Document:

Exchange Agreement dated September 15, 2009

 EXHIBIT 10.4 
 THIS EXCHANGE AGENT AGREEMENT (this “Agreement”) between Energy Partners, Ltd., a Delaware corporation (the “Company”), and Mellon Investor Services LLC
(operating with the service name BNY Mellon Shareowner Services), a New Jersey limited liability company (“Agent”), is dated as of September 15, 2009. 
 WHEREAS, on May 1, 2009, the Company and certain of its subsidiaries filed voluntary petitions for reorganization (the “Chapter 11 Cases”) under Chapter 11 of Title
11 of the United States Code, 11 U.S.C. §§ 101 et seq., as amended, in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”); 
 WHEREAS, on August 3, 2009, the Bankruptcy Court issued a confirmation order (the “Confirmation Order”)
confirming the Company’s Second Amended Joint Plan of Reorganization, as modified as of July 31, 2009 and as further modified by the Confirmation Order (the “Plan”); 
 WHEREAS, pursuant to the Plan, (i) the Company’s 8.75% unsecured notes due 2010, 9.75% senior unsecured notes due 2014,
Senior Floating Notes due 2013 (collectively, the “Senior Notes”), (ii) shares of issued and outstanding Company common stock, par value $0.01 per share (“Old Shares”), and (iii) stock-settled restricted
stock units issued pursuant to the Company’s existing long-term incentive plans deemed vested under the Plan (the “RSUs”), will be exchanged (the “Exchange”) for shares of new Company common stock, par value
$0.01 per share (“New Shares”); 
 WHEREAS, pursuant to Section 5.03 of the Plan, as of the
effective time of the Exchange (the “Effective Time”), certificates representing Old Shares that have not been previously surrendered to the Agent shall be deemed to have been surrendered; and 
 WHEREAS, in accordance with, and subject to, the terms and conditions set forth in this Agreement, the Company desires to appoint
the Agent as exchange agent for the Exchange, and the Agent desires to accept such appointment. 
 1. Appointment;
Exchange. 
 (a) In accordance with, and subject to, the terms and conditions set forth in this Agreement, the
Company hereby appoints Agent to act as exchange agent with respect to the Exchange, and Agent hereby accepts such appointment. 
 (b) The Company shall inform Agent of the Effective Time at least three (3) business days prior thereto. 
 (c)
Prior to the Effective Time, the Company shall deliver to Agent, or cause to be delivered to Agent, a letter certifying the registered holders of the Senior Notes and the aggregate amount of principal outstanding under the Senior Notes (the
“Senior Notes Letter”). 
  

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 (d) Prior to the Effective Time, the Agent shall prepare a list of holders of record of
Old Shares as of the close of business on the date immediately preceding the date on which the Effective Time is to occur (the “Record Stockholder List”), which shall include each such holder’s name, address, taxpayer
identification number and amount of Old Shares held. 
 (e) Prior to the Effective Time, the Company will furnish the Agent
with written instructions (the “Company Instructions”) from an authorized representative which shall include (i) the rates at which each of the Senior Notes, Old Shares and RSUs shall be exchangeable into the New Shares,
(ii) a list of holders of RSUs setting forth each such holder’s name, address and settlement amounts in Old Shares in respect of each such holder’s RSUs (the “RSU List”), (iii) an instruction to close the
transfer books for the Old Shares at the Effective Time, (iv) instructions to perform the Exchange in accordance with Section 1(f) of this Agreement and (v) instructions to create a balance account for the benefit of unexchanged
holders for the number of New Shares to be issued in exchange for the Senior Notes, Old Shares and the RSUs at the Effective Time. 
 (f) Subject to the terms and conditions of this Agreement and the Company’s confirmation of the Effective Time pursuant to Section 1(b) hereof, and in accordance with the Company Instructions, Agent in its capacity as exchange
agent hereunder shall: 
 (i) with respect to the Senior Notes, (1) credit the appropriate number of
book-entry New Shares to holders of Senior Notes as set forth in the Senior Notes Letter and (2) mail a transaction notice reflecting such credit (along with a notice stating that the Senior Notes were deemed cancelled as of the Effective Time)
to each such holder of Senior Notes; 
 (ii) with respect to certificated Old Shares: 
 (A) (1) debit all certificated Old Shares reflected in the stockholder accounts of holders of record of certificated Old
Shares at the Effective Time as set forth in the Record Stockholder List, (2) credit the appropriate number of book-entry New Shares to each holder of certificated Old Shares at the Effective Time as set forth in the Record Stockholder List and
(3) mail a transaction notice reflecting such credit (along with a notice stating that the certificates representing Old Shares were deemed cancelled as of the Effective Time) to each such holder of Old Shares; and 
 (B) accept any certificates representing Old Shares sent by holders of record of Old Shares, provided that, for the
avoidance of doubt, the receipt of such certificates of Old Shares shall not be a condition to Agent’s obligations set forth in Section 1(f)(ii)(A); 
 (iii) with respect to book-entry Old Shares, (1) debit all book-entry Old Shares held in the stockholder accounts of holders of record of book-entry Old Shares at the Effective Time as set
forth in the Record Stockholder List, (2) credit the appropriate number of book-entry New Shares to each holder of book-entry Old 

  

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Shares and (3) mail a transaction notice reflecting such credit (along with a notice stating that the book-entry Old Shares were deemed cancelled as of
the Effective Time) to each such holder of Old Shares; and 
 (iv) with respect to the RSUs, (1) credit
the appropriate number of book-entry New Shares to each holder of RSUs as set forth in the RSU List and (2) mail a transaction notice reflecting such credit (along with a notice stating that the RSUs were deemed cancelled as of the Effective
Time) to each such holder of RSUs. 
 2. Treasury Shares. The Company shall, at or prior to the Effective Time,
provide to Agent a written list of all Old Shares held in treasury to be cancelled as of the Effective Time, indicating whether such treasury shares are certificated, in book-entry form or registered through a brokerage account. At or prior to the
Effective Time, the Company shall deliver any and all certificates representing such treasury shares to Agent for proper cancellation. The Company hereby authorizes and instructs Agent to cancel all such treasury shares delivered to Agent hereunder
in certificated form or maintained by Agent in book-entry. 
 3. Fractional Shares. No fractional shares of the
New Shares will be issued in the Exchange. Whenever any distribution to a particular holder would otherwise call for distribution of a fraction of a share of the New Shares, such number of New Shares to be distributed shall be rounded up or down to
the nearest whole number and such holder shall receive no separate consideration for such fractional shares. 
 4. Treatment of
Restrictive Legends. All New Shares issued in exchange for Old Shares may be issued without restrictive legend(s). 
 5.
Cancellation and Debit of Old Shares. As of the Effective Time, Agent will become the sole recordkeeping agent for the Old Shares, and shall maintain such records in accordance with its standard practices. At the Effective Time,
(a) any certificates representing Old Shares surrendered to Agent prior to the Effective Time shall be canceled by the Agent, (b) any certificates representing Old Shares deemed surrendered at the Effective Time pursuant to
Section 5.03 of the Plan shall be deemed canceled by Agent and (c) the book-entry Old Shares held in the stockholder account of the applicable holder will be debited, and such cancellation or debit shall be reflected within the records
maintained by Agent. 
 6. Report of Exchange Activity. Within ten (10) business days of the Effective Time, Agent will
prepare and provide to the Company a report setting forth in tabular form (i) the name and address of each holder of Senior Notes, Old Shares and RSUs as of the Effective Time; (ii) the aggregate principal amount outstanding with respect
to any Senior Notes held by such holder, the number of Old Shares held by such holder and the number of RSUs held by such holder, as applicable, and (iii) the number of New Shares issued to such holder. 
  

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 7. Tax Reporting. Should any issue arise regarding federal income tax reporting or
withholding, Agent shall take such reasonable action as the Company may reasonably request in writing. Such action may be subject to additional fees. 
 8. Authorizations and Protections. As agent for the Company hereunder, Agent: 
 (a) shall have no duties or obligations other than those specifically set forth herein or as may subsequently be agreed to in writing by Agent and the Company; 
 (b) shall have no obligation to conduct the Exchange unless the Company shall have provided a sufficient number of New Shares; 
 (c) shall be regarded as making no representations and having no responsibilities as to the validity, sufficiency, value, or genuineness
of any certificates or the Old Shares represented thereby surrendered or deemed surrendered hereunder or New Shares issued in exchange therefor, and will not be required to or be responsible for and will make no representations as to the validity,
sufficiency, value or genuineness of the Exchange; 
 (d) shall not be obligated to take any legal action hereunder; if,
however, Agent determines to take any legal action hereunder, and where the taking of such action might, in Agent’s judgment, subject or expose it to any expense or liability, Agent shall not be required to act unless it shall have been
furnished with an indemnity satisfactory to it; 
 (e) may reasonably rely on and shall be fully authorized and protected in
acting or failing to act upon any certificate, instrument, opinion, notice, letter, telegram, telex, facsimile transmission or other document or security delivered to Agent and reasonably believed by Agent to be genuine and to have been signed by
the proper party or parties; 
 (f) shall not be liable or responsible for any recital or statement contained in the Plan or
any other documents relating thereto; 
 (g) shall not be liable or responsible for any failure of the Company or any other
party to comply with any of its obligations relating to the Plan, including without limitation obligations under applicable securities laws; 
 (h) shall not be liable to any holder of Old Shares for any New Shares or dividends thereon; 
 (i) may reasonably rely on and shall be fully authorized and protected in acting or failing to act upon (i) the written, telephonic, electronic or oral instructions of any authorized representative of the Company with respect to any
matter relating to Agent acting as exchange agent pursuant to this Agreement; (ii) any guaranty of signature by an “eligible guarantor institution” that is a member or participant in the Securities Transfer Agents Medallion Program or
other comparable “signature guarantee program” or insurance program in addition to, or in substitution for, the foregoing; or (iii) any law, act, regulation or any interpretation of the same even though such law, act, or regulation
may thereafter have been altered, changed, amended or repealed; 
  

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 (j) may consult counsel satisfactory to Agent (including internal counsel), and the
advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by Agent hereunder in good faith and in reliance upon the advice of such counsel; 
 (k) may perform any of its duties hereunder either directly or by or through agents or attorneys and Agent shall not be liable or
responsible for any misconduct or negligence on the part of any agent or attorney appointed with reasonable care hereunder; and 
 (l) is not authorized, and shall have no obligation, to pay any brokers, dealers, or soliciting fees to any person. 
 9. Indemnification. The Company shall indemnify Agent for, and hold Agent harmless from and against, any loss, liability, claim (whether with or without basis in fact or law), demand, cost or expense
(collectively, “Loss”) arising out of or in connection with Agent’s duties under this Agreement or this appointment, including the costs and expenses of defending itself against any Loss or enforcing this Agreement, except to
the extent that such Loss shall have been determined by a court of competent jurisdiction to be a result of Agent’s gross negligence or intentional misconduct. 
 10. Limitation of Liability. 
 (a) In the absence
of gross negligence or intentional misconduct on its part, Agent shall not be liable for any action taken, suffered, or omitted by it or for any error of judgment made by it in the performance of its duties under this Agreement. Anything in this
Agreement to the contrary notwithstanding, in no event shall Agent be liable for special, indirect, incidental, consequential or punitive losses or damages of any kind whatsoever (including but not limited to lost profits), even if Agent has been
advised of the possibility of such losses or damages and regardless of the form of action. Any liability of Agent will be limited in the aggregate to the amount of fees paid by the Company hereunder. 
 (b) If any question or dispute arises with respect to the proper interpretation of this Agreement or Agent’s duties hereunder or the
rights of the Company or of any stockholders, Agent shall not be required to act and shall not be held liable or responsible for failing or refusing to act until the question or dispute has been (i) judicially settled (and Agent may, if it
deems it advisable, but shall not be obligated to, file a suit in interpleader or for a declaratory judgment for such purpose) by a final judgment of a court of competent jurisdiction that is binding on all stockholders and parties interested in the
matter and is no longer subject to review or appeal, or (ii) settled by a written document in form and substance satisfactory to Agent and executed by the Company and each such stockholder and party. 
  

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 11. Representations, Warranties and Covenants. The Company represents,
warrants and covenants that (a) it is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation, (b) the making and consummation of the Plan and the performance of all transactions
contemplated thereby (including without limitation this Agreement) have been duly authorized by all necessary corporate action and do not and will not conflict with, violate, result in a breach of or constitute a default under the certificate of
incorporation or bylaws of the Company, any law or regulation, any order or decree of any court or public authority having jurisdiction, or any mortgage, indenture, contract, agreement or undertaking to which it is a party or is bound, (c) this
Agreement has been duly executed and delivered by the Company and constitutes its legal, valid, binding and enforceable obligation, (d) the Exchange will comply in all material respects with all applicable requirements of law and (e) to
the best of its knowledge, there is no litigation pending or threatened as of the date hereof in connection with the Exchange.  
 12. Notices. All notices, demands and other communications given pursuant to the terms and provisions hereof shall be in writing, shall be deemed effective on the date of receipt, and may be sent by overnight delivery
services, or by certified or registered mail, return receipt requested to: 
  

			
	 If to the Company:
	  	 with an additional copy to:

		
	 Energy Partners, Ltd.
 201 St. Charles Ave., Suite 3400
 New Orleans, Louisiana, 70170-1026
 Attn: John H. Peper
	  	 Vinson & Elkins L.L.P.
 Trammell Crow Center
 2001 Ross Avenue, Suite 3700
 Dallas, Texas 75201
 Attn: Paul E. Heath

		
	 If to Agent:
	  	 with an additional copy to:

		
	 Mellon Investor Services LLC
 480 Washington Blvd, 27th Floor
 Jersey City, NJ 07310
 Attn: Event Manager

	  	 Mellon Investor Services LLC
 480 Washington Blvd, 29th Floor
 Jersey City, NJ 07310
 Attn: Legal Department

 13. Information Agent. In its capacity as information agent, Agent shall (if
required): assist in coordination of all printing activities and advertisement placement; establish contacts with brokers, dealers, banks and other nominees on behalf of the Company; determine material requirements and assist in document review;
facilitate the distribution of materials to registered and, if applicable, beneficial owners; provide a dedicated toll-free line for all shareholder queries; and provide status reporting to the Company’s management. 
  

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 14. Confidentiality. 
 (a) In connection with Agent’s appointment hereunder, each party will obtain confidential information related to the other party or
its stockholders that is not available to the general public (“Confidential Information”), which Confidential Information shall include the terms and conditions of this Agreement and the Exhibits attached hereto. Each party agrees
that the Confidential Information shall be held and treated by it, its directors, officers, employees, affiliates, agents and subcontractors (collectively, “Representatives”) in confidence and, except as hereinafter provided, shall
not be disclosed in any manner whatsoever except as otherwise required by law, regulation, subpoena or governmental authority. Confidential Information shall be used by each party and its Representatives only for the purposes for which provided and
shall be disclosed by such party only to those Representatives who have a need to know in order to accomplish the business purpose in connection with which the Confidential Information has been provided. Confidential Information does not include
information that (i) is now or subsequently becomes generally available to the public through no fault or breach on the part of the receiving party; (ii) the receiving party had rightfully in its possession prior to disclosure to it by the
disclosing party; (iii) is independently developed by the receiving party without the use of or reference to any Confidential Information; or (iv) the receiving party rightfully obtains on a non-confidential basis from a source other than
the disclosing party who has the right to transfer or disclose it. 
 (b) In connection with the provision of services under
this Agreement, the Company may direct Agent to release information, including non-public personal information (“NPPI”), as defined in Title V of the Gramm Leach Bliley Act and the regulations issued thereunder (including but not
limited to Regulation P of the Board of Governors of the Federal Reserve) to the Company’s agents or other third party service providers, including, without limitation, broker/dealers, custodians and depositories. In addition, the Company
consents to the release of information, including NPPI, (i) to any of Agent’s Representatives in connection with the services provided hereunder and (ii) as required by law, regulation, subpoena or governmental authority. Agent shall
not be liable for the release of information in accordance with the foregoing provisions. 
 15. Compensation and Expenses.

 (a) The Company shall pay to Agent compensation in accordance with the fee schedule attached as Exhibit A hereto,
together with reimbursement for reasonable fees and disbursements of counsel, regardless of whether any Old Shares are surrendered to Agent, for Agent’s services as exchange agent hereunder. 
 (b) The Company shall be charged for certain expenses advanced or incurred by Agent in connection with Agent’s performance of its
duties hereunder. Such charges include, but are not limited to, stationery and supplies, such as checks, envelopes and paper stock, as well as any disbursements for telephone and document creation and delivery. While Agent endeavors to maintain such
charges (both internal and external) at competitive rates, these charges may not reflect actual out-of-pocket costs, and may include handling charges to cover internal processing and use of Agent’s billing systems. 
  

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 (c) All amounts owed to Agent hereunder are due within thirty (30) days of the
invoice date. Delinquent payments are subject to a late payment charge of one and one half percent (1.5%) per month commencing forty-five (45) days from the invoice date. The Company agrees to reimburse Agent for any attorney’s fees
and any other costs associated with collecting delinquent payments. 
 (d) No provision of this Agreement shall require Agent
to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights. 
 16. Termination. Either party may terminate this Agreement upon thirty (30) days prior written notice to the other party. Unless so terminated, this Agreement shall continue in effect until all Old
Shares have been exchanged. In the event of such termination, the Company will appoint a successor exchange agent and inform Agent of the name and address of any successor exchange agent so appointed, provided that no failure by the Company
to appoint such a successor exchange agent shall affect the termination of this Agreement or the discharge of Agent as exchange agent hereunder. Upon any such termination, Agent shall be relieved and discharged of any further responsibilities with
respect to its duties hereunder. Upon payment of all outstanding fees and expenses hereunder, Agent shall promptly forward to the Company or its designee any certificates for Old Shares or other document that Agent may receive after its appointment
has so terminated. 
 17. Force Majeure. Agent shall not be liable for any failures, delays or losses, arising directly or
indirectly out of conditions beyond its reasonable control including, but not limited to, acts of government, exchange or market ruling, suspension of trading, work stoppages or labor disputes, fires, civil disobedience, riots, rebellions, storms,
electrical or mechanical failure, computer hardware or software failure, communications facilities failures including telephone failure, war, terrorism, insurrection, earthquakes, floods, acts of God or similar occurrences. 
 18. Submission to Jurisdiction; Foreign Law. 
 (a) The parties irrevocably (i) submit to the non-exclusive jurisdiction of any New York State court sitting in New York City or the United States District Court for the Southern District of New York in any
action or proceeding arising out of or relating to this Agreement, (ii) waive, to the fullest extent they may effectively do so, any defense based on inconvenient forum, improper venue or lack of jurisdiction to the maintenance of any such
action or proceeding, and (iii) waive all right to trial by jury in any action, proceeding or counterclaim arising out of this Agreement or the transactions contemplated hereby. 
 (b) Agent shall not be required hereunder to comply with the laws or regulations of any country other than the United States of America
or any political subdivision thereof. Agent may consult with foreign counsel, at the Company’s expense, to resolve any foreign law issues that may arise as a result of the Company or any other party being subject to the laws or regulations of
any foreign jurisdiction. 
  

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 19. Miscellaneous.  
 (a) This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to conflict of laws rules or principles. 
 (b) No provision of this Agreement may be amended, modified or waived, except in a written document signed by both parties. 

(c) In the event that any claim of inconsistency between this Agreement and the terms of the Plan arise, the terms of the Plan shall
control, except with respect to the duties, liabilities and rights, including compensation and indemnification of Agent as exchange agent, which shall be controlled by the terms of this Agreement. 
 (d) If any provision of this Agreement shall be held illegal, invalid, or unenforceable by any court, this Agreement shall be construed
and enforced as if such provision had not been contained herein and shall be deemed binding and enforceable to the full extent permitted by applicable law. 
 (e) This Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the respective successors and assigns of the parties hereto. 
 (f) This Agreement may not be assigned, or otherwise transferred, in whole or in part, by either party without the prior written consent
of the other party, which the other party will not unreasonably withhold, condition or delay; provided that (i) consent is not required for an assignment to an affiliate of Agent and (ii) any reorganization, merger, consolidation, sale of
assets or other form of business combination by Agent shall not be deemed to constitute an assignment of this Agreement. Any attempted assignment in violation of the foregoing will be void. 
 (g) Sections 8, 9, 10, 14, 15, 18 and 19 hereof shall survive termination of this Agreement. 
 (h) Nothing in this Agreement shall be construed to give any person or entity other than Agent and the Company any legal or equitable
right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of Agent and the Company. 
 (i) The headings contained in this Agreement are for the purposes of convenience only and are not intended to define or limit the contents of this Agreement. 
 (j) This Agreement may be executed manually in any number of counterparts, each of which such counterparts, when so executed and
delivered, shall be deemed an original, and all such counterparts when taken together shall constitute one and the same original instrument. 
  

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 (k) This Agreement constitutes the entire understanding of the parties with respect to
the subject matter hereof and supersedes all prior written or oral communications, understandings, and agreements with respect to the subject matter of this Agreement. The parties acknowledge that the Exhibits hereto are an integral part of this
Agreement. 
 (l) The Company acknowledges that Agent is subject to the customer identification program (“Customer
Identification Program”) requirements under the USA PATRIOT Act and its implementing regulations, and that Agent must obtain, verify and record information that allows Agent to identify the Company. Accordingly, prior to accepting an
appointment hereunder, Agent may request information from the Company that will help Agent to identify the Company, including without limitation the Company’s physical address, tax identification number, organizational documents, certificate of
good standing, license to do business, or any other information that Agent deems necessary. The Company agrees that Agent cannot accept an appointment hereunder unless and until Agent verifies the Company’s identity in accordance with the
Customer Identification Program requirements. 
 [The remainder of this page has been intentionally left blank. Signature page follows.] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly
authorized officers as of the day and year above written. 
  

			
	ENERGY PARTNERS, LTD.
		
	 By:
	 	 /s/ John H. Peper

	 Name:
	 	 John. H. Peper

	 Title:
	 	 Executive Vice President, General Counsel and Corporate Secretary

	
	MELLON INVESTOR SERVICES LLC
		
	 By:
	 	 /s/ E. Kelly Gallagher

	 Name:
	 	 E. Kelly Gallagher

	 Title:
	 	 Relationship Manager

 [Signature Page to Exchange Agreement] 

 EXHIBIT A 
 SCHEDULE OF FEES 
  

							
	 Administration and acceptance fee
	  			  	$	7,500.00
			
	 Annual Facility Fee
	  			  	$	1,500.00
	 Payable at the start of the Billing Year
	  			  		
			
	 Processing of Accounts, each
	  			  	$	15.00
			
	 Examining & Canceling Certificates (per Certificate)
	  			  	 	Included
			
	 Items Requiring Additional Handling, additional each occurrence
	  			  	$	20.00
	 Including Legal Items, Options, Correspondence, Partials, Defective Items, Window Items, Items requiring back-up withholding, Transfer Requests (per transfer), multiple
checks (per check), Lost Items
	  			  		
			
	 Issue, Deliver and Reconcile Cash-in-lieu Checks, each
	  			  	 	N/A
			
	 Prepare and File Form 1099 (B or D), each
	  			  	 	N/A
	 With Tendering Stockholder and Appropriate Government Agencies
	  			  		
			
	 Maintenance of Unexchanged Shareholder File
	  			  	 	Included
	 Per Unexchanged Account, Per Annum after first year
	  			  		
			
	 Fractional Calculation, each account
	  			  	 	N/A
			
	 Office of Foreign Asset Control (OFAC) Reporting, each holder
	  			  	 	Included
			
	 Minimum First Year Fee, Exclusive of Special Services and Out of Pocket
	  			  	$	10,000.00
			
	 Special Services
	  			  		
	 * Special Tax Reporting
	  	$	3.00/account	  		
	 * Follow-up Mailings
	  	$	3.00/account	  		
	 * Internal Attorney Review of Agreement (if there are any variations on the standard language)
	  	$	1,500.00	  		
	 * Manual File Conversion (Not Standard Layout)
	  	$	1,500.00	  		
	 * Additional Special Services
	  	 	By Appraisal	  		
			
	 Out of Pocket Expenses
	  	 	Additional	  		
			
	 Including Postage, Printing, Stationery,
	  			  		
	 Overtime, Transportation, Imprinting, Microfilming,
	  			  		
	 Mailing etc. 1
	  			  		

  

	1
	 Typesetting vendors charge a rush premium if less than 48 hours is given. Printing vendors charge a rush premium if less than 5 business days is given.Form of Stock Option Agreement under 2009 LTIP

 EXHIBIT 10.5 
 ENERGY PARTNERS, LTD. 
 2009 LONG TERM INCENTIVE PLAN 
 OPTION AWARD AGREEMENT 
 1. Grant of Stock Option. Energy Partners, Ltd., a Delaware corporation (the “Corporation”), pursuant to the Energy Partners, Ltd. 2009 Long Term Incentive Plan (the “Plan”), hereby grants to the participant named
below an option (the “Stock Option”) to purchase shares of its Common Stock, on the terms set forth herein (this entire agreement being the “Option Award Agreement”): 
  

			
	 Participant:
	  	 [                    ] (the
“Participant”)

		
	 Date of Grant:
	  	 [                    ]

		
	 Number of shares:
	  	 [                    ] shares of Common
Stock

		
	 Exercise price:
	  	 [$            ] per share (the “Option Price”)

		
	 Type of option:
	  	 Nonstatutory Stock Option

 2. Exercise and Expiration Dates. 
 (a) Unless the Stock Option vests earlier in accordance with Section 4 or 7, the Stock Option will vest and become exercisable in
accordance with the following schedule: 
 (i)     % of the shares will vest on and after
the one-year anniversary of the Date of Grant, 
 (ii)     % of the shares will vest on
and after the two-year anniversary of the Date of Grant, 
 (iii)     % of the shares will
vest on and after the three-year anniversary of the Date of Grant, and 
 (iv)     % of
the shares will vest on and after the four-year anniversary of the Date of Grant; 
 subject to the Participant’s remaining continuously
employed by the Corporation or a Subsidiary up to and through each such vesting date. 
 (b) The Stock Option will expire on,
and may not be exercised after, the 10-year anniversary of the Date of Grant. 

 3. Payment of Exercise Price. The exercise price for shares purchased by the
Participant may be paid (a) in cash or by check acceptable to the Corporation, (b) by the actual or constructive transfer to the Corporation of shares of Common Stock owned by the Participant for at least six months (or, with the consent
of the Committee, for less than six months) having an aggregate Market Value Per Share at the date of exercise equal to the aggregate Option Price, (c) with the consent of the Committee, by authorizing the Corporation to withhold a number of
shares of Common Stock having an aggregate Market Value Per Share on the date of exercise equal to the aggregate Option Price, or (d) by a combination of the foregoing methods; provided, however, that the payment methods described
in clauses (b), (c) and (d) will not be available at any time the Corporation is prohibited from purchasing or acquiring such shares of Common Stock. The Participant may also make arrangements satisfactory to the Corporation for the
deferred payment of the aggregate Option Price from the proceeds of a sale through a broker of some or all of the shares to which such exercise relates. 
 4. Termination of Employment. If the Participant’s employment is terminated by the Corporation or a Subsidiary for Cause, the Stock Option will expire immediately and the unexercised portion thereof will
be forfeited on the date of the Participant’s termination of employment. If the Participant voluntarily terminates employment for Good Reason, the nonvested portion of the Stock Option will automatically and immediately vest and the Stock
Option will be exercisable by the Participant in whole or in part. For purposes of this Agreement, “Cause” and “Good Reason” are as defined in the employment agreement between the Participant and the Corporation or a Subsidiary
(the “Employment Agreement”) or, if no Employment Agreement was entered into, “Cause” means (a) the Participant’s indictment or conviction of (or plea of guilty or nolo contendre to) an offense of fraud or moral
turpitude or any other offense that adversely affects the Corporation’s prospects or reputation or the Participant’s ability to perform his or her obligations or duties, (b) the Participant’s intentional and continuing failure to
substantially perform his or her duties (other than due to incapacity caused by physical or mental illness), (c) the Participant’s willful or repeated misconduct, incompetence or gross negligence in the performance of his or her duties, or
any act of misappropriation, embezzlement, intentional fraud or similar conduct involving the Corporation or any of its affiliates, (d) the Participant’s breach of any reasonable written policy established by the Corporation, which breach,
if curable, is not cured within 15 days after written notice thereof is delivered to the Participant, (e) the Participant’s commission of intentional wrongful damage to the property of the Corporation or a Subsidiary or the intentional
wrongful disclosure of secret processes or confidential information of the Corporation or a Subsidiary, (f) the Participant’s engaging in illegal drug use or alcohol abuse on company premises or while carrying out company business, or
(g) the Participant’s engaging in conduct exposing the Corporation to actual or potential liability for unlawful discrimination toward a customer, employee, contractor or potential employee, and “Good Reason” means (x) a
substantial and adverse diminution in the Participant’s duties or reporting responsibilities, (y) the failure of the Corporation to pay or cause to be paid the Participant’s salary or other amounts due, which failure to pay is not
cured within 20 days after written notice of such failure to pay is delivered to the Corporation by the Participant, or (z) a relocation of the Participant’s principal place of employment by more than 75 miles from the Corporation’s
current location (except for reasonable amounts of required travel by the Participant on the Corporation’s business), if the Corporation does not reimburse the Participant’s reasonable and actual relocation expenses. 
  

 2 

 If the Participant’s employment terminates by reason of permanent disability or
death, the vested portion of the Stock Option will expire 180 days after the date the Participant terminates employment, and the nonvested portion of the Stock Option will be forfeited upon the Participant’s termination of employment. If the
Participant’s employment terminates for any reason other than those previously described in this Section 4, then the vested portion of the Stock Option will expire 90 days after the date of the Participant’s termination of employment,
and the nonvested portion of the Stock Option will be forfeited upon the Participant’s termination of employment. 
 5.
Corporation’s Repurchase Rights. 
 (a) Subject to the terms of this Section 5, upon the occurrence of
(i) any Repurchase Event or (ii) any material violation by the Participant of any of the confidentiality, non-competition, non-disparagement or non-solicitation covenants contained in the Employment Agreement (if any) that is not cured
within 10 days of the date that the Corporation provides written notice to the Participant of the violation, the Corporation will have the right to repurchase all or any shares of Common Stock issued to the Participant upon the exercise of the Stock
Option (the “Shares”). The repurchase right may be exercised by the Corporation at any time following the date of such Repurchase Event or uncured violation by giving the holder of the Shares written notice of the Corporation’s
intention to exercise such right[; provided, however, that the Corporation may not exercise such repurchase right until the holder has held the Shares for at least 183 days]. The purchase price per share will be the Market Value Per Share on
the date of such notice; provided, however, that if the Participant’s employment with the Corporation is terminated for Cause or the Participant violates the Employment Agreement, the purchase price per share will be the lesser of the
Market Value Per Share or the Option Price per share paid by the Participant. 
 (b) Within 30 days following the date of
delivery by the Corporation of a written notice of its election to exercise its repurchase right pursuant to this Section 5, the Corporation will pay to the Participant or other holder of the Shares the full amount of the purchase price in
cash, and the Participant or holder will deliver to the Corporation the stock certificate or certificates representing the Shares being purchased, duly endorsed and free and clear of any and all liens, charges and encumbrances. 
 (c) If any change in the Common Stock of the Corporation occurs as a result of any transaction or event described in Paragraph 8 of
the Plan, the restrictions contained in this Section 5 will apply with equal force to additional and/or substitute securities, if any, received by the Participant in exchange for, or by virtue of his or her ownership of, Shares. 
 (d) If the Participant or holder fails or refuses to deliver on a timely basis duly endorsed certificates representing Shares purchased
by the Corporation pursuant to this Section 5, the Corporation will have the right to deposit the purchase price for such Shares in a special account with any bank or trust company, giving notice of such deposit to the Participant or holder,
whereupon (i) such Shares will be deemed to have been purchased by the Corporation and (ii) the Corporation shall make an appropriate notation on its books and records reflecting such repurchase and may place stop-transfer or similar
instructions with respect to such Shares with any transfer agent for the Common Stock. All such monies will be held by the bank or trust 

  

 3 

 
company for the benefit of the Participant or holder. All monies deposited with the bank or trust company but remaining unclaimed for two years after the
date of deposit will be repaid by the bank or trust company to the Corporation on demand and become general funds of the Corporation, and the Participant or holder will thereafter look only to the Corporation for payment. 
 (e) The repurchase right of the Corporation set forth above will remain in effect until the closing of a Public Offering, and will be
binding upon any transferee of Shares. The Corporation may place a legend on any certificate for Shares delivered to the Participant reflecting the repurchase rights provided in the Plan and hereunder. 
 6. Transferability. Except as otherwise determined by the Committee, no Stock Option will be transferable by the Participant other
than by will or the laws of descent and distribution. No Stock Option will be exercisable during the Participant’s lifetime by any person other than the Participant or the Participant’s guardian or legal representative. 
 7. Change of Control. Notwithstanding the exercise dates and vesting schedule set forth in this Option Award Agreement, upon a
Change of Control while the Participant is employed by the Corporation, the nonvested portion of the Stock Option will automatically and immediately vest and the Stock Option will be exercisable by the Participant in whole or in part thereafter. In
no event will the Stock Option be exercisable after the expiration date described herein. 
 For purposes of this Option Award Agreement,
“Change of Control” means the occurrence of any of the following events: 
 (a) the Corporation is merged,
consolidated or reorganized into or with another corporation or other legal person, and as a result of such merger, consolidation or reorganization, the holders of the then-outstanding securities entitled to vote generally in the election of
directors (“Voting Stock”) of the Corporation immediately prior to such merger, consolidation or reorganization hold or beneficially own less than 51% of the combined voting power of the Voting Stock of the surviving corporation or other
legal person (or the ultimate parent entity of such surviving corporation or other legal person to the extent such surviving corporation or other legal person is a wholly owned subsidiary, directly or indirectly, of such parent entity) immediately
following such merger, consolidation or reorganization; 
 (b) the Corporation sells or otherwise transfers all or
substantially all of its assets to another corporation or other legal person, and as a result of such sale or transfer, the holders of the Voting Stock of the Corporation immediately prior to such sale or transfer hold or beneficially own less than
51% of the combined voting power of the Voting Stock of the purchasing or transferee corporation or other legal person (or the ultimate parent entity of such purchasing or transferee corporation or other legal person to the extent such purchasing or
transferee corporation or other legal person is a wholly owned subsidiary, directly or indirectly, of such parent entity) as a result of such sale or transfer; or 
 (c) the controlling stockholders of the Corporation sell or otherwise transfer, directly or indirectly, 51% or more of the Voting Stock of the Corporation to any person (as that 

  

 4 

 
term is used in Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) who becomes
the beneficial owner (as that term is defined under Rule 13d-3 (or any successor rule or regulation promulgated under the Exchange Act)) of such Voting Stock. 
 8. Other Terms and Conditions. The Participant will not have any of the rights of a stockholder of the Corporation with respect to the shares of Common Stock subject to this Stock Option
except to the extent that one or more certificates representing such shares of Common Stock have been delivered to the Participant, or the Participant has been determined to be a stockholder of record by the Corporation’s transfer agent, upon
due exercise of this Stock Option. Further, nothing herein will confer upon the Participant any right to become or remain in the service or employ of the Corporation or any Subsidiary, nor limit or affect in any manner the right of the Corporation
or any Subsidiary to terminate the service or employment or adjust the compensation of the Participant. 
 Any amendment to
the Plan will be deemed to be an amendment to this Option Award Agreement to the extent that the amendment is applicable hereto; provided, however, that no amendment will adversely affect the rights of the Participant under this Option Award
Agreement without the Participant’s consent. 
 This Option Award Agreement is subject to all other terms and conditions
of the Plan. Capitalized terms used herein but not defined will have the meanings assigned to those terms in the Plan. Copies of the Plan may be obtained from the Corporation. By executing this Option Award Agreement, the Participant agrees to the
terms set forth above and agrees to be bound by the provisions of the Plan. 
 [SIGNATURE PAGE FOLLOWS] 
  

 5 

 This Option Award Agreement is executed by the Corporation on this
             day of             , 2009, effective as of the date hereof. 
  

			
	 ENERGY PARTNERS, LTD.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 The undersigned Participant hereby acknowledges receipt of an executed
original of this agreement and accepts the award granted hereunder, subject to the terms and conditions of the Plan and the terms and conditions hereinabove set forth. 
  

			
	  

	     [Name of Participant]

		
	 Date:
	 	  

 [SIGNATURE PAGE TO [NAME
OF PARTICIPANT] OPTION AWARD AGREEMENT]

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