Document:

ex10_1.htm

    
      

      

    

     

    EXHIBIT 10.1

     

    

      ENERGY
XXI SERVICES, LLC

      DIRECTORS’
DEFERRED COMPENSATION PLAN

      (EFFECTIVE
SEPTEMBER 1, 2008)

      

      

      ARTICLE 1)

       

      PURPOSES OF PLAN AND
DEFINITIONS

       

      
        	
                a)

              	
                Purpose

              

      

       

      Energy
XXI Services, LLC (the “Employer”), hereby establishes the Energy XXI Services,
LLC Directors’ Deferred Compensation Plan for the purpose of providing
nonemployee directors (“Directors”) of Energy XXI (Bermuda) Limited (the
“Company”) the opportunity to defer all or a portion of their cash or equity
compensation and to provide greater incentives for Directors to attain and
maintain the highest standards of performance, to attract and retain Directors
of outstanding competence and ability, to stimulate the active interest of such
persons in the development and financial success of the Company, to further the
identity of interests of such Directors with those of the Company’s stockholders
generally, and to reward such Directors for outstanding
performance.

       

      This Plan is intended to be a
nonqualified deferred compensation plan within the meaning of Section 409A of
the Code.  The provisions of this Plan shall be construed consistent
with the requirements of Section 409A of the Code and applicable regulations and
other guidance issued thereunder.

      

      
        	
                b)

              	
                Definitions

              

      

       

      
        	
                 
      

              	
                1.

              	
                Account
      means the aggregate of a Participant’s Cash Account, Company Contributions
      Account and Stock Unit Account.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Beneficiary
      means the person or persons designated by the Participant, as provided in
      Section 4.4, to receive any payments otherwise due the Participant
      under this Plan in the event of the Participant’s
  death.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Board of
      Directors or Board
      means the Board of Directors of the
Company.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Cash
      Account means the separate bookkeeping account established on
      behalf of each Participant to reflect the amounts deemed credited to the
      Plan on his or her behalf with respect to deferrals of Cash
      Compensation.

              

      

       

      
        	
                 
      

              	
                (e)

              	
                Cash
      Compensation means all of the cash compensation payable to a
      Participant, for service on the Board, including annual retainer, meeting,
      and other fees.

              

      

       

      
        	
                 
      

              	
                (f)

              	
                Code means the Internal
      Revenue Code of 1986, as amended.

              

      

       

      
        	
                 
      

              	
                (g)

              	
                Committee
      means the committee of the Board as is designated by the Board to
      administer the Plan in accordance with Article
  II.

              

      

       

      
        	
                 
      

              	
                (h)

              	
                Common
      Stock means the Company’s common stock, $.001 par
      value.

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Company
      means Energy XXI (Bermuda) Limited, a Bermuda corporation, and any
      successor thereto.

              

      

       

      
        	
                 
      

              	
                (j)

              	
                Company
      Contributions means the contributions, if any, that the Company may
      make to a Participant’s Company Contributions Account pursuant to Section
      3.7.

              

      

       

      
        	
                 
      

              	
                (k)

              	
                Company
      Contributions Account means the separate bookkeeping account
      established on behalf of each Participant to reflect the amounts deemed
      credited to the Plan on his or her behalf with respect to Company
      Contributions.

              

      

       

      
        	
                 
      

              	
                (l)

              	
                Compensation
      means Cash Compensation and/or Equity
  Compensation.

              

      

       

      
        	
                 
      

              	
                (m)

              	
                Deferral
      Election means an election by the Participant to defer receipt of
      Compensation.

              

      

       

      
        	
                 
      

              	
                (n)

              	
                Director
      or Eligible
      Director means each member of the Board of the Company who is not
      an employee of the Company or the Employer and who receives compensation
      for services as a director.

              

      

       

      
        	
                 
      

              	
                (o)

              	
                Effective
      Date means the effective date of the Plan, which shall be September
      1, 2008, except that Deferral Elections made by first-year Participants
      for Compensation earned on or after September 1, 2008 may be made before
      September 1, 2008 to be effective September 1,
  2008.

              

      

       

      
        	
                 
      

              	
                (p)

              	
                Election
      Date means the date on which the Director makes an election to
      defer receipt of all or a portion of Compensation pursuant to the terms of
      the Plan and such election is received by the
  Committee.

              

      

       

      
        	
                 
      

              	
                (q)

              	
                Election
      Effective Date means the date a Deferral Election becomes
      effective.

              

      

       

      
        	
                 
      

              	
                (r)

              	
                Equity
      Compensation means all of the Compensation paid to a Participant
      for services on the Board in the form of Common Stock, which Common Stock
      shall be granted pursuant to the Energy XXI Services, LLC 2006 Long-Term
      Incentive Plan or another equity compensation plan maintained by the
      Company that has received stockholder approval.  Any options
      granted to a Participant to purchase shares of Common Stock or restricted
      Common Stock granted to a Participant shall not be subject to Deferral
      Elections under the terms of the
Plan.

              

      

       

      
        	
                 
      

              	
                (s)

              	
                Exchange
      Act means the Securities Exchange Act of 1934, as amended from time
      to time.

              

      

       

      
        	
                 
      

              	
                (t)

              	
                Fair Market
      Value of a share of Common Stock means, as of a particular date the
      price at which the last sale of Common Stock was made on the principal
      exchange or over-the-counter market on which such shares are trading, or
      if no sales occurred on such day, then on the last day on which there were
      such sales.  Fair Market
      Value of a Stock Unit shall be deemed to be equal to the Fair
      Market Value of one share of Common
Stock.

              

      

       

      
        	
                 
      

              	
                (u)

              	
                Investment
      Funds means one or more of the measurement investment funds
      designated by the Committee for purposes of crediting or debiting
      hypothetical investment gains and losses to the Cash Accounts and Company
      Contributions Accounts of
Participants.

              

      

       

      
        	
                 
      

              	
                (v)

              	
                Participant
      means an Eligible Director of the Company who elects to participate in the
      Plan.

              

      

       

      
        	
                 
      

              	
                (w)

              	
                Payment
      Date means the date on which payment of a Participant’s Account is
      made, as determined in accordance with
  Section 4.1.

              

      

       

      
        	
                 
      

              	
                (x)

              	
                Plan
      means the Energy XXI Services, LLC Directors’ Deferred Compensation Plan,
      as amended from time to time.

              

      

       

      
        	
                 
      

              	
                (y)

              	
                Separation
      from Service means a termination of the services provided by the
      Participant as determined by the Committee in accordance with Section
      409A(a)(2)(A)(i) of the Code and applicable administrative guidance issued
      thereunder.  If a Participant provides services for the Company
      or Employer as both an employee and as a Director, to the extent permitted
      by Treas. Reg. §1.409A-1(h)(5), the services provided by such Participant
      as a Director shall not be taken into account in determining whether the
      Participant has experienced a Separation from Service as an employee, and
      the services provided by such Participant as an employee shall not be
      taken into account in determining whether the Participant has experienced
      a Separation from Service as a
Director.

              

      

       

      
        	
                 
      

              	
                (z)

              	
                Stock
      Unit means a unit equal to one share of Common Stock issued and
      outstanding as of the Effective Date of the Plan (as adjusted pursuant to
      Section 3.10), utilized for the purpose of measuring the benefits
      payable under Section 4.2.

              

      

       

      
        	
                 
      

              	
                (aa)

              	
                Stock Unit
      Account means the separate bookkeeping account established on
      behalf of each Participant to reflect the amounts deemed credited to the
      Plan on his or her behalf with respect to deferrals of Equity
      Compensation.

              

      

       

      

      

       

      ARTICLE 2)

       

      ADMINISTRATION OF THE
PLAN

       

      
        	
                a)

              	
                Committee

              

      

       

      This Plan
shall be administered by the Committee.  The Committee shall consist
of at least two members of the Board.

       

      
        	
                b)

              	
                Committee’s
      Powers

              

      

       

      Subject
to the provisions hereof, the Committee shall have full and exclusive power and
authority to administer this Plan and to take all actions that are specifically
contemplated hereby or are necessary or appropriate in connection with the
administration hereof.  The Committee shall also have full and
exclusive power to interpret this Plan and to adopt such rules, regulations, and
guidelines for carrying out this Plan as it may deem necessary or proper, all of
which powers shall be exercised in the best interests of the Company and in
keeping with the objectives of this Plan.  The Committee may, in its
discretion, determine the eligibility of individuals to participate herein,
determine the amount of Compensation a Participant may elect to defer, or waive
any restriction or other provision of this Plan; provided, however, that the
Committee shall not waive any restriction or other provision of this Plan or
take any other action that would cause any benefits provided to a Participant
hereunder to be deemed “derivative securities” within the meaning of
Section 16 of the Exchange Act or the rules and regulations promulgated
thereunder (including, but not limited to, Rule 16a-1(c) or any successor rule)
or would result in adverse tax consequences to Participant under Section 409A of
the Code; provided further, however, that no member of the Committee may
participate in or take any action with respect to any decision regarding his or
her own Compensation except to the extent that such action or decision would
apply to or affect the Compensation of all Participants.  The
Committee may correct any defect or supply any omission or reconcile any
inconsistency in this Plan in the manner and to the extent the Committee deems
necessary or desirable to carry it into effect.

       

      
        	
                c)

              	
                Committee
      Determinations Conclusive

              

      

       

      Any
decision of the Committee in the interpretation and administration of this Plan
shall lie within its sole and absolute discretion and shall be final,
conclusive, and binding on all parties concerned.

       

      
        	
                d)

              	
                Committee
      Liability

              

      

       

      No member
of the Committee or officer of the Company to whom the Committee has delegated
authority in accordance with the provisions of Section 2.5 of this Plan
shall be liable for anything done or omitted to be done by him or her, by any
member of the Committee, or by any officer of the Company in connection with the
performance of any duties under this Plan, except for his or her own willful
misconduct or as expressly provided by statute.

       

      
        	
                e)

              	
                Indemnification

              

      

       

      The
Company agrees to indemnify and hold harmless each member of the Committee
against any and all expenses and liabilities arising out of his or her action or
failure to act in such capacity, excepting only expenses and liabilities arising
out of the member’s own willful misconduct or gross negligence. This right of
indemnification is in addition to any other rights to which any member of the
Committee may be entitled.

       

      
        	
                f)

              	
                Delegation
      of Authority

              

      

       

      The
Committee may delegate to the Chief Executive Officer, Vice President of Human
Resources, Chief Financial Officer or to other senior officers of the Company
its duties under this Plan pursuant to such conditions or limitations as the
Committee may establish.

       

      

      

      ARTICLE 3)

       

      ACCOUNTS

       

      
        	
                a)

              	
                Establishment
      of Accounts

              

      

       

      The
Company shall set up and maintain a separate Account which will from time to
time reflect the name of each Participant, the amount of a Participant’s total
deferrals made under Section 3.2 and Section 3.3, the amount of
Company Contributions, if any, made under Section 3.7 and all applicable deemed
earnings and losses under Section 3.8.

       

      
        	
                b)

              	
                Cash
      Compensation Deferral Elections

              

      

       

      A
Participant may elect to defer receipt of up to one hundred (100%) percent of
the Cash Compensation payable to the Participant for serving on the Company’s
Board of Directors for each calendar year for which such deferral is
elected.  Except as otherwise provided in Section 3.4 below, to be
effective, a Deferral Election must be made by the Participant in the calendar
year prior to the year in which services giving rise to such Compensation are
performed.  For example, a Deferral Election for annual retainer and
meeting fees for 2009 must be made on or prior to December 31,
2008.  Such Deferral Election shall be effective only with respect to
amounts earned on or after January 1, 2009.

       

      
        	
                c)

              	
                Equity
      Compensation Deferral Elections

              

      

       

      A
Participant may elect to defer receipt of up to one hundred (100%) percent of
the Equity Compensation payable to the Participant for serving on the Company’s
Board of Directors for each calendar year for which such deferral is
elected.  Except as otherwise provided in Section 3.4 below, to be
effective, a Deferral Election must be made by the Participant in the calendar
year prior to the year in which the services giving rise to the Equity
Compensation are performed.

       

      

      
        	
                d)

              	
                Elections
      of First-Year Participants

              

      

       

      In the
case of the first year in which a Participant becomes eligible to participate in
the Plan, a Deferral Election may be made with respect to services to be
performed subsequent to the election, provided that such election is made within
30 days after the date the Participant first becomes eligible to
participate.  In such case, the Election Effective Date shall be the
first date that services are performed after the Election Date.

       

      
        	
                e)

              	
                Deferral
      of Payment

              

      

       

      A
Participant who has elected to defer receipt of Compensation pursuant to this
Plan may elect to defer payment beyond the Payment Date, provided that each of
the following conditions is met:

       

      
        	
                 
      

              	
                1.

              	
                such
      election may not take effect until at least twelve (12) months after the
      date on which the election is made;

              

      

       

      
        	
                 
      

              	
                2.

              	
                except
      in the case of death the first payment with respect to which such election
      is made must be deferred for a period of at least 5 years from the date
      such payment would otherwise have been made,
and

              

      

       

      
        	
                 
      

              	
                3.

              	
                any
      election may not be made less than twelve (12) months prior to the date of
      the first scheduled Payment Date.

              

      

       

      For purposes of the preceding sentence,
installment payments made to a Participant shall be treated as a right to a
series of separate payments.

      

      
        	
                f)

              	
                Crediting
      of Deferred Amounts

              

      

       

      Compensation
credited to a Participant’s Account shall be deemed credited on the date that
such amount would otherwise be paid to Participant, absent a Deferral
Election.

       

      g)           Company
Contributions

      

      For each
calendar year, the Company, in its sole discretion may credit any amount it
desires to any Participant’s Company Contributions Account.  The
amount so credited to a Participant may be smaller or larger than the amount
credited to any other Participant, and the amount credited to any Participant
for a calendar year may be zero, even though one or more other Participants
received a Company Contribution for that calendar year.  Company
Contributions, if any, shall be credited to the Participant’s Company
Contributions Account as soon as administratively feasible following the end of
the calendar year, or such earlier date as shall be determined by the
Committee.  A Participant’s Company Contributions Account shall be one
hundred (100%) percent vested at all times.

       

      

      

      

      
        	
                3.8

              	
                Earnings
      or Losses

              

      

       

      A
Participant’s Cash Account and Company Contributions Account shall be deemed
credited or debited with earnings, gains or losses approximately equal to the
earnings, gains or losses on the Investment Funds designated by the Participant
to be used for purposes of calculating his or her Cash Account and Company
Contributions Account balances.  Each Participant may indicate to the
Company, in writing, a preference that monies in his or her Cash Account and
Company Contributions Account be deemed invested by the Company in one or more
of the Investment Funds selected by the Committee for use by the
Plan.  If the monies are deemed invested by the Company in one or more
such Investment Funds, then the value of a Participant’s Cash Account and
Company Contributions Account at any time shall include the current fair market
value of the deemed investment in such Investment Funds.  A
Participant’s investment election under this Section 3.8 may be changed in
accordance with rules determined by the Committee.

       

      
        	
                3.9

              	
                Dividends

              

      

       

      As of
each date that dividends are paid with respect to Common Stock, a Participant
who has any outstanding Stock Units credited to his or her Stock Unit Account
shall have an additional amount (dividend equivalent) in cash deemed credited to
his or her Cash Account equal to the dollar amount of dividends paid per share
of Common Stock multiplied by the number of Stock Units credited to the
Participant’s Stock Unit Account as of the payment date of such dividend, or if
elected by the Participant at the time the Participant enters into the Deferral
Election, such dividend equivalents shall be currently paid as income to the
Participant, which dividend equivalents shall be paid in cash (or Common Stock
or other applicable property for a non-cash dividend) as of the last business
day of each month.

       

      
        	
                3.10

              	
                Adjustments

              

      

       

      
        	
                 
      

              	
                1.

              	
                Exercise of
      Corporate Powers.  The existence of this Plan and any
      outstanding Stock Units credited hereunder shall not affect in any manner
      the right or power of the Company or its stockholders to make or authorize
      any or all adjustments, recapitalizations, reorganizations or other
      changes in the capital stock of the Company or its business or any merger
      or consolidation of the Company, or any issue of bonds. debentures,
      preferred or prior preference stock (whether or not such issue is prior
      to, on a parity with or junior to the Common Stock) or the dissolution or
      liquidation of the Company, or any sale or transfer of all or any part of
      its assets or business, or any other corporate act or proceeding of any
      kind, whether or not of a character similar to that of the acts or
      proceedings enumerated above.

              

      

       

      
        	
                 
      

              	
                2.

              	
                Recapitalizations,
      Reorganizations and Other Activities.  In the event of
      any subdivision or consolidation of outstanding shares of Common Stock,
      declaration of a dividend payable in shares of Common Stock or other stock
      split, then (i) the number of Stock Units and (ii) the appropriate Fair
      Market Value and other price determinations for such Stock Units shall
      each be proportionately adjusted by the Board to reflect such
      transaction.  In the event of any other recapitalization or
      capital reorganization of the Company, any consolidation or merger of the
      Company with another corporation or entity, the adoption by the Company of
      any plan of exchange affecting the Common Stock or any distribution to
      holders of Common Stock of securities or property (other than normal cash
      dividends or dividends payable in Common Stock), the Board shall make
      appropriate adjustments to (i) the number of Stock Units and (ii) the
      appropriate Fair Market Value and other price determinations for such
      Stock Units to give effect to such transaction; provided that such
      adjustments shall only be such as are necessary to preserve, without
      increasing, the value of such units.  In the event of a
      corporate merger, consolidation, acquisition of property or stock,
      separation, reorganization or liquidation, the Board shall be authorized
      to issue or assume units by means of substitution of new units, as
      appropriate, for previously issued units or an assumption of previously
      issued units as part of such
adjustment.

              

      

       

      

      

      ARTICLE 4)

       

      PAYMENTS

       

      
        	
                a)

              	
                Period
      of Deferral

              

      

       

      Payment
to a Participant of his of her Stock Unit Account, Cash Account and Company
Contributions Account shall be paid within 30 days of the date of his/her
Separation from Service (the “Payment Date”).  Notwithstanding the
foregoing, if permitted by the Committee, a Participant may elect that
Compensation attributable to a specific calendar year deferred under the Plan
will be paid on a date specified on the deferral election form provided by the
Committee, provided that such date does not occur before the date such
Compensation would be paid absent such deferral.  In the event of the
death of a Director or Separation from Service prior to the date specified on
the deferral election form, such Director’s date of death or Separation from
Service shall be his or her Payment Date.

       

      
        	
                b)

              	
                Payment
      of Amounts in Stock Unit Account

              

      

       

      As of the
Payment Date, the aggregate Fair Market Value of the Stock Units then deemed
credited to a Participant’s Stock Unit Account shall be calculated.

       

      
        	
                c)

              	
                Form
      of Payment

              

      

       

      Payment
to a Participant of his of her Stock Unit Account shall be made in Common Stock
on the Payment Date.  Payment to a Participant of his of her Cash
Account and Company Contributions Account shall be made in cash on the Payment
Date.  Payment shall be in a single lump sum amount.

       

      
        	
                d)

              	
                Death
      Prior to Payment

              

      

       

      In the
event that a Participant dies prior to payment pursuant to the Plan, any such
unpaid amounts, shall be paid to the Participant’s designated Beneficiary in a
lump sum within sixty (60) days following the Participant’s death.  If
no Beneficiary has been designated, such payment shall be made to the
Participant’s estate.  A beneficiary designation, or revocation of a
prior beneficiary designation, shall be effective only if it is made in writing
on a form provided by the Company, signed by the Participant and received by the
Committee.

       

      
        	
                e)

              	
                Payments
      to Minors and Incompetents

              

      

       

      Should
the Participant become incompetent or should the Participant designate a
Beneficiary who is a minor or incompetent, the Company shall be authorized to
pay such funds to a parent or guardian of such minor or incompetent, or directly
to such minor or incompetent, whichever manner the Committee shall determine in
its sole discretion.

       

      

      

      ARTICLE 5)

       

      ELECTING
DEFERRALS

       

      
        	
                a)

              	
                Manner
      of Electing Deferral

              

      

       

      Each
election made by a Participant to defer Compensation under the Plan (i) shall
take the form of a written document (provided by the Company) signed by the
Participant and filed with the Committee, (ii) shall designate the calendar year
for which the deferral is made and the period of deferral, and (iii) cannot be
revoked or modified if either (a) the proposed revocation or modification
applies to amounts deferred with respect to a calendar year which has already
commenced at the time such revocation or modification is proposed to be
effected, or (b) the Committee determines in its sole discretion that the
proposed revocation or modification could cause any benefits provided to a
Participant hereunder to be treated as “derivative securities” within the
meaning of Section 16 of the Exchange Act or the rules and regulations
promulgated thereunder (including, but not limited to, Rule 16a-1(c) or any
successor rule) or could result in adverse tax consequences to the Participant
under Section 409A of the Code.  Any election to change a Deferral
Election (including an election as to distribution of deferrals) shall be
subject to the consent of the Committee and the terms of the Plan.

       

      

      ARTICLE 6)

       

      MISCELLANEOUS

       

      
        	
                a)

              	
                Unfunded
      Plan

              

      

       

      Nothing
contained herein shall be deemed to create a trust of any kind or create any
fiduciary relationship.  This Plan shall be unfunded.  Any
funds invested hereunder shall continue for all purposes to be part of the
general funds of the Company.  To the extent that a Participant
acquires a right to receive payments from the Company under the Plan, such right
shall not be greater than the right of any unsecured general creditor of the
Company and such right shall be an unsecured claim against the general assets of
the Company.  Although bookkeeping accounts may be established with
respect to Participants who are entitled to rights under this Plan, any such
accounts shall be used merely as a bookkeeping convenience.  The
Company shall not be required to segregate any assets that may at any time be
represented by cash or rights thereto, nor shall this Plan be construed as
providing for such segregation, nor shall the Company, the Board or the
Committee be deemed to be a trustee of any cash or rights thereto to be granted
under this Plan.  Any liability or obligation of the Company to any
Participant with respect to cash or rights thereto under this Plan shall be
based solely upon any contractual obligations that may be created by this Plan,
and no such liability or obligation of the Company shall be deemed to be secured
by any pledge or other encumbrance on any property of the
Company.  Neither the Company nor the Board nor the Committee shall be
required to give any security or bond for the performance of any obligation that
may be created by this Plan.

       

      
        	
                b)

              	
                Title
      to Funds Remains with Company

              

      

       

      Amounts
deemed credited to each Participant’s Account shall not be specifically set
aside or otherwise segregated, but will be combined with corporate
assets.  Title to such finds will remain with the Company and the
Company’s only obligation will be to make timely payments to Participants in
accordance with the Plan.

       

      
        	
                c)

              	
                Statement
      of Account

              

      

       

      A
statement will be furnished to each Participant not less often than annually and
shall reflect the balance and Fair Market Value of the Participant’s Account as
of the preceding December 31.

       

      
        	
                d)

              	
                Assignability

              

      

       

      Except as
otherwise provided herein, no right to receive payment hereunder shall be
transferable or assignable by a Participant except by will or the laws of decent
and distribution or pursuant to a qualified domestic relations order as defined
by the Code or Title I of the Employee Retirement Income Security Act of 1974,
as amended, or the rules thereunder.  Any attempted assignment of any
benefit under this Plan in violation of this Section 6.4 shall be null and
void.

       

      
        	
                e)

              	
                Amendment,
      Modification, Suspension, or
Termination

              

      

       

      The Board
may amend, modify, suspend, or terminate this Plan for the purpose of meeting or
addressing any changes in legal requirements or for any other purpose permitted
by law, except that no amendment, modification, or termination shall, without
the consent of the Participant, impair the rights of any Participant to the
balance in such Participant’s Stock Unit Account as of the date of such
amendment, modification, or termination.  The Board may at any time
and from time to time delegate to the Committee any or all of its authority
under this Section 6.5.

       

      
        	
                f)

              	
                Governing
      Law

              

      

       

      This Plan
and all determinations made and actions taken pursuant hereto, to the extent not
otherwise governed by mandatory provisions of the Code or the securities laws of
the United States, shall be governed by and construed in accordance with the
laws of the State of Texas.

       

      
        	
                g)

              	
                Section
      409A of the Code

              

      

       

      To the
extent necessary to comply with Section 409A of the Code and the
regulations thereunder, if a Director is a specified employee, as defined in
Treas. Reg. 1.409A-1(i), and any stock of Company or of any affiliate is
publicly traded on an established securities market or otherwise, no payment or
benefit that is subject to Section 409A of the Code shall be made under
this Plan on account of the Director’s Separation from Service before the date
that is the first day of the seventh month beginning after the date the
Director’s Separation from Service (or, if earlier, the date of death of the
Director or any other date permitted under Section 409A of the
Code).

       

      6.8           Tax
Withholding

      

      The Employer or the Company may deduct
from any payment due to the Participant any federal, state or local taxes of any
kind required by law to be withheld with respect to the payment.

      

      
        	
                6.9

              	
                Effective
      Date

              

      

       

      The Plan
shall be effective as of the Effective Date.newstockcertificate.htm

    Exhibit
4.1

     

     

    
      	
              COMMON

            	 
      	 
      	 
      	 
      	
              COMMON

            
	
              NUMBER

            	 
      	 
      	 
      	 
      	
              SHARES

            
	
              C

            	 
      	
              [LOGO]
      DUCKWALL - ALCO STORES, INC.

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              INCORPORATED
      UNDER THE

              LAWS
      OF THE STATE OF KANSAS

            	 
      	 
      	 
      	 
      	
              SEE
      REVERSE FOR CERTAIN

              LEGENDS
      AND DEFINITIONS

            
	
              

            
	
              THIS
      CERTIFIES THAT

            	 
      	 
      	 
      	 
      	
              CUSIP
      264142 10 0

            
	 
      	 
      	
              SPECIMEN

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              is
      the registered holder of

            	 
      	 
      	 
      	 
      	 
      
	
              

            

    

     

    SHARES OF
FULLY PAID AND NON-ASSESSABLE COMMON STOCK, PAR VALUE $.0001, OF

     

     

    DUCKWALL-ALCO
STORES, INC.

     

     

    CERTIFICATE
OF STOCK

     

     

    transferable
on the books of the Company by the holder hereof in person or by duly authorized
attorney upon surrender of this certificate properly endorsed. This certificate
is not valid until countersigned by the Transfer Agent.

     

     

                    IN
WITNESS WHEREOF, the Company has caused the facsimile signature of its President
to be printed hereon and the facsimile of its seal to be printed hereon and
attested by the facsimile signature of its Secretary printed
hereon.

     

    
      	
              Dated:

            	 
      	 
      	 
      	 
      	 
      
	 
      	
              /s/
      Charles E. Bogan

            	 
      	
              SEAL

            	
              /s/
      Lawrence J. Zigerelli

            	 
      
	 
      	 
      	
              Secretary

            	 
      	 
      	
              President

            

    

    

    
      	
              COUNTERSIGNED:

            	 
      	 
      
	
              BY

            	
              Computershare
      Trust Company, N.A.

            	 
      
	 
      	 
      	
              TRANSFER
      AGENT

            

    

     

     

     

    
      	 
      	 
      	 
      

    

    

     

     

     

     

    The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

     

    
      	
              TEN
      COM

            	
              -

            	
              as
      tenants in common

            	 
      	
              UNIF
      GIFT MIN ACT-_______ as Custodian for _______

            	
              UNIF
      TRAN MIN ACT--_______ as Custodian for _______

            
	 
      	 
      	 
      	 
      	
                             (Cust)

            	
              (Minor)

            	
                                     (Cust)

            	
              (Minor)

            
	
              TEN
      ENT

            	
              -

            	
              as
      tenants by the entireties

            	 
      	
              under
      Uniform Gifts to Minors

            	 
      	
              under
      Uniform Transfers to Minors

            	 
      
	 
      	 
      	 
      	 
      	
              Act
      _____________

            	 
      	
              Act
      _______________

            	 
      
	
              JT
      TEN

            	
              -

            	
              as
      joint tenants with right of survivorship and not as tenants in
      common

            	 
      	
                      (State)

            	 
      	
                        (State)

            	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              TOD

            	
              -

            	
              transfer
      on death direction in event of owner’s death, to person named on
      face

            	 
      	 
      	 
      	 
      	 
      
	 
      
	
              Additional
      abbreviations may also be used though not in the above list.

               

              _______________________________________________________________________________

            
	 
      
	
               For value received,
      ________________ hereby sell, assign and transfer
  unto

            

    

    

    
      	
              PLEASE
      INSERT SOCIAL SECURITY OR OTHER

              IDENTIFYING
      NUMBER OF ASSIGNEE

            	 
      
	
              

               

            	 
      

    

    

    
      	
              

              (Please
      print or typewrite name and address, including zip code, of
      assignee)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]