Exhibit 10.7


 





Execution Version
















 


INDEMNIFICATION AGREEMENT


 


This Indemnification
Agreement (“Agreement”) is made as of December 30, 2016, by and between Energy XXI Gulf Coast, Inc.,
a Delaware corporation (the “Company”), and                                  (“Indemnitee”).


 


RECITALS:


 


WHEREAS, directors,
officers and other persons in service to corporations or business enterprises are subjected to expensive and time-consuming litigation
relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise
itself;


 


WHEREAS, highly competent
persons have become more reluctant to serve as directors, officers or in other capacities unless they are provided with adequate
protection through insurance and adequate indemnification against inordinate risks of claims and actions against them arising out
of their service to and activities on behalf of the corporation;


 


WHEREAS, the Board
of Directors of the Company (the “Board”) has determined that the increased difficulty in attracting and retaining
such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure
such persons that there will be increased certainty of such protection in the future;


 


WHEREAS, (i) the
Second Amended and Restated Certificate of Incorporation of the Company (as may be amended, the “Certificate of Incorporation”)
and the Second Amended and Restated Bylaws of the Company (as may be amended, the “Bylaws”) require indemnification
of the officers and directors of the Company, (ii) Indemnitee may also be entitled to indemnification pursuant to the General
Corporation Law of the State of Delaware (“DGCL”) and (iii) the Certificate of Incorporation, Bylaws and
the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive and thereby contemplate that
contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification;


 


WHEREAS, this Agreement
is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws and any resolutions adopted pursuant thereto,
and shall not be deemed a substitute therefor or to diminish or abrogate any rights of Indemnitee thereunder; and


 


WHEREAS, (i) Indemnitee
does not regard the protection available under the Certificate of Incorporation, the Bylaws and insurance as adequate in the present
circumstances, (ii) Indemnitee may not be willing to serve or continue to serve as a director or officer of the Company without
adequate protection, (iii) the Company desires Indemnitee to serve in such capacity, and (iv) Indemnitee is willing to
serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he be so indemnified.


 


AGREEMENT:


 


NOW, THEREFORE, in
consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:


 




     


     


    

 


Section
1.          Definitions. (a) As used in this Agreement:


 


“Affiliate”
of any specified Person shall mean any other Person controlling, controlled by or under common control with such specified Person.


 


“Chapter 11
Plan” shall mean the “Plan,” as defined in the Certificate of Incorporation (as the Certificate of
Incorporation is in effect on the date hereof).


 


“Corporate
Status” describes the status of a person who is or was a director, officer, employee or agent of (i) the Company
or (ii) any other corporation, limited liability company, partnership or joint venture, trust, employee benefit plan or other
enterprise which such person is or was serving at the request of the Company.


 


“Disinterested
Director” shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
is sought by Indemnitee.


 


“Emergence
Date” shall mean the “Effective Date,” as defined in the Chapter 11 Plan.


 


“Enterprise”
shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit
plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, employee,
agent or fiduciary.


 


“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.


 


“Expenses”
shall include all costs, expenses, fees and charges, including attorneys’ fees, retainers, court costs, transcript costs,
fees of experts, witness fees and expenses, fees and expenses of accountants and other advisors, travel expenses, retainers and
disbursements and advances thereon, duplicating costs, printing and binding costs, telephone charges, postage, delivery service
fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses
also shall include (i) expenses incurred in connection with any appeal resulting from, incurred by Indemnitee in connection
with, arising out of, or in respect of or relating to, any Proceeding, (ii) the premium, security for, and other costs relating
to any bond obtained in connection with any Proceeding, including cost bonds, supersedes bonds, other appeal bonds or their equivalent,
(ii) for purposes of Section 12(d) hereof only, expenses incurred by Indemnitee in connection with the interpretation,
enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise, (iii) any federal, state,
local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement,
and (iv) any interest, assessments or other charges in respect of the foregoing. “Expenses” shall not include
“Liabilities.”


 


“Indemnity
Obligations” shall mean all obligations of the Company to Indemnitee under this Agreement, including the Company’s
obligations to provide indemnification to Indemnitee and advance Expenses to Indemnitee under this Agreement.


 




    	 	2	 



     


    

  


“Independent
Counsel” shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither
presently is, nor in the past five (5) years has been, retained to represent: (i) the Company or Indemnitee in any matter
material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees
under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification
hereunder; provided, however, that the term “Independent Counsel” shall not include any person who, under
the applicable standards of professional conduct then prevailing, Indemnitee shall have reasonably concluded may have a conflict
of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.


 


“Liabilities”
shall mean all claims, liabilities, damages, losses, judgments, orders, fines, penalties and other amounts payable in connection
with, arising out of, or in respect of or relating to any Proceeding, including amounts paid in settlement in any Proceeding and
all costs and expenses in complying with any judgment, order or decree issued or entered in connection with any Proceeding or any
settlement agreement, stipulation or consent decree entered into or issued in settlement of any Proceeding.


 


“Person”
shall mean any individual, corporation, partnership, limited partnership, limited liability company, trust, governmental agency
or body or any other legal entity.


 


“Proceeding”
shall mean any threatened, pending or completed action, claim, suit, arbitration, alternate dispute resolution mechanism, formal
or informal judicial, administrative or arbitration hearing, inquiry or investigation, litigation, inquiry, administrative hearing
or any other actual, threatened or completed judicial, administrative or arbitration proceeding (including any such proceeding
under the Securities Act of 1933, as amended, or the Exchange Act or any other federal law, state law, statute or regulation),
whether brought by or in the right of the Company or otherwise, including any and all appeals, and whether of a civil, criminal,
administrative, legislative, investigative or other nature, in each case, in which Indemnitee was, is or will be, or is threatened
to be, involved as a party, witness or otherwise by reason of the fact of Indemnitee’s Corporate Status, by reason of any
actual or alleged action taken by or inaction of Indemnitee or of any action or inaction on Indemnitee’s part in any such
capacity, or by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee
or agent of another corporation, limited liability company, partnership, joint venture, trust or other enterprise, in each case
whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement,
or advancement can be provided under this Agreement.


 


(b)          For
the purpose hereof, references to “fines” shall include any excise tax assessed with respect to any employee benefit
plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee
or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect
to an employee benefit plan, its participants or beneficiaries; and a Person who acted in good faith and in a manner he reasonably
believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have
acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.


 




    	 	3	 



     


    

  


(c)          For
purposes of this Agreement: (i) all references to Sections, subsections or paragraphs are to be Sections, subsections or paragraphs
of this Agreement; (ii) words in the singular include the plural and vice versa; (iii) the pronoun “his”
refers to the masculine, feminine and neuter, the words “herein,” “hereby,” “hereof,” “hereunder”
and other words of similar import refer to this Agreement as a whole and not to any particular Section, Article or other subdivision;
(iv) the term “including” means “including, without limitation”; (v) all references to “$”
or dollar amounts will be to lawful currency of the United States; and (vi) to the extent the term “day” or “days”
is used, it will mean calendar days unless otherwise specified.


 


Section
2.          Indemnity in Third-Party Proceedings. The Company shall
indemnify and hold harmless Indemnitee, to the fullest extent permitted by applicable law, from and against all Liabilities and
Expenses suffered or reasonably incurred (and, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on
Indemnitee’s behalf in connection with any Proceeding (other than any Proceeding brought by or in the right of the Company
to procure a judgment in its favor), or any claim, issue or matter therein.


 


Section
3.          Indemnity in Proceedings by or in the Right of the Company.
The Company shall indemnify and hold harmless Indemnitee, to the fullest extent permitted by applicable law, from and against all
Liabilities and Expenses suffered or incurred by Indemnitee or on Indemnitee’s behalf in connection with any Proceeding brought
by or in the right of the Company to procure a judgment in its favor, or any claim, issue or matter therein. No indemnification
for Liabilities and Expenses shall be made under this Section 3 in respect of any claim, issue or matter as to which
it is ultimately determined, by final judicial decision of a court of competent jurisdiction from which there is no further right
to appeal, that the Indemnitee is liable to the Company, unless and only to the extent that the Delaware Court of Chancery or any
court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view
of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to such indemnification.


 


Section
4.          Indemnification for Expenses of a Party Who is Wholly or
Partly Successful. Notwithstanding any other provisions of this Agreement (but subject to Section 7), and without
limiting the rights of Indemnitee under any other provision hereof, including any rights to indemnification pursuant to Section 2
or 3 hereof or the rights to advancement of Expenses pursuant to Section 8 hereof, to the fullest extent permitted
by applicable law, to the extent that Indemnitee is successful, on the merits or otherwise, in any Proceeding or in defense of
any claim, issue or matter therein, in whole or in part, including the dismissal of any action without prejudice, or if it is ultimately
determined, by final judicial decision of a court of competent jurisdiction, that the Indemnitee is otherwise entitled to be indemnified
against Expenses, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or
on Indemnitee’s behalf in connection with each successfully resolved Proceeding, claim, issue or matter. For purposes of
this Section 4 and without limitation, the termination of any Proceeding or claim, issue or matter in such a Proceeding
(x) by dismissal, summary judgment, judgment on the pleading or final judgment, with or without prejudice, or (y) by
agreement without payment or assumption or admission of liability by the Indemnitee, shall be deemed to be a successful result
as to such claim, issue or matter.


 




    	 	4	 



     


    

  


For the avoidance of
doubt, if the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion
of the Expense or Liability suffered or actually and reasonably incurred in connection with any Proceeding, claim, issue or matter,
or in connection with any judicial proceeding or arbitration pursuant to Section 12(d) hereof the enforce rights under
this Agreement, but not, however, for the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for the
portion of such Expense and Liability suffered or actually and reasonably incurred to which the Indemnitee is entitled hereunder.


 


Section
5.          Indemnification For Expenses of a Witness. Notwithstanding
any other provision of this Agreement (but subject to Section 7), to the fullest extent permitted by applicable law
and to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a witness or otherwise a participant or
incurs legal expenses as a result of or related to any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified
against all Expenses suffered or incurred (or, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on
Indemnitee’s behalf in connection therewith.


 


Section
6.          Additional Indemnification. Notwithstanding any limitation
in Section 2, 3 or 4 hereof (but subject to Section 7), the Company shall indemnify Indemnitee
to the fullest extent permitted by applicable law if Indemnitee is a party to or threatened to be made a party to any Proceeding
(including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Liabilities and Expenses
suffered or reasonably incurred by Indemnitee in connection with such Proceeding, including:


 


(a)          the
fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement,
or the corresponding provision of any amendment to or replacement of the DGCL; and


 


(b)          the
fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement
that increase the extent to which a corporation may indemnify its officers and directors.


 


Section
7.          Exclusions. Notwithstanding any provision in this Agreement,
the Company shall not be obligated under this Agreement to indemnify or hold harmless Indemnitee:


 


(a)          for
which payment has actually been made to or on behalf of Indemnitee under any valid and collectible insurance policy obtained by
the Company except with respect to any excess beyond the amount paid under such insurance policy;


 


(b)          for
an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within
the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law;


 


(c)          except
for any proceeding by Indemnitee to enforce its rights under this Agreement, as provided in Section 12(d) of this Agreement,
in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part
of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless
(i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides
the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law;


 




    	 	5	 



     


    

  


(d)          if
and to the extent arising out of, in connection with, in respect of or relating to (x) any actual or alleged action taken
by or inaction of Indemnitee or of any action or inaction on Indemnitee’s part prior to the Emergence Date or (y) Indemnitee’s
Corporate Status prior to the Emergence Date; or


 


(e)          if
it is ultimately determined, by final judicial decision of a court of competent jurisdiction from which there is no further right
to appeal, that such indemnification is not lawful.


 


For the avoidance of
doubt, and notwithstanding any provision in this Agreement, the DGCL, the Certificate of Incorporation, the Bylaws or otherwise,
Indemnitee shall not be entitled to any indemnification, contribution, expense advancement or other right that constitutes an “Indemnification
Obligation” (within the meaning of the Chapter 11 Plan) that was rejected pursuant to the Chapter 11 Plan.


 


Section
8.          Advancement. In accordance with the pre-existing requirements
of the Certificate of Incorporation and the Bylaws, and notwithstanding any provision of this Agreement to the contrary (but subject
to Section 7), the Company shall advance, to the extent not prohibited by applicable law, the Expenses reasonably incurred
by Indemnitee in connection with any Proceeding, and such advancement shall be made within twenty (20) days after the receipt by
the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition
of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability
to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions
of this Agreement. Advances shall include any and all Expenses reasonably incurred pursuing an action to enforce this right of
advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed, in
addition to those Expenses incurred in connection with any Proceeding by Indemnitee seeking an adjudication or award in arbitration
pursuant to Section 12(d) of this Agreement. Indemnitee shall qualify for advances upon the execution and delivery
to the Company of this Agreement, which shall constitute an undertaking providing that Indemnitee undertakes to repay the amounts
advanced to the extent that it is ultimately determined, by final judicial decision of a court of competent jurisdiction from which
there is no further right to appeal, that Indemnitee is not entitled to be indemnified for such Expenses by the Company as provided
by this Agreement. This Section 8 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant
to paragraph (b), (c), (d) or (e) of Section 7 hereof or pursuant to the final
paragraph of Section 7 hereof.


 




    	 	6	 



     


    

  


Section
9.          Procedure for Notification and Defense of Claim.


 


(a)          Indemnitee
shall promptly notify the Company in writing of any Proceeding with respect to which Indemnitee intends to seek indemnification
or advancement hereunder following the receipt by Indemnitee of written notice thereof (the date of such notification, the “Submission
Date”). The written notification to the Company shall include a description of the nature of the Proceeding and the facts
underlying the Proceeding. To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request,
including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary
to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding.
Any delay or failure by Indemnitee to notify the Company hereunder will not relieve the Company from any liability which it may
have to Indemnitee hereunder or otherwise than under this Agreement, and any delay or failure in so notifying the Company shall
not constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of the Company shall, promptly upon receipt
of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.


 


(b)          In
the event Indemnitee is entitled to indemnification and/or advancement with respect to any Proceeding, Indemnitee may, at Indemnitee’s
option, (i) retain counsel selected by Indemnitee and approved by the Company to defend Indemnitee in such Proceeding, at
the sole expense of the Company (which approval shall not be unreasonably withheld, conditioned or delayed), or (ii) have
the Company assume the defense of Indemnitee in such Proceeding, in which case the Company shall assume the defense of such Proceeding
with counsel selected by the Company and approved by Indemnitee (which approval shall not be unreasonably withheld, conditioned
or delayed) within ten (10) days of the Company’s receipt of written notice of Indemnitee’s election to cause the Company
to do so. If the Company is required to assume the defense of any such Proceeding, it shall engage legal counsel for such defense,
and the Company shall be solely responsible for all fees and expenses of such legal counsel and otherwise of such defense. Such
legal counsel may represent both Indemnitee and the Company (and any other party or parties entitled to be indemnified by the Company
with respect to such matter) unless, in the reasonable opinion of legal counsel to Indemnitee, there is a conflict of interest
between Indemnitee and the Company (or any other such party or parties) or there are legal defenses available to Indemnitee that
are not available to the Company (or any such other party or parties). Notwithstanding either party’s assumption of responsibility
for defense of a Proceeding, each party shall have the right to engage separate counsel at its own expense. The party having responsibility
for defense of a Proceeding shall provide the other party and its counsel with all copies of pleadings and material correspondence
relating to the Proceeding. Indemnitee and the Company shall reasonably cooperate in the defense of any Proceeding with respect
to which indemnification is sought hereunder, regardless of whether the Company or Indemnitee assumes the defense thereof. Indemnitee
may not settle or compromise any Proceeding without the prior written consent of the Company, which consent shall not be unreasonably
withheld, conditioned or delayed. The Company may not settle or compromise any Proceeding without the prior written consent of
Indemnitee.


 




    	 	7	 



     


    

  


Section
10.         Procedure Upon Application for Indemnification.


 


(a)          Upon
written request by Indemnitee for indemnification pursuant to Section 9(a) hereof, if any determination by the Company
is required by applicable law with respect to Indemnitee’s entitlement thereto, such determination shall be made (i) if
Indemnitee shall request such determination be made by Independent Counsel, by Independent Counsel, and (ii) in all other
circumstances, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by
a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum
of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D) if so directed by the
Board, by the stockholders of the Company ; and, if it is so determined that Indemnitee is entitled to indemnification, payment
to Indemnitee shall be made promptly, and in any event within thirty (30) days after the Submission Date, except in the case of
a claim for an advancement of expenses in accordance with Section 8, in which case the applicable period shall be twenty
(20) days after the Submission Date. Indemnitee shall cooperate with the person, persons or entity making such determination with
respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable
advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination. Any Expenses incurred by Indemnitee in so cooperating with
the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to
Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
The Company will not deny any written request for indemnification hereunder made in good faith by Indemnitee unless a determination
as to Indemnitee’s entitlement to such indemnification described in this Section 10(a) has been made. The Company
agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel
against any and all Liabilities and Expenses arising out of or relating to this Agreement or its engagement pursuant hereto.


 


(b)          In
the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(a)
hereof, the Independent Counsel shall be selected by the Company within ten (10) days of the Submission Date (the cost of such
Independent Counsel to be paid by the Company) and the Company shall give written notice to Indemnitee advising it of the
identity of the Independent Counsel so selected; provided, however, that if a change in control has occurred and results
in individuals who were directors prior to the circumstances giving rise to the change in control ceasing for any reason to constitute
a majority of the Board, such Independent Counsel shall be selected by the Indemnitee within ten (10) days of the Submission Date
(the cost of such Independent Counsel to be paid by the Company) and Indemnitee shall give written notice to the Company advising
it of the identity of the Independent Counsel so selected. In either case, Indemnitee or the Company, as applicable, may, within
ten (10) days after such written notice of selection shall have been given, deliver to the other a written objection to such selection.
Such objection may be asserted only on the ground that the Independent Counsel selected does not meet the requirements of “Independent
Counsel” as defined in this Agreement. If such written objection is made and substantiated, the Independent Counsel
selected shall not serve as Independent Counsel unless and until Indemnitee or the Company, as applicable, withdraws the objection
or a court has determined that such objection is without merit. Absent a timely objection, the person so selected shall act as
Independent Counsel. If no Independent Counsel shall have been selected and not objected to before the later of (i) thirty
(30) days after the later of the Submission Date and (ii) ten (10) days after the final disposition of the Proceeding, each
of the Company and Indemnitee shall select a law firm or member of a law firm meeting the qualifications to serve as Independent
Counsel, and such law firms or members of law firms shall select the Independent Counsel. Upon the due commencement of any judicial
proceeding or arbitration pursuant to Section 12(a) of this Agreement, Independent Counsel shall be discharged and
relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).


 




    	 	8	 



     


    

 


 


 


Section
11.         Presumptions and Effect of Certain Proceedings.


 


(a)          In
making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination
shall, to the fullest extent not prohibited by applicable law, presume that Indemnitee is entitled to indemnification under this
Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this Agreement,
and the Company shall, to the fullest extent not prohibited by applicable law, have the burden of proof to overcome that presumption
in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure
of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement
of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable
standard of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that
Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee
has not met the applicable standard of conduct.


 


(b)          Subject
to Section 12(e) hereof, if the person, persons or entity empowered or selected under Section 10 of this
Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60)
days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall,
to the fullest extent not prohibited by applicable law, be deemed to have been made and Indemnitee shall be entitled to such indemnification,
absent actual fraud in the request for indemnification; provided, however, that such 60-day period may be extended
for a reasonable time, not to exceed an additional thirty (30) days, if (i) the determination is to be made by Independent
Counsel and either the Company or Indemnitee, as applicable, objects to the selection of Independent Counsel and (ii) the
Independent Counsel ultimately selected requires such additional time for the obtaining or evaluating of documentation or information
relating thereto; provided further that such 60-day period may also be extended for a reasonable time, not to exceed an
additional sixty (60) days, if the determination of entitlement to indemnification is to be made by the stockholders of the Company.


 


(c)          The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a
plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) adversely affect
the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which
he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.


 




    	 	9	 



     


    

  


(d)          Reliance
as Safe Harbor. For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if
Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on
information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel
for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant
or by an appraiser or other expert selected with the reasonable care by the Enterprise. The provisions of this Section 11(d)
shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met
the applicable standard of conduct set forth in this Agreement.


 


(e)          Actions
of Others. The knowledge or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall
not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.


 


Section
12.         Remedies of Indemnitee.


 


(a)          Subject
to Section 12(e) hereof, in the event that (i) a determination is made pursuant to Section 10 of this
Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement is not timely made pursuant
to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made
pursuant to Section 10(a) of this Agreement within sixty (60) days after receipt by the Company of the request for
indemnification, (iv) payment of indemnification is not made pursuant to Section 4 or 5 or the last sentence
of Section 10(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor,
(v) payment of indemnification pursuant to Section 2, 3 or 6 of this Agreement is not made within ten
(10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the
Company or any other Person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes
any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended
to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication, by a court of competent jurisdiction,
of Indemnitee’s entitlement to such indemnification or advancement. Alternatively, Indemnitee, at Indemnitee’s option,
may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American
Arbitration Association. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.


 


(b)          In
the event that a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is
not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall
be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason
of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 12 the
Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement, as the case may be.


 


(c)          If
a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12,
absent a prohibition of such indemnification under applicable law.


 




    	 	10	 



     


    

  


(d)          The
Company shall, to the fullest extent not prohibited by applicable law, be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement. It is the intent of the Company that Indemnitee not be required to incur Expenses associated with
the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise because
the cost and expense thereof would substantially detract from the benefits intended to be extended to Indemnitee hereunder. The
Company shall indemnify Indemnitee against any and all such Expenses and, if requested by Indemnitee, shall (within ten (10) days
after receipt by the Company of a written request therefor) advance, to the extent not prohibited by applicable law, such Expenses
to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advancement
from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained
by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement or
insurance recovery, as the case may be.


 


(e)          Notwithstanding
anything in this Agreement to the contrary (but subject to Section 7), no determination as to entitlement to indemnification
under this Agreement shall be required to be made prior to the final disposition of the Proceeding; provided, however, that,
in absence of any such determination with respect to such Proceeding, the Company shall advance Expenses with respect to such Proceeding.


 


Section
13.         Non-Exclusivity; Survival of Rights; Insurance; Subrogation.


 


(a)          The
rights of indemnification and to receive advancement as provided by this Agreement shall not be deemed exclusive of any other rights
to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement,
a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any
provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted
by such Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration or repeal. To the extent that a change
in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement than would be afforded
currently under the Certificate of Incorporation, the Bylaws or this Agreement, it is the intent of the parties hereto that Indemnitee
shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended
to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of
any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.


 




    	 	11	 



     


    

  


(b)          The
Company hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement and insurance provided by one
or more Persons with whom or which Indemnitee may be associated. The Company hereby acknowledges and agrees that (i) the Company
shall be the indemnitor of first resort with respect to any Proceeding, Expense, Liability or matter that is the subject of the
Indemnity Obligations, (ii) the Company shall be primarily liable for all Indemnity Obligations and any indemnification afforded
to Indemnitee in respect of any Proceeding, Expense, Liability or matter that is the subject of Indemnity Obligations, whether
created by applicable law, organizational or constituent documents, contract (including this Agreement) or otherwise, (iii) any
obligation of any other Persons with whom or which Indemnitee may be associated to indemnify Indemnitee or advance Expenses or
Liabilities to Indemnitee in respect of any Proceeding shall be secondary to the obligations of the Company hereunder, (iv) the
Company shall be required to indemnify Indemnitee and advance Expenses or Liabilities to Indemnitee hereunder to the fullest extent
provided herein without regard to any rights Indemnitee may have against any other Person with whom or which Indemnitee may be
associated or insurer of any such Person and (v) the Company irrevocably waives, relinquishes and releases any other Person
with whom or which Indemnitee may be associated from any claim of contribution, subrogation or any other recovery of any kind in
respect of amounts paid by the Company hereunder. In the event any other Person with whom or which Indemnitee may be associated
or their insurers advances or extinguishes any liability or loss which is the subject of any Indemnity Obligation owed by the Company
or payable under any Company insurance policy, the payor shall have a right of subrogation against the Company or its insurer or
insurers for all amounts so paid which would otherwise be payable by the Company or its insurer or insurers under this Agreement.
In no event will payment of an Indemnity Obligation by any other Person with whom or which Indemnitee may be associated or their
insurers affect the obligations of the Company hereunder or shift primary liability for any Indemnity Obligation to any other Person
with whom or which Indemnitee may be associated. Any indemnification, insurance or advancement provided by any other Person with
whom or which Indemnitee may be associated with respect to any Liability arising as a result of Indemnitee’s Corporate Status
or capacity as an officer or director of any Person is specifically in excess over any Indemnity Obligation of the Company or valid
and any collectible insurance (including to any malpractice insurance or professional errors and omissions insurance) provided
by the Company under this Agreement.


 


(c)          To
the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees,
or agents of the Company or of any other Enterprise, Indemnitee shall be covered by such policy or policies in accordance with
its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such
policy or policies and such policies shall provide for and recognize that the insurance policies are primary to any rights to indemnification,
advancement or insurance proceeds to which Indemnitee may be entitled from one or more Persons with whom or which Indemnitee may
be associated to the same extent as the Company’s indemnification and advancement obligations set forth in this Agreement.
If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability
insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance
with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to
cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the
terms of such policies.


 


(d)          In
the event of any payment under this Agreement, the Company shall not be subrogated to the rights of recovery of Indemnitee, including
rights of indemnification provided to Indemnitee from any other person or entity with whom Indemnitee may be associated; provided,
however, that the Company shall be subrogated to the extent of any such payment of all rights of recovery of Indemnitee
under insurance policies of the Company or any of its subsidiaries.


 




    	 	12	 



     


    

  


(e)          The
indemnification and contribution provided for in this Agreement will remain in full force and effect regardless of any investigation
made by or on behalf of Indemnitee.


 


Section
14.         Duration of Agreement; Not Employment Contract. This Agreement
shall continue during the period the Indemnitee is a director, officer, employee or agent of the Company or any other Enterprise,
and shall continue thereafter with respect to any possible claims based on the fact that the Indemnitee was a director, officer,
employee or agent of the Company or any other Enterprise. This Agreement shall be binding upon the Company and its successors and
assigns and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators.


 


Section
15.         Severability. If any provision or provisions of this Agreement
shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability
of the remaining provisions of this Agreement (including each portion of any Section of this Agreement containing any such provision
held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected
or impaired thereby and shall remain enforceable to the fullest extent permitted by applicable law; (b) such provision or
provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the
intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including each portion
of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.


 


Section
16.         Enforcement.


 


(a)          The
Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby
in order to induce Indemnitee to serve as a director, officer, employee or agent of the Company, and the Company acknowledges that
Indemnitee is relying upon this Agreement in serving as a director, officer, employee or agent of the Company.


 


(b)          This
Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter
hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation,
the Bylaws and applicable law, and shall not be deemed a substitute therefor, nor diminish or abrogate any rights of Indemnitee
thereunder.


 


(c)          The
Company shall not seek from a court, or agree to, a “bar order” that would have the effect of prohibiting or limiting
the Indemnitee's rights to receive advancement of expenses under this Agreement.


 




    	 	13	 



     


    

  


Section
17.         Modification and Waiver. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by the parties thereto. No waiver of any of the provisions
of this Agreement shall be deemed to be or shall constitute a waiver of any other provision of this Agreement nor shall any waiver
constitute a continuing waiver.


 


Section
18.         Notices. All notices, requests, demands and other communications
under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted
for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered
mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight
courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent by
facsimile transmission, with receipt of oral confirmation that such transmission has been received:


 


(a)          If
to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide
to the Company.


 


(b)          If
to the Company to


 


Energy XXI Gulf Coast, Inc.

1021 Main Street, Suite 2626


Houston, Texas 77002

Attention: Board of Directors


 


or to any other address as may have been
furnished to Indemnitee by the Company.


 


Section
19.         Contribution.


 


(a)          Regardless
of whether the indemnification provided in this Agreement is available, in respect of any Proceeding in which the Company is jointly
liable with Indemnitee (or would be jointly liable, if joined in such Proceeding), the Company shall pay, in the first instance,
the entire amount of any Liability from such Proceeding without requiring Indemnitee to contribute to such payment and the Company
hereby waives and relinquishes any right of contribution it may have against Indemnitee. The Company shall not enter into any settlement
of any Proceeding in which the Company is jointly liable with Indemnitee (or would be jointly liable, if joined in such Proceeding)
unless such settlement provides for a full and final release of all claims asserted against Indemnitee.


 




    	 	14	 



     


    

  


(b)          Without
diminishing or impairing the obligations of the Company set forth in Section 19(a), if, for any reason, Indemnitee
shall elect or be required to pay all or any portion of any Liability in any Proceeding in which the Company is jointly liable
with Indemnitee (or would be jointly liable, if joined in such Proceeding), the Company shall contribute to the amount of Expenses
and Liabilities actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received
by the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee
(or would be jointly liable, if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction
or events from which such Proceeding arose; provided, however, that the proportion determined on the basis of relative benefit
may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers,
directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be jointly liable,
if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the transaction or events
that resulted in such Expenses and Liabilities, as well as any other equitable considerations that applicable law may require to
be considered. The relative fault of the Company and all officers, directors or employees of the Company, other than Indemnitee,
who are jointly liable with Indemnitee (or would be jointly liable, if joined in such Proceeding), on the one hand, and Indemnitee,
on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by
intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which
their conduct is active or passive.


 


(c)          The
Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution that may be brought by officers,
directors, or employees of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.


 


(d)          To
the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee
for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee,
whether for Liabilities or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement,
in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect
(i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and transaction(s) giving cause
to such Proceeding; and (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee
in connection with such event(s) and transaction(s).


 


Section
20.         Applicable Law and Consent to Jurisdiction. This Agreement
and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the
State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee
pursuant to Section 12(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree
that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of
the State of Delaware (the “Delaware Court”), and not in any other state or federal court in the United States
of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for
purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the
laying of venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make,
any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.


 


 




    	 	15	 



     


    

  


Section
21.         Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and
the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to
evidence the existence of this Agreement.


 


Section
22.         Miscellaneous. Use of the masculine pronoun shall be deemed
to include usage of the feminine pronoun where appropriate. The headings of the Sections, subsections and paragraphs of this Agreement
are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.


 




    	 	16	 



     


    

  


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


 


	ENERGY XXI GULF COAST, INC.  	 	INDEMNITEE


 


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


 


	 	Address:
	 	 
	 	 
	 	 
	 	 


 


Signature Page to
Indemnification Agreement