Exhibit 10.2


 


CONSULTING AGREEMENT


 


THIS CONSULTING AGREEMENT
(this “Agreement”) is made and entered into as of February 2, 2017 (the “Effective Date”),
by and between Energy XXI Gulf Coast, Inc. (the “Company”) and John D. Schiller, Jr. (“Consultant”).
The Company and Consultant are sometimes referred to in this Agreement collectively as the “Parties,” and
each individually as a “Party.”


 


WHEREAS, the Company
wishes to engage Consultant to provide certain consulting services to the board of directors of the Company (the “Board”),
and Consultant wishes to be engaged in such capacity, in each case in accordance with the terms and conditions of this Agreement.


 


NOW, THEREFORE, in
consideration of the premises and the mutual covenants and agreements contained herein, the receipt and sufficiency of which are
hereby acknowledged, the Parties agree as follows:


 


1.       Engagement;
Term. Effective as of the Effective Date, the Company engages Consultant to serve as a consultant to the Board, and Consultant
accepts such engagement. Unless earlier terminated pursuant to Section 5 below, the term of Consultant’s engagement
hereunder (the “Term”) shall commence on the Effective Date and continue until the date that is six months
after the Effective Date.


 


2.       Consulting
Services. During the Term, Consultant shall provide such consulting services (the “Consulting Services”)
as may be reasonably requested of Consultant from time to time by the Chairman of the Board. As an independent contractor, Consultant
will not be required to devote a specific amount of time to the provision of Consulting Services and is free to provide services
to other entities during the Term as long as Consultant does not violate any of the terms of this Agreement or that certain Executive
Employment Agreement, dated as of December 30, 2016, by and between Consultant and the Company (the “Employment
Agreement”); provided, however, the Company and Consultant agree that in no event shall the level of any
consulting services to be provided pursuant to this Agreement exceed more than 20% of the average level of services performed by
Consultant for the Company and its affiliated “service recipients” (within the meaning of Treasury Regulation §1.409A-1(h)(3))
over the 36-month period immediately preceding the Effective Date. Consultant agrees to attend such meetings as the Board may reasonably
request for proper communication of Consultant’s advice and consultation. Consultant shall coordinate the furnishing of Consultant’s
services pursuant to this Agreement with the Board in order that such services can be provided in such a way as to generally conform
to the business schedules of the Board, but the method of performance, time of performance, place of performance, hours utilized
in such performance, and other details of the manner, means, and method of performance of Consultant’s services hereunder
shall be within the sole control of Consultant.


 


3.       Consulting
Fee. In consideration of Consultant’s performance of the Consulting Services, during the Term, the Company shall pay
Consultant a consulting fee at the rate of $50,000 per month that Consultant provides Consulting Services hereunder (the “Consulting
Fee”), payable monthly in arrears during the Term (prorated for any partial months). Each monthly Consulting Payment
will be made within 15 days after the month in which it is earned. Consultant acknowledges and agrees that (a) the Company
is not required to withhold federal or state income, gross receipts or similar taxes from the Consulting Fee paid to Consultant
hereunder or to otherwise comply with any state or federal law concerning the collection of income, gross receipts or similar taxes
at the source of payment of wages, (b) the Company is not required under the Federal Unemployment Tax Act or the Federal Insurance
Contribution Act to pay or withhold taxes for unemployment compensation or for social security on behalf of Consultant with respect
to the Consulting Fee, and (c) the Company is not required under the laws of any state to obtain workers’ compensation
insurance or to make state unemployment compensation contributions on behalf of Consultant.


 






     


     


    

 


4.       Termination.
This Agreement may be terminated by (a) the Company, for any reason or no reason at all, upon 30 days’ prior written
notice to the Consultant; (b) mutual agreement of the Parties; or (c) either Party upon material breach by the other Party of any
term of this Agreement or the Employment Agreement. This Agreement will automatically terminate upon Consultant’s death.


 


5.       Amounts
Payable upon Termination. Upon termination of this Agreement for whatever reason, the Company shall pay Consultant only the
amount of the Consulting Fee that has accrued and has not been paid through the date of termination. The Company shall have no
obligation to pay any additional amount to Consultant upon termination of this Agreement.


 


6.       Independent
Contractor. At all times during the Term, Consultant shall be an independent contractor of the Company. In no event shall Consultant
be deemed to be an employee of the Company, and Consultant shall not at any time be entitled to any employment rights or benefits
from the Company or be deemed to be an agent of the Company or have any power to bind or commit the Company or otherwise act on
its behalf. Consultant acknowledges and agrees that, as a non-employee, Consultant is not eligible for any benefits sponsored by
the Company or any other benefit from the Company and, accordingly, Consultant shall not participate in any pension or welfare
benefit plans, programs or arrangements of the Company. Consultant shall not at any time communicate or represent to any third
party, or cause or knowingly permit any third party to assume, that in performing the Consulting Services hereunder, Consultant
is an employee, agent or other representative of the Company or has any authority to bind the Company or act on behalf of the Company.
Consultant shall be solely responsible for making all applicable tax filings and remittances with respect to amounts paid to Consultant
pursuant to this Agreement and shall indemnify and hold harmless the Company and its respective representatives for all claims,
damages, costs and liabilities arising from Consultant’s failure to do so. It is not the purpose or intention of this Agreement
or the Parties to create, and the same shall not be construed as creating, any partnership, partnership relation, joint venture,
agency, or employment relationship.


 


7.       Confidential
Information. The terms of Sections 7(a) and 7(b) of the Employment Agreement shall apply mutatis mutandis to this
Agreement, so that, for the avoidance of doubt, any Confidential Information (as defined in the Employment Agreement) that is disclosed
or provided to Consultant during the Term shall be subject thereto.


 


8.       Non-Disparagement.
During the Term, Consultant shall cause (i) Consultant’s relatives and (ii) any entity controlled by Consultant
(any such person or entity, a “Consultant Affiliate”), to refrain from any criticisms or disparaging comments
about the Company or its Affiliates, or any of their respective directors, officers, employees, advisors or stakeholders, or in
any way relating to Consultant’s employment or separation from employment; provided, however, that nothing in this
Agreement shall apply to or restrict in any way the communication of information by any Consultant Affiliate to any state or federal
law enforcement agency or require notice to the Company thereof, and Consultant also will not be in breach of the covenant contained
above solely by reason of testimony or disclosure by such Consultant Affiliate which is compelled by applicable law or regulation
or process of law. A violation or threatened violation of these prohibitions may be enjoined by the courts. The rights afforded
under this provision are in addition to any and all rights and remedies otherwise afforded by law. For the avoidance of doubt,
nothing herein will be deemed to amend or otherwise alter the terms of the Employment Agreement, including, without limitation,
Section 7(g) thereof.


 






    2 


     


    

 


9.       Relief.
The Parties acknowledge that money damages would not be sufficient remedy for any breach of Section 7 or Section 8
by Consultant, and the Company and its affiliates shall be entitled to enforce the provisions of Sections 7 and 8
by terminating payments then owing to Consultant, if any, and obtaining specific performance and injunctive relief as remedies
for such breach or any threatened breach. Such remedies shall not be deemed the exclusive remedies for a breach of Section 7
or Section 8, but shall be in addition to all remedies available at law or in equity, including, without limitation,
the recovery of damages from Consultant and Consultant’s agents.


 


10.       Applicable
Law. This Agreement is entered into under, and the validity, interpretation, construction and performance of this Agreement
shall be governed by, the laws of the State of Texas.


 


11.       Amendments.
This Agreement may not be amended, supplemented, or otherwise modified except by a written agreement executed by the Parties.


 


12.       Waiver.
Any waiver of a provision of this Agreement shall be effective only if it is in a writing signed by the Party entitled to enforce
such term and against which such waiver is to be asserted. No delay or omission on the part of either Party in exercising any right
or privilege under this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right
or privilege under this Agreement operate as a waiver of any other right or privilege under this Agreement nor shall any single
or partial exercise of any right or privilege preclude any other or further exercise thereof or the exercise of any other right
or privilege under this Agreement.


 


13.       Assignments;
Successors. This Agreement is personal to Consultant and, as such, may not be assigned by Consultant. The Company may assign
this Agreement without Consultant’s consent. Subject to the preceding sentences, this Agreement shall apply to, be binding
in all respects upon and inure to the benefit of the successors and permitted assigns of the Parties.


 


14.       Notices.
All notices, requests, demands, claims and other communications permitted or required to be given hereunder must be in writing
and shall be deemed duly given and received (a) if personally delivered, when so delivered, (b) if mailed, three business
days following the date deposited in the U.S. mail, certified or registered mail, return receipt requested, (c) if sent by
e-mail or other form of electronic communication, once transmitted and the confirmation is received, or (d) if sent through
an overnight delivery service in circumstances to which such service guarantees next day delivery, the day following being so sent:


 






    3 


     


    

 


If to Consultant,
addressed to:


 


John D. Schiller, Jr.

36 Tiel Way

Houston, Texas 77019

Email: _________________


 


 


If to the
Company, addressed to:


 


Energy XXI Gulf Coast, Inc.

1021 Main, Suite 226

Houston, Texas 77002


Attn: Chairman of the Board


Email: reddin.exxi@gmail.com


 


15.       Certain
Construction Rules. The Section headings contained in this Agreement are for convenience of reference only and shall in no
way define, limit, extend or describe the scope or intent of any provisions of this Agreement. Whenever the context may require,
any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of
nouns, pronouns and verbs shall include the plural and vice versa. In addition, as used in this Agreement, unless otherwise provided
to the contrary, (a) all references to days, months or years shall be deemed references to calendar days, months or years
and (b) any reference to a “Section” shall be deemed to refer to a section of this Agreement. The words “hereof,”
“herein,” and “hereunder” and words of similar import referring to this Agreement refer to this Agreement
as a whole and not to any particular provision of this Agreement. Unless otherwise specifically provided for herein, the term “or”
shall not be deemed to be exclusive but instead have the meaning “and/or,” and the term “including” shall
not be deemed to limit the language preceding such term.


 


16.       Execution
of Agreement. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original copy
and all of which, when taken together, shall be deemed to constitute one and the same agreement. The exchange of copies of this
Agreement and of signature pages by electronic transmission shall constitute effective execution and delivery of this Agreement
as to the Parties and may be used in lieu of the original Agreement for all purposes. Signatures of the Parties transmitted by
facsimile shall be deemed to be their original signatures for all purposes.


 






    4 


     


    

 


17.       Code
Section 409A. Notwithstanding anything to the contrary contained herein, this Agreement is intended to satisfy or be exempt
from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and
the Treasury Regulations and other guidance thereunder. Accordingly, all provisions herein, or incorporated by reference herein,
shall be construed and interpreted to satisfy or be exempt from the requirements of Code Section 409A. Further, for purposes of
Code Section 409A, each payment of compensation under this Agreement shall be treated as a separate payment of compensation. Any
reimbursement or in-kind benefit provided under this Agreement that constitutes a “deferral of compensation” within
the meaning of Treasury Regulation Section 1.409A-1(b) shall be made or provided in accordance with the requirements of Code Section
409A, including, where applicable, the requirement that (a) any reimbursement is for expenses incurred during the period of
time specified in this Agreement, (b) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during
a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar
year, (c) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following
the calendar year in which the expense is incurred, and (d) the right to reimbursement or in-kind benefits is not subject
to liquidation or exchange for another benefit.


 


[Remainder of Page Left Blank; Signature
Page Follows]


  




    5 


     


    

 


IN WITNESS WHEREOF,
the Parties have duly executed this Consulting Agreement as of the Effective Date.


 


JOHN D.
SCHILLER, JR.


 


 


/s/ John
D. Schiller, Jr.                                      


 


 


 


ENERGY XXI GULF COAST, INC.


  


 


By: /s/ Michael S. Reddin                                


Michael S. Reddin


Chairman of the Board, Chief Executive Officer


and President




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 





[Signature Page to John Schiller Consulting
Agreement]