Document:

exv10w1

Exhibit 10.1

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is made as of March 23, 2009 by and between Stone
Energy Corporation, a Delaware corporation (the “Company”), and                                         
(“Indemnitee”). This Agreement supersedes and replaces any and all previous Agreements between the
Company and Indemnitee covering the subject matter of this Agreement.

RECITALS

     WHEREAS, highly competent persons have become more reluctant to serve publicly-held
corporations as directors, officers or in other capacities unless they are provided with adequate
protection through insurance or 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, in order to
attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis,
at its sole expense, liability insurance to protect persons serving the Company and its
subsidiaries from certain liabilities. Although the furnishing of such insurance has been a
customary and widespread practice among United States-based corporations and other business
enterprises, the Company believes that, given current market conditions and trends, such insurance
may be available to it in the future only at higher premiums and with more exclusions. At the same
time, directors, officers, and other persons in service to corporations or business enterprises are
being increasingly 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. The Certificate of Incorporation of the Company (the “Certificate of
Incorporation”) and the Bylaws of the Company (the “Bylaws”) require indemnification of the
officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant
to the General Corporation Law of the State of Delaware (the “DGCL”). 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 of directors, officers and other persons with respect to
indemnification;

     WHEREAS, the uncertainties relating to such insurance and to indemnification have increased
the difficulty of attracting and retaining such persons;

     WHEREAS, 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, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the fullest
extent permitted by applicable law so that they will serve or continue to serve the Company
free from undue concern that they will not be so indemnified;

     WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of
Incorporation, Bylaws and any resolutions adopted pursuant thereto, and shall not be deemed a
substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

     WHEREAS, Indemnitee does not regard the protection available under the Certificate of
Incorporation, Bylaws and insurance as adequate in the present circumstances, and may not be
willing to serve as an officer or director without adequate protection, and the Company desires
Indemnitee to serve in such capacity. 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; and

     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. Services to the Company. Indemnitee agrees to serve as a director,
officer, employee and/or agent of the Company. Indemnitee may at any time and for any reason
resign from such position (subject to any other contractual obligation or any obligation imposed by
operation of law), in which event the Company shall have no obligation under this Agreement to
continue Indemnitee in such position. This Agreement shall not be deemed an employment contract
between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. Indemnitee
specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries
or any Enterprise), if any, is at will, and the Indemnitee may be discharged at any time for any
reason, with or without cause, except as may be otherwise provided in any written employment
contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), other
applicable formal severance policies duly adopted by the Board, or, with respect to service as a
director or officer of the Company, by the Certificate of Incorporation, the Company’s Bylaws, and
the DGCL. The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee
has ceased to serve as a director, officer, employee and/or agent of the Company, as provided in
Section 16 hereof.

     Section 2. Definitions. As used in this Agreement:

          (a) References to “agent” shall mean any person who is or was a director, officer, or employee
of the Company or a subsidiary of the Company or other person authorized by the Company to act for
the Company, to include such person serving in such capacity as a director, officer, employee,
fiduciary or other official of another corporation, partnership, limited liability company, joint
venture, trust or other enterprise at the request of, for the convenience of, or to represent the
interests of the Company or a subsidiary of the Company.

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          (b) A “Change in Control” shall be deemed to occur upon the earliest to occur after the date
of this Agreement of any of the following events:

               i. Acquisition of Stock by Third Party. Any Person (as defined below) is or becomes the
Beneficial Owner (as defined below), directly or indirectly, of
securities of the Company representing fifteen percent (15%) or more of the combined voting
power of the Company’s then outstanding securities;

               ii. Change in Board of Directors. During any period of two (2) consecutive years (not
including any period prior to the execution of this Agreement), individuals who at the beginning of
such period constitute the Board, and any new director (other than a director designated by a
person who has entered into an agreement with the Company to effect a transaction described in
Sections 2(b)(i), 2(b)(iii) or 2(b)(iv)) whose election by the Board or nomination for election by
the Company’s stockholders was approved by a vote of at least two-thirds of the directors then
still in office who either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to constitute at least a
majority of the members of the Board;

               iii. Corporate Transactions. The effective date of a merger or consolidation of the Company
with any other entity, other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior to such merger or consolidation continuing
to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity) more than 51% of the combined voting power of the voting securities of the
surviving entity outstanding immediately after such merger or consolidation and with the power to
elect at least a majority of the board of directors or other governing body of such surviving
entity;

               iv. Liquidation. The approval by the stockholders of the Company of a complete liquidation of
the Company or an agreement for the sale or disposition by the Company of all or substantially all
of the Company’s assets; and

               v. Other Events. There occurs any other event of a nature that would be required to be
reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar
item on any similar schedule or form) promulgated under the Exchange Act (as defined below),
whether or not the Company is then subject to such reporting requirement.

For purposes of this Section 2(b), the following terms shall have the following meanings:

     (A) “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended from time to time.

     (B) “Person” shall have the meaning as set forth in Sections
13(d) and 14(d) of the Exchange Act; provided, however, that Person
shall exclude (i) the Company, (ii) any trustee or other fiduciary
holding securities under an employee benefit plan of the

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Company,
and (iii) any corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as
their ownership of stock of the Company.

     (C) “Beneficial Owner” shall have the meaning given to such
term in Rule 13d-3 under the Exchange Act; provided,
however, that Beneficial Owner shall exclude any Person
otherwise becoming a Beneficial Owner by reason of the stockholders
of the Company approving a merger of the Company with another
entity.

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

          (d) “Disinterested Director” means 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.

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

          (f) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, 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, ERISA excise taxes and penalties, 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 any Proceeding, including without limitation the premium, security for, and other
costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii)
for purposes of Section 14(d) only, Expenses incurred by Indemnitee in connection with the
interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation
or otherwise. The parties agree that for the purposes of any advancement of Expenses for which
Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses
included in such demand that are certified by affidavit of Indemnitee’s counsel as being reasonable
shall be presumed conclusively to be reasonable. Expenses, however, shall not include amounts paid
in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

          (g) “Independent Counsel” means 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 years has been, retained
to represent: (i) the Company or Indemnitee in any matter material to either

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such party (other
than with respect to matters concerning the 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. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 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 Expenses, claims,
liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

          (h) The term “Proceeding” shall include any threatened, pending or completed action, suit,
arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing
or any other actual, threatened or completed proceeding, whether brought in the right of the
Company or otherwise and whether of a civil, criminal, administrative, legislative, or
investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was,
is or will be involved as a party, potential party, non-party witness or otherwise by reason of the
fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken
by him or of any action on his part while acting pursuant to his Corporate Status, or by reason of
the fact that he is or was serving at the request of the Company as a director, officer, employee,
agent or fiduciary of another corporation, 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 of Expenses can be provided under
this Agreement; including any Proceeding pending on or before the date of this Agreement. If the
Indemnitee believes in good faith that a given situation may lead to or culminate in the
institution of a Proceeding, this shall be considered a Proceeding under this paragraph.

          (i) Reference to “other enterprise” shall include employee benefit plans; 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 manner “not opposed to the best interests of the Company” as referred to in
this Agreement.

     Section 3. Indemnity in Third-Party Proceedings. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened
to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the
right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee
shall be indemnified to the fullest extent permitted by applicable law against all Expenses,
judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or
on his behalf in connection with such Proceeding or any claim, issue or matter therein, if

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Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company and, in the case of a criminal proceeding had no reasonable cause
to believe that his conduct was unlawful. The parties hereto intend that this Agreement shall
provide to the fullest extent permitted by law for indemnification in excess of that expressly
permitted by statute, including, without limitation, any indemnification provided by the
Certificate of Incorporation, the Bylaws, vote of its stockholders or disinterested directors or
applicable law.

     Section 4. Indemnity in Proceedings by or in the Right of the Company. The Company
shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or
is threatened to be made, a party to or a participant in any Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be
indemnified to the fullest extent permitted by applicable law against all Expenses actually and
reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue
or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be
in or not opposed to the best interests of the Company. No indemnification for Expenses shall be
made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall
have been finally adjudged by a court to be 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 indemnification.

     Section 5. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by
applicable law and to the extent that Indemnitee is a party to (or a participant in) and 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, the Company shall indemnify Indemnitee against all Expenses
actually and reasonably incurred by him in connection therewith. If Indemnitee is not wholly
successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee
against all Expenses actually and reasonably incurred by him or on his behalf in connection with or
related to each successfully resolved claim, issue or matter to the fullest extent permitted by
law. For purposes of this Section and without limitation, the termination of any claim, issue or
matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

     Section 6. Indemnification For Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the fullest extent permitted by applicable law and to the extent
that Indemnitee is, by reason of his Corporate Status, a witness or otherwise asked to participate
in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses
actually and reasonably incurred by him or on his behalf in connection therewith.

     Section 7. Partial Indemnification. If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of Expenses, but not,

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however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion thereof to which Indemnitee is entitled.

     Section 8. Additional Indemnification.

          (a) Notwithstanding any limitation in Sections 3, 4, or 5, 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 Expenses, judgments, fines and
amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with
the Proceeding.

          (b) For purposes of Section 8(a), the meaning of the phrase “to the fullest extent permitted
by applicable law” shall include, but not be limited to:

               i. to 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

               ii. to 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 9. Exclusions. Notwithstanding any provision in this Agreement, the Company
shall not be obligated under this Agreement to make any indemnity in connection with any claim made
against Indemnitee:

          (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance
policy or other indemnity provision, except with respect to any excess beyond the amount paid under
any insurance policy or other indemnity provision; or

          (b) for (i) 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 (as
defined in Section 2(b) hereof) or similar provisions of state statutory law or common law, or (ii)
any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or
equity-based compensation or of any profits realized by the Indemnitee from the sale of securities
of the Company, as required in each case under the Exchange Act (including any such reimbursements
that arise from an accounting restatement of the Company pursuant to Section 304 of the
Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits
arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the
Sarbanes-Oxley Act); or

          (c) except as provided in Section 14(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

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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.

     Section 10. Advances of Expenses. Notwithstanding any provision of this Agreement to
the contrary (other than Section 14(d)), the Company shall advance, to the extent not prohibited by
law, the Expenses incurred by Indemnitee in connection with any Proceeding (or any part of any
Proceeding) not initiated by Indemnitee, and such advancement shall be made within thirty (30) 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.
Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and
shall include or be preceded or accompanied by a written undertaking by or on behalf of Indemnitee
to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled
to be indemnified against such Expenses. Advances and undertaking to repay 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. In accordance with Section 14(d), advances shall include any and all
reasonable Expenses 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. This Section 10 shall not apply to any claim made by Indemnitee for which indemnity is
excluded pursuant to Section 9.

     Section 11. Procedure for Notification and Defense of Claim.

          (a) Indemnitee shall notify the Company in writing of any matter with respect to which
Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as
reasonably practicable following the receipt by Indemnitee of written notice thereof. 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. The omission 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 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) The Company will be entitled to participate in the Proceeding at its own expense.

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     Section 12. Procedure Upon Application for Indemnification.

          (a) Upon written request by Indemnitee for indemnification pursuant to Section 11(a), a
determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto
shall be made in the specific case: (i) if a Change in Control shall have occurred, by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or
(ii) if a Change in Control shall not have occurred, (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 within ten (10) days after such
determination. 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 costs or Expenses (including
attorneys’ fees and disbursements) 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.

          (b) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 12(a) hereof, the Independent Counsel shall be selected as
provided in this Section 12(b). If a Change in Control shall not have occurred, the Independent
Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee
advising him of the identity of the Independent Counsel so selected. If a Change in Control shall
have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall
request that such selection be made by the Board, in which event the preceding sentence shall
apply), and Indemnitee shall give written notice to the Company advising it of the identity of the
Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be,
may, within ten (10) days after such written notice of selection shall have been given, deliver to
the Company or to Indemnitee, as the case may be, a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the
Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined
in Section 2 of this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the person so selected shall act as
Independent Counsel. If such written objection is so made and substantiated, the Independent
Counsel so selected may not serve as Independent Counsel unless and until such objection is
withdrawn or a court has determined that such objection is without merit. If, within twenty (20)
days after the later of submission by Indemnitee of a written request for indemnification pursuant
to Section 11(a) hereof and the final disposition of the Proceeding, no Independent Counsel shall
have been selected and not objected to, either the Company or

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Indemnitee may petition a court of
competent jurisdiction for resolution of any objection which shall have been made by the Company or
Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person selected by the Court or by such other person as the Court shall
designate, and the person with respect to whom all objections are so resolved or the person so
appointed shall act as Independent Counsel under Section 12(a) hereof. Upon the due commencement
of any judicial proceeding or arbitration pursuant to Section 14(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).

     Section 13. Presumptions and Effect of Certain Proceedings.

          (a) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall, to the fullest extent not prohibited
by law, presume that Indemnitee is entitled to indemnification under this
Agreement if Indemnitee has submitted a request for indemnification in accordance with Section
11(a) of this Agreement, and the Company shall, to the fullest extent not prohibited by 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 14(e), if the person, persons or entity empowered or selected under
Section 12 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 law, be deemed to have been made and Indemnitee shall be entitled to such
indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a
material fact necessary to make Indemnitee’s statement not materially misleading, in connection
with the request for indemnification, or (ii) a prohibition of such indemnification under
applicable law; provided, however, that such 60-day period may be extended for a reasonable time,
not to exceed an additional thirty (30) days, if the person, persons or entity making the
determination with respect to entitlement to indemnification in good faith requires such additional
time for the obtaining or evaluating of documentation and/or information relating thereto; and
provided, further, that the foregoing provisions of this Section 13(b) shall not apply (i) if the
determination of entitlement to indemnification is to be made by the stockholders pursuant to
Section 12(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of
the request for such determination the Board has resolved to submit such determination to the
stockholders for their consideration at an annual meeting thereof to be held within seventy-five
(75) days after such receipt and such determination is made thereat, or (B) a special meeting of
stockholders is called within fifteen (15) days after

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such receipt for the purpose of making such
determination, such meeting is held for such purpose within sixty (60) days after having been so
called and such determination is made thereat, or (ii) if the determination of entitlement to
indemnification is to be made by Independent Counsel pursuant to Section 12(a) of this Agreement.

          (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) of itself
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 his conduct was unlawful.

          (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 13(d) shall
not be deemed to be exclusive or to limit in any way the other circumstances in which the
Indemnitee may be deemed to have met the applicable standard of conduct set forth in this
Agreement.

          (e) Actions of Others. The knowledge and/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 14. Remedies of Indemnitee.

          (a) Subject to Section 14(e), in the event that (i) a determination is made pursuant to
Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10 of this
Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant
to Section 12(a) of this Agreement within ninety (90) days after receipt by the Company of the
request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5, 6
or 7 or the last sentence of Section 12(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 3, 4
or 8 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, the
Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee
shall be entitled to an adjudication by a court of his entitlement to such indemnification or
advancement of Expenses. Alternatively,

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Indemnitee, at his 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. Indemnitee shall commence such proceeding seeking an
adjudication or an award in arbitration within 180 days following the date on which Indemnitee
first has the right to commence such proceeding pursuant to this Section 14(a); provided,
however, that the foregoing clause shall not apply in respect of a proceeding brought by
Indemnitee to enforce his rights under Section 5 of this Agreement. 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 12(a) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 14 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 14 the Company shall have the burden of proving Indemnitee is not entitled
to indemnification or advancement of Expenses, as the case may be.

          (c) If a determination shall have been made pursuant to Section 12(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 14, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a
prohibition of such indemnification under applicable law.

          (d) The Company shall, to the fullest extent not prohibited by law, be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 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, to the fullest extent
permitted by law, the Indemnitee not be required to incur legal fees or other 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 the Indemnitee hereunder. The Company shall, to the fullest
extent permitted by law, indemnify Indemnitee against any and all 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 law, such Expenses to Indemnitee, which are incurred by
Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of
Expenses from the Company under this Agreement or under any directors’ and officers’ liability
insurance policies maintained by the Company if, in the case of indemnification, Indemnitee is
wholly successful on the underlying claims; if Indemnitee is not wholly successful on the
underlying claims, then such indemnification shall be only to the extent Indemnitee is successful
on such underlying claims or otherwise as permitted by law, whichever is greater.

-12-

 

          (e) Notwithstanding anything in this Agreement to the contrary, no determination as to
entitlement of Indemnitee to indemnification under this Agreement shall be required to be made
prior to the final disposition of the Proceeding.

     Section 15. Non-exclusivity; Survival of Rights; Insurance; Subrogation.

          (a) The rights of indemnification and to receive advancement of Expenses 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 his 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 of Expenses
than would be afforded currently under the [Bylaws] [Certificate of Incorporation] and 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.

          (b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, or agents of the 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. 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 such claim or of the commencement of a Proceeding, as the case may be, 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 the
Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such
policies.

          (c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

          (d) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable (or for which advancement is provided hereunder) hereunder if and to the
extent that Indemnitee has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise.

-13-

 

          (e) The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is
or was serving at the request of the Company as a director, officer, employee or agent of any other
corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or
other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification
or advancement of Expenses from such other corporation, limited liability company, partnership,
joint venture, trust or other enterprise.

     Section 16. Duration of Agreement. This Agreement shall continue until and terminate
upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as
a [director] [officer] [employee] [agent] of the Company or (b) one (1) year after the final
termination of any Proceeding then pending in respect of which Indemnitee is granted rights of
indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee
pursuant to Section 14 of this Agreement relating thereto. This Agreement shall be binding upon
the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his
heirs, executors and administrators.

     Section 17. 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 without limitation,
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 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, without
limitation, 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 18. 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
or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving as a director or officer 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 to diminish or
abrogate any rights of Indemnitee thereunder.

     Section 19. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by the parties hereto. No waiver of

-14-

 

any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions of this Agreement nor shall any waiver constitute a continuing waiver.

     Section 20. Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter which may be subject to indemnification or
advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company
shall not relieve the Company of any obligation which it may have to the Indemnitee under this
Agreement or otherwise.

     Section 21. 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

Stone Energy Corporation

Attn: Andrew L. Gates, III

625 E. Kaliste Saloom Road

Lafayette, LA 70508

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

     Section 22. Contribution. 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 judgments, fines, penalties, excise taxes, amounts paid or to
be paid in settlement and/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/or transaction(s) giving
cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

     Section 23. 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

-15-

 

respect to any arbitration commenced by Indemnitee pursuant to Section 14(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) appoint, to the extent such party is not
otherwise subject to service of process in the State of Delaware, irrevocably RL&F Service Corp.,
One Rodney Square, 10th Floor, 10th and King Streets, Wilmington, Delaware 19801 as its agent in
the State of Delaware as such party’s agent for acceptance of legal process in connection with any
such action or proceeding against such party with the same legal force and validity as if served
upon such party personally within the State of Delaware, (iv) waive any objection to the laying of
venue of any such action or proceeding in the Delaware Court, and (v) 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.

     Section 24. Identical 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 25. Miscellaneous. Use of the masculine pronoun shall be deemed to include
usage of the feminine pronoun where appropriate. The headings 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.

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

	 	 	 	 	 	 	 	 	 	 	 
	STONE ENERGY CORPORATION	 	 	 	INDEMNITEE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	Name:	 	 
	 

	 	Office:
	 	 	 	 	 	Address:	 	 

-16-exv4w1

Exhibit 4.1

AMENDMENT NO. 8 AND CONSENT

     This Amendment No. 8 and Consent (“Amendment”) dated as of March 24, 2009
(“Effective Date”) is among Mariner Energy, Inc., a Delaware corporation (the
“Parent”), Mariner Energy Resources, Inc., a Delaware corporation (“Mariner Energy
Resources” and together with the Parent, the “Borrowers”, each a “Borrower”),
the Lenders (as defined in the Credit Agreement described below), and Union Bank of California,
N.A., as administrative agent (in such capacity, the “Administrative Agent”) and as issuing
lender (in such capacity, the “Issuing Lender”).

RECITALS

     A. The Borrowers, the Lenders, the Issuing Lender and the Administrative Agent are parties to
the Amended and Restated Credit Agreement dated as of March 2, 2006, as amended by Amendment No. 1
and Consent dated as of April 7, 2006, Amendment No. 2 dated as of October 13, 2006, Amendment No.
3 and Consent dated as of April 23, 2007, Amendment No. 4 dated as of August 24, 2007, Amendment
No. 5 and Agreement dated as of January 31, 2008, Master Assignment, Agreement and Amendment No. 6
dated as of June 2, 2008, and Amendment No. 7 dated as of December 12, 2008 (as so amended and as
the same may be further amended, restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”).

     B. The Parent intends to enter into a Security Agreement in substantially the same form as the
attached Exhibit A (together with such changes as the Administrative Agent shall approve in
its sole reasonable discretion and any amendments thereto so long as such amendments are not
adverse to the Lenders, the “OIL Security Agreement”), pursuant to which the Parent will
grant liens in favor of OIL Insurance Limited (the “OIL Liens”) on insurance proceeds (the
“Subject Insurance Proceeds”) in an amount not to exceed $50,000,000 in the aggregate
payable to the Parent by OIL Insurance Limited as a result of the property damage claim under OIL
Policy 2006-285 relating to damage sustained from Hurricane Ike (otherwise known as OIL claim
number 36763); provided that in no event shall the initial $50,000,000 of insurance
proceeds payable to Parent in respect of such claim constitute Subject Insurance Proceeds.

     C. The Borrowers have requested that the Lenders consent to the subordination of the Lenders’
liens with respect to the Subject Insurance Proceeds to the OIL Liens.

     D. The Borrowers, the Administrative Agent and the Lenders wish to, subject to the terms and
conditions of this Amendment, (i) consent to the subordination of the Lenders’ liens with respect
to the Subject Insurance Proceeds to the OIL Liens, (ii) redetermine the amount of the Borrowing
Base, and (iii) amend the Credit Agreement as provided herein.

     THEREFORE, the Borrowers, the subsidiaries of the Borrowers signatory hereto (the
“Guarantors”), the Lenders, the Issuing Lender and the Administrative Agent hereby agree as
follows:

 

 

ARTICLE I.

DEFINITIONS

     Section 1.01 Terms Defined Above. As used in this Amendment, each of the terms
defined in the opening paragraph and the Recitals above shall have the meanings assigned to such
terms therein.

     Section 1.02 Terms Defined in the Credit Agreement. Each term defined in the Credit
Agreement and used herein without definition shall have the meaning assigned to such term in the
Credit Agreement, unless expressly provided to the contrary.

     Section 1.03 Other Definitional Provisions. The words “hereby”, “herein”,
“hereinafter”, “hereof”, “hereto” and “hereunder” when used in this Amendment shall refer to this
Amendment as a whole and not to any particular Article, Section, subsection or provision of this
Amendment. Article, Section, subsection and Exhibit references herein are to such Articles,
Sections, subsections and Exhibits of this Amendment unless otherwise specified. All titles or
headings to Articles, Sections, subsections or other divisions of this Amendment or the exhibits
hereto, if any, are only for the convenience of the parties and shall not be construed to have any
effect or meaning with respect to the other content of such Articles, Sections, subsections, other
divisions or exhibits, such other content being controlling as the agreement among the parties
hereto. Whenever the context requires, reference herein made to the single number shall be
understood to include the plural; and likewise, the plural shall be understood to include the
singular. Words denoting sex shall be construed to include the masculine, feminine and neuter,
when such construction is appropriate; and specific enumeration shall not exclude the general but
shall be construed as cumulative. Definitions of terms defined in the singular or plural shall be
equally applicable to the plural or singular, as the case may be, unless otherwise indicated.

ARTICLE II.

BORROWING BASE

     Section 2.01 Redetermination of Borrowing Base. Subject to the terms of this
Amendment, the parties hereto agree that, as of the Effective Date, the Borrowing Base shall be
equal to $850,000,000 and such Borrowing Base shall remain in effect at such amount until the
Borrowing Base is redetermined in accordance with the Credit Agreement.

ARTICLE III.

CONSENT

     Section 3.01 Consent; Acknowledgment; Agreement. Subject to the terms of this
Amendment, the Administrative Agent and the Lenders hereby consent to the subordination of the
Lenders’ Liens with respect to the Subject Insurance Proceeds (and only with respect to the Subject
Insurance Proceeds) to the OIL Liens. Nothing contained herein shall be construed to be (a) a
consent to the subordination of the Lenders’ Liens on any proceeds or assets, other than the
Subject Insurance Proceeds, (b) a consent to the release of any Lien (including, without
limitation, any Liens on the Subject Insurance Proceeds) or (c) a subordination of the Obligations
to any obligations owing by any Borrower or Guarantor to OIL Insurance Limited. The consent by the
Lenders and by the Administrative described in this Section 3.01 is referred to herein as

2

 

the “Consent”. The Consent by the Lenders and by the Administrative Agent described
in this Section 3.01 is contingent upon the satisfaction of the conditions described in the
conditions precedent set forth below. Such Consent is strictly limited to the extent described
herein. Nothing contained herein shall be construed to be a consent to or a permanent waiver of
the Sections covered by the Consent provided for herein or any other terms, provisions, covenants,
warranties or agreements contained in the Credit Agreement or in any of the other Loan Documents.
The Lenders reserve the right to exercise any rights and remedies available to them in connection
with any present or future defaults with respect to the Credit Agreement or any other provision of
any Loan Document. The description herein of the Consent is based upon the information provided to
the Lenders on or prior to the date hereof and shall not be deemed to exclude the existence of any
Defaults or Events of Default. The failure of the Lenders to give notice to any Borrower or any
Guarantors of any such Defaults or Events of Default is not intended to be nor shall be a waiver
thereof. Subject to the Consent, each Borrower hereby agrees and acknowledges that the Lenders
require and will require strict performance by such Borrower of all of its obligations, agreements
and covenants contained in the Credit Agreement and the other Loan Documents, and no inaction or
action regarding any Default or Event of Default is intended to be or shall be a waiver thereof.

     Section 3.02 Authorization to Subordinate Liens. In connection with the Consent, each
Lender hereby authorizes the Administrative Agent to subordinate any Lien granted to or held by the
Administrative Agent on the Subject Insurance Proceeds to the OIL Liens.

ARTICLE IV.

AMENDMENTS TO CREDIT AGREEMENT

     Section 4.01 Section 1.01 (Certain Defined Terms). Section 1.01 of the Credit
Agreement is hereby amended as follows:

          (a) The defined term “Commitment Fee Rate” is hereby deleted in its entirety and replaced with
the following:

          “Commitment Fee Rate” means a per annum rate equal to 0.50%.

          (b) The defined term “Debt” is hereby amended by adding the following sentence to the end
thereof:

Notwithstanding the foregoing, the “Debt” of any Person shall not include the OIL
Obligations.

          (c) The following new terms are added in alphabetical order:

     “Amendment No. 8” means the Amendment No. 8 dated as of March 24, 2009
which amends this Agreement

     “OIL” means OIL Insurance Limited.

     “OIL Obligations” means the premium payable by the Parent to OIL in the
event that the Parent withdraws from OIL.

3

 

     “OIL Security Agreement” has the meaning assigned to that term in
Amendment No. 8.

     “Subject Insurance Proceeds” means insurance proceeds in an amount not
to exceed $50,000,000 in the aggregate payable to the Parent by OIL as a result of
the property damage claim under OIL Policy 2006-285 relating to damage sustained
from Hurricane Ike (otherwise known as OIL claim number 36763); provided
that in no event shall the initial $50,000,000 of insurance proceeds payable to
Parent in respect of such claim constitute Subject Insurance Proceeds.

     Section 4.02 Article V (Affirmative Covenants). Article V of the Credit Agreement is
hereby amended by adding a new Section 5.14 to the end thereof as follows:

     Section 5.14 OIL Obligations. The Borrower Representative shall
promptly (a) upon execution thereof, provide to the Administrative Agent a complete
copy of the fully executed OIL Security Agreement and any amendments thereto, and
(b) notify the Administrative Agent in writing if the OIL Obligations exceed
$50,000,000 in the aggregate at any time.

     Section 4.03 Section 6.01 (Liens, Etc.). Section 6.01 of the Credit Agreement is
hereby amended by (1) deleting “and” at the end of clause (l), (2) changing clause (m) to clause
(n), and (3) inserting the following new clause (m) in appropriate order:

     (m) Liens arising pursuant to the OIL Security Agreement which secure the OIL
Obligations; provided that such Liens encumber only the Subject Insurance Proceeds
and not any other assets of any Borrower or any Subsidiary of a Borrower; and

     Section 4.04 Schedule I (Pricing Grid). Schedule I to the Credit Agreement is hereby
deleted and replaced with Schedule I hereto.

ARTICLE V.

REQUESTS AND AGREEMENTS

     Section 5.01 Borrowing Base Redetermination. The Borrower Representative hereby (a)
agrees to deliver to the Administrative Agent and each Lender the Internal Engineering Report
required under Section 2.02(b) of the Credit Agreement on or before July 31, 2009, and (b) notifies
the Administrative Agent that effective July 31, 2009 the Borrower Representative requests that the
amount of the next Borrowing Base be $800,000,000 pursuant to Section 2.02(d) of the Credit
Agreement. Each request, notice and agreement in this Section 5.01 is binding on the Borrowers and
shall not be revoked without the consent of all the Lenders.

ARTICLE VI.

REPRESENTATIONS AND WARRANTIES

     Section 6.01 Borrowers Representations and Warranties. Each of the Borrowers
represents and warrants that: (a) its representations and warranties contained in Article IV of the
Credit Agreement and its representations and warranties contained in the Security Instruments, the
Guaranties, and each of the other Loan Documents to which it is a party are true and correct

4

 

in all material respects on and as of the Effective Date, after giving effect to the terms of
this Amendment, as though made on and as of such date, except those representations and warranties
that speak of a certain date, which representations and warranties remain true and correct as of
such certain date; (b) no Default has occurred and is continuing; (c) the execution, delivery and
performance of this Amendment are within the corporate power and authority of each of the Borrowers
and have been duly authorized by appropriate corporate action and proceedings; (d) this Amendment
constitutes the legal, valid, and binding obligation of each of the Borrowers enforceable in
accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, or similar laws affecting the rights of creditors generally and general principles of
equity; (e) there are no governmental or other third party consents, licenses or approvals required
in connection with the execution, delivery, performance, validity and enforceability of this
Amendment; and (f) the Liens under the Security Instruments are valid and subsisting and secure
each of the Borrowers’ obligations under the Loan Documents.

     Section 6.02 Guarantors Representations and Warranties. Each Guarantor represents and
warrants that: (a) its representations and warranties contained in Article IV of the Credit
Agreement and its representations and warranties contained in the Security Instruments, the
Guaranties, and each of the other Loan Documents to which it is a party are true and correct in all
material respects on and as of the Effective Date, as though made on and as of such date, except
those representations and warranties that speak of a certain date, which representations and
warranties remain true and correct as of such certain date; (b) no Default has occurred and is
continuing; (c) the execution, delivery and performance of this Amendment are within the corporate
power and authority of each of the Guarantors and have been duly authorized by appropriate
corporate action and proceedings; (d) this Amendment constitutes the legal, valid, and binding
obligation of each of the Guarantors enforceable in accordance with its terms, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights
of creditors generally and general principles of equity; (e) there are no governmental or other
third party consents, licenses or approvals required in connection with the execution, delivery,
performance, validity and enforceability of this Amendment; (f) it has no defenses to the
enforcement of its Guaranty; and (g) the Liens under the Security Instruments are valid and
subsisting and secure each Guarantor’s obligations under the Loan Documents.

ARTICLE VII.

CONDITIONS

     This Amendment shall become effective and enforceable against the parties hereto, and the
Credit Agreement shall be amended as provided herein, upon the occurrence of the following
conditions precedent:

     Section 7.01 Documentation. The Administrative Agent shall have received multiple
original counterparts, as requested by the Administrative Agent, of this Amendment, duly and
validly executed and delivered by duly authorized officers of the Borrowers, the Guarantors, the
Administrative Agent, the Issuing Lender and the Required Lenders.

     Section 7.02 Payment of Fees. The Borrowers shall have paid all costs and expenses
that have been invoiced and are payable pursuant to Section 10.04 of the Credit Agreement.

5

 

     Section 7.03 No Default. No Default shall have occurred and be continuing.

     Section 7.04 Representations and Warranties. The representations and warranties
contained in Article IV of the Credit Agreement and in each other Loan Document shall be true and
correct in all material respects other than such representations and warranties that speak of a
certain earlier date, which representations and warranties shall be true and correct as of such
earlier date.

ARTICLE VIII.

MISCELLANEOUS

     Section 8.01 Effect on Loan Documents; Acknowledgments.

          (a) Each of the Borrowers acknowledges that on the date hereof all Obligations are payable
without defense, offset, counterclaim or recoupment.

          (b) The Administrative Agent, the Issuing Lender and the Lenders hereby expressly reserve all
of their rights, remedies, and claims under the Loan Documents. Nothing in this Amendment shall
constitute a waiver or relinquishment of (i) any Default or Event of Default under any of the Loan
Documents, (ii) any of the agreements, terms or conditions contained in any of the Loan Documents
other than as expressly set forth above, (iii) any rights or remedies of the Administrative Agent,
the Issuing Lender or any Lender with respect to the Loan Documents, or (iv) the rights of the
Administrative Agent, any Issuing Lender or any Lender to collect the full amounts owing to them
under the Loan Documents.

          (c) Each of the Borrowers, the Guarantors, the Administrative Agent, the Issuing Lender and
the Lenders does hereby adopt, ratify, and confirm the Credit Agreement, as amended hereby, and
acknowledges and agrees that the Credit Agreement, as amended hereby, and all other Loan Documents
are and remain in full force and effect, and each of the Borrowers and the Guarantors acknowledges
and agrees that its liabilities under the Credit Agreement and the other Loan Documents are not
impaired in any respect by this Amendment or the consent granted hereunder.

          (d) From and after the Effective Date, all references to the Credit Agreement and the Loan
Documents shall mean such Credit Agreement and such Loan Documents as amended by this Amendment.

          (e) This Amendment is a Loan Document for the purposes of the provisions of the other Loan
Documents. Without limiting the foregoing, any breach of representations, warranties, and
covenants under this Amendment shall be a Default or Event of Default, as applicable, under the
Credit Agreement.

     Section 8.02 Reaffirmation of the Guaranty. Each Guarantor hereby ratifies, confirms,
acknowledges and agrees that its obligations under its Guaranty are in full force and effect and
that such Guarantor continues to unconditionally and irrevocably guarantee the full and punctual
payment, when due, whether at stated maturity or earlier by acceleration or otherwise, all of the
Guaranteed Obligations (as defined in its Guaranty), as such Guaranteed Obligations may have been
amended by this Amendment, and its execution and deliver of this

6

 

Amendment does not indicate or establish an approval or consent requirement by such Guarantor
under its Guaranty in connection with the execution and delivery of amendments to the Credit
Agreement, the Notes or any of the other Loan Documents.

     Section 8.03 Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original and all of which, taken together, constitute a
single instrument. This Amendment may be executed by facsimile signature and all such signatures
shall be effective as originals.

     Section 8.04 Successors and Assigns. This Amendment shall be binding upon and inure
to the benefit of the Lenders, the Borrowers and the Administrative Agent hereto and their
respective successors and assigns permitted pursuant to the Credit Agreement.

     Section 8.05 Invalidity. In the event that any one or more of the provisions
contained in this Amendment shall for any reason be held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provision of
this Amendment.

     Section 8.06 Governing Law. This Amendment shall be deemed to be a contract made
under and shall be governed by and construed in accordance with the laws of the State of Texas.

     Section 8.07 Entire Agreement. THIS AMENDMENT, THE CREDIT AGREEMENT AS AMENDED BY THIS
AMENDMENT, THE NOTES, AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE
PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS,
WRITTEN OR ORAL, WITH RESPECT THERETO.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[SIGNATURES BEGIN ON NEXT PAGE]

7

 

     EXECUTED effective as of the date first above written.

	 	 	 	 	 
	 	MARINER ENERGY, INC.

 	 
	 	By:  	/s/ Jesus G. Melendrez
 	 
	 	 	Jesus G. Melendrez, 	 
	 	 	Senior Vice President – Corporate Development 	 
	 
	 	MARINER ENERGY RESOURCES, INC.

 	 
	 	By:  	/s/ Jesus G. Melendrez
 	 
	 	 	Jesus G. Melendrez, 	 
	 	 	Senior Vice President – Corporate Development 	 
	 
	 	MARINER LP LLC, a Delaware

limited liability company

 	 
	 	  	By:  Mariner Energy, Inc., its sole member
 
	 
	 	 	 
	 	By:  	                                              /s/ Jesus G. Melendrez
 	 
	 	 	Jesus G. Melendrez, 	 
	 	 	Senior Vice President – Corporate Development 	 
	 
	 	MC BELTWAY 8 LLC, a Delaware limited liability

company

 	 
	 	  	By:  Mariner Energy, Inc. as its manager
 	 
	 	 	 
	 	By:  	/s/ Jesus G. Melendrez
 	 
	 	 	Jesus G. Melendrez, 	 
	 	 	Senior Vice President – Corporate Development 	 
	 
	 	MARINER GULF OF MEXICO LLC, a Delaware

limited liability company

 	 
	 	  	By:  Mariner Energy, Inc., its sole member
 	 
	 	 	 
	 	By:  	                                              /s/ Jesus G. Melendrez
 	 
	 	 	Jesus G. Melendrez, 	 
	 	 	Senior Vice President – Corporate Development 	 
	 

Schedule I

 

 

	 	 	 	 	 	 	 
	 	 	UNION BANK OF CALIFORNIA, N.A.,	 	 
	 	 	as Administrative Agent, Issuing Lender, Lender,
Joint Lead Arranger and Sole Book Runner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Damien Meiburger
 

Damien Meiburger
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS, as a Lender, Joint Lead Arranger and
Syndication Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Douglas R. Liftman
 

Douglas R. Liftman
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Polly Schott
 

Polly Schott
	 	 
	 

	 	Title:
	 	Director	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	BMO CAPITAL MARKETS FINANCING, INC., as a Lender and
as a Co-Documentation Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ James V. Ducote
 

James V. Ducote
	 	 
	 

	 	Title:
	 	Director	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	GUARANTY BANK, as a Lender and as a Co-Documentation
Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Kelly L. Elmore III
 

Kelly L. Elmore III
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A. , as a Lender and as a 

Co-Documentation Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	CAYLON NEW YORK BRANCH, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Tom Byargeon	 	 
	 

	 	Name:
	 	 

Tom Byargeon
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael D. Willis	 	 
	 

	 	Name:
	 	 

Michael D. Willis
	 	 
	 

	 	Title:
	 	Managing Director	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	CITICORP USA, INC., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Amy Pincu
 

	 	 
	 

	 	Name:
	 	Amy Pincu	 	 
	 

	 	Title:
	 	Vice President	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ D. G. Mills	 	 
	 

	 	Name:
	 	 

D. G. Mills
	 	 
	 

	 	Title:
	 	Managing Director	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	COMERICA BANK, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Matt Turner	 	 
	 

	 	Name:
	 	Matt Turner	 	 
	 

	 	Title:
	 	Corporate Banking Officer	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	NATIXIS, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Donovan C. Broussard	 	 
	 

	 	Name:
	 	 

Donovan C. Broussard
	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Liana Tchernysheva	 	 
	 

	 	Name:
	 	 

Liana Tchernysheva
	 	 
	 

	 	Title:
	 	Director	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF SCOTLAND plc, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Julia R. Franklin	 	 
	 

	 	Name:
	 	 

Julia R. Franklin
	 	 
	 

	 	Title:
	 	Assistant Vice President	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	CAPITAL ONE, N.A., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul D. Hein	 	 
	 

	 	Name:
	 	 

Paul D. Hein
	 	 
	 

	 	Title:
	 	Vice President	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK

FRANKFURT AM MAIN, NEW YORK BRANCH, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	AMEGY BANK NATIONAL ASSOCIATION, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Kenneth R. Batson, III
 

Kenneth R. Batson, III
	 	 
	 

	 	Title:
	 	Vice President	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

	 	 	 	 	 	 	 
	 	 	THE FROST NATIONAL BANK, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Thomas Dungan
 

Thomas Dungan
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

Signature Page to Amendment No. 8 and Consent

(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)

 

 

SCHEDULE I

PRICING GRID

Applicable Margins

	 	 	 	 	 
	 	 	 	 	Eurodollar Rate
	Utilization Level*	 	Reference Rate Advances	 	Advances
	Level I
	 	1.000%	 	2.25%
	Level II
	 	1.000%	 	2.50%
	Level III
	 	1.250%	 	2.75%
	Level IV
	 	1.500%	 	3.00%

 

			
	*	 	Utilization Levels are described below and are determined in accordance with the definition of
“Utilization Level.”

1. Level I: If the Utilization Level is less than or equal to 50%

2. Level II: If the Utilization Level is greater than 50% but less than or equal to 75%

3. Level III: If the Utilization Level is greater than 75% but less than or equal to 90%

4. Level IV: If the Utilization Level is greater than 90%

Schedule I

 

 

EXHIBIT A

Dated as of                     

B E T W E E N:

Oil Insurance Limited

and

Mariner Energy, Inc.

·

 

SECURITY AGREEMENT

 

 

 

THIS SECURITY AGREEMENT is made as of the _____, 2009 (this “Agreement”)

BETWEEN:

	(1)	 	Oil Insurance Limited, an insurance company incorporated under the laws of Bermuda with its
registered office located at 30 Woodbourne Avenue, Pembroke, Bermuda ( “OIL”); and
	 
	(2)	 	Mariner Energy, Inc., a company incorporated under the laws of the State of Delaware, United
States of America with its registered office at The Corporation Trust Center, 1209 Orange
Street, in the City of Wilmington, County of New Castle, Delaware 19801 (the “Grantor”).

WHEREAS:

	(A)	 	The Grantor is a member and insured of OIL. OIL provided and continues to provide insurance
for certain losses incurred by the Grantor under the terms of certain insurance contracts (the
“Insurance Cover”).
	 
	(B)	 	The Grantor is obligated by OIL to provide a letter of credit (the “LoC”) in favour of OIL by
way of security in respect of certain of its obligations under the Oil Insurance Limited
Shareholders’ Agreement (as effective as of the date hereof, the “Shareholders’ Agreement”)
and the Insurance Cover (the “Obligations”).
	 
	(C)	 	The Grantor has requested that OIL waive all or a part of the requirement for the Grantor to
provide the LoC as the Grantor and OIL agree, at this time, that the Obligations will be
exceeded by the payment obligations of OIL to the Grantor in respect of the property damage
claim under OIL Policy 2006-285 relating to damage sustained from Hurricane Ike on September
13, 2008, otherwise known as OIL claim number 36763 (the “Claim”).
	 
	(D)	 	OIL has a duty to all of its members to ensure that it can meet all of its obligations in
full and in order to assist the Grantor, OIL has agreed to replace all or a part of the
requirement of an LoC with the pledge under this Agreement to secure the Obligations.

NOW THEREFORE, in consideration of the mutual covenants herein contained and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor
and OIL agree as follows:

Security Agreement

-1-

 

1 Pledge

As security for the payment and performance in full of the Obligations, the Grantor hereby assigns
and pledges to OIL all of the Grantor’s right, title and interest in and to the sum of the next
[FIFTY] MILLION UNITED STATES DOLLARS ($[50],000,000 USD) (the “Pledged Sum”) in excess of such
amount (initially set at US$[50],000,000 USD) payable by OIL to the Grantor in respect of the Claim
(the “Security Interest”), which amount as confirmed by OIL upon its receipt of supporting
documentation on the Claim submitted by the Grantor; provided that OIL shall not be required to
make payment to the Grantor of the last US$[50],000,000 payable under the Claim, as adjusted, prior
to the termination and release of all Obligations.

2 Termination or Release

	 	(a)	 	Subject to the exercise of OIL’s rights set out in Section 2(b) below, upon the earlier
of (i) expiration of the period ending on December 31, 2009 (the “Initial Term”), or (ii)
Grantor’s provision to OIL of an LoC or other security for the Obligations acceptable to
OIL, or (iii) such time as the Obligations shall have been duly paid and discharged in full
in accordance with the provisions of the Shareholders’ Agreement and the Insurance Cover,
and the Grantor shall have no further obligations whatsoever, actual or contingent, under
or in connection with the Shareholders’ Agreement or the Insurance Cover, this Agreement,
the Security Interest and all other security interests granted hereby shall be
automatically terminated and released with respect to all Obligations without further
actions by any party.
	 
	 	(b)	 	OIL shall have the right, at its sole discretion, upon giving notice in writing to the
Grantor at least ten business days prior to the expiration of the Initial Term, to extend
the period of this Agreement for 90 days or such other period as determined by OIL (each
such period, a “Term”). In the event of an extension, the relevant “Term” shall substitute
all references to the “Initial Term” and its corresponding period in this Section 2.

3 Service

The Grantor agrees that service of process in any legal action or proceeding relating to the
Pledged Sum or this Agreement may be made by delivery to the Grantor at its registered address set
forth at the preamble of this Agreement, and that, in any suit instituted against the Grantor upon
this Agreement, the Grantor will abide by the final decision of such court or of an appellate court
in the event of an appeal.

4 Further Assurances

The Grantor and OIL, on behalf of themselves and their respective successors and assigns, shall
execute, acknowledge or verify, and deliver any and all agreements, documents, instruments,
reports or filings, and take any and all other actions, which from time to time may be reasonably
requested by the other party to this Agreement to carry out the purposes and intent of the Pledged
Sum and this Agreement.

Security Agreement

-2-

 

5 Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject
matter hereof and supersedes all prior agreements and understandings, written or oral, between the
parties with respect to the matters which are the subject hereof.

6 Amendment

Any term of this Agreement may be amended or modified in whole or in part and the observance of any
term of this Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively) only by an instrument in writing and signed by the party against
whom such amendment or waiver is sought to be enforced.

7 Severability

If any provisions of this Agreement as applied to any party or to any circumstance shall be
adjudged by a court to be invalid or unenforceable, the same shall in no way affect any other
provision of this Agreement, the application of such provision in any other circumstances or the
validity or enforceability of the Pledged Sum and this Agreement.

8 Successors and Permitted Assigns

This Agreement shall remain in full force and effect and shall be binding on and inure to the
benefit of OIL and the Grantor and their respective successors and permitted assigns, and this
Agreement shall not confer any rights or remedies on any other person.

9 Filings

The Grantor hereby consents to and agrees to assist OIL in any filings or other steps to be
reasonably taken to implement or perfect any charge or security interest or other interest of OIL
hereunder or to effectuate and secure the Pledged Sum at the expense of OIL.

10 Representations

The Grantor hereby represents and warrants that:

	 	(i)	 	it is duly incorporated and validly existing under, and in compliance
in all material respects with, the laws of the State of Delaware, United States of
America, and has full corporate power to execute, deliver and perform this
Agreement;
	 
	 	(ii)	 	the execution, delivery and performance of this Agreement have been and
remain duly authorized by all necessary corporate action and do not contravene in
any material respect any provision of the Grantor’s constitutional documents, as
amended to date, or any agreement to which the

Security Agreement

-3-

 

	 	 	Grantor is bound, or any law,
regulation, rule, decree, order, judgment or contractual restriction binding on the
Grantor or its assets;
	 
	(iii)	 	no material consents, licenses, clearances, authorizations or
approvals of, or registrations or declarations with, any governmental authority or
regulatory body with jurisdiction within the United States of America is necessary
in connection with the execution, delivery and performance of this Agreement;
	 
	(iv)	 	the Pledged Sum is free and clear of any senior charge or lien
whatsoever;
	 
	(v)	 	this Agreement constitutes the legal, valid and binding obligations of
the Grantor enforceable under the laws of the State of Texas against the Grantor in
accordance with its terms, subject to bankruptcy, insolvency, reorganization,
moratorium and other laws of general applicability relating to or affecting
creditors’ rights and to general equity principles.

11 Governing Law

The terms and conditions of this Agreement and the rights of the parties hereunder shall be
governed by and construed in all respects in accordance with the laws of Bermuda. The parties to
this Agreement hereby irrevocably agree that the courts of Bermuda shall have exclusive
jurisdiction in respect of any dispute, suit, action, arbitration or proceedings (“Proceedings”)
which may arise out of or in connection with this Agreement and waive any objection to Proceedings
in the courts of Bermuda on the grounds of venue or on the basis that the Proceedings have been
brought in an inconvenient forum.

15 Counterparts

This Agreement may be executed in counterparts each of which when executed and delivered shall
constitute an original but all such counterparts together shall constitute one and the same
instrument.

Security Agreement

-4-

 

     IN WITNESS WHEREOF, the parties hereto have duly signed this Agreement as of the day and year
first before written.

	 	 	 	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 	 	 
	OIL INSURANCE LIMITED

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	 

Name: George F. Hutchings
	 	 
	 

	 	 	 	 	 	Title: Chief Operating Officer- OIL Insurance Limited	 	 
	SIGNED for and on behalf of

	 	 	)	 	 	 	 	 
	MARINER

	 	 	)	 	 	 	 	 
	ENERGY, INC.

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 

Name: John H. Karnes
	 	 
	 

	 	 	 	 	 	Title: Senior Vice President and	 	 
	 

	 	 	 	 	 	     Chief Financial Officer	 	 

Security Agreement

-5-

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