVE OFFICERS
The following table sets forth certain information, as of June 1, 1997,
with respect to each director and executive officer of the Company. Unless
otherwise indicated, the person has been engaged in the principal occupation
shown for the past five years. Each incumbent director has been nominated for
re-election.
Name and Age Position
------------ --------
Terence E. Hall, 52 Chairman of the Board, Chief Executive
Officer, President and Director
Ernest J. Yancey, Jr., 48 Director and Vice President
James E. Ravannack, 36 Director and Vice President
Richard J. Lazes, 49 Director and President of Oil Stop
Kenneth C. Boothe, 52 Director
Bradford Small, 34 Director
Justin L. Sullivan, 57 Director
Robert S. Taylor, 43 Chief Financial Officer
Terence E. Hall has served as the Chairman of the Board, Chief Executive
Officer, President and a Director of the Company since December 1995. Since
1989, he has served as President and Chief Executive Officer of the following
wholly-owned subsidiaries of the Company: Superior Well Service, Inc.
("Superior Well") and Connection Technology, Ltd.
Ernest J. Yancey, Jr. has served as a Director and Vice President of the Company
since December 1995. Since 1989, he has served as Vice President - Operations
of Superior Well.
James E. Ravannack has served as a Director and Vice President of the Company
since December 1995. Since, 1989, he has served as Vice President - Sales of
Superior Well.
2
<PAGE>
Richard J. Lazes has served as a Director of the Company since December 1995.
In May 1990, Mr. Lazes founded Oil Stop, Inc., a wholly-owned subsidiary of the
Company since its acquisition in December, 1995, and has served as its
President since then.
Kenneth C. Boothe has served as a Director since 1991. Mr. Boothe served as
Chief Executive Officer and President of the Company from October 1993 until
December 1995 and as President of the Company's wholly-owned subsidiary, Small's
Fishing & Rental, Inc., until May 1996. Mr. Boothe is now the senior partner
with Boothe, Vassar, Fox & Fox, certified public accountants, Big Spring, Texas.
Bradford Small has served as a Director of the Company since December 1993.
From January 1991 until May 1995 he served as minister of Western Hills Church
of Christ in Amarillo, Texas. From May 1995 to May 1996 he served as minister
of Highlands Church of Christ in Lakeland, Florida. From May 1996 to the
present, Mr. Small has served as minister of Amarillo South Church of Christ in
Amarillo, Texas.
Justin L. Sullivan has served as a Director of the Company since December 1995.
Mr. Sullivan has been a business consultant to various companies since May 1993.
From October 1992 to May 1993, Mr. Sullivan served as President of Plywood
Panels, Inc., a manufacturer and distributor of plywood paneling and related
wood products. From 1967 to September 1992 he served as Vice President,
Treasurer and Director of Plywood Panels, Inc. and its predecessor entities.
Robert S. Taylor has served as Chief Financial Officer since March 1996. From
May 1994 to January 1996, he served as Chief Financial Officer of Kenneth Gordon
(New Orleans), Ltd. From November 1989 to May 1994 he served as Chief Financial
Officer of Plywood Panels, Inc., a manufacturer and distributor of plywood
paneling and related wood products. Prior thereto, Mr. Taylor served as
controller for Plywood Panels, Inc. and Corporate Accounting Manager of D.H.
Holmes Company, Ltd.
____________
The Board did not hold any meetings during 1996. In lieu thereof,
following informal conferences among certain directors, the Board took action by
unanimous written consent. The Board has an Audit and Compensation Committee;
but the Board does not have a nominating committee. The current members of the
Audit Committee are Messrs. Small, Sullivan and Hall. The Audit Committee,
which met one time during 1996, is responsible for (i) making recommendations to
the Board concerning the engagement of the Company's independent public
accountants, (ii) consulting with the independent public accountants with regard
to the plan of audit, (iii) consulting with the Company's chief financial
officer of the Company on any matter the Audit Committee or the chief financial
officer deems appropriate in connection with carrying out the audit, (iv)
reviewing the results of audits of the Company by its independent public
accountants, (v) reviewing all related party transactions and all other
potential conflict of interest situations, (vi) discussing audit recommendations
with management and reporting the results of its reviews to the Board and (vii)
performing such other functions as may be prescribed by the Board.
3
<PAGE>
The current members of the Compensation Committee are Messrs. Sullivan and
Small. The Compensation Committee met once during 1996. The Compensation
Committee is responsible for administering the Company's stock incentive plans
and performing such other functions as may be prescribed by the Board.
DIRECTOR COMPENSATION
Each director is paid a director's fee of $250 for each Board and committee
meeting attended. Directors are also reimbursed for reasonable expenses incurred
in attending Board and committee meetings.
PROPOSAL TO APPROVE
THE AMENDED STOCK INCENTIVE PLAN
GENERAL
The Board believes that the growth of the Company depends significantly
upon the efforts of its officers and key employees and that such individuals are
best motivated to put forth maximum effort on behalf of the Company if they own
an equity interest in the Company. In accordance with this philosophy, the
Board adopted and the stockholders approved the 1995 Stock Incentive Plan (the
"Plan"). The Board recently amended the Plan and has directed that the Plan, as
amended, be submitted for approval by the stockholders at the Meeting.
Officers and other key employees of the Company are eligible to receive
awards ("Incentives") under the Plan when designated by the Compensation
Committee. With respect to participants not subject to Section 16 of the
Securities Exchange Act of 1934 or Section 162(m) of the Code, the Compensation
Committee may delegate its authority to grant Incentives under the Plan to
appropriate personnel of the Company. Presently, there are approximately 59
employees of the Company, including its executive officers, who may be expected
to participate in the Plan. Incentives under the Plan may be granted to officers
and employees in any one or a combination of the following forms: (i) incentive
and non-qualified stock options; (ii) restricted stock; and (iii) stock awards.
PURPOSES OF THE PROPOSAL
The Board is committed to creating and maintaining a compensation system
based to a significant extent on grants of equity-based incentive awards. The
Board considers equity-based incentives an important component of its efforts to
attract and retain talented individuals, an increasing need as the Company
continues to grow and require additional executive talent. In addition, the
Board believes that option grants help the Company attain its long-term goals by
linking the compensation of key employees to shareholder returns. The Board
believes that approval of the Plan will allow the Company to continue to provide
members of management and key personnel with a proprietary interest in the
growth and performance of the Company.
4
<PAGE>
TERMS OF THE PLAN
The terms of the Plan are summarized below. The summary is qualified by
reference to the text of the Plan, which is attached to this Proxy Statement as
Exhibit A.
SHARES ISSUABLE THROUGH THE PLAN
The amendments to the Plan increased the total number of shares of Common
Stock with respect to which Incentives may be granted under the Plan from
500,000 to 1,400,000 shares. As of June 15, 1997, there were 1,382,000 shares
of Common Stock subject to outstanding options granted under the Plan to
officers, directors and employees, 799,000 of which were granted subject to
approval of the Plan at the Meeting. Incentives with respect to no more than
200,000 may be granted to a single participant in one calendar year. A total of
100,000 shares of Common Stock issuable through the Plan are reserved for
issuance to employees of Oil Stop, Inc. ("Oil Stop") and a total of 500,000
shares are reserved for issuance to employees of Nautilus Pipe & Tool Rental,
Inc. ("Nautilus"). Oil Stop and Nautilus were acquired by the Company and are
subsidiaries of the Company.
Shares of Common Stock subject to Incentives that are cancelled, terminated
or forfeited, or shares of Common Stock that are issued as Incentives and
forfeited or reacquired by the Company, will again be available for issuance
under the Plan. Additional rules for determining the number of shares granted
under the Plan may be made by the Compensation Committee as deemed necessary.
Proportionate adjustments will be made to the number of shares of Common
Stock subject to the Plan, including shares subject to outstanding Incentives,
in the event of any recapitalization, stock dividend, stock split, combination
of shares or other change in the Common Stock, and the terms of any Incentive
shall be adjusted to the extent appropriate to provide participants with the
same relative rights before and after the occurrence of such an event.
On June 24, 1997, the closing sale price of a share of Common Stock, as
reported on the Nasdaq National Market, was $4 5/8.
ADMINISTRATION OF THE PLAN
The Compensation Committee administers the Plan and has plenary authority
to award Incentives under the Plan to officers and employees, to interpret the
Plan, to establish any rules or regulations relating to the Plan that it
determines to be appropriate, to delegate its authority as appropriate, and to
make any other determination that it believes necessary or advisable for the
proper administration of the Plan.
AMENDMENTS TO THE PLAN
The Board may amend or discontinue the Plan at any time. No amendment or
discontinuance of the Plan may change or impair any previously-granted Incentive
without the consent of the recipient thereof.
5
<PAGE>
TYPES OF INCENTIVES
The Compensation Committee may grant the following types of Incentives to
officers and employees: non-qualified or incentive stock options, restricted
stock and stock awards. The various types of Incentives are described further
below:
Stock Options. The Compensation Committee may grant non-qualified stock
options or incentive stock options to purchase shares of Common Stock. The
Committee will determine the number and exercise price of the options, provided
that the option exercise price may not be less than the fair market value of the
Common Stock on the date of grant. The term of the options, and the time or
times that the options become exercisable, will also be determined by the
Committee, provided that the term of an incentive stock option may not exceed 10
years.
The option exercise price may be paid in cash, check, in shares of Common
Stock that, unless otherwise permitted by the Compensation Committee, have been
held for a least six months, or through a broker-assisted exercise. If an
optionee exercises an option while employed by the Company or a subsidiary and
pays the exercise price with previously owned shares of Common Stock, the
Compensation Committee may grant to the optionee an additional option to
purchase the same number of shares as were surrendered at an exercise price
equal to the fair market value of the Common Stock on the date of grant. The
Compensation Committee may also approve the purchase by the Company of an
unexercised stock option from the optionee by mutual agreement for the
difference between the exercise price and the fair market value of the shares
covered by the option.
Incentive stock options will be subject to certain additional requirements
necessary in order to qualify as incentive stock options under Section 422 of
the Code.
Restricted Stock. Shares of Common Stock may be granted by the
Compensation Committee to an eligible employee and made subject to restrictions
regarding their sale, pledge or other transfer by the employee for a specified
period (the "Restricted Period"). All shares of restricted stock will be
subject to such restrictions as the Compensation Committee may designate in an
agreement with the employee, including, among other things, that the shares are
required to be forfeited or resold to the Company in the event of termination of
employment or in the event specified performance goals or targets are not met.
Subject to the restrictions provided in the restricted stock agreement and the
Plan, a participant receiving restricted stock shall have all of the rights of a
shareholder as to such shares.
Stock Awards. The Compensation Committee may grant shares of Common Stock
to a participant as additional compensation for services previously provided to
the Company.
TERMINATION OF EMPLOYMENT.
If a participant ceases to be an employee of the Company for any reason,
including death, any Incentive may be exercised, shall vest or shall expire at
such time or times as may be determined by the Compensation Committee in the
Incentive agreement with the participant.
6
<PAGE>
CHANGE OF CONTROL.
In the event of a change of control of the Company, as defined in the Plan,
all outstanding options granted under the Plan automatically will become fully
exercisable, all restrictions or limitations on any Incentives will lapse and
all performance criteria and other conditions relating to the payment of
Incentives will be deemed to be achieved. In addition, the Compensation
Committee will have the authority to take several actions regarding outstanding
Incentives. Within certain time periods, the Compensation Committee may (i)
require that all outstanding stock options remain exercisable only for a limited
time, after which time all options will terminate, (ii) require the surrender to
the company of some or all outstanding options in exchange for a cash or Common
Stock payment for each option equal in value to the per share change of control
value, calculated as described in the Plan, over the exercise price, (iii) make
any equitable adjustment to outstanding Incentives as the Compensation Committee
deems necessary to reflect the corporate change or (iv) provide that an option
shall become an option relating to the number and class of shares of stock or
other securities or property (including cash) to which the participant would
have been entitled in connection with the corporate change if the participant
had been the holder of record of the number of shares of Common Stock then
covered by such options.
TRANSFERABILITY OF INCENTIVES.
Options are transferable only by will and by the laws of descent and
distribution, except that options may also be transferred pursuant to a domestic
relations order, to family members, to a family partnership, to a family limited
liability company or to a trust for the benefit of family members, if permitted
by the Compensation Committee and if provided in the Incentive agreement or an
amendment thereto.
PAYMENT OF WITHHOLDING TAXES IN STOCK.
A participant may, but is not required to, satisfy his or her withholding
tax obligation by electing to have the Company withhold, from the shares the
participant would otherwise receive upon exercise or vesting of an Incentive,
shares of Common Stock having a value equal to the amount required to be
withheld. This election must be made prior to the date on which the amount of
tax to be withheld is determined and is subject to the Compensation Committee's
right of disapproval.
AWARDS TO BE GRANTED
The grant of awards to officers and employees under the Plan is entirely in
the discretion of the Compensation Committee. In 1997, the Compensation
Committee has granted, subject to approval of the Plan at the Meeting, an
aggregate of 774,000 options to purchase Common Stock to 58 non-executive
employees of the Company and 25,000 options to Robert S. Taylor, Chief Financial
Officer of the Company. The exercise price with respect to 500,000 of such
options (which vest on February 28, 2000, provided that the holder remains
employed by the Company during such period) is $4.75. The exercise price of the
remaining 299,000 options (which vest two
7
<PAGE>
years after the date of grant, provided that the holder remains employed by the
Company during such period) is $3.43. Such exercise prices were determined in
accordance with the terms of the Plan.
FEDERAL INCOME TAX CONSEQUENCES
Under existing federal income tax provisions, a participant who receives
stock options or who receives shares of restricted stock that are subject to
restrictions that create a "substantial risk of forfeiture" (within the meaning
of Section 83 of the Code) will not normally realize any income, nor will the
Company normally receive any deduction for federal income tax purposes, in the
year such Incentive is granted.
When a non-qualified stock option granted pursuant to the Plan is
exercised, the employee will realize ordinary income measured by the difference
between the aggregate fair market value of the shares of Common Stock on the
exercise date and the aggregate purchase price of the shares of Common Stock as
to which the option is exercised, and, subject to Section 162(m) of the Code,
the Company will be entitled to a deduction in the year the option is exercised
equal to the amount the employee is required to treat as ordinary income.
An employee generally will not recognize any income upon the exercise of
any incentive stock option, but the excess of the fair market value of the
shares at the time of exercise over the option price will be an item of
adjustment, which may, depending on particular factors relating to the employee,
subject the employee to the alternative minimum tax imposed by Section 55 of the
Code. An employee will recognize capital gain or loss in the amount of the
difference between the exercise price and the sale price on the sale or exchange
of stock acquired pursuant to the exercise of an incentive stock option,
provided the employee does not dispose of such stock within either two years
from the date of grant or one year from the date of exercise of the incentive
stock option (the "required holding periods"). An employee disposing of such
shares before the expiration of the required holding period will recognize
ordinary income generally equal to the difference between the option price and
the fair market value of the stock on the date of exercise. The remaining gain,
if any, will be capital gain. The Company will not be entitled to a federal
income tax deduction in connection with the exercise of an incentive stock
option, except where the employee disposes of the Common Stock received upon
exercise before the expiration of the required holding periods.
An employee who receives restricted stock will normally recognize taxable
income on the date the shares become transferable or no longer subject to
substantial risk of forfeiture or on the date of their earlier disposition. The
amount of such taxable income will be equal to the amount by which the fair
market value of the shares of Common Stock on the date such restrictions lapse
(or any earlier date on which the shares are disposed of) exceeds their purchase
price, if any. An employee may elect, however, to include in income in the year
of purchase or grant the excess of the fair market value of the shares of Common
Stock (without regard to any restrictions) on the date of purchase or grant over
its purchase price. Subject to the limitations imposed by Section 162(m) of the
Code, the Company will be entitled to a deduction for compensation paid in the
same year and in the same amount as income is realized by the employee.
Dividends currently paid to the participant will be taxable compensation income
to the participant and deductible by the Company.
8
<PAGE>
A participant who receives a stock award under the Plan will realize
ordinary income in the year of the award equal to the fair market value of the
shares of Common Stock covered by the award on the date it is made and, subject
to Section 162(m) of the Code, the Company will be entitled to a deduction equal
to the amount the employee is required to treat as ordinary income.
When the exercisability or vesting of an Incentive granted under the Plan
is accelerated upon a change of control, any excess on the date of the change in
control of the fair market value of the shares or cash issued under Incentives
over the purchase price of such shares may be characterized as "parachute
payments" (within the meaning of Section 280G of the Code) if the sum of such
amounts and any other such contingent payments received by the employee exceeds
an amount equal to three times the "base amount" for such employee. The base
amount generally is the average of the annual compensation of such employee for
the five years preceding such change in ownership or control. An "excess
parachute payment" with respect to any employee, is the excess of the present
value of the parachute payments to such person, in the aggregate, over and above
such person's base amount. If the amounts received by an employee upon a change
in control are characterized as parachute payments, such employee will be
subject to a 20% excise tax on the excess parachute payments pursuant to Section
4999 of the Code, and the Company will be denied any deduction with respect to
such excess parachute payments.
This summary of federal income tax consequences does not purport to be
complete. Reference should be made to the applicable provisions of the Code.
There also may be state and local income tax consequences applicable to
transactions involving Incentives.
VOTE REQUIRED
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE FOR
THE PROPOSED AMENDMENTS TO THE 1997 INCENTIVE COMPENSATION PLAN.
PRINCIPAL STOCKHOLDERS
The following table indicates the beneficial ownership, as of June 1, 1997,
of Common Stock for each director, officer disclosed under the heading
"Executive Compensation and Certain Transactions -- Summary of Executive
Compensation," each person known by the Company to own more than 5% of the
outstanding shares of Common Stock, and of all directors and executive officers
of the Company as a group. Except as otherwise indicated below, all shares
indicated as beneficially owned are held with sole voting and investment power.
9
<PAGE>
<TABLE>
<CAPTION>
Name and Address of Amount and Nature
Beneficial Owner/(1)/ of Beneficial Owner/(1)/ Percent of Class
- --------------------------------------- ------------------------ -----------------
<S> <C> <C>
Terence E. Hall/(2)/ 3,584,000/(3)/ 18.8%
Ernest J. Yancey, Jr./(2)/ 2,416,000/(3)/ 12.7%
James E. Ravannack/(2)/ 2,424,000/(3)/ 12.7%
Richard J. Lazes 1,800,000 9.5%
804 First Avenue
Harvey, Louisiana 70058
Kenneth C. Boothe 150,944/(4)/ *
1001 East FM 700
Big Spring, Texas 79720
Kenneth Blanchard /(2)/ 75,500/(5)/ *
Charles P. Funderburg /(2)/ 76,000/(6)/ *
Bradford Small 25,000/(7)/ *
4101 W. 45th, #2004
Amarillo, Texas 79109
Justin L. Sullivan -- --
100 Napoleon Avenue
New Orleans, Louisiana 70115
All directors, executive officers and 10,591,444 55.0%
5% stockholders as a group
</TABLE>
____________
* Less than 1%.
/(1)/ Beneficial ownership has been determined in accordance with Rule 13d-3
under the Securities Exchange Act of 1934.
/(2)/ Messrs. Hall's, Yancey's, Ravannack's, Blanchard's and Funderburg's
mailing address is 1503 Engineers Road, Belle Chasse, Louisiana 70037.
/(3)/ Includes 44,000 shares of Common Stock that may be acquired upon the
exercise of options.
/(4)/ Includes 42,000 shares of Common Stock owned outright, 41,926 shares of
Common Stock held in a trust, of which Kenneth Boothe is the sole voting
trustee, 42,018 shares of Common Stock held in a corporation for the
benefit of Darnell Small, Kenneth Boothe and Bradford Small with respect
to which Kenneth Boothe has the sole voting discretion and 25,000 shares
of Common Stock subject to issuance upon the exercise of options.
/(5)/ Includes 35,500 shares of Common Stock that may be acquired upon the
exercise of options.
10
<PAGE>
/(6)/ Includes 20,000 shares of Common Stock that may be acquired upon the
exercise of options.
/(7)/ Includes 25,000 shares of Common Stock that may be acquired upon the
exercise of warrants. Does not include 41,926 shares of Common Stock held
in a trust for the benefit of Mr. Small and his siblings, of which Kenneth
Boothe is the sole voting trustee, or 57,018 shares of Common Stock held
in a corporation for the benefit of Darnell Small, Kenneth Boothe and
Bradford Small with respect to which Kenneth Boothe has the sole voting
discretion.
____________
EXECUTIVE COMPENSATION AND CERTAIN TRANSACTIONS
SUMMARY OF EXECUTIVE COMPENSATION
The following table summarizes, for each of the fiscal years during which
the below named individuals served as officers of the Company, the compensation
of the Company's Chief Executive Officer and the most highly compensated
officers of the Company whose aggregate cash compensation exceeded $100,000 in
all the capacities in which they served (the "Named Officers").
SUMMARY COMPENSATION TABLE
<TABLE>
<CAPTION>
Long-Term
Compensation
Awards
------------
Securities
Annual Compensation Underlying
Name and ------------------------ Options/ All Other
Principal Position Year Salary Bonus SARs Compensation/(1)/
- ----------------------------- ---- ----------- ----------- ------------ -----------------
<S> <C> <C> <C> <C> <C>
Terence E. Hall /(2)/ 1996 $300,264 $137,500 0 $951
1995 12,500 0 44,000 0
Ernest J. Yancey /(3)/ 1996 121,848 60,950 0 372
1995 5,000 0 44,000 0
James E. Ravannack /(3)/ 1996 120,182 60,950 0 379
1995 5,000 0 44,000 0
Kenneth Blanchard /(4)/ 1996 120,129 60,950 17,500 380
1995 5,000 0 18,000 0
Charles P. Funderburg /(4)/ 1996 107,002 60,950 20,000 378
1995 3,500 0 0 0
</TABLE>
____________
/(1)/ Comprised of the Company's matching contributions to the 401(k) Plan.
/(2)/ Terence E. Hall became Chairman of the Board, CEO and President on
December 13, 1995.
/(3)/ Ernest J. Yancey and James E. Ravannack became Vice Presidents and
Directors on December 13, 1995.
/(4)/ Kenneth Blanchard and Charles P. Funderburg became Vice Presidents on
December 13, 1995.
____________
11
<PAGE>
EMPLOYMENT AGREEMENTS
The Company entered into employment agreements in December 1995 with each
of Terence E. Hall, Ernest J. Yancey, Jr., James E. Ravannack, Kenneth Blanchard
and Richard J. Lazes and in May 1996 with Charles P. Funderburg (the
"Executives"), providing for minimum annual salaries of $300,000, $120,000,
$120,000, $120,000, $162,500 and $120,000, respectively, with 5% increases over
and above the preceding year's salary during the term of the agreement. Under
the employment agreements, Messrs. Hall, Yancey, Ravannack and Blanchard were
granted ten-year options to purchase 44,000, 44,000, 44,000 and 18,000 shares of
Common Stock, respectively, at $2.53 per share. Under the agreements, the
Executives are provided with benefits under any employee benefit plan maintained
by the Company for its employees generally, or for its executives and key
management employees in particular, on the same terms as are applicable to other
senior executives of the Company.
In addition to salary and benefits, each of Messrs. Hall, Yancey,
Ravannack, Blanchard and Funderburg receive an annual bonus calculated as a
percentage of the Company's year-end pre-tax, pre-bonus annual income
("Company's Income"), and Mr. Lazes receives an annual bonus calculated as a
percentage of Oil Stop's year-end pre-tax, pre-bonus annual income ("Oil Stop's
Income"). Mr. Hall's bonus is an amount equal to 1% of the Company's Income if
the Company's Income is greater than $1.8 million but less than or equal to $2.0
million, 2% of the Company's Income if the Company's Income is greater than $2.0
million but less than or equal to $2.25 million, or 3% of the Company's Income
if the Company's Income is greater than $2.25 million. The bonus for each of
Messrs. Yancey, Ravannack, Blanchard and Funderburg is an amount equal to .443%
of the Company's Income if the Company's Income is greater than $1.8 million but
less than or equal to $2.0 million, .886% of the Company's Income if the
Company's Income is greater than $2.0 million but less than or equal to $2.25
million, or 1.33% of the Company's Income if the Company's Income is greater
than $2.25 million. Mr. Lazes' bonus is an amount equal to 5% of Oil Stop's
Income that is greater than $1.0 million but less than or equal to $1.5 million,
7.25% of Oil Stop's Income that is greater than $1.5 million but less than or
equal to $2.0 million, and 10% of Oil Stop's Income that is greater than $2.0
million.
The terms of the employment agreements, except for Mr. Hall's and Mr.
Funderburg's agreements, will continue until December 13, 1998 unless earlier
terminated as described below. The term of Mr. Hall's employment agreement will
continue until December 13, 2000 unless earlier terminated as described below.
The term of Mr. Hall's agreement will automatically be extended for one
additional year unless the Company gives at least 90 days' prior notice that it
does not wish to extend the term. The term of Mr. Funderburg's employment
agreement will continue until April 30, 1999 unless earlier terminated as
described below.
Each employment agreement provides for the termination of the Executive's
employment: (i) upon the Executive's death; (ii) by the Company or the Executive
upon the Executive's disability; (iii) by the Company for cause, which includes
willful and continued failure substantially to perform the Executive's duties,
or willful engaging in misconduct that is materially injurious to the Company,
provided, however, that prior to termination, the Board of Directors must find
that the Executive was guilty of such conduct; or (iv) by the Executive for good
reason, which includes a failure by the
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Company to comply with any material provision of the agreement that has not been
cured after ten days' notice. For a period of two years after any termination,
the Executive will be prohibited from competing with the Company.
Upon termination due to death or disability, the Company will pay the
Executive all compensation owing through the date of termination and a benefit
in an amount equal to nine-month's salary. Upon termination by the Company for
cause or upon termination by the Executive for other than good reason, the
Executive will be entitled to all compensation owing through the date of
termination. Upon termination by the Executive for good reason, the Executive
will be entitled to all compensation owing through the date of termination plus
his current compensation and the highest annual amount payable to Executive
under the Company's compensation plans multiplied by the greater of two or the
number of years remaining in the term of the Executive's employment under the
agreement. In addition, if the termination arises out of a breach by the
Company, the Company will pay all other damages to which the Executive may be
entitled as a result of such breach.
1996 STOCK OPTION AND STOCK APPRECIATION RIGHT GRANTS
The following table contains information concerning the grant of stock
options and stock appreciation rights ("SARs") to the Named Officers during
1996.
1996 STOCK OPTION AND SAR GRANTS
<TABLE>
<CAPTION>
% of Total
No. of Shares Options/SARs
Underlying Granted to
Options/SARs Employees Exercise or
Name Granted in 1996 Base Price /(1)/ Expiration Date
- ----------------------- ------- ------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Kenneth Blanchard 17,500 4.2% $2.56 January 5, 2006
Charles P. Funderburg 20,000 4.7% $2.56 January 5, 2006
</TABLE>
____________
/(1)/ These options will be exercisable as of the later to occur of (i) the
option holder completing sixty months of continuous uninterrupted service
with the Company or (ii) July 5, 1996.
_____________
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
In November 1994, Bradford Small loaned to the Company $150,000 payable on
demand. In January 1995, the Company raised $600,000 in which it issued six
units, each unit consisting of a $100,000 secured promissory note bearing
interest at the rate of 10.5% per annum and warrants to purchase 16,667 shares
of Common Stock at $1.00 per share of Common Stock. Mr. Small converted the
demand loan for one and one-half of the units issued in this financing. This
loan was repaid from the net proceeds of the Company's offering of Common Stock
in December 1995.
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In October 1994, the Company entered into a lease purchase for blowout
preventors with Kenneth Boothe. Payments in completion of the lease purchase
amounted to $38,000 in 1995. The Company paid Mr. Boothe lease payments of
$45,000 in 1995 for an office. In December 1995, the Company agreed with Mr.
Boothe to cancel this lease as of December 31, 1995 and paid a lump sum of
$125,000. In May 1996, the Company terminated the employment agreement with Mr.
Boothe and in settlement of the employment agreement paid Mr. Boothe $70,000 in
1996 and agreed to pay him $60,000 in 1997 and 1998.
The Company paid Justin Sullivan, a director, consulting fees of $25,000
and $23,000 in 1995 and 1996, respectively.
The Company paid Richard Lazes, a director and employee, approximately
$2,400 and $46,200 for rent in 1995 and 1996, respectively. The Company is
obligated to make rent payments to Mr. Lazes in the amount of $46,200 in 1997
and 1998.
RELATIONSHIP WITH INDEPENDENT
PUBLIC ACCOUNTANTS
KPMG Peat Marwick LLP has been selected by the Board of Directors to serve
again in that capacity for the fiscal year ending December 31, 1997. A
representative of KPMG Peat Marwick LLP is expected to attend the Meeting, will
have an opportunity to make a statement if he wishes to do so, and will be
available to respond to appropriate questions.
OTHER MATTERS
QUORUM AND VOTING OF PROXIES
The presence, in person or by proxy, of a majority of the outstanding
shares of Common Stock is necessary to constitute a quorum. Stockholders
voting, or abstaining from voting, by proxy on any issue will be counted as
present for purposes of constituting a quorum. If a quorum is present, the
election of directors is determined by plurality vote, and the affirmative vote
of a majority of the shares present or represented by proxy and entitled to vote
is required to approve the proposal to amend the Plan made herein. An
abstention will have the effect of a vote against the proposals. If brokers do
not receive instructions from beneficial owners as to the granting or
withholding of proxies and may not or do not exercise discretionary power to
grant a proxy with respect to such shares (a "broker non-vote") on the
proposals, shares not voted on the proposals as a result will be counted as not
present and not cast with respect to the proposals.
All proxies received by the Company in the form enclosed will be voted as
specified and, in the absence of instructions to the contrary, will be voted for
the election of the nominees named herein and for the approval of the proposal
outlined above. The Company does not know of any matters to be presented at the
Meeting other than those described herein. However, if any other matters
properly come before the Meeting, it is the intention of the persons named in
the enclosed proxy to vote the shares represented by them in accordance with
their best judgment.
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SHAREHOLDER PROPOSALS
Eligible shareholders who desire to present a proposal qualified for
inclusion in the proxy materials relating to the 1998 annual meeting of
shareholders must forward such proposal to the Secretary of the Company at the
address set forth on the first page of this Proxy Statement in time to arrive at
the Company prior to November 30, 1997.
By Order of the Board of Directors
Carolyn Plaisance
Secretary
Belle Chasse, Louisiana
June 25, 1997
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EXHIBIT A
AMENDED AND RESTATED
SUPERIOR ENERGY SERVICES, INC.
1995 STOCK INCENTIVE PLAN
1. PURPOSE. The purpose of the 1995 Stock Incentive Compensation Plan
(the "Plan") of Superior Energy Services, Inc. ("Superior") is to increase
stockholder value and to advance the interests of Superior and its subsidiaries
(collectively, the "Company") by furnishing a variety of equity incentives (the
"Incentives") designed to attract, retain and motivate key employees and
officers and to strengthen the mutuality of interests between such employees and
officers and Superior stockholders. Incentives may consist of opportunities to
purchase or receive shares of common stock, $.001 par value per share, of
Superior (the "Common Stock"), on terms determined under the Plan.
2. ADMINISTRATION.
2.1 COMPOSITION. The Plan shall be administered by the compensation
committee of the Board of Directors of Superior, or by a subcommittee of
the compensation committee. The committee or subcommittee that administers
the Plan shall hereinafter be referred to as the "Committee". The
Committee shall consist of not fewer than two members of the Board of
Directors, each of whom shall (a) qualify as a "non-employee director"
under Rule 16b-3 under the Securities Exchange Act of 1934 (the "1934
Act"), as currently in effect or any successor rule, and (b) qualify as
"outside directors" under Section 162(m) of the Internal Revenue Code (the
"Code"), as currently in effect or any successor rule.
2.2 AUTHORITY. The Committee shall have plenary authority to award
Incentives under the Plan, to interpret the Plan, to establish any rules or
regulations relating to the Plan that it determines to be appropriate, to
enter into agreements with participants as to the terms of the Incentives
(the "Incentive Agreements") and to make any other determination that it
believes necessary or advisable for the proper administration of the Plan.
Its decisions in matters relating to the Plan shall be final and conclusive
on the Company and participants. The Committee may delegate its authority
hereunder to the extent provided in Section 3 hereof. The Committee shall
not have authority to award Incentives under the Plan to directors in their
capacities as such.
3. ELIGIBLE PARTICIPANTS. Key employees of the Company (including
officers who also serve as directors of the Company) shall become eligible to
receive Incentives under the Plan when designated by the Committee. Employees
may be designated individually or by groups or categories, as the Committee
deems appropriate. With respect to participants not subject to Section 16 of
the 1934 Act or Section 162(m) of the Code, the Committee may delegate to
appropriate personnel of the Company its authority to designate participants, to
determine the size and type of Incentives to be received by those participants
and to determine or modify performance objectives for those participants.
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4. SHARES SUBJECT TO THE PLAN; RESERVATION OF INCENTIVES.
4.1. NUMBER OF SHARES. Subject to adjustment as provided in Section
9.5, a total of 1,400,000 shares of Common Stock are authorized to be
issued under the Plan. Incentives with respect to no more than 200,000
shares of Common Stock may be granted through the Plan to a single
participant in one calendar year. In the event that a stock option granted
hereunder expires or is terminated or cancelled prior to exercise, any
shares of Common Stock that were issuable thereunder may again be issued
under the Plan. In the event that shares of Common Stock are issued as
restricted stock or stock awards under the Plan and thereafter are
forfeited or reacquired by the Company pursuant to rights reserved upon
issuance thereof, such forfeited and reacquired shares may again be issued
under the Plan. Additional rules for determining the number of shares
granted under the Plan may be made by the Committee, as it deems necessary
or appropriate.
4.2. TYPE OF COMMON STOCK. Common Stock issued under the Plan may be
authorized and unissued shares or issued shares held as treasury shares.
4.3. RESERVATION OF INCENTIVES. Subject to adjustment as provided in
Section 9.5, Incentives with respect to 100,000 shares of Common Stock are
hereby reserved for grant to employees of Oil Stop, Inc., and Incentives
with respect to 500,000 shares of Common Stock are hereby reserved for
grant to employees of Nautilus Pipe & Tool Rental, Inc., including their
successors and assigns, subject to the discretion of the Committee to award
such Incentives.
5. TYPES OF INCENTIVES. Incentives may be granted under the Plan to
eligible participants in any of the following forms, either individually or in
combination, (a) incentive stock options and non-qualified stock options; (b)
restricted stock; and (c) stock awards.
6. STOCK OPTIONS. A stock option is a right to purchase shares of Common
Stock from Superior. Stock options granted under this Plan may be incentive
stock options or non-qualified stock options. Any option that is designated as
a non-qualified stock option shall not be treated as an incentive stock option.
Each stock option granted by the Committee under this Plan shall be subject to
the following terms and conditions:
6.1. PRICE. The exercise price per share shall be determined by the
Committee, subject to adjustment under Section 9.5; provided that in no
event shall the exercise price be less than the Fair Market Value of a
share of Common Stock on the date of grant.
6.2. NUMBER. The number of shares of Common Stock subject to the
option shall be determined by the Committee, subject to Section 4.1 and
subject to adjustment as provided in Section 9.5.
6.3. DURATION AND TIME FOR EXERCISE. The term of each stock option
shall be determined by the Committee. Subject to the automatic
acceleration of exercisability under Section 9.11, each stock option shall
become exercisable at such time or times during its
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<PAGE>
term as shall be determined by the Committee. The Committee may accelerate
the exercisability of any stock option at any time.
6.4. REPURCHASE. Upon approval of the Committee, the Company may
repurchase a previously granted stock option from a participant by mutual
agreement before such option has been exercised by payment to the
participant of the amount per share by which: (i) the Fair Market Value
(as defined in Section 9.12) of the Common Stock subject to the option on
the business day immediately preceding the date of purchase exceeds (ii)
the exercise price.
6.5. MANNER OF EXERCISE. A stock option may be exercised, in whole
or in part, by giving written notice to the Company, specifying the number
of shares of Common Stock to be purchased. The exercise notice shall be
accompanied by the full purchase price for such shares. The option price
shall be payable in United States dollars and may be paid by (a) cash; (b)
uncertified or certified check; (c) unless otherwise determined by the
Committee, by delivery of shares of Common Stock held by the optionee for
at least six months, which shares shall be valued for this purpose at the
Fair Market Value on the business day immediately preceding the date such
option is exercised; (d) delivering a properly executed exercise notice
together with irrevocable instructions to a broker approved in advance by
Superior (with a copy to Superior) to promptly deliver to Superior the
amount of sale or loan proceeds to pay the exercise price; or (e) in such
other manner as may be authorized from time to time by the Committee. In
the case of delivery of an uncertified check upon exercise of a stock
option, no shares shall be issued until the check has been paid in full.
Prior to the issuance of shares of Common Stock upon the exercise of a
stock option, a participant shall have no rights as a shareholder.
6.6. INCENTIVE STOCK OPTIONS. Notwithstanding anything in the Plan
to the contrary, the following additional provisions shall apply to the
grant of stock options that are intended to qualify as Incentive Stock
Options (as such term is defined in Section 422 of the Code):
(A) Any Incentive Stock Option agreement authorized under the
Plan shall contain such other provisions as the Committee shall deem
advisable, but shall in all events be consistent with and contain or
be deemed to contain all provisions required in order to qualify the
options as Incentive Stock Options.
(B) All Incentive Stock Options must be granted within ten years
from the date on which this Plan is adopted by the Board of Directors.
(C) Unless sooner exercised, all Incentive Stock Options shall
expire no later than ten years after the date of grant.
(D) No Incentive Stock Options shall be granted to any
participant who, at the time such option is granted, would own (within
the meaning of Section 422 of the Code) stock possessing more than 10%
of the total combined voting power of all classes of stock of the
employer corporation or of its parent or subsidiary corporation.
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<PAGE>
(E) The aggregate Fair Market Value (determined with respect to
each Incentive Stock Option as of the time such Incentive Stock Option
is granted) of the Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by a participant during any
calendar year (under the Plan or any other plan of Superior or any of
its subsidiaries) shall not exceed $100,000. To the extent that such
limitation is exceeded, such options shall not be treated, for federal
income tax purposes, as incentive stock options.
6.7 EQUITY MAINTENANCE. If a participant exercises an option during
the term of his employment with the Company, and pays the exercise price
(or any portion thereof) through the surrender of shares of outstanding
Common Stock owned by the participant, the Committee may, in its
discretion, grant to such participant an additional option to purchase the
number of shares of Common Stock equal to the shares of Common Stock so
surrendered by such participant. Any such additional options granted by
the Committee shall be exercisable at the Fair Market Value of the Common
Stock determined as of the business day immediately preceding the
respective dates such additional options may be granted. As stated above,
such additional options may be granted only in connection with the exercise
of options by the participant during the term of his active employment with
the Company. The grant of such additional options under this Section 6.7
shall be made upon such other terms and conditions as the Committee may
from time to time determine.
7. RESTRICTED STOCK
7.1 GRANT OF RESTRICTED STOCK. The Committee may award shares of
restricted stock to such key employees as the Committee determines to be
eligible pursuant to the terms of Section 3. An award of restricted stock
may be subject to the attainment of specified performance goals or targets,
restrictions on transfer, forfeitability provisions and such other terms
and conditions as the Committee may determine, subject to the provisions of
the Plan. To the extent restricted stock is intended to qualify as
performance based compensation under Section 162(m) of the Code, it must
meet the additional requirements imposed thereby.
7.2 THE RESTRICTED PERIOD. The Committee shall establish a period of
time during which the transfer of the shares of restricted stock shall be
restricted (the "Restricted Period"). Each award of restricted stock may
have a different Restricted Period. The expiration of the Restricted
Period shall also occur under the conditions described in Section 9.11
hereof and may occur upon death, disability or retirement, if so determined
by the Committee.
7.3 ESCROW. The participant receiving restricted stock shall enter
into an Incentive Agreement with the Company setting forth the conditions
of the grant. Certificates representing shares of restricted stock shall
be registered in the name of the participant and deposited with the
Company, together with a stock power endorsed in blank by the participant.
Each such certificate shall bear a legend in substantially the following
form:
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The transferability of this certificate and the shares of Common Stock
represented by it are subject to the terms and conditions (including
conditions of forfeiture) contained in the Superior Energy Services,
Inc. 1995 Stock Incentive Plan (the "Plan"), and an agreement entered
into between the registered owner and Superior Energy Services, Inc.
thereunder. Copies of the Plan and the agreement are on file at the
principal office of the Company.
7.4 DIVIDENDS ON RESTRICTED STOCK. Any and all cash and stock
dividends paid with respect to the shares of restricted stock shall be
subject to any restrictions on transfer, forfeitability provisions or
reinvestment requirements as the Committee may, in its discretion,
prescribe in the Incentive Agreement.
7.5 FORFEITURE. In the event of the forfeiture of any shares of
restricted stock under the terms provided in the Incentive Agreement
(including any additional shares of restricted stock that may result from
the reinvestment of cash and stock dividends, if so provided in the
Incentive Agreement), such forfeited shares shall be surrendered and the
certificates cancelled. The participants shall have the same rights and
privileges, and be subject to the same forfeiture provisions, with respect
to any additional shares received pursuant to Section 9.6 due to a
recapitalization, merger or other change in capitalization.
7.6 EXPIRATION OF RESTRICTED PERIOD. Upon the expiration or
termination of the Restricted Period and the satisfaction of any other
conditions prescribed by the Committee, the restrictions applicable to the
restricted stock shall lapse and a stock certificate for the number of
shares of restricted stock with respect to which the restrictions have
lapsed shall be delivered, free of all such restrictions and legends,
except any that may be imposed by law, to the participant or the
participant's estate, as the case may be.
7.7 RIGHTS AS A SHAREHOLDER. Subject to the terms and conditions of
the Plan and subject to any restrictions on the receipt of dividends that
may be imposed in the Incentive Agreement, each participant receiving
restricted stock shall have all the rights of a shareholder with respect to
shares of stock during any period in which such shares are subject to
forfeiture and restrictions on transfer, including without limitation, the
right to vote such shares.
8. STOCK AWARDS. A stock award consists of the transfer by the Company
to a participant of shares of Common Stock, without other payment therefor, as
additional compensation for services previously provided to the Company. The
number of shares to be transferred by the Company to a participant pursuant to a
stock award shall be determined by the Committee. To the extent a stock award
is intended to qualify as performance based compensation under Section 162(m) it
must meet the additional requirements imposed thereby.
9. GENERAL.
9.1. DURATION. Subject to Section 9.11, the Plan shall remain in
effect until all Incentives granted under the Plan have either been
satisfied by the issuance of shares of Common Stock or terminated under the
terms of the Plan and all restrictions imposed on
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<PAGE>
shares of Common Stock in connection with their issuance under the Plan
have lapsed.
9.2 TRANSFERABILITY OF INCENTIVES. No Incentives granted hereunder
may be transferred, pledged, assigned or otherwise encumbered by a
participant except:
(i) by will;
(ii) by the laws of descent and distribution;
(iii) pursuant to a domestic relations order, as defined in the
Code, if permitted by the Committee and so provided in the Incentive
Agreement or an amendment thereto; or
(iv) as to options only, if permitted by the Committee and so
provided in the Incentive Agreement or an amendment thereto, (a) to
Immediate Family Members, (b) to a partnership in which Immediate Family
Members, or entities in which Immediate Family Members are the sole owners,
members or beneficiaries, as appropriate, are the only partners, (c) to a
limited liability company in which Immediate Family Members, or entities in
which Immediate Family Members are the sole owners, members or
beneficiaries, as appropriate, are the only members, or (d) to a trust for
the sole benefit of Immediate Family Members. "Immediate Family Members"
shall be defined as the spouse and natural or adopted children or
grandchildren of the participant and their spouses. To the extent that an
incentive stock option is permitted to be transferred during the lifetime
of the participant, it shall be treated thereafter as a nonqualified stock
option. Any attempted assignment, transfer, pledge, hypothecation or other
disposition of Awards, or levy of attachment or similar process upon
Incentives not specifically permitted herein, shall be null and void and
without effect.
9.3. EFFECT OF TERMINATION OF EMPLOYMENT OR DEATH. In the event that
a participant ceases to be an employee of the Company for any reason,
including death, disability, early retirement or normal retirement, any
Incentives may be exercised, shall vest or shall expire at such times as
may be determined by the Committee in the Incentive Agreement.
9.4. ADDITIONAL CONDITION. Anything in this Plan to the contrary
notwithstanding: (a) the Company may, if it shall determine it necessary or
desirable for any reason, at the time of award of any Incentive or the
issuance of any shares of Common Stock pursuant to any Incentive, require
the recipient of the Incentive, as a condition to the receipt thereof or to
the receipt of shares of Common Stock issued pursuant thereto, to deliver
to the Company a written representation of present intention to acquire the
Incentive or the shares of Common Stock issued pursuant thereto for his own
account for investment and not for distribution; and (b) if at any time the
Company further determines, in its sole discretion, that the listing,
registration or qualification (or any updating of any such document) of any
Incentive or the shares of Common Stock issuable pursuant thereto is
necessary on any securities exchange or under any federal or state
securities or blue sky law, or that the consent or approval of any
governmental regulatory body is necessary or desirable as a condition of,
or in connection with the award of any Incentive, the issuance of shares of
Common Stock pursuant thereto, or the removal of any restrictions imposed
on such shares,
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<PAGE>
such Incentive shall not be awarded or such shares of Common Stock shall
not be issued or such restrictions shall not be removed, as the case may
be, in whole or in part, unless such listing, registration, qualification,
consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Company.
9.5. ADJUSTMENT. In the event of any recapitalization, stock
dividend, stock split, combination of shares or other change in the Common
Stock, the number of shares of Common Stock then subject to the Plan,
including shares subject to outstanding Incentives, shall be adjusted in
proportion to the change in outstanding shares of Common Stock. In the
event of any such adjustments, the purchase price of any option shall be
adjusted as and to the extent appropriate, in the reasonable discretion of
the Committee, to provide participants with the same relative rights before
and after such adjustment.
9.6. INCENTIVE AGREEMENTS. The terms of each Incentive shall be
stated in an agreement approved by the Committee. The Committee may also
determine to enter into agreements with holders of options to reclassify or
convert certain outstanding options, within the terms of the Plan, as
Incentive Stock Options or as non-qualified stock options.
9.7 WITHHOLDING. At any time that a participant is required to pay
to the Company an amount required to be withheld under the applicable tax
laws in connection with the issuance of shares of Common Stock under the
Plan or upon the lapse of restrictions on shares of restricted stock, the
participant may, subject to the Committee's right of disapproval, satisfy
this obligation in whole or in part by electing (the "Election") to have
the Company withhold from the distribution shares of Common Stock having a
value equal to the amount required to be withheld. The value of the shares
withheld shall be based on the Fair Market Value of the Common Stock on the
date that the amount of tax to be withheld shall be determined (the "Tax
Date").
Each Election must be made prior to the Tax Date. The Committee may
disapprove of any Election or may suspend or terminate the right to make
Elections. If a participant makes an election under Section 83(b) of the
Code with respect to shares of restricted stock, an Election is not
permitted to be made.
A participant may also satisfy his or her total tax liability related
to the Incentive by delivering shares of Common Stock that have been owned
by the participant for at least six months. The value of the shares
delivered shall be based on the Fair Market Value of the Common Stock on
the Tax Date.
9.8. NO CONTINUED EMPLOYMENT. No participant under the Plan shall
have any right, because of his or her participation, to continue in the
employ of the Company for any period of time or to any right to continue
his or her present or any other rate of compensation.
9.9. DEFERRAL PERMITTED. Distribution of shares of Common Stock to
which a participant is entitled under any Incentive shall be made as
provided in the Incentive
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Agreement. Payment may be deferred at the option of the participant if
provided in the Incentive Agreement.
9.10. AMENDMENT OF THE PLAN. The Board may amend or discontinue the
Plan at any time. In addition, no amendment or discontinuance shall,
subject to adjustments permitted under Section 9.5, change or impair,
without the consent of the recipient, an Incentive previously granted,
except that the Company retains the right to (a) convert any outstanding
Incentive Stock Option to a non-qualified stock option, or (b) require the
forfeiture of an Incentive if a participant's employment is terminated for
cause, and (c) exercise all rights under Section 9.11.
9.11 CHANGE OF CONTROL. Notwithstanding anything to the contrary in
the Plan or any related Incentive Agreement, if (i) Superior shall not be
the surviving entity in any merger, consolidation or other reorganization
(or survives only as a subsidiary of an entity other than a previously
wholly-owned subsidiary of the Company), (ii) the Company sells, leases or
exchanges all or substantially all of its assets to any other person or
entity (other than a wholly-owned subsidiary of the Company), (iii)
Superior is to be dissolved or liquidated, (iv) any person or entity,
including a "group" as contemplated by section 13(d)(3) of the 1934 Act,
other than an employee benefit plan of the Company or a related trust,
acquires or gains ownership or control (including, without limitation,
power to vote) of more than 30% of the outstanding shares of Superior's
voting stock, or (v) as a result of or in connection with a contested
election of directors, the persons who were directors of Superior before
such election shall cease to constitute a majority of the Board of
Directors of Superior (each such event is referred to herein as a
"Corporate Change"), then upon the approval by the Board of Directors of
Superior of any Corporate Change of the type described in clause (i) to
(iii) or upon a Corporate Change described in clause (iv) or (v), all
outstanding options shall automatically become fully exercisable, all
restrictions or limitations on any Incentives shall lapse and all
performance criteria and other conditions relating to the payment of
Incentives shall be deemed to be achieved and waived by the Company,
without the necessity of any action by any person. In addition, no later
than (a) 30 days after the approval by the Board of Directors of Superior
of any Corporate Change of the type described in clauses (i) to (iii) or
(b) 30 days after a Corporate Change of the type described in clause (iv)
or (v), the Committee, acting in its sole discretion without the consent or
approval of any participant (and notwithstanding any removal or attempted
removal of some or all of the members thereof as directors or committee
members), may act to effect one or more of the following alternatives,
which may vary among individual participants and which may vary among
Incentives held by any individual participant: (1) require that all
outstanding options be exercised on or before a specified date (before or
after such Corporate Change) fixed by the Committee, after which specified
date all unexercised options and all rights of participants thereunder
shall terminate, (2) provide for mandatory conversion of some or all of the
outstanding options held by some or all participants as of a date, before
or after such Corporate Change, specified by the Committee, in which event
such options shall be deemed automatically cancelled and the Company shall
pay, or cause to be paid, to each such participant an amount of cash per
share equal to the excess, if any, of the Change of Control Value of the
shares subject to such option, as defined and calculated below, over the
exercise price(s) of such options, or, in lieu of such cash payment, the
issuance of Common
8
<PAGE>
Stock having a Fair Market Value equal to such excess, (3) make such
equitable adjustments to Incentives then outstanding as the Committee deems
appropriate to reflect such Corporate Change (provided, however, that the
Committee may determine in its sole discretion that no adjustment is
necessary to Incentives then outstanding) or (4) provide that thereafter
upon any exercise of an option theretofore granted the participant shall be
entitled to purchase under such option, in lieu of the number of shares of
Common Stock then covered by such option, the number and class of shares of
stock or other securities or property (including, without limitation, cash)
to which the participant would have been entitled pursuant to the terms of
the agreement providing for the merger, consolidation, asset sale,
dissolution or other Corporate Change of the type described in clause (i)
to (iii) above, if, immediately prior to such Corporate Change, the
participant had been the holder of record of the number of shares of Common
Stock then covered by such options. For the purposes of clause (2) above,
the "Change of Control Value" shall equal the amount determined by
whichever of the following items is applicable: (i) the per share price
offered to shareholders of Superior in any such merger, consolidation or
other reorganization, determined as of the date of the definitive agreement
providing for such transaction, (ii) the price per share offered to
shareholders of Superior in any tender offer or exchange offer whereby a
Corporate Change takes place, or (iii) in all other events, the Fair Market
Value per share of Common Stock into which such options being surrendered
are exercisable, as determined by the Committee as of the date determined
by the Committee to be the date of cancellation and surrender of such
options. In the event that the consideration offered to shareholders of
Superior in any transaction described herein consists of anything other
than cash, the Committee shall determine the fair cash equivalent of the
portion of the consideration offered which is other than cash.
9.12. DEFINITION OF FAIR MARKET VALUE. Whenever "Fair Market Value"
of Common Stock shall be determined for purposes of this Plan, it shall be
determined as follows: (i) if the Common Stock is listed on an established
stock exchange or any automated quotation system that provides sale
quotations, the closing sale price for a share of the Common Stock on such
exchange or quotation system on the applicable date; (ii) if the Common
Stock is not listed on any exchange or quotation system, but bid and asked
prices are quoted and published, the mean between the quoted bid and asked
prices on the applicable date, and if bid and asked prices are not
available on such day, on the next preceding day on which such prices were
available; and (iii) if the Common Stock is not regularly quoted, the fair
market value of a share of Common Stock on the applicable date as
established by the Committee in good faith.
9
<PAGE>
LOGO
SUPERIOR ENERGY SERVICES, INC.
PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
FOR THE ANNUAL MEETING OF STOCKHOLDERS ON JULY 29, 1997
The undersigned hereby appoints Terence E. Hall proxy for the undersigned, with
full power of substitution, to vote all shares of common stock of Superior
Energy Services, Inc. (the "Company") that the undersigned is entitled to vote
at the annual meeting of stockholders to be held July 29, 1997, and any
adjournments thereof, with respect to the following matters:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1. Election of Directors:
Terence E. Hall James E. Ravannack Kenneth C. Boothe Justin L. Sullivan
Ernest J. Yancey Richard J. Lazes Bradford Small
</TABLE>
2. Proposal to approve the Company's amended 1995 Stock Incentive Plan.
PLEASE SPECIFY YOUR CHOICES BY MARKING THE APPROPRIATE BOXES ON THE REVERSE
SIDE. IF NO SPECIFIC DIRECTIONS ARE GIVEN, THIS PROXY WILL BE VOTED FOR ALL
NOMINEES AND THE PROPOSAL LISTED ABOVE. YOUR SHARES CANNOT BE VOTED UNLESS YOU
SIGN, DATE AND RETURN THIS PROXY.
LOGO
THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR PROPOSALS 1 AND 2.
1. Election of Directors
[_] FOR ALL NOMINEES LISTED [_] WITHHOLD AUTHORITY TO
BELOW (EXCEPT AS MARKED VOTE FOR ALL NOMINEES
TO THE CONTRARY BELOW) LISTED BELOW
2. Proposal to approve the Company's amended 1995 Stock Incentive Plan.
[_] FOR [_] AGAINST [_] ABSTAIN
3. In his discretion, to transact such other business as may properly come
before the meeting and any adjournments thereof.
INSTRUCTIONS: TO WITHHOLD AUTHORITY TO VOTE FOR ANY NOMINEE, STRIKE A LINE
THROUGH THE NOMINEE'S NAME LISTED BELOW.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Terence E. Hall Ernest J. Yancey James E. Ravannack Justin L. Sullivan
Richard J. Lazes Kenneth C. Boothe Bradford Small
</TABLE>
The signer hereby revokes all authorizations heretofore given by the signer to
vote at the meeting or any adjournments thereof.
NOTE: Please sign exactly as name appears
hereon. When signing as attorney,
executor, administrator, trustee, or
guardian, please give full title as
such. If a corporation, please sign in
full corporate name by president or
other authorized officer. If a
partnership, please sign in partnership
name by authorized persons.
DATE _______________________________________
--------------------------------------------
SIGNATURE(S)
