Document:

Exhibit 10.6

 

Execution Version

  

ENERGY XXI GULF COAST, INC.

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”)
by and between Energy XXI Gulf Coast, Inc., a Delaware corporation (the “Company”), and John D. Schiller,
Jr. (“Executive”) is entered into effective as of December 30, 2016 (the “Effective Date”).

 

WHEREAS, Executive is currently employed
by the Company; and

 

WHEREAS, the Company desires to continue
to employ Executive in an executive capacity, and Executive likewise desires to continue to be employed by the Company;

 

NOW, THEREFORE, in consideration the mutual
promises, covenants, representations, obligations and agreements contained herein, and for other valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties agree as follows:

 

1.          Employment-at-will.
 The Company agrees to employ Executive, and Executive hereby agrees to be employed by the Company. Employment of Executive
shall be at will and may be terminated by either party on the terms and conditions set forth in this Agreement.

 

2.          Term
of Employment.  Subject to the provisions for termination provided in this Agreement, the term of this Agreement (the “Term”)
shall commence on the Effective Date and shall continue through the third anniversary of the Effective Date.

 

3.          Executive’s
Duties.

 

(a)          Positions.
During the Term, Executive shall serve as President and Chief Executive Officer of the Company (and/or in such other positions
as the parties mutually may agree), with such customary duties and responsibilities as may from time to time be assigned to him
by the Company’s Board of Directors (the “Board”), provided that such duties are at all times consistent
with the duties of such positions. Executive agrees to serve without additional compensation, if elected or appointed thereto,
in one or more offices or as a director of the Company or any of the Company’s Affiliates. For purposes of this Agreement,
the term “Affiliate” shall mean any entity which owns or controls, is owned or controlled by, or is under
common ownership or control with, the Company. Executive agrees to serve in the positions referred to herein and to perform all
duties relating thereto diligently and to the best of his ability.

 

(b)          Other
Interests. Executive agrees, during the period of his employment by the Company, to devote his business time, energy and best
efforts to the business and affairs of the Company and its Affiliates and not to engage, directly or indirectly, in any other business
or businesses, whether or not similar to that of the Company, except with the prior written consent of the Board. The foregoing
notwithstanding, the parties recognize and agree that Executive may engage in personal investments and other corporate, civic and
charitable activities that do not conflict with the business and affairs of the Company or interfere with Executive’s performance
of his duties hereunder without the necessity of obtaining the consent of the Board, provided, however, that Executive agrees that
if the Board determines that continued service with one or more of these entities is inconsistent with Executive’s duties
hereunder and gives written notice of such to Executive, Executive will promptly resign from such position(s).

 

     

     

    

  

(c)          Duty
of Loyalty. Executive acknowledges and agrees that Executive owes a fiduciary duty of loyalty, fidelity, and allegiance to
use his reasonable best efforts to act at all times in the best interests of the Company. In keeping with these duties, Executive
shall make full disclosure to the Company of all business opportunities pertaining to the Company’s business and shall not
appropriate for Executive’s own benefit business opportunities concerning the subject matter of the fiduciary relationship.

 

4.          Compensation.

 

(a)          Base
Compensation. For services rendered by Executive under this Agreement, the Company shall pay to Executive a minimum base salary
(“Base Compensation”) of $900,000 per annum payable in accordance with the Company’s customary
payroll practice for its senior executive officers. The amount of Base Compensation shall be reviewed periodically by the Compensation
Committee of the Board (the “Committee”) and may be adjusted from time to time as the Committee may deem
appropriate. References in this Agreement to Base Compensation shall refer to annual base salary so increased. Base Compensation,
as in effect at any time, may not be decreased without the prior written consent of Executive.

 

(b)          Annual
Bonus. In addition to his Base Compensation, Executive shall be eligible to receive each year during the Term, a cash incentive
payment (“Bonus”) in an amount determined by the Committee based on performance goals established by
the Committee. The Target Bonus shall be an amount equal to 125% of Executive’s Base Compensation in effect at the time
the Bonus is determined by the Committee (“Target Bonus”). Such Bonus, if any, shall be paid not later
than the fifteenth day of the second calendar month following the last day of the Company’s fiscal year in which the Bonus
was earned ends.

   

(c)          Equity
Compensation. During this Agreement, Executive shall be eligible to participate in any equity compensation arrangement or plan
offered by the Company to senior executives on such terms and conditions as the Committee shall determine. Nothing herein shall
be construed to give Executive any rights to any amount or type of awards, or rights as a shareholder pursuant to any such plan,
grant or award except as provided in such award or grant to Executive provided in writing and authorized by the Committee.

 

5.          Other
Benefits.

 

(a)          During
this Agreement, Executive shall be eligible to participate in benefit and additional incentive compensation plans generally offered
by the Company to similarly situated executives, as in effect from time to time, including, without limitation, participation in
the various health, retirement, life insurance, short-term and long-term disability insurance, parking and other executive benefit
plans or programs provided to the executives of the Company in general, subject to the regular eligibility requirements with respect
to each of such benefit plans or programs, and such other benefits or perquisites as may be approved by the Committee during the
Term, all on a basis at least as favorable to Executive as may be provided to similarly situated senior executive officers of the
Company. Executive shall be entitled to vacation in accordance with the Company’s plans, policies, programs and practices
as in effect from time to time.

 

(b)          Business
Expenses. The Company shall reimburse Executive for all reasonable business expenses incurred by Executive in the performance
of his duties, which expenses will be subject to the oversight of the Audit Committee of the Board in the normal course of business
and will be compliant with the applicable Reimbursement Plan (as defined below) of the Company. It is understood that Executive
is authorized to incur reasonable business expenses for promoting the business of the Company, including reasonable expenditures
for travel, lodging, meals and client or business associate entertainment. Request for reimbursement for such expenses must be
accompanied by appropriate documentation.

   

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(c)          Automobile.
The Company shall provide Executive with an automobile (or an automobile allowance) that is determined by the Committee or the
Board to be appropriate for the needs and requirements of Executive’s employment, and the Company shall reimburse Executive
for, or pay on behalf of Executive, reasonable and appropriate expenses incurred by Executive for maintaining and operating such
automobile, as determined by the Committee or the Board. Such reimbursements shall comply with all requirements of the applicable
Reimbursement Plan (as defined below) of the Company. Such automobile shall be available to Executive and his spouse for personal
use.

 

(d)          Life
Insurance. During Executive’s employment hereunder, the Company shall maintain one or more policies of life insurance
on the life of Executive providing an aggregate death benefit in an amount not less than $4 million; provided that the Company
shall be under no obligation to incur costs exceeding $30,000 per year in connection with satisfying the provisions of this Section.
Executive shall have the right to designate the beneficiary or beneficiaries of the death benefit payable pursuant to such policy
or policies. The provisions of this Section can be satisfied in whole or in part by any group life insurance policy provided by
the Company in accordance with this Section. Executive shall (i) furnish any and all information reasonably requested by the
Company or the insurer to facilitate the issuance of the life insurance policy or policies described in this Section or any adjustment
to any such policy, and (ii) take such physical examinations as the Company or the insurer deems necessary. If Executive refuses
to cooperate or makes any material misstatement of information or nondisclosure of medical history, then the Company shall have
no further obligation to provide the benefit described in this Section.

 

6.          Termination
and Effect on Compensation.

 

(a)          Resignation
by Executive.

 

(i)          Executive
may terminate his employment under this Agreement and resign his position(s) with the Company at any time, for any reason whatsoever,
or for no reason, in Executive’s sole discretion, by delivering a Notice of Termination (defined in Section 6(d) below).
In the event of such termination, except as otherwise provided below, Executive shall not be entitled to further compensation pursuant
to this Agreement except as may be provided by the terms of any benefit plans of the Company in which Executive may be a participant,
and the terms of any outstanding equity grants, and for salary accrued but unpaid through the Date of Termination (defined in Section 6(e)
below) and reimbursement of business expenses properly incurred but unreimbursed (to the extent reimbursable) prior to Date of
Termination.

 

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(ii)         Notwithstanding
the provisions of Section 6(a)(i), in the event that Executive terminates this Agreement by resigning for Good Reason (defined
in Section 6(h) below), subject to Executive’s compliance with the provisions of Section 7, (A) the Company shall
pay Executive on the 60th day following the Date of Termination (subject to satisfaction of the requirements of Section
6(j) hereof) a lump sum equal to three (3) times the sum of the Base Compensation and the Target Bonus; and (B) the Company
shall reimburse Executive for the monthly cost of maintaining health benefits for Executive (and Executive’s spouse and eligible
dependents) as of the date of termination of employment under a group health plan of the Company for purposes of the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), excluding any short-term or long-term
disability insurance benefits, for a period of 18 months following the date of the termination of employment, to the extent Executive
properly elects COBRA. Notwithstanding the foregoing, in the event that Executive resigns for Good Reason on or prior to the first
anniversary of the Effective Date, subject to Executive’s compliance with the provisions of Section 7, the Company shall
(A) pay Executive a lump sum equal to $2,000,000 on the 60th day following the Date of Termination and (B) reimburse
Executive for the monthly cost of maintaining health benefits for Executive (and Executive’s spouse and eligible dependents)
as of the date of termination of employment under a group health plan of the Company for purposes of COBRA, excluding any short-term
or long-term disability insurance benefits, for a period of 18 months following the date of the termination of employment, to the
extent Executive properly elects COBRA, and the Company shall have no further obligations to Executive except for salary accrued
but unpaid through the Date of Termination and reimbursement of business expenses properly incurred but unreimbursed (to the extent
reimbursable) prior to Date of Termination.

 

(b)          Death
or Disability of Executive. If Executive dies during the term of this Agreement or if Executive’s employment is terminated
by the Company on account of Executive’s Disability (as defined below), then the Company will be obligated to continue for
twelve (12) months after the Date of Termination to pay the Base Compensation payments under Section 4(a) of this Agreement
and Executive will be entitled to no further compensation or benefits hereunder (other than those set forth in Section 6(a)(i).

 

“Disability”
means Executive’s absence from the full-time performance of Executive’s duties with the Company for 180 business
days during any twelve-month period as a result of Executive’s incapacity due to accident, physical or mental illness, or
other circumstance which renders him mentally or physically incapable of performing the duties and services required of him hereunder
on a full-time basis as determined by Executive’s physician.

 

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(c)         Other
Terminations.

 

(i)          By
the Company for Reason Other than Cause. The Company may terminate this Agreement and Executive’s employment for any
reason whatsoever, or for no reason, in the Board’s sole discretion, upon Notice of Termination. For purposes of this Agreement,
acceptance by the Company of Executive’s resignation upon request or by mutual agreement shall be deemed to be a termination
by the Company. Except as otherwise provided below, in the event that Executive’s employment is terminated by the Company
for any reason other than Cause (defined in Section 6(c)(ii) below), other than due to Executive’s death or Disability,
then in addition to any compensation or benefits to which Executive may be entitled through the Date of Termination, subject to
Executive’s compliance with the provisions of Section 7: (A) the Company shall pay Executive on the 60th
day following the Date of Termination (subject to satisfaction of the requirements of Section 6(j) hereof) a lump sum equal to
three (3) times the sum of the Base Compensation and the Target Bonus; and (B) the Company shall reimburse Executive
for the monthly cost of maintaining health benefits for Executive (and Executive’s spouse and eligible dependents) as of
the date of termination of employment under a group health plan of the Company for purposes of COBRA, excluding any short-term
or long-term disability insurance benefits, for a period of 18 months following the date of the termination of employment, to the
extent Executive properly elects COBRA. Notwithstanding the foregoing, in the event that the Company terminates Executive’s
employment on or prior to the first anniversary of the Effective Date other than for Cause, Executive’s death or Executive’s
Disability, the Company, subject to Executive’s compliance with the provisions of Section 7, shall (A) pay Executive a lump
sum equal to $2,000,000 on the 60th day following the Date of Termination and (B) reimburse Executive for the monthly cost of maintaining
health benefits for Executive (and Executive’s spouse and eligible dependents) as of the date of termination of employment
under a group health plan of the Company for purposes of COBRA, excluding any short-term or long-term disability insurance benefits,
for a period of 18 months following the date of the termination of employment, to the extent Executive properly elects COBRA, and
the Company shall have no further obligations to Executive except for salary accrued but unpaid through the Date of Termination
and reimbursement of business expenses properly incurred but unreimbursed (to the extent reimbursable) prior to Date of Termination.

 

(ii)         By
the Company for Cause. Notwithstanding the foregoing provisions of this Section 6, in the event Executive is terminated
for Cause, the Company shall have no obligations pursuant to this Agreement after the Date of Termination other than for salary
accrued but unpaid through the Date of Termination and reimbursement of business expenses properly incurred but unreimbursed (to
the extent reimbursable) prior to Date of Termination. For purposes herein, “Cause” means (A) Executive’s
embezzlement, fraud, gross negligence, gross neglect or willful misconduct in the performance of the duties required hereunder,
(B) Executive’s commission of a felony, (C) Executive’s material breach of this Agreement or any other agreement
with the Company or its Affiliates, or (D) Executive’s failure to follow any lawful directive of the Board or other refusal
to perform his duties hereunder. Notwithstanding the foregoing, prior to any termination for Cause under clauses (A), (C) 
or (D) of the preceding sentence, (X) the Company must provide Executive with reasonable notice detailing the failure or conduct
on which the termination is to be based, (Y) the Company must provide Executive a reasonable opportunity to cure such failure
or conduct (to the extent curable), and (Z) after such notice and an opportunity to cure, the Committee must reasonably determine
that Executive has not cured such failure or conduct. Executive shall not be deemed to have been terminated for Cause unless and
until Executive shall have been provided an opportunity to be heard in person by the Committee (with the assistance of Executive’s
counsel if Executive so desires) on at least five business days’ advance notice, and the Committee must approve the termination
of Executive for Cause by a two-thirds vote.

 

(iii)        If
Executive is a “specified employee” (as defined within Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”) and the accompanying regulations to Section 409A of the Code (the “Nonqualified
Deferred Compensation Rules”) at the time that Executive incurs a “separation from service” (as defined
in the Nonqualified Deferred Compensation Rules), payments or benefits that would be considered deferred compensation under Section
409A of the Code shall not be provided in accordance with the time periods described in the applicable Sections, but shall be delayed
for a period of six months. Such amounts that would otherwise be payable upon separation from service shall be paid to Executive
as of the earlier of: (1) the first day of the seventh month following Executive’s separation from service; or (2) Executive’s
date of death. 

 

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(iv)        With
respect to reimbursements and in-kind benefits provided pursuant to this Agreement: (1) the amounts reimbursed and in-kind
benefits under this Agreement during Executive’s taxable year may not affect the amounts reimbursed or in-kind benefits provided
in any other taxable year, (2) the reimbursement of an eligible expense shall be made on or before the last day of Executive’s
taxable year following the taxable year in which the expense was incurred, (3) the right to reimbursement or an in-kind benefit
is not subject to liquidation or exchange for another benefit, and (4) any expenses reimbursed/in-kind benefits will not affect
the expenses eligible for reimbursement/in-kind benefits provided in any other year (any such reimbursement or in-kind benefit
arrangement to be referred to herein as a “Reimbursement Plan”).

 

(d)        Notice
of Termination. Any purported termination of Executive’s employment by the Company or by Executive and any purported
termination of this Agreement shall be communicated by written notice of termination (“Notice of Termination”)
to the other party hereto in accordance with Section 11 hereof. Notice of Termination shall include the effective Date of
Termination of this Agreement. Any Notice of Termination shall be deemed to also be Executive’s resignation as director and/or
officer of any Affiliate of the Company and from all other positions Executive holds with the Company or its Affiliates. Executive
agrees to execute any and all documentation of such resignations upon request by the Company, but he shall be treated for all purposes
as having so resigned upon the Date of Termination, regardless of when or whether he executes any such documentation.

 

(e)        Date
of Termination. “Date of Termination” shall mean in the case of Executive’s death, his date
of death, and in all other cases, the date specified in the Notice of Termination as the effective date on which this Agreement
shall be terminated, provided that for purposes of determining the date of payment pursuant to Executive’s termination for
any reason Executive’s separation of service in accordance with Treasury Regulation 1.409A-1(h) shall be used.

 

(f)         No
Duty to Mitigate. Executive shall not be required to mitigate the amount of any payment or benefit provided for in this Agreement
by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Agreement be reduced
by any compensation or benefit earned by Executive as a result of employment by another employer, self-employment earnings, or
by retirement benefits.

 

(g)        Section
280G.

 

(i)          Notwithstanding
any other provisions in this Agreement, in the event that any payment or benefit received or to be received by Executive (including
any payment or benefit received in connection with a change of control of the Company or the termination of Executive’s employment,
whether pursuant to the terms of this Agreement or any other plan, program, arrangement or agreement) (all such payments and benefits,
together, the “Total Payments”) would be subject (in whole or part), to any excise tax imposed under
Section 4999 of the Code, or any successor provision thereto (the “Excise Tax”), then, after taking into
account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, program, arrangement
or agreement, the Company will reduce the Total Payments to the extent necessary so that no portion of the Total Payments is subject
to the Excise Tax (but in no event to less than zero); provided that the Total Payments will only be reduced if (A) the net amount
of such Total Payments, as so reduced (and after subtracting the net amount of federal, state, municipal and local income and employment
taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions
attributable to such reduced Total Payments), is greater than or equal to (B) the net amount of such Total Payments without such
reduction (but after subtracting the net amount of federal, state, municipal and local income and employment taxes on such Total
Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after
taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).

 

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(ii)         In
the case of a reduction in the Total Payments, the Total Payments will be reduced in the following order: (1) payments that are
payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary,
to zero), with amounts that are payable last reduced first; (2) payments and benefits due in respect of any equity valued at full
value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined
under Treasury Regulation Section 1.280G-1, Q&A 24), will next be reduced; (3) payments that are payable in cash that are valued
at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first,
will next be reduced; (4) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation
Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section
1.280G-1, Q&A 24), will next be reduced; and (5) all other non-cash benefits not otherwise described in clauses (2) or (4)
will be next reduced pro-rata. Any reductions made pursuant to each of clauses (1)-(4) above will be made in the following manner:
first, a pro-rata reduction of cash payment and payments and benefits due in respect of any equity not subject to Section 409A
of the Code, and second, a pro-rata reduction of cash payments and payments and benefits due in respect of any equity subject to
Section 409A of the Code as deferred compensation.

 

(iii)        For
purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax: (A) no portion of
the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute
a “payment” within the meaning of Section 280G(b) of the Code will be taken into account; (B) no portion of the Total
Payments will be taken into account which, in the opinion of the Company, does not constitute a “parachute payment”
within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating
the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of the Company, constitutes
reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the
“base amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and
(C) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the
Company in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

 

(h)         Good
Reason. For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the
following circumstances, without Executive’s written consent:

 

(i)          the
change of Executive’s title or the assignment to Executive of any duties that materially adversely alter the nature or status
of Executive’s office, title, responsibilities, including reporting responsibilities, or action by the Company that results
in the material diminution of Executive’s position, duties or authorities, from those in effect immediately prior to such
change in title, assignment or action;

 

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(ii)         any
material reduction in Executive’s Base Compensation or Target Bonus opportunity;

 

(iii)        the
Company’s requiring Executive to permanently relocate anywhere outside the greater Houston, Texas metropolitan area, except
for required travel on the Company’s business to an extent substantially consistent with Executive’s obligations under
this Agreement; or

 

(iv)        the
Company’s material breach of this Agreement.

 

Executive is required to provide notice
to the Company of the existence of the conditions described above in this Section 6(h) within a period not to exceed 90 days
from the initial existence of the condition, upon the notice of which the Company must be provided a period of at least 30 days
during which it may remedy the condition. Any resignation for Good Reason must occur after the Company’s failure to remedy,
and in all events must occur within 150 days following the initial existence of the condition.

 

(i)          Reimbursements
for Expenses. The Company shall reimburse Executive for business expenses properly incurred prior to the Date of Termination,
regardless of the circumstances of termination, and in accordance with the Company’s Reimbursement Plans.

 

(j)          Post-Termination
Release. Notwithstanding any other provisions of this Agreement, it shall be a condition to Executive’s right to receive
the amounts provided for in Sections 6(a)(ii), 6(b), 6(c)(i) and 8 of this Agreement that Executive (or Executive’s estate,
as applicable) will execute and deliver to the Company an effective release of claims in the form attached hereto as Exhibit A
(the “Release”) within the time period set forth therein (and in all events within 59 days following
the Date of Termination) with all periods for revocation thereof having expired. The form of the Release may be modified by the
Company to reflect changes in the applicable law or regulations.

 

7.          Restrictive
Covenants.

 

(a)          General.
The parties acknowledge that during the Term, the Company will disclose to Executive or provide Executive with access to trade
secrets or confidential information (“Confidential Information”) of the Company or its Affiliates; and/or
place Executive in a position to develop business goodwill on behalf of the Company or its Affiliates; and/or entrust Executive
with business opportunities of the Company or its Affiliates. As part of the consideration for the compensation and benefits to
be paid to Executive hereunder; to protect the trade secrets and Confidential Information of the Company and its Affiliates that
have been and will in the future be disclosed or entrusted to Executive, the business good will of the Company and its Affiliates
that has been and will in the future be developed in Executive, or the business opportunities that have been and will in the future
be disclosed or entrusted to Executive by the Company and its Affiliates; and as an additional incentive for the Company to enter
into this Agreement, the Company and Executive agree to the following obligations relating to unauthorized disclosures, non-competition
and non-solicitation.

 

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(b)          Confidential
Information; Unauthorized Disclosure. (i) Executive shall not, whether during the period of his employment hereunder or thereafter,
without the written consent of the Board or a person authorized thereby, disclose to any person, other than an executive of the
Company or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by Executive of
his duties as an executive of the Company, any Confidential Information, including but not limited to technology, know-how, processes,
maps, geological and geophysical data, other proprietary information and any information whatsoever of a confidential nature; provided,
however, that Confidential Information shall not include any information known generally to the public (other than as a result
of unauthorized disclosure by Executive) or any information which Executive may be required to disclose by any applicable law,
order, or judicial or administrative proceeding, provided that Executive first notifies the Company to facilitate a possible protective
order and thereafter discloses only the minimum amount of Confidential Information required. Within fourteen (14) days after
the termination of Executive’s employment for any reason, Executive shall return to the Company all documents and other tangible
items containing Company information which are in Executive’s possession, custody or control. Executive agrees that all Confidential
Information of the Company exclusively belongs to the Company, and that any work of authorship relating to the Company’s
business, products or services, whether such work is created solely by Executive or jointly with others, and whether or not such
work is Confidential Information, shall be deemed exclusively belonging to the Company.

 

(ii)         Nothing
in this Agreement will prohibit or restrict Executive from responding to any inquiry, or otherwise communicating with, any federal,
state or local administrative or regulatory agency or authority or participating in an investigation conducted by any governmental
agency or authority. Executive cannot be held criminally or civilly liable under any Federal or State trade secret law for the
disclosure of a trade secret that is made (A) in confidence to a Federal, State, or local government official, either directly
or indirectly, or to an attorney, and (B) solely for the purpose of reporting or investigating a suspected violation of law; or
that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. As a result,
the Company and Executive shall have the right to disclose trade secrets in confidence to Federal, State, and local government
officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. Each of the Company
and Executive also have the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the
filing is made under seal and protected from public disclosure. Nothing in this Agreement is intended to conflict with that right
or to create liability for disclosures of trade secrets that are expressly allowed by the foregoing.

 

(c)          Non-Competition.
During the Term and for a period of 12 months thereafter, Executive shall not in any geographic area or market where the Company
or any of its Affiliates are conducting any Business (defined below) or have during the previous 12 months conducted
such Business, directly or indirectly for Executive or for others, engage in or become interested financially in as a principal,
executive, partner, shareholder, agent, manager, owner, advisor, lender, guarantor of any person engaged in any business substantially
identical to the Business (defined below), or otherwise; provided, however, that Executive may invest in stock, bonds or other
securities in any such business (without participating in such business) if: (A) such stock, bonds or other securities are
listed on any United States securities exchange or are publicly traded in an over the counter market and (B) aggregate investment
does not exceed, in the case of any capital stock of any one issuer, 5% of the issued and outstanding capital stock, or in the
case of bonds or other securities, 5% of the aggregate principal amount thereof issued and outstanding. The term “Business”
shall mean the exploration, development and production of crude petroleum and natural gas.

 

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(d)          Non-Solicitation.
Executive undertakes toward the Company and is obligated, during the Term and for a period of 12 months thereafter, in any geographic
area or market where the Company or any of its Affiliates are conducting any Business or have during the previous 12 months
conducted such Business, not to solicit or hire, directly or indirectly for Executive or for others, in any manner whatsoever,
in the capacity of employee, executive, consultant or in any other capacity whatsoever, one or more of the employees, executives,
directors or officers or other persons (hereinafter collectively referred to as “Company Executives”)
who at the time of solicitation or hire, or in the one-year  period prior thereto, are or were working full-time or part-time
for the Company or any of its Affiliates and not to endeavor, directly or indirectly, in any manner whatsoever, to encourage any
of said Company Executives to leave his or her job with the Company or any of its Affiliates and not to endeavor, directly or indirectly,
and in any manner whatsoever, to incite or induce any client of the Company or any of its Affiliates to terminate, in whole or
in part, its business relations with the Company or any of its Affiliates.

 

(e)          Enforcement
and Reformation. It is the desire and intent of the parties that the provisions of this Section 7 shall be enforced to
the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular provision of this Section 7 shall be adjudicated to be invalid or unenforceable, such provision
shall be deemed amended to delete therefrom the portion thus adjudicated to be invalid or unenforceable. Such deletion shall apply
only with respect to the operation of such provisions of this Section 7 in the particular jurisdiction in which such adjudication
is made. In addition, if the scope of any restriction contained in this Section 7 is too broad to permit enforcement thereof
to its fullest extent, then such restriction shall be enforced to the maximum extent permitted by law, and Executive hereby consents
and agrees that such scope may be judicially modified in any proceeding brought to enforce such restriction.

 

(f)          Remedies.
In the event of a breach or threatened breach by Executive of the provisions of this Section 7, Executive acknowledges that
money damages would not be sufficient remedy, and the Company shall be entitled to specific performance, injunction and such other
equitable relief as may be necessary or desirable to enforce the restrictions contained herein, without providing any bond and
irrespective of any requirement of necessity or other showing. Nothing herein contained shall be construed as prohibiting the Company
from pursuing any other remedies available for such breach or threatened breach or any other breach of this Agreement.

 

(g)          Nondisparagement.
Executive shall 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 Executive’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 Executive to any state or federal law enforcement agency or require notice to the Company thereof, and Executive will not be
in breach of the covenant contained above solely by reason of testimony or disclosure which is compelled by applicable law or regulation
or process of law. The Company shall, and shall instruct its directors and senior executive officers to, refrain from making any
formal public statements containing any criticisms or disparaging comments about Executive, including any criticisms or disparaging
comments that in any way relate to Executive’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 to any state or federal law enforcement
agency or require notice to Executive thereof, and none of the Company or any of its Affiliates will be in breach of the covenant
contained above solely by reason of testimony or disclosure 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.

 

    	 	10	 

     

    

  

8.          Board
Evaluation Right. Until the first anniversary of the Effective Date, the Board will have the right, in its sole discretion,
to reevaluate this Agreement to ensure that the terms contained herein are consistent with market practices. To the extent the
Board determines that the terms of this Agreement are inconsistent with market practices, the Board will provide to Executive a
notice (the “Evaluation Notice”) and the parties will negotiate in good faith to revise this Agreement
as necessary. If the parties are unable to reach an agreement within 30 days of the Evaluation Notice, the Board may terminate
this Agreement and Executive’s employment, and, subject to Executive’s compliance with the provisions of Section 7
and Executive’s execution of the Release, the Company shall (A) pay Executive a lump sum equal to $2,000,000 on the 60th
day following the date of such termination and (B) reimburse Executive for the monthly cost of maintaining health benefits for
Executive (and Executive’s spouse and eligible dependents) as of the date of termination of employment under a group health
plan of the Company for purposes of COBRA, excluding any short-term or long-term disability insurance benefits, for a period of
18 months following the date of the termination of employment, to the extent Executive properly elects COBRA, and the Company shall
have no further obligations to Executive (notwithstanding any other provisions of this Agreement) except for salary accrued but
unpaid through the date of termination and reimbursement of business expenses properly incurred but unreimbursed (to the extent
reimbursable) prior to date of termination.

 

9.          Release.
Executive hereby, for himself, his heirs, executors, successors and assigns, releases and forever discharges the Company, Energy
XXI Ltd. and their affiliates (the “EXXI Parties”) from any and all claims he may have, or now has, against
any of the EXXI Parties (including, without limitation, any claims arising from the employment agreement, dated as of September
10, 2008 by and between Energy XXI (Bermuda) Limited and Executive (as amended, the “Employment Agreement”),
or any of the EXXI Parties’ rejection of the Employment Agreement). Executive agrees not to assert any of the foregoing claims
against any of the EXXI Parties; provided, however, that Executive may assert and receive a recovery on any prepetition indemnification
claims as Class 11 General Unsecured Claims in accordance with the terms of the Debtors’ Second Amended Proposed Joint Chapter
11 Plan of Reorganization [Docket No. 1638] (as amended).

 

10.         Non-exclusivity
of Rights.  Nothing in this Agreement shall prevent or limit Executive’s continuing or future participation in any benefit,
bonus, incentive or other plan or program provided by the Company or any of its Affiliates and for which Executive may qualify,
nor shall anything herein limit or otherwise adversely affect such rights as Executive may have under any stock option or other
agreements with the Company or any of its Affiliates.

 

11.         Non-assignability
by Executive.  The obligations of Executive hereunder are personal and may not be assigned or delegated by him or transferred
in any manner whatsoever, nor are such obligations subject to involuntary alienation, assignment or transfer, except by will or
the laws of descent and distribution.

 

12.         Method
of Notice.  For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be
in writing and shall be deemed to have been duly given when personally delivered, sent by overnight courier or by facsimile with
confirmation of receipt or on the third business day after being mailed by United States registered mail, return receipt requested,
postage prepaid, addressed to the Company at its principal office address and facsimile number, directed to the attention of the
Board with a copy to the Secretary of the Company, and to Executive at Executive’s residence address and facsimile number
on the records of the Company or to such other address as either party may have furnished to the other in writing in accordance
herewith except that notice of change of address shall be effective only upon receipt.

 

    	 	11	 

     

    

  

13.         Validity.
 The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any
other provision of this Agreement, which shall remain in full force and effect.

 

14.         Successors
and Binding Agreement.  This Agreement shall be binding upon and inure to the benefit of the Company and any successor of the
Company (whether direct or indirect, by purchase, merger, consolidation or otherwise), and this Agreement shall inure to the benefit
of and be enforceable by Executive’s legal representatives. The Company shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume
and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore
defined and any successor by operation of law or otherwise and any successor to its business and/or assets as aforesaid which assumes
this Agreement.

 

15.         Indemnification.
 The Company agrees to indemnify Executive with respect to any acts or omissions he may in good faith commit during the period
during which he is an officer, director and/or employee of the Company or any Affiliate thereof, and to provide him with coverage
under any directors’ and officers’ liability insurance policies, in each case on terms not less favorable than those
provided to its other directors and officers generally, as in effect from time to time.

 

16.         Withholding.
 Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder to Executive, his spouse,
his estate or beneficiaries, shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine
it should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts in whole or in part, the Company
may, in its sole discretion, accept other provisions for payment of taxes as required by law, provided it is satisfied that all
requirements of law affecting its responsibilities to withhold such taxes have been satisfied.

 

17.         Waiver
and Modification.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or
discharge is agreed to in writing and signed by Executive and such officer as may be specifically authorized by the Board. No waiver
by either party hereto at any time of any breach by the other party hereto of, or in compliance with, any condition or provision
of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time.

 

18.         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.

 

19.         Counterparts.
 This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

    	 	12	 

     

    

  

20.         Entire
Agreement.  Except as provided herein, this Agreement is an integration of the parties’ agreement; no agreement or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set
forth expressly in this Agreement; and this Agreement contains the entire understanding of the parties in respect of the subject
matter and supersedes and replaces in full all prior written or oral agreements and understandings between the parties with respect
to such subject matters. Without limiting the scope of the preceding sentence, all prior understandings and agreements among the
parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect. Notwithstanding
the foregoing, all of Executive’s restrictive covenant obligations herein are in addition to all of Executive’s other
similar obligations to the Company (whether by separate agreement, Company policy, or applicable law).

 

21.         Representation
by Executive.  Executive hereby represents and warrants to the Company that, as of the Effective Date, he is not a party to
any employment or other agreement with any third party which would preclude him from continuing employment with the Company and
performing his obligations under this Agreement.

 

22.         Severability.
 If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the
invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this
Agreement and all other provisions shall remain in full force and effect.

 

23.         Headings.
 The paragraph headings have been inserted for purposes of convenience and shall not be used for interpretive purposes.

 

24.         Gender
and Plurals.  Wherever the context so requires, the masculine gender includes the feminine or neuter, and the singular number
includes the plural and conversely.

 

25.         Cooperation.
Executive agrees, during and after the Term, without limitation as to time, to provide information, assistance and cooperation
to the Company and its Affiliates, including but not limited to the transition of his most recent role and his attendance and truthful
testimony with respect to the Company’s or its Affiliates’ investigation, analysis, resolution, defense and/or prosecution
of any existing and/or future claims, disputes or disagreements with respect to any and all matters about which Executive has knowledge,
or should have knowledge, by virtue of his employment with the Company or otherwise. Such assistance and cooperation shall be provided
by Executive without fee or charge. The Company will take reasonable steps to ensure that such assistance shall be given during
regular business hours at locations and times mutually agreed upon by Executive and the Company, except with respect to mandated
court appearances for which Executive will make himself available upon reasonable notice. Executive shall be entitled to receive
prompt reimbursement for all reasonable travel expenses incurred by him in accordance with such cooperation, provided that Executive
properly accounts for such expenses in accordance with the Company’s policies and procedures.

 

26.         Clawback
Provisions. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any
other compensation, paid to Executive pursuant to this Agreement or any other agreement or arrangement with the Company or its
Affiliates, which is subject to recovery under any law, government regulation, stock exchange listing requirement or applicable
Company policy, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government
regulation, stock exchange listing requirement or Company policy.

 

27.         Survival.
The obligations of the Company and Executive under this Agreement which by their nature may require either partial or total
performance after the expiration or termination of the Term or this Agreement (including those under Sections 7 and 25) will survive
any termination or expiration of this Agreement.

 

[Remainder
of page intentionally left blank.]

 

    	 	13	 

     

    

  

IN WITNESS WHEREOF, the parties have executed
this Agreement as of December 30, 2016 effective for all purposes as provided above on the Effective Date.

 

	 	Energy XXI Gulf Coast, inc.

 

	 	By:	 	/s/ Hugh A. Menown
	 	Name:	 	Hugh A. Menown
	 	Title:	 	Executive Vice President, Chief Accounting Officer

 

	 	EXECUTIVE
	 	 
	 	/s/ John D. Schiller, Jr.
	 	John D. Schiller, Jr.

 

[Signature
Page to Employment Agreement - Schiller]

 

     

     

    

  

Exhibit A

WAIVER AND RELEASE OF CLAIMS Agreement

 

John D. Schiller , Jr. (“Executive”)
hereby acknowledges that Energy XXI Gulf Coast, Inc. (“Employer”) is offering Executive certain payments in
connection with Executive’s termination of employment pursuant to the employment agreement entered into between Employer
and Executive, as amended (the “Employment Agreement”), in exchange for Executive’s promises in this Waiver
and Release of Claims Agreement (this “Agreement”).

 

Severance Payments

 

1.          Executive
agrees that Executive will be entitled to receive the applicable severance payments under the Employment Agreement (the “Severance
Payments”) only if Executive accepts and does not revoke this Agreement, which requires Executive to release both known
and unknown claims.

 

2.          Executive
agrees that the Severance Payments tendered under the Employment Agreement constitute fair and adequate consideration for the execution
of this Agreement. Executive further agrees that Executive has been fully compensated for all wages and fringe benefits, including,
but not limited to, paid and unpaid leave, due and owing, and that the Severance Payments are in addition to payments and benefits
to which Executive is otherwise entitled.

 

Claims That Are Being Released

 

3.          Executive
agrees that this Agreement constitutes a full and final release by Executive and Executive’s descendants, dependents, heirs,
executors, administrators, assigns, and successors, of any and all claims, charges, and complaints, whether known or unknown, that
Executive has or may have to date against Employer and any of its parents, subsidiaries, or affiliated entities and their respective
officers, directors, shareholders, partners, joint venturers, employees, consultants, insurers, agents, predecessors, successors,
and assigns, arising out of or related to Executive’s employment or the termination thereof, or otherwise based upon acts
or events that occurred on or before the date on which Executive signs this Agreement. To the fullest extent allowed by law, Executive
hereby waives and releases any and all such claims, charges, and complaints in return for the Severance Payments. This release
of claims is intended to be as broad as the law allows, and includes, but is not limited to, rights arising out of alleged violations
of any contracts, express or implied, any covenant of good faith or fair dealing, express or implied, any tort or common law claims,
any legal restrictions on Employer’s right to terminate employees, and any claims under any federal, state, municipal, local,
or other governmental statute, regulation, or ordinance, including, without limitation:

 

		(a)	claims of discrimination,
harassment, or retaliation under equal employment laws such as Title VII of the Civil Rights Act of 1964, the Americans with Disabilities
Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Rehabilitation Act of 1973, and any
and all other federal, state, municipal, local, or foreign equal opportunity laws;

 

		(b)	if applicable, claims of
wrongful termination of employment; statutory, regulatory, and common law “whistleblower” claims, and claims for wrongful
termination in violation of public policy;

 

		(c)	claims arising under the
Employee Retirement Income Security Act of 1974, except for any claims relating to vested benefits under Employer’s employee
benefit plans;

 

    	 	A-1	 

     

    

  

		(d)	claims of violation of wage
and hour laws, including, but not limited to, claims for overtime pay, meal and rest period violations, and recordkeeping violations;
and

 

		(e)	claims of violation of federal,
state, municipal, local, or foreign laws concerning leaves of absence, such as the Family and Medical Leave Act.

 

Claims That Are Not Being Released

 

4.          This
release does not include any claims that may not be released as a matter of law, and this release does not waive claims or rights
that arise after Executive signs this Agreement. Further, this release will not prevent Executive from doing any of the following:

 

		(a)	obtaining unemployment compensation,
state disability insurance, or workers’ compensation benefits from the appropriate agency of the state in which Executive
lives and works, provided Executive satisfies the legal requirements for such benefits (nothing in this Agreement, however, guarantees
or otherwise constitutes a representation of any kind that Executive is entitled to such benefits);

 

		(b)	asserting any right that
is created or preserved by this Agreement, such as Executive’s right to receive the Severance Payments;

 

		(c)	filing a charge, giving testimony
or participating in any investigation conducted by the Equal Employment Opportunity Commission (the “EEOC”)
or any duly authorized agency of the United States or any state (however, Executive is hereby waiving the right to any personal
monetary recovery or other personal relief should the EEOC (or any similarly authorized agency) pursue any class or individual
charges in part or entirely on Executive’s behalf); or

 

		(d)	challenging or seeking determination
in good faith of the validity of this waiver under the Age Discrimination in Employment Act (nor does this release impose any
condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law).

 

Additional Executive Covenants

 

5.          To
the extent applicable, Executive confirms and agrees to Executive’s continuing obligations under the Employment Agreement,
including, without limitation, following termination of Executive’s employment with Employer. This includes, without limitation,
Executive’s continuing obligations under Sections 7 and 24 of the Employment Agreement.

 

Voluntary Agreement And Effective Date

 

6.          Executive
understands and acknowledges that, by signing this Agreement, Executive is agreeing to all of the provisions stated in this Agreement,
and has read and understood each provision.

 

7.          The
parties understand and agree that:

 

		(a)	Executive will have a period
of 21 calendar days in which to decide whether or not to sign this Agreement, and an additional period of seven calendar days
after signing in which to revoke this Agreement. If Executive signs this Agreement before the end of such 21-day period, Executive
certifies and agrees that the decision is knowing and voluntary and is not induced by Employer through (i) fraud, misrepresentation,
or a threat to withdraw or alter the offer before the end of such 21-day period or (ii) an offer to provide different terms in
exchange for signing this Agreement before the end of such 21-day period.

 

    	 	A-2	 

     

    

  

		(b)	In order to exercise this
revocation right, Executive must deliver written notice of revocation to [_____________________] on or before the seventh
calendar day after Executive executes this Agreement. Executive understands that, upon delivery of such notice, this Agreement
will terminate and become null and void.

 

		(c)	The terms of this Agreement
will not take effect or become binding, and Executive will not become entitled to receive the Severance Payments, until that seven-day
period has lapsed without revocation by Executive. If Executive elects not to sign this Agreement or revokes it within seven calendar
days of signing, Executive will not receive the Severance Payments.

 

		(d)	All amounts payable hereunder
will be paid in accordance with the applicable terms of the Employment Agreement.

 

Governing Law

 

8.          This
Agreement will be governed by the substantive laws of the State of Texas, without regard to conflicts of law, and by federal law
where applicable.

 

9.          If
any part of this Agreement is held to be invalid or unenforceable, the remaining provisions of this Agreement will not be affected
in any way.

 

Consultation With Attorney

 

10.         Executive
is hereby encouraged and advised to confer with an attorney regarding this Agreement. By signing this Agreement, Executive acknowledges
that Executive has consulted, or had an opportunity to consult with, an attorney or a representative of Executive’s choosing,
if any, and that Executive is not relying on any advice from Employer or its agents or attorneys in executing this Agreement.

 

11.         This
Agreement was provided to Executive for consideration on [INSERT DATE THIS AGREEMENT PROVIDED TO EXECUTIVE].

 

PLEASE READ THIS AGREEMENT CAREFULLY; IT CONTAINS A RELEASE
OF ALL KNOWN AND UNKNOWN CLAIMS.

 

Executive certifies that Executive has read this Agreement and
fully and completely understands and comprehends its meaning, purpose, and effect. Executive further states and confirms that Executive
has signed this Agreement knowingly and voluntarily and of Executive’s own free will, and not as a result of any threat,
intimidation or coercion on the part of Employer or its representatives or agents.

 

    	 	A-3	 

     

    

  

	 	 	 	EXECUTIVE
	 	 	 	 
	Date: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

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